JUNE 1999
Table of Contents
Geography and Demographics
Resource Base
Energy
Economic Issues
Privatization
Foreign Trade
WTO Accession
Importing Into Georgia
Exporting From Georgia
Foreign Investment Climate
Taxation Policies
Corruption
Currency Considerations
Banking in Georgia
Travel Information
Useful Contacts and Addresses
Selected Georgian Government Leaders
Status of U.S.-Georgian Commercial Agreements
Trade and Investment Profile
Fact Sheet
Updated: June 1999
Republic of Georgia Commercial Overview
Introduction
After significant unrest and decline in the early 1990s, Georgia has made tremendous progress
toward achieving political and economic stability over the past four years. President Eduard
Shevardnadze's reelection in November 1995, together with his Citizens Union party's gaining
power in Parliament, reaffirmed the solid reformist, democratic character of Georgian politics.
Separatist conflicts in Abkhazia and South Ossetia have been dormant for more than three years,
with Russian peacekeepers deployed in both regions and a UN Observer Mission operating in
Abkhazia.
Economic progress is further evidence of the country's commitment to reform policies, developed
in cooperation with the IMF and the World Bank. On December 7, 1998, Georgian authorities halted
intervention to support the lari. In the beginning of October 1998, the value of the lari against the
dollar was 1.37. As of mid-March, 1999, the rate was 2.22 lari to the dollar. The inflation rate in
1998 was 10.6 percent.
Over 1996 and 1997, Georgia had the fastest growing economy in the NIS, with GDP growth over
10 percent for 1996 and 11.3 percent in 1997. GDP growth in the third quarter of 1998 was 7.3
percent. The Government's most recent statistical report puts the first half of 1998's GDP at 8.9
percent higher in real terms than in the first half of 1997.
Geography and Demographics
Georgia has an area of approximately 70,000 square kilometers, slightly larger than South Carolina,
with a population of 5.2 million. The climate is subtropical, with warm summers and mild winters.
The High Caucasus Mountain Range forms the northern border with Russia, while the southern
boundaries with Turkey, Armenia and the eastern boundary with Azerbaijan are formed along the
summit of the Lesser Caucasus Mountains. The western boundary is the Black Sea, with several
ports -- Batumi, Supsa, and Poti prominent among them. Melting snow in the spring and summer
rainfall feed numerous rivers flowing into the valleys and provide abundant water for irrigation and
hydroelectric power. The lowlands of the West are subtropical and are the centers of tea and citrus
production, while grapes and deciduous fruits grow abundantly in the uplands.
Approximately 56 percent of Georgia's population reside in urban areas, of which about one-third
live in Tbilisi, the capital. The ethnic composition is roughly 70 percent Georgian, 8 percent
Armenian, 6 percent Russian, and 6 percent Azeri (1989 census). Seventy-five percent of the
population is Orthodox (65 percent Georgian Orthodox, 10 percent Russian Orthodox), 11 percent
Muslim, and 8 percent Armenian Apostolic. The nationwide literacy rate is 99 percent. The national
language is Georgian although Russian can be used in almost all situations. English is now the
favored language of study.
By October 1998, the number of unemployed people registered in employment service centers was
82,000. With an official unemployment rate at 4.3 percent. Unemployment and underemployment
especially affect youth, women, and specialists with university or technical education who were
working in state-supported sectors. Companies can benefit from the high level of education of the
labor force, one of the highest in the former Soviet Union. During the Soviet period, a number of
defense-related enterprises operated in Georgia and employed a skilled labor force of 90,000 people
including 10,000 scientists.
Resource Base
Due to its location on the Black Sea and its warm climate, Georgia is particularly wellsuited for the
development of agriculture, tourism and transport.
With a long growing season and some areas of subtropical climate, citrus and a variety of deciduous
fruits, vegetables and vine crops grow well along with tea, cereals, sunflower and a variety of field
crops. Much of the milk from cattle and sheep is used to make cheese. With the variety of climates,
almost any crop can be raised, giving Georgia one of the most diverse agricultural bases in the
former Soviet Union. Although agriculture contributes 60-80 percent of GDP, and 51 percent of the
labor force, the lack of modern equipment means that yields are still far below their production
potential.
Georgia's rich history and culture, as well as its mild climate and splendid landscape will be the
leading factors for a revival in tourism in the near future. Several years ago, Georgia hosted millions
of tourists each year attracted by many health spas in the mountains and resorts along the Black Sea
coast, all tempered by an excellent climate. Unfortunately the 1992 civil war severely reduced the
tourist flow to Georgia. Nevertheless, four years later, the tourism industry is set renewing itself.
The World Bank provided US$5 million for the restoration of Georgian cultural monuments, to help
create favorable conditions for the development of tourism.
Georgia's tourism infrastructure (including more than 100 recreation resorts) has not been renovated
for the last 10-15 years, thus, experts believe that it will take a large amount of investment to
renovate the facilities. Several years ago an Austrian company ABV built a ski resort in Gudauri that
meets international standards. The same company plans to renovate a mountain sports complex in
Bakuriani, which could be the center of winter tourism in the South Caucasus.
The country is famous for its wines and mineral waters. McDonalds opened a restaurant in Tbilisi
in 1998. And for tourists seeking ancient culture, Georgia is very interesting with its historical
churches, monasteries and museums. There are over 12,000 historic sites and 150 museums. Some
of these sites date back to 400 BC. Several international airlines such as: British Airlines, Turkish
Airlines, Austrian Airlines and Swiss Air have regular flights to Georgia.
Due to its strategic geographical position between Europe and Central Asia, Georgia remains the
gateway for land transportation across the Caucasus, using its ports as bridges; its location on the
Black Sea is one of the country's foremost natural assets. Some overland routes are problematic,
but Georgia is publicly committed to building a functional trans-Georgia transportation infrastructure
to its Caucasus and Central Asian neighbors.
The country's busiest seaport, Poti, has a shipping capacity of 5-6 million tons a year, and is used
for most container traffic entering Georgia by sea. This port should develop quickly as more traffic
comes through the city, and it is being modernized to handle heavier traffic. The southernmost port,
Batumi, has a capacity of 4-5 million tons, and was designed for bulk traffic. It has dealt primarily
with humanitarian grain imports.
A pipeline to link with the Black Sea port at Supsa, just south of Poti was completed in April 1999.
A tanker full of Caspian oil headed to Italy via Ukraine left Supsa, on April 17, 1999, thus
inaugurating the export pipeline for early Caspian oil along the western route originating in the
Azerbaijani city of Baku.
The repair and completion of the pipeline, and the building of the Supsa terminal cost $565 million.
It is the second of two lines planned to carry more than five million tons of oil a year from
Azerbaijan and its main foreign oil consortium in the next few years. The pipeline is 827 km long,
772 km of it are made from new steel pipes with a 530 mm diameter. The route has 6 pumping
stations. The pipe's can carry up to 105,000 barrels of oil per day. At this time, 50,000 barrels of
oil are passing through it.
