China-Georgia Free Trade Pact Comes Into Play
Liao Shumin
DATE:  Jan 02 2018
/ SOURCE:  Yicai
China-Georgia Free Trade Pact Comes Into Play China-Georgia Free Trade Pact Comes Into Play

(Yicai Global) Jan. 2 -- The free trade agreement between China and Georgia came into effect yesterday, the Chinese Ministry of Commerce said online.

The pair penned a deal in May, 2017 after beginning discussions in December 2015. It is the first free trade pact between China and a Eurasian county and the first that China has closed since introducing its Belt and Road Initiative.

Often compared with the ancient Silk Road, the One Belt, One Road initiative was proposed by Chinese President Xi Jinping in 2013. It is a grand 30- to 40-year plan for a vast infrastructure and trade route boasting a major network of railroads, highways, ports and pipelines embracing the continents of Asia, Europe and Africa.

The agreement will see Georgia lift tariffs on 96.5 percent of Chinese imports, making up 99.6 percent of the value. In return, China will impose zero tariffs on 93.9 percent of Georgian imports, making up 93.8 percent of their value. Some 90.9 percent of Georgian products benefit from the deal immediately, while the remainder will see import tax reduced to zero over the next five years.

The pact set out provisions for environmental protection, competition, intellectual property, investment and e-commerce. Both countries will also open up their service markets to each other in line with their commitments to the World Trade Organization.

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Keywords:   Free Trade Agreement,FTA,Georgia