TRADE
Georgia’s foreign trade has been growing rapidly since 2003 as a result of aggressive policy reforms to make cross-border trade easier and less expensive. In the first half of 2007, total trade turnover increased by 37.1%, reaching $2.7 billion USD, with exports increasing by 20.1% and imports by 42%. For the last few years, there has also been an upward trend in the number of Georgia’s trading partners, which now totals 132 countries.
Source: Department for Statistics of the Ministry of Economic Development of Georgia
In Q1 of 2007, trade accounted for the highest share of GDP, totaling 12.8% and representing a growth of 13.9% growth over the previous year 2006 Q1, which placed 4th for the highest growth of rates registered. This growth may be attributed to increased consumption as well as the crackdown on illegal trade and counterfeiting. Since 2004 there has been a consolidated effort by the government to crackdown on counterfeit trade, leading to reduced smuggling and sale of counterfeit goods and products.
Retail trade is highly developed in Georgia. In 2005 retail trade accounted for 67% of trade through Georgia, while the other 33% belonged to wholesale trade. Retail trade is chiefly conducted through bazaar retail outlets. In 2006 retail trade turnover remained USD 1,194.3 million, individual entrepreneurs engaged in trade sold USD 242.7 million worth consumer goods, 79.7% of sale was done through legal entities. According to a study carried out by the State Department of Statistics of Georgia, in October 2007, trade turnover of economic entities operating on Georgia’s markets and bazaars represents USD 172.8 million, retail trade remained 94% of sales.
Georgia offers a number of favorable trade regimes that make it an attractive production platform to serve other markets.
- MFN Tariffs with WTO Members: Most of Georgia’s trade partners are members of the World Trade Organization (WTO). Trade relations with them are based on Most Favored Nation (MFN) trade status, which provides lower tariffs for WTO members.
- Preferential Tariffs with the USA, Canada, Switzerland and Japan: Georgia benefits from a Generalized System of Preferences (GSP) when trading with the USA, Canada, Switzerland and Japan. Accordingly, lower tariffs are applied on goods exported from Georgia to these countries.
- GSP Plus with the EU and Turkey: Georgia is one of the only two CIS beneficiaries (besides Moldova) of the new EU GSP Plus trading regime and one of only 15 beneficiaries worldwide. GSP Plus status allows Georgia to export 7200 products to the 495 million EU market duty free. From January 2006, Georgia has also enjoyed GSP Plus status with Turkey.
- Free Trade with CIS Countries: Georgia has a free trade regime with CIS countries, resulting in duty free trade of goods and services. CIS countries account for 39% of Georgia’s foreign trade turn-over, and 40% of Georgia’s exports are to these markets.
Source: Department for Statistics of the Ministry of Economic Development of Georgia
Georgia also has an extensive and growing double taxation treaty network:
- Georgia has entered into double taxation treaties with the following countries: Armenia, Austria, Azerbaijan, Bulgaria, Belgium, China, Great Britain, Greece, Iran, Italy, Kazakhstan, Latvia, Lithuania, Netherlands, Poland, Romania, Turkmenistan, Ukraine and Uzbekistan.
- Georgia has signed and ratified double taxation treaties (but they have not been entered into force yet) with the Czech Republic, Germany, and Russia.
- Treaty negotiations are underway with Belarus, Cyprus, Denmark, Estonia, France, Israel, Kyrgyzstan, Luxemburg, Malta, Moldova, Spain, Sweden, Tajikistan and Turkey.
- Georgia’s Tax Code offers unilateral protection against double taxation. The tax paid on income or profit received in countries with which Georgia does not have a double taxation agreement may be credited while paying tax in Georgia (up to the amount of the tax assessed in Georgia).
Source: Department for Statistics of the Ministry of Economic Development of Georgia
Amcham and/or EUGBC Members
Agrocorp Caucasia Ltd
Tel: +995 (32) 752 532
Agrocorp Georgia Ltd. is established to serve livestock need in high quality feeds, feed ingredients and other supplies. Company's goal is to support development of Georgia's livestock farming by establishing availability of high quality animal feeds at affordable prices. 
Air BP
Tel: +995 (32) 947 726
Website: http://www.bp.com
Air BP as part of BP/Amoco Group started up the first refueling operations at Tbilisi Airport in May 1998. The company engages in selling aviation fuel to airlines and casual flights through Fueling Services Company LLC, a joint venture between Air BP and Avia Fuel Service LTD. 
British American Tobacco
Tel: +995 (32) 537 501
Website: http://www.bat.com
BAT markets and distributes a number of well-known cigarette brands.
CanArgo 
Tel: +995 (32) 332 527
Website: http://www.canargo.com
CanArgo Energy Corporation ("CanArgo") is an international oil and gas exploration and production company operating in the exciting oil and gas provinces of the former Soviet Union. CanArgo is currently focused on Georgia in the Caucasus where it has a large portfolio of attractive exploration, appraisal and development projects in the onshore Kura Basin in the east central part of the country.
Greco Group
Tel: +995 (32) 393 138
Founded by California based Southern Counties Oil Co in 1993, Greco is a pioneer American investor in Georgia and one of the founding members of AMCHAM Georgia. GRECO GROUP through its division companies has diversified investment portfolio in the sectors of Petroleum product distribution, Commercial real estate, and the Transportation. GRECO OIL is an official distributor of ConocoPhillips Lubricants, GRECO TRANS is a distributor of Petroleum products and also involved in Transportation sector through Georgian Truck Center- GTC, and GRECO CENTER is the owner and operator of commercial real estate projects in Georgia. 
Nestle Georgia & Armenia
Tel: +995 (32) 923379
A representative office registered in November 1998 to develop the business of Nestle in Georgia and Armenia. The representation functions as a consultant to Nestle operating companies based outside the Caucasus. Consultation covers imports through local importers of Nestle products into Georgia as well as exports through the same importing companies of agricultural commodities out of Georgia and Armenia. 
Oriflame Georgia
Tel: +995 (32) 252 467
Website: http://www.oriflame.ge
Oriflame is a Swedish cosmetics company with head office in Brussels, Belgium. The company sells high-quality natural skincare and cosmetic products through an independent sales force, outside the traditional retails environment. "Oriflame Georgia Ltd" was founded in 2000. The company is responsible for cosmetics sales and "Know-How" distribution on the territories of Georgia and Armenia.
Philip Morris
Tel: +995 (32) 439 001
Website: http://www.philipmorris.com
Representative office of Philip Morris Management Services B.V. was registered in Georgia in 1996 and is primarily involved in tobacco marketing and advertising. 
Procter & Gamble
Tel: +995 (32) 975 421
Website: http://www.pg.com
Tbilisi office of Procter&Gamble manages a distribution network for P&G hygiene products through its Arti Ltd.
STEMCOR
Website: http://www.stemcor.com
STEMCOR's principal business is the international distribution of steel and raw materials. Stemcor was founded in 1951 and the knowledge base and global infrastructure we have built up since then have helped to make us one of the leading providers of marketing, finance and logistics services to the steel industry.
Inter Sales Company N.V.
Website: http://www.gulie.be and http://www.amnorman.be
OMG
Tel: (+994 12) 598 8889
OMG International comprises several companies engaged in official wholesale and retail distribution of leading global mobile communication products and services, GSM and DECT devices, mobile content, personal care, professional cosmetics, laundry detergents, and household cleaning consumer product brands in Azerbaijan and Georgia. "Telefon Georgia" is the official distributor of Sony Ericsson mobile phones and has a multi-brand retail network "Telefoni" and an authorized service center "GSM Service" in Tbilisi.
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Agritechnics Group