On the same day, a new rail ferry was opened connecting Poti, Georgia to Odessa, Ukraine. The two
events together mark the beginning of the revitalization of the silk route (the ancient spice trading
route that caravans traveled through the Caspian and Caucasus regions to reach Europe) and
highlights the viability of an east-west transit corridor from the Caspian.
The major airport in Georgia is in Tbilisi. Commercial flights connect daily between Tbilisi and
other cities of the NIS. Several times a week, flights run between Tbilisi and Frankfurt, Vienna,
London and Istanbul. Although the airport still experiences multiple problems with scheduling and
organization, an EBRD air traffic control project was completed in 1996. In July, 1997, Northrop
Grumman announced a major sale of air traffic control equipment financed through a new Project
Incentive Agreement with the Export Import Bank of the United States.
Energy
Georgia has some domestic sources of energy, but remains highly dependent upon imports to meet
its domestic energy demand. The network of well-developed mountain rivers produces significant
hydroelectic power in summer and spring; this source has particular long-term development
potential. Currently, however, Georgia's electricity generating capacity is largely dependent on two
electric plants: the Gardabani Thermal Power Plant near Tbilisi, and one near Jvari.
The majority of Georgia's power comes from external sources. Russia exports electricity, although
the Kavkazioni line running through Abkhazia is periodically disrupted. Azerbaijan and Turkey
export fuel oil, and Turkmenistan supplies natural gas. Georgia still maintains a large debt to foreign
governments for power, with external debt for post-independence power deliveries over US$1
billion. Debts to Russia, Turkmenistan and Iran have already been restructured.
In 1996, 60 percent of payments to the Georgian electric sector were paid, up from the 18-20 percent
collected in 1995. Sakenergo began cutting off service to some nonpaying customers, but this is
difficult in a country still dependent on state welfare. The government has charged all regional and
local officials to prioritize the collection of electricity bills, but this seems like a fruitless effort.
Segmentation and privatization of Sakenergo offers the only hope of recovery in the power sector,
and of depoliticizing electricity issues. Both the EBRD and World Bank are supporting projects for
privatization and modernization for Sakenergo.
Most of Georgia's hydro and thermal generation units have become joint stock companies with 100
percent of the shares owned and operated by Sakenergy-Generation. The distribution enterprises
also have been changed into joint stock companies with 100 percent of the stock controlled by the
local municipalities.
The government is privatizing electricity distribution and generation enterprises. The World Bank
financed the services of Merrill Lynch, by tender, to implement the privatization plan. The first
enterprise in this sector to be privatized was Telasi, the electricity distribution company serving
Tbilisi. Bids were received in October and a U.S. corporation, AES, won the tender put out by the
Ministry of State Property Management to acquire 75 percent of Telasi at a price of US$25.5 million
The company will pay US$10 million of Telasi's debt, and it is committed to investing US$83.8
million within the next 10 years and provide consumers with 24-hour electricity. Telasi has about
370,000 consumers.
Economic Issues
Georgia has made great strides in creating a favorable environment for attracting foreign investors.
The government has adopted key legislation needed to create a stable and predictable legal and
institutional system.
Privatization
Privatization is one of the main elements of Georgian macroeconomic reforms. Merrill Lynch
International, together with Kantor Consulting and KPMG, were selected as financial advisors to the
government in the privatization process. As of January 1, 1998, 10,515 small enterprises out of
10,656 originally targeted for privatization had been privatized, or eighty-nine percent. Among
medium-sized and large enterprises, it is estimated that 1,292, or 80 percent, have been privatized.
The state's share in privatized enterprises varies considerable, but it is never more than 49 percent.
TACIS (the European Union's economic development organization) economic reports show that
social services, trade and transport are the sectors where most of medium and large enterprises have
been privatized.
Foreign investors wishing to participate in the privatization of enterprises find no legal restriction,
and as a result, investors from the U.S., Netherlands, Germany, Italy, Iran, Turkey, Korea and other
countries are active in Georgia.
The main privatization law in Georgia is the Law on the Privatization of State-owned Enterprises
in the Republic of Georgia. It was adopted by the parliament on August 9, 1991. As this law is very
general, a large number of subsequent laws exist regulating different aspects of privatization.
The body responsible for privatization in Georgia is the Ministry of State Property Management.
The Minister of State Property Management is Mr. Mikhail Ukleba, formerly Deputy Minister of
Foreign Affairs. He moved into this position in the middle of 1998. This ministry is based in
Tbilisi, but it has offices in each of the 63 regions of Georgia.
Besides the privatization of the Telasi energy distributing company, the Kutaisi Aviation Repairs
privatization tender was successfully completed in 1998. The Russian firm "Aviation" is now the
major shareholder of the plant. A subsidiary of Hyundai Group won the tender for a 99 percent
shareholding in the Poti Shipbuilding plant, for US$101,000, with an obligation to invest US$9
million to enable the plant to produce small and medium-size vessels. Telecommunications, the
railway, the airlines, and the healthcare sectors are slated for privatization in 1999.
Foreign Trade
From January-September 1998, total foreign trade amounted to US$890.8 million. Exports stood
at US$143.9 million total, while imports were US$746.8 million. The trade deficit with NIS
countries accounts for 19.1 percent of the total deficit. Foreign trade with NIS countries decreased
by 17 percent, while trade with the rest of the world increased by 14.4 percent in 1997. Russia
remains Georgia's major trading partner, but its share of total trade has declined since 1997.
Georgia's main export commodity for the period January-September 1998 was ferrous manganum,
which accounted for 9.88 percent of total exports. Other major export products are ferrous metals,
nitrogen fertilizers, wine, and crude oil. Reportedly, re-export constituted 58 percent of Georgia's
total oil exports, indicating Georgia's role as a transit country. Oil and oil products, cars, medicines,
natural gas and cereals dominate Georgian imports.
WTO Accession
In March 1998, the first meeting of the working group on Georgia's accession to the World Trade
Organization (WTO) agreed to a preliminary plan of action under which it might be possible for
Georgia to accede to the WTO in 1999. In October 1998, a second working group concluded
negotiations over trade in services. Matters still under consideration include tariffs on some
agricultural products strengthening the legislative framework for trademarks, the protection of
intellectual property, and government procurement. However, Georgia's prospects of joining the
WTO in late 1999 look favorable.
Importing into Georgia
Although Georgia's policy of encouraging imports has meant few established barriers to U.S.
products, it maintains import licenses on a number of goods whose unrestricted sale and use could
be considered dangerous, including some medicines, medical equipment, chemicals, industrial
vestiges, drugs, weapons, and ammunition. Obtaining the necessary licenses does not appear to pose
substantial difficulties. The licenses may be obtained through the Ministry of Foreign Economic
Relations. The effect of any Georgian barrier on US trade is minimal.
Import duties on most goods are set at 12 percent. Under the terms of the customs law that came
into effect January 1, 1997, capital goods, spare parts, and goods intended for manufacturing are
subject to a 5 percent tariff. Goods entering the country are also subject to a 20 percent VAT and
a varying customs fee. Certain goods are also subject to an excise tax.
The import of wheat, baby food, diabetic food products and humanitarian assistance is exempt from
the customs tariff. Selected medicines, items imported under intergovernmental agreements, goods
in transit, and materials for local production are also tax free. Property contributed by foreign
investors in accordance with the firm's articles of incorporation, as well as foreign investors' personal
use of property, are exempt from import duties and customs taxes. Additionally, equipment or
material imported for industrial maintenance are exempt from import duties and customs taxes.
Value added tax (VAT) is required for any (including foreign) company, branch, or representative
located in Georgia (except foreign diplomatic organizations). The VAT applies to manufactured and
purchased goods, (including imported), works and services. If bilateral agreements are in effect, a
special reduced VAT payment or free VAT status can be established for the list of exported/imported
goods, works and services. The VAT on imported goods is collected at Customs together with the
other Custom payments. For more information about the VAT, see the section on taxation
below.
Exporting From Georgia
Under a March 1992 decree on foreign economic relations, most of the former nontariff trade
barriers were eliminated. However, the Georgian Government continues to ban the export of some
items, including precious and semiprecious stones, antiques, art, dairy products, cattle and poultry,
meat and meat products, soda calcium, weapons, leather products, grain, rice, sugar, building bricks,
timber, ferrous and non-ferrous scrap metals. Licensing under quota is permitted for other products,
such as fuels, gas, minerals, food products and cellulose.
In July 1993, a decree on quotas and licensing of import and export items was issued. It applies to
trading with any foreign company, unless otherwise stipulated in intergovernmental agreements.
The four categories of quotas include: governmental, enterprise, regional or autonomous republic
state authorities, and sale by auction. There are two categories of licenses: general (valid for
multiple uses) and one-time use licenses. Payment for the licenses varies between $25 and $300
(equivalent in local currency).
On March 31, 1994, the Cabinet of Ministers passed Decree No. 265 entitled "On Quotas and
Licensing of Import and Export Goods, and Services." The decree applies to trade activity in
Georgia by foreign companies. Export quotas are to be determined according to the total amount
of the enterprise's production.
A license must be purchased in order to sell any commodity on the list below, and includes
commodities prohibited entirely for export or re-export: antiques, art masterpieces, milk and dairy
products, cattle and poultry, meat and meat products, grain, flour, sugar, bricks, wood, lumber, soda
calcium, weapons, wool, scrap metal and leather. Earlier, Decree No. 28 spelled out a similar quota
system for agricultural and food products, but did not state that such quotas applied to private
companies. A company that produces commodities under quota limitations must now negotiate the
terms of export contracts with the Ministry of Trade and Foreign Economic Relations will oversee
that prices declared at export are congruous with actual market prices. It has been reported, however,
that some businesses routinely report contract prices that are lower than actual market prices. This
has allowed those entities to significantly lower tax liability.
Foreign Investment Climate
The Law on Promotion and Guarantees of Investment Activity (passed in November 1996) and the
Law on Entrepreneurship are the two most important pieces of legislation applying to foreign
investment. Both represent major steps forward over previous legislation. New legislation has
eliminated the licensing of foreign investments and replaced it with more automatic registration
procedures. The privatization program offers opportunities for foreign investors.
The legal framework that relates to foreign investment includes the constitution, intergovernmental
agreements, the Law on Promotion and Guarantees of Investment Activity, the Law on
Entrepreneurship, the Lease Law, the Civil Code, and sector laws and relevant presidential decrees.
This legislation, along with the government's economic strategy, aims to establish favorable
conditions for foreign investors. In general, the laws do not discriminate between foreign and local
investors. An exception is agricultural land ownership. The law does not allow foreigners to own
agricultural land, and puts a limit on leases at 49 years.
The laws allow unlimited foreign ownership in some sectors, but sharply limits foreign investment
in infrastructure. Land ownership is banned, but property can be gained through acquisitions,
mergers, takeovers, and greenfield investments. The government must retain a controlling block of
shares in infrastructure (gas and oil pipelines, communications, electric power transmission, roads,
railways, ports, and airports), the issuing of banknotes and securities, treatment of dangerous
diseases in humans and animals, and raw alcohol production. The Law on Promotion and
Guarantees of Investment Activity also prohibits foreign investment in the defense and security
sectors.
The Law on Entrepreneurship, based on a German model, provides a good framework for economic
activity. Some issues with respect to the definition of entrepreneurship, however, need to be
resolved. Moreover, some provisions related to company management by foreign investors are
unclear. The government screens foreign investments through a registration procedure. To register,
foreign investors must contact the Foreign Investment Agency at the Ministry of Trade and Foreign
Economic Relations if the proposed investment exceeds US$100,000 (or its equivalent). Foreign
investors are obliged to supply information regarding additional investments once a year. The stated
purpose of registration is to improve statistics on foreign investments in Georgia. The process
requires submission of the following information:
-- the full name of the investment object,
-- short description of investment activity,
-- copy of the document confirming registration of the enterprise,
-- documents confirming the value of investment and any necessary special permission, and licenses
for selected activities.
Licensing applies to foreign as well as domestic investors in selected areas, the list of which is
subject to change. Currently licenses are required for: gambling, lotteries, casinos, production or
sale of medicines and substances subject to special control; production or sale of arms and
explosives; forestry and natural resources; cellular communication service and establishment of
television and radio channels; banking; insurance; and the issuance of securities, where issuance
constitutes a public distribution. Sector-related ministries issue licenses in their spheres.
Foreign investors must register their own businesses in a court. The Law on Entrepreneurship
stipulates the following requirements for the registration of a company:
-- founder and the firm's principals'
-- names
-- dates and places of birth
-- occupations
-- places of residence
-- the firm's
-- incorporation documents
-- area of activity
-- and charter capital.
This information, stated on a registration card, is subject to publication. Any person may request
and review enterprise registration information.
Although the business environment is improving, it remains burdened by government influence and
bureaucracy. Personal contacts play a significant role in the successful establishment of a business.
Although the legal framework for private business is in place, the enforceability of contracts depends
on the independence of courts. This is still not the case in Georgia.
Dilapidated infrastructure presents one of the most daunting constraints to potential foreign
investors. Substantial progress must be made to provide the basic infrastructure on which business
depends. Foreign investors have to supply back-up electricity generation capacity to ensure that their
businesses can function without interruption. This adds large costs to doing business. Some small,
private investments in domestic energy have shown encouraging results. Segmentation and
privatization of the state electric monopoly, and keeping barriers low for new private investment in
this sector are ways Georgia can bring an end to the persistent electrical energy crisis and attract the
investment needed for modernization.
Georgian legislation does not require foreign investors to re-invest profits locally. Foreign investors
are required to disclose commercial information under the licensing procedure. They are also
responsible for submitting income reports to the tax inspection service.
As of December 15, 1996, the Ministry of Trade and Foreign Economic Relations had issued 159
investment licenses for companies from 35 countries. German companies are in the lead with 24
joint venture companies with Georgia. Germany is followed by the U.S. and Russia (each 19
companies), Great Britain (16 companies), and Turkey (12 companies). The Ministry states that
US$48 million has been invested by foreign firms, while investment of another US$50 million has
been committed through contracts. No statistics are available on Georgian direct investment abroad,
but hundreds of millions of dollars in financial assets of various kinds are thought to be held by
Georgians abroad.
The Georgian Law on Entrepreneurial Activity of October 1994 allows for six different commercial
types; the unlimited liability company, the limited liability company, the limited partnership, the
joint stock company, the cooperative, and the sole proprietorship.
Taxation Policies
In June 1997, the Georgian Parliament passed the first Georgian Tax Code, which incorporates and
supersedes all previous laws and presidential decrees on taxation. The main provisions of the tax
code came into effect on July 25, 1997. The chapters on excise tax, VAT, and Article 64 of the
chapter on corporate tax came into effect on September 1, 1997. Chapters on income and corporate
taxes, property tax, land tax, vehicles ownership tax, tax on transfer of property, social tax, natural
resources utilization tax, tax for environmental pollution with hazardous materials, and the tax on
imported automobiles came into effect on January 1, 1998.
The Tax Code offers equal treatment to Georgian and foreign businesses and investors. Transit, re-
export and export of goods are exempt from VAT and excise tax. Imports of raw materials and
packaging supplies for export purposes are exempt from VAT and excise tax.
The State Tax Service is the only body legally empowered to inspect the tax-payment status of an
enterprise. The tax service's regulations do not discriminate between foreign and local enterprises.
Tax inspectors sometimes exceed their authority, however, and act arbitrarily. Moreover, investors
report difficulties in ascertaining exactly what tax rates apply to a given activity. Some have
encountered difficulties with changing tax rates and tax-payment instructions.
As of January 1997, the corporate tax in Georgia is 20 percent for all types of business. Previous
legislation provided for varying tax rates based on industry sector. A 10 percent rate for both
residents and nonresidents applies to dividends and interest, and a 10 percent rate for nonresidents
only applies to royalties, income from works and services other than salary, lease of vehicles, income
from management of firm's local permanent office, and financial services or contract with Georgian
enterprises. A 4 percent rate for nonresidents applies to risk insurance fees paid by a Georgian or
individual enterprise to a nonresident enterprise and to payment for international telecommunications
and transport services extended by a nonresident enterprise to a Georgian or individual
enterprise.
The value-added tax is established at a uniform 20 percent rate (with an exemption for the import
of small cars, which will be taxed at a 5 percent VAT rate until December 31, 2000). VAT is paid
on all stages of production, goods, supplies or services. According to the Tax Code, all legal entities
and physical persons with more than 3,000 GEL (about US$2,310) annual turnover need to register
as a VAT payer with the tax inspectorate. Certain items and activities such as financial services,
supply and import of securities, national and foreign currency, lease payments, medical services,
pharmaceutical production imports, and others are exempt from VAT. For a more complete list of
goods and services exempt from corporate taxes and VAT, please visit the BISNIS website.
Excise tax is levied on production and imports of excise products. The excise rates vary depending
on goods and products.
Goods and products Excise tax (percent)--------------------------------------------------
-------------------------------------------------------
Grape wines and wine materials 15
Fortified wines 50
Sparkling and effervescent wines 20
Champagne wines 100
Vermouth, fruit wines 50
Brandy and brandy materials, vodka 50
Cognac, whiskey, rum, liqueur 100
Ethyl spirits 100
Beer 15
Jewelry 35
Small cars * 15
Small car tires 15
Fuel 15
Ethyl fuel 50
Caviar and other seafood delicacies 20
January 1 New Years Day
January 7 Orthodox Christmas
January 19 Epiphany
March 3 Mother's Day
April 9 Memorial Day
April 12 Recollection of Deceased
May 26 Independence Day
*August 28 Day of the Virgin
October 14 Svetiskovloba
November 23 St. George's Day
President: Eduard Shevardnadze
STATE CHANCELLERY
Head of Staff: Peter Mamradze
7. Ingorokva St.
380034 Georgia, Tbilisi
Tel: + 995 32 99-96-30 /98-92-73
Fax: + 995 32 99-72-56
State Minister: Vazha Lordkipanidze
7. Ingorokva St.
380034 Georgia, Tbilisi
Tel: + 995 32 98-97-93 / 98-99-24
Fax: + 995 32 99-86-90
Deputy State Minister: Zaza Shengelia
7. Ingorokva St.
380034 Georgia, Tbilisi
Tel: + 995 32 93-50-33
STATE CHANCELLERY - Secretariat
Head: Omar Kizivadze
7. Ingorokva St.
380034 Georgia, Tbilisi
Tel: + 995 32 98-82-16
STATE CHANCELLERY - Economic Office
Head: Peter Bakradze
7. Ingorokva St.
380034 Tbilisi, Georgia
Tel: + 995 32 93-15-66
Fax: + 995 32 93-18-67
State Protocol
Head: Giorgi Gorgiladze
7. Ingorokva St.
380034, Tbilisi, Georgia
Tel: + 995 32 99-71-47
Fax: + 995 32 99-71-47
Foreign Policy Analysis Group (Related to the Issues of National
Security)
Head: Archil Gegeshidze
7. Ingorokva St.
380034 Tbilisi, Georgia
Tel: + 995-32 99-60-54
Fax: + 995-32 93-55-48
International Relations Department
Head: Gela Charkviani
7. Ingorokva St.
380034 Tbilisi, Georgia
Tel: + 995-32 99-70-96 / 93-47-39
GEORGIAN PARLIAMENT
( www.parliament.ge/ )
Chairman: Zurab Zhvania
8. Rustaveli Ave.
380008 Tbilisi, Georgia
Tel: + 995-3298-74-50 / 93-24-46
Fax: + 995-32 99-95-94
Deputy Chaiman: Eldar Shengelaia
8. Rustaveli Ave.
380008 Tbilisi, Georgla
Tel + 995-32-93-14-05
Deputy Chaiman: Giorgi Kobakhidze
8. Rustaveli Ave.
380008 Tbilisi, Georgla
Tel: + 995-32 93-11-49 / 93-15-08 / 997624
Press Centre
Head: Khatuna Gogorishvili
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-60-56
Fax: + 995-32 99-95-94
Protocol
Head: Nana Japaridze
29. Rustaveli Ave.
380008 Tbilisi, Georgia
Tel: + 995-32 99-79-80 / 99-01-46
Fax: + 995-32 93-56-41
Agrarian Affairs Committee
Head: Roza Lortkipanidze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 93-32-66 / 99-75-45
Constitutional, Legal Affairs and Legitimacy Committee
Head: Nino Burjanadze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 93-63-23 / 93-47-42
Defense and Security Committee
Head: Revaz Adamia
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel + 995-32-99-57-62/ 93-14-76
Economic Policy and Reforms
Head: Davit Onoprishvili
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-74-82
Education, Science and Culture Committee
Head: Roman Miminoshvili
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-80-58
Environmental and Natural Resources Protection Committee
Head: Givi Gigineishvili
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-81-27
Financing and Budgeting Committee
Head: Zaza Sioridze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-82-20 / 99-75-21
Foreign Committee
Head: Kakha Chitaia
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 98-73-45
Health and Social Affairs Committee
Head: Davit Abashidze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 93-14-65
Human Rights and National Minorities Committee
Head: Konstantin Kokoev
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-60-37 / 99-09-05
Committee Migration and Compatriots living Abroad
Head: Guram Sharadze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 99-90-62
Procedural Affairs Committee
Head: Rostom Dolidze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 93-22-64
Sectoral Economy Committee
Head: Zurab Tskitishvili
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel + 995-32 96-16-61
Self-Government and Regional Policy Committee
Head: Tamaz Bolkvadze
29. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel + 995-32 96-61-78
GOVERNMENT MINISTRIES
Ministry of Social Security and Labor
Minister: Tengiz Gazdeliani
2 Leonodze
38007 Tbilisi, Georgia
Tel: + 995-32 93-62-36 / 98-69-74
Fax: + 995-32 93-61-51
Ministry of Justice
Minister: Vladimer Chanturia
19 Griboedov Street
380046 Tbilisi, Georgia
Tel: + 995-32 93-27-21 / 98-92-52
Fax: + 995-32 99-02-25
Ministry of Communication
Minister: Sergo Esakia
2 Nine April Street
380008 Tbilisi, Georgia
Tel: + 995-32 99-77-77
Fax: + 43-1-602-96-90 ext 148
Ministry of Public Health Protection
Minister: Avtandil Jorbenadze
30 Gamsakhurdia Avenue
380060 Tbilisi, Georgia
Tel: + 995-32 38-70-71, 995-32 22-12-35
Fax: + 995-32 38-88-02
Ministry of Culture
Minister: Valeri Asatiani
37 Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 98-74-33
Fax: + 995-32 99-90-37
Ministry of Agriculture
Minister: Bakur Gulua
41. Kostava Street
380023 Tbilisi, Georgia
Tel: + 995-32 99-62-61
Fax: + 995-32 98-57-78
Ministry of Foreign Affairs
Minister: Irakli Menagharashvili
4 Nine April Street
380018 Tbilisi, Georgia
Tel: + 995-32 98-93-77 / 98-93-88
Fax: + 995-32 98-72-49
Ministry of Environment and Natural Resources Protection
Minister: Nino Chkhobadze
68 A, Kostava St,
Tbilisi 380015 Georgia
Tel: + 995-32 23-06-64
Fax: + 995-32 98-34-25 9R-34-7S
Ministry of Economy
Minister: Vladimir Papava
12. Chanturia Street
380062 Tbilisi, Georgia
Tel: +995-32 23-58-82
Fax: +995-32 29-00-63
Ministry of Finance
Minister: David Onoprishvili
170 Barnov Street
380062 Tbilisi, Georgia
Tel: + 995-32 29-20-77
Fax: + 995-32 29-23-68
Ministry of State Property Management
Minister: Mikheil Ukleba
64, Chavchavadze Ave.
380062 Tbilisi, Georgia
Tel: + 995-32 22-48-75
Fax: + 995-32 29-27-86
Ministry of Defence
Minister: David Tevzadze
2, Universiteti St.
380043 Tbilisi, Georgia
Tel: + 995 32 39-35-88
Ministry Construction and Urbanization
Minister: Merab Chkhenkeli
16. Vazha Pshavela Avenue
380060 Tbilisi, Georgia
Tel: + 995-32 37-42-76 / 38-96-12
Fax: + 995-32 22-05-41
Ministry of Internal Affairs
Minister: Kakha Targamadze
1, Didi Kheivani St.
380018 Tbilisi, Georgia
Tel: + 995-32 99-62-96
Fax: + 995-32 98-60-91
Ministry of Trade and Foreign Economic Relations
Minister: Tamriko Beruchashvili
42 Kazbegi Street
380077 Tbilisi, Georgia
Tel: + 995-32 38-96-52
Fax: + 995-32 39-80-82
Ministry of Industry
Minister: Badri Shoshitaishvili
28 Gamsakhurdia Avenue
380060 Tbilisi, Georgia
Tel: +995-32 93-10-45 / 38-55-49
Fax: +995-32 98-98-31
GOVERNMENTAL ORGANIZATIONS
Chamber of Control
Chairman: Revaz Shavishvili
103. Aghmashenebeli Ave.
380064 Tbilisi, Georgia
Tel: + 995-32 95-28-99
Fax: + 995-32 96-82-71
State Tax Inspection Service
Head: Davit Salaridze4. Iashvili St.
380005 Tbilisi, Georgia
Tel: + 995-32 98-85-78 / 93-89-32
Fax: + 995-32 93-63-24
National Bank of Georgia
Chairman: Irakli Managadze
3/5 Leonidze
380027 Tbilisi, Georgia
Tel: + 995 32 99-65-05
Fax: + 995 32 99-98-85
Hard Currency Department - National Bank of Georgian
Chief: David Galigashvili
3/5 Leonidze
380027 Tbilisi, Georgia
Tel: + 995 32 98-19-79
Fax: + 995 32 99-98-85
Tbilisi Mayoralty
Mayor: Badri Shoshitaishvili
2. Liberty Square,
380008 Tbilisi, Georgia
Tel: + 995 32 93-35-96
Fax: + 995 32 98-38-14
Economic Consulting Group
President's Aide in the Issues of Economic Reforms: Temur
Basilia
7. Ingorokva St.
380034 Georgia, Tbilisi
Tel: + 995 32 99-97-57 / 98-99-53
Fax: + 995 32 99-97-57
STATE DEPARTMENTS
Social-Economic Information Department Head: Temur Beridze
4. Gamsakhurdia Avenue
380085 Tbilisi, Georgia
Tel: + 995-32 36-20-45
Fax: + 995-32 36-14-93
Science and Technology Department at the Ministry of Economy
Head: Levan Japaridze
12. Chanturia Street
380004 Tbilisi, Georgia
Tel: + 995-32 98-70-09 / 98-70-08
Fax: + 995-32 98-84-97
Sports Department
Head: Kakhi Asatiani
49. Chavchavadze Avenue
380062 Tbilisi, Georgia
Tel: + 995-32 23-02-03 / 29-40-53
Fax: + 995-32 29-28-76
Tourism Department
Head: Konstantine Salia
80. Chavchavadze Avenue
380062 Tbilisi, Georgia
Tel: + 995-32 22-61-25
Fax: + 995-32 29-40-52
Customs Department
Head: Tengiz Abuladze
24. Akhvlediani Street
380103 Tbilisi, Georgia
Tel: + 995-32 96-96-38 / 96-96-27
Fax: + 995-32 96-96-21
Air Transport Department
Head: Jemal Margvelidze
28. Rustaveli Avenue
380008 Tbilisi, Georgia
Tel: + 995-32 98-96-39
Fax: + 995-32 98-96-39
Georgian Shipping Company
President: Bichiko Varshanidze
60. Gogebashvili Street
384517 Batumi, Georgia
Tel: (8200) 1-55-55, (8200) 3-64-04
Fax: (8200) 2-50-01
Railway Transport
Head: Akaki Chkhaidze
15. Tamar Mepe Avenue
380012 Tbilisi, Georgia
Tel: + 995-32 95-25-27 / 95-44-00
Geology, Geodesy and Cartography
Head: Tamaz Janelidze
380062 Tbilisi, Georgia
24. MoseshviliTel: + 995-32 22-40-40 / 22-69-14
Fax: + 995-32 22-56-13
Saknaftobi (Georgian Oil)
Head: Revaz Tevzadze
380015 Tbilisi, Georgia
65. Kostava
Tel: + 995-32 36-16-12 / 36-54-32
Fax: + 995-32 36-54-85
Sakenergo (Georgian Energy)
Head: Iveri Shalamberidze
1. Vekua Street
380026 Tbilisi, Georgia
Tel: + 995-32 99-57-95
Fax: + 995-32 98-98-14
Tel/Fax: + 995-32 93-53-26
Saknakhshiri (Georgian Coal)
Head: Aliosha Bochorishvili
28. Gelati Street
384080 Tkibuli, Georgia
Tel: + 995-32 93-83-00 / 93-14-40
STATE CORPORATIONS/CONCERNS
Bread Products Corporation
President: Anzor Burjanadze
6. Didi Kheivani Street
380014 Tbilisi, Georgia
Tel: + 995-32 99-86-68, 99-84-20, 99-03-01
Fax: + 995-32 99-67-40
Polygraphic and Publishing Corporation
President: Victor Rtskhiladze
5. Marjanishvili Street
380002 Tbilisi, Georgia
Tel: + 995-32 95-17-60 / 95-21-60
Fax: + 995-32 95-19-94
TV and Radio Broadcasting Corporation
President: Archil Gogelia
68. Kostava Street
380071 Tbilisi, Georgia
Tel: + 995-32 36-81-66 / 36-83-31
Fax: + 995-32 99-86-50
Concern Saknavtobproductebi (Georgian Oil Products)
President: Tamaz Shavdatuashvili
142. Akaki Tsereteli Avenue
380019 Tbilisi, Georgia
Tel: + 995-32 34-37-75 / 34-40-14
Fax: + 995-32 34-28-59
Concern Sakavtogza (Georgian Automobile Roads)
President: Boris Salaridze
29A. Marshal Gelovani Street
380060 Tbilisi, Georgia
Tel: + 995-32 37-66-09 /96-58-90/93-55-52
Fax: + 995-32 37-64-58
Status of U.S.-Georgian Commercial Agreements
Bilateral Trade Agreement: United States-Georgian Trade Agreement was signed by both countries on 1 March 1993, and subsequently ratified by Government of Georgia in August 1993. It is in effect currently.
Bilateral Investment Treaty: A Bilateral Investment Treaty was signed during President E. Shevardnadze's visit to the United States in March 1994. It was passed by the Georgian Parliament and was ratified by the US Senate in 1996. It is in effect currently.
Bilateral Taxation Treaty: There is currently no treaty on taxation between Georgia and the United States.
U.S. Government Export Promotion Programs
U.S. Department of Agriculture: USDA assistance to Georgia includes: (1) grants of food
assistance to help meet humanitarian needs in the countries, and (2) technical assistance to help
develop the food of the various economies.
Overseas Private Investment Corporation: OPIC has signed a bilateral agreement with
Georgia authorizing it to provide loans, loan guarantees, and investment insurance to American
companies that invest in Georgia. OPIC also has a direct investment fund of $92 million for
Armenia, Azerbaijan, and Georgia. It raises capital equity investments in real estate,
agribusiness and transportation services. Contact information for the Caucasus Fund: Mr. Peter
Aldrich, Chairman, AEW International, 53 State Street, 16th Floor, Boston, MA 0210; Tel:
617-261-9300; Fax: 617-261-9333.
Export Import Bank of the United States: ExIm Bank is currently not open for coverage in Georgia. In July 1997, ExIm Bank signed a Project Incentive Agreement with the Government of Georgia that supports transactions where repayment is based on the revenues generated from the production of the borrower instead of a sovereign guarantee of the debt.
U.S. Trade and Development Agency: TDA is presently authorized to operate in Georgia. TDA provides funding for U.S. firms to carry out feasibility studies, consultancies and other planning services related to major projects in developing countries. Five projects have been or are being implemented in Georgia: the Port of Poti, the Tbilisi Airport, a distribution center in Poti, a health care project and a refinery at the port of Supsa.
Georgia's Membership in International/Regional Organizations
Commonwealth of Independent States (CIS): After the formal dissolution of the Soviet Union, Georgia, together with Estonia, Latvia and Lithuania declined membership in the CIS. Georgia, however, requested entry into the C.I.S. in November 1993. In addition, Georgia is a signatory to the CIS Free Trade Agreement, signed in April 1994.
International Monetary Fund/World Bank: Georgia is approved for membership with the IMF and is a member of the World Bank (and has been granted IDA status). The World Bank can provide financing to Georgia for capital infrastructure projects, such as roads and railways, telecommunications, and port and power facilities. The World Bank has a large and diverse portfolio in Georgia. The number of projects under implementation continues to grow, with five projects approved in FY 98, and only two operations closing within the same period of time. Twelve IDA credits totaling US$227.9 million are currently used in projects under implementation. Three other credits are already closed (Rehabilitation credit, Structural Adjustment credit and the Institutional credit). In March 1997, an IDA credit of US$15 million was approved to support development of private sector farming and agroprocessing. In July 1997, a Municipal Development Project of US$21 million was approved to improve financial management and support of the local investments. Two IDA credits totaling US$65 million were approved in September 1997 to support the government's stabilization program and strengthen the current economic recovery. In addition, the Social Investment Fund (GSIF), an IDA credit of US$20 million was approved in December 1997 and the Cultural Heritage project, an IDA credit of US$4.49 million was approved in 1998. To date, WB commitments to Georgia total US$373.9 million for 15 projects.
European Bank for Reconstruction and Development (EBRD): Georgia is a member of the
board of the EBRD and is eligible for financing. At least one project is currently under
consideration. The EBRD emphasizes programs and activities that support privatization,
financial reform, industrial restructuring, the creation and strengthening of infrastructure, foreign
investment inflows and environmental repairs. By the end of 1999, the EBRD intends to work
out a US$20 million project of rehabilitation for the Georgian railway system. A second US$62
million project to reconstruct the Inguri Hydroelectric Power Plant is under consideration.
World Trade Organization (WTO): The WTO General Council approved a memo on Georgia's foreign trade regime and granted Georgia observer status in the WTO on June 26, 1996. USAID, the European Union and the World Bank are providing technical assistance to Georgia in preparing its application for full membership. The WTO General Council set up a working group to negotiate full membership with the Government of Georgia. Preliminary work on Georgia's accession to the WTO has been completed. Georgian government officials hope to become a member by the end of 1999.
Other International/Regional Organization Memberships:
Georgia is a member of the Black Sea Economic Cooperation Council (BSEC), the United
Nations Industrial Development Organization (UNIDO), and the World Tourism Organization
(WTO).
Trade and Investment Profile
1998 United States - Republic of Georgia Bilateral Trade
April 1999
1996 1997 1998 ($ millions)
U.S. Exports 82 141 137
U.S. Imports 8 7 14
Bilateral trade between the U.S. and Georgia -- 2 percent growth from 1997 to 1998The Republic of Georgia is the United States' largest trading partner in the Caucasus. The volume of bilateral trade in 1998 between the United States and Georgia was $151 million, a 2 percent increase over 1997. The United States enjoyed a trade surplus of $123 million with Georgia in 1998, as well as considerable surpluses in 1996 and 1997. U.S. exports to Georgia in 1998 totaled $137 million and U.S. imports were worth $14 million.
Since the volume of U.S.-Georgian bilateral trade is quite small, both U.S. exports and imports are subject to strong fluctuations from year to year. Only a few major product categories seem to have a (relatively) steady place in the two country's bilateral trade over the last three years, such as food and beverages and machinery exports to Georgia or U.S. imports of Georgian iron and steel.
1998 U.S. Exports to Georgia -- -2.90 percent decline
U.S. exports to Georgia decreased -2.90 percent in 1998, from $141 million in 1997 to $137 million last year.
The United States exports a diverse selection of foodstuffs, capital goods, and semi-finished products to Georgia. As noted, the commodity structure of U.S. exports to Georgia has fluctuated dramatically over the last three years.
The largest single category of exports in 1998 was meat, which grew from barely $4.9 in 1997 to $39.7 million last year, a 710.3 percent increase.
Exports of fats and oils have grown from $1.6 million to $6.8 million, respectively, last year. Charitable donations are a major component of U.S. exports ($29.2 million in 1997, and 24.3 million in 1998), but are declining as a percentage of total U.S. shipments to Georgia (20.8 percent in 1997, and 17.8 percent in 1998).
1998 U.S. Imports from Georgia -- 105 percent growth
U.S. imports increased from 1996 to 1998, from a level of $7 million to $14 million last year, an increase of 105 percent. Not unlike exports, U.S. imports from Georgia are composed of a diverse selection of semi-finished products, capital goods, and consumer products.
Iron and steel (ferrosilicon manganese, a steel alloy) and iron and steel products (mostly pipe for transporting petroleum and natural gas) led U.S. imports decisively in 1997, at volumes of $3.5 million and continued to increase in 1998 to $9.5 million. This category accounted for more than 67 percent of U.S. imports from Georgia last year.
An additional 20 percent of U.S. imports consist of beverages ($1.4 million), inorganic chemicals ($855,000), plastic ($527,000), and spices, coffee and teas ($340,000).
Georgia as a U.S. Trading Partner -- 4th largest trading partner in the NIS.
Georgia is the U.S. fourth largest trading partner with the U.S., after Russia, Ukraine and Uzbekistan. It accounts for less than 1 percent of total U.S. exports and total U.S. trade.
The U.S. as a Georgian Trading Partner -- the U.S. is the 5th largest trading partner.
According to the Economist Intelligence Unit, the U.S. was Georgia's 5th largest trading partner in 1998, following the EU, Russia, Azerbaijan, and Turkey.
1996-1998 U.S. General Exports from: GEORGIA
in US$ Millions
JANUARY - DECEMBER
Millions of U.S. Dollars % Share % Change
HS Description 1996 1997 1998 1996 1997 1998 98/97
Georgia 82 141 137 0.01 0.02 0.02 -2.90
02 MEAT 1.012 4.904 39.735 1.23 3.49 29.10 710.26
22 BEVERAGES 5.084 64.373 28.506 6.16 45.78 20.88 -55.72
98 SPECIAL OTHER 21.466 29.228 24.332 26.03 20.79 17.82 -16.75
10 CEREALS 37.675 18.281 12.494 45.69 13.00 9.15 -31.66
15 FATS AND OILS 1.408 1.631 6.792 1.71 1.16 4.97 316.50
84 MACHINERY 4.398 5.375 5.909 5.33 3.82 4.33 9.92
85 ELECTRICAL MACHINERY 0.815 3.268 5.847 0.99 2.32 4.28 78.93
87 VEHICLES, NOT RAILWAY 0.252 1.070 2.818 0.31 0.76 2.06 163.52
90 OPTIC,NT 8544;MED INSTR 0.492 1.643 1.856 0.60 1.17 1.36 12.96
16 PREPARED MEAT,FISH,ETC 0.000 0.995 1.816 0.00 0.71 1.33 82.50
62 WOVEN APPAREL 0.012 0.016 0.789 0.02 0.01 0.58 ###.##
73 IRON/STEEL PRODUCTS 0.559 1.401 0.488 0.68 1.00 0.36 -65.20
82 TOOL,CUTLRY, OF BASE MTL 0.018 0.423 0.474 0.02 0.30 0.35 12.13
89 SHIPS AND BOATS 0.015 0.000 0.400 0.02 0.00 0.29 ###.##
11 MILLING;MALT;STARCH 3.236 1.214 0.367 3.92 0.86 0.27 -69.76
07 VEGETABLES 1.433 0.862 0.242 1.74 0.61 0.18 -71.97
39 PLASTIC 0.290 0.043 0.205 0.35 0.03 0.15 380.17
96 MISCELLANEOUS MANUFACT 0.000 0.006 0.205 0.00 0.00 0.15 ###.##
63 MISC TEXTILE ARTICLES 0.050 0.094 0.199 0.06 0.07 0.15 111.97
23 FOOD WASTE; ANIMAL FEED 0.038 1.015 0.188 0.05 0.72 0.14 -81.49
33 PERFUMERY,COSMETIC,ETC 0.000 0.099 0.181 0.00 0.07 0.13 83.08
68 STONE,PLASTR,CEMENT,ETC 0.000 0.040 0.181 0.00 0.03 0.13 351.74
88 AIRCRAFT,SPACECRAFT 0.169 0.073 0.162 0.21 0.05 0.12 122.85
61 KNIT APPAREL 0.004 0.788 0.156 0.00 0.56 0.11 -80.18
30 PHARMACEUTICAL PRODUCTS 0.000 0.023 0.154 0.00 0.02 0.11 577.33
69 CERAMIC PRODUCTS 0.437 0.074 0.145 0.53 0.05 0.11 95.55
40 RUBBER 0.059 0.186 0.141 0.07 0.13 0.10 -24.33
28 INORG CHEM;RARE ERTH MT 0.040 0.092 0.138 0.05 0.07 0.10 49.19
54 MANMADE FILAMENT,FABRIC 0.000 0.000 0.136 0.00 0.00 0.10 ###.##
70 GLASS AND GLASSWARE 0.007 0.248 0.134 0.01 0.18 0.10 -46.07
76 ALUMINUM 0.047 0.082 0.118 0.06 0.06 0.09 43.38
09 SPICES,COFFEE AND TEA 0.066 0.000 0.115 0.08 0.00 0.08 ###.##
74 COPPER+ARTICLES THEREOF 0.000 0.000 0.106 0.00 0.00 0.08 ###.##
38 MISC. CHEMICAL PRODUCTS 0.024 0.144 0.099 0.03 0.10 0.07 -31.39
27 MINERAL FUEL, OIL ETC 0.040 0.203 0.096 0.05 0.14 0.07 -52.60
75 NICKEL+ARTICLES THEREOF 0.000 0.000 0.068 0.00 0.00 0.05 ###.##
95 TOYS AND SPORTS EQUIPMT 0.055 0.070 0.066 0.07 0.05 0.05 -4.74
44 WOOD 0.007 0.073 0.065 0.01 0.05 0.05 -11.15
94 FURNITURE AND BEDDING 0.056 0.605 0.063 0.07 0.43 0.05 -89.52
20 PRESERVED FOOD 0.004 0.004 0.061 0.00 0.00 0.04 ###.##
43 FURSKIN+ARTIFICIAL FUR 0.019 0.105 0.060 0.02 0.07 0.04 -42.92
45 CORK 0.000 0.000 0.060 0.00 0.00 0.04 ###.##
19 BAKING RELATED 0.028 0.016 0.054 0.03 0.01 0.04 230.44
32 TANNING,DYE,PAINT,PUTTY 0.000 0.140 0.042 0.00 0.10 0.03 -69.72
05 OTHER OF ANIMAL ORIGIN 0.034 0.000 0.042 0.04 0.00 0.03 ###.##
08 EDIBLE FRUIT AND NUTS 0.000 0.000 0.040 0.00 0.00 0.03 ###.##
21 MISCELLANEOUS FOOD 1.879 0.103 0.038 2.28 0.07 0.03 -63.18
48 PAPER,PAPERBOARD 0.014 0.000 0.035 0.02 0.00 0.03 ###.##
49 BOOK+NEWSPAPR;MANUSCRPT 0.006 0.089 0.033 0.01 0.06 0.02 -63.26
29 ORGANIC CHEMICALS 0.207 0.418 0.027 0.25 0.30 0.02 -93.46
06 LIVE TREES AND PLANTS 0.000 0.000 0.011 0.00 0.00 0.01 ###.##
72 IRON AND STEEL 0.013 0.006 0.010 0.02 0.00 0.01 68.54
92 MUSICAL INSTRUMENTS 0.031 0.000 0.009 0.04 0.00 0.01 ###.##
59 IMPREGNATD TEXT FABRICS 0.000 0.054 0.006 0.00 0.04 0.00 -89.39
12 MISC GRAIN,SEED,FRUIT 0.000 0.030 0.004 0.00 0.02 0.00 -85.45
57 TEXTILE FLOOR COVERINGS 0.000 0.000 0.004 0.00 0.00 0.00 ###.##
34 SOAP,WAX,ET;DENTAL PREP 0.025 0.004 0.003 0.03 0.00 0.00 -18.16
01 LIVE ANIMALS 0.000 0.012 0.000 0.00 0.01 0.00 0.00
04 DAIRY,EGGS,HONEY,ETC 0.782 0.302 0.000 0.95 0.22 0.00 0.00
13 LAC;VEGETABL SAP,EXTRCT 0.000 0.055 0.000 0.00 0.04 0.00 0.00
17 SUGARS 0.000 0.000 0.000 0.00 0.00 0.00 0.00
24 TOBACCO 0.000 0.004 0.000 0.00 0.00 0.00 0.00
25 SALT;SULFUR;EARTH,STONE 0.000 0.005 0.000 0.00 0.00 0.00 0.00
35 ALBUMINS;MOD STRCH;GLUE 0.009 0.000 0.000 0.01 0.00 0.00 0.00
36 EXPLOSIVES 0.020 0.000 0.000 0.02 0.00 0.00 0.00
41 HIDES AND SKINS 0.010 0.000 0.000 0.01 0.00 0.00 0.00
42 LEATHR ART;SADDLRY;BAGS 0.000 0.003 0.000 0.00 0.00 0.00 0.00
55 MANMADE STAPLE FIBERS 0.000 0.000 0.000 0.00 0.00 0.00 0.00
60 KNIT,CROCHETED FABRICS 0.023 0.000 0.000 0.03 0.00 0.00 0.00
64 FOOTWEAR 0.049 0.020 0.000 0.06 0.01 0.00 0.00
65 HEADGEAR 0.000 0.006 0.000 0.00 0.00 0.00 0.00
71 PRECIOUS STONES,METALS 0.010 0.000 0.000 0.01 0.00 0.00 0.00
81 OTHER BASE METALS, ETC. 0.000 0.086 0.000 0.00 0.06 0.00 0.00
83 MISC ART OF BASE METAL 0.038 0.000 0.000 0.05 0.00 0.00 0.00
97 ART AND ANTIQUES 0.000 0.500 0.000 0.00 0.36 0.00 0.00
Source of Data: U.S. Dept of Commerce, Bureau of the
1996-1998 U.S. General Imports from: GEORGIA
in US$ Millions
JANUARY - DECEMBER
Millions of U.S. Dollars % Share % Change
HS Description 1996 1997 1998 1996 1997 1998 98/97
Georgia 8 7 14 0.00 0.00 0.00 104.98
72 IRON AND STEEL 2.056 3.489 9.536 27.09 50.20 66.93 173.31
22 BEVERAGES 0.028 0.269 1.404 0.37 3.87 9.86 421.83
28 INORG CHEM;RARE ERTH MT 0.164 0.191 0.855 2.16 2.75 6.00 346.66
39 PLASTIC 0.004 0.035 0.527 0.05 0.50 3.70 ###.##
09 SPICES,COFFEE AND TEA 0.000 0.064 0.340 0.00 0.93 2.39 427.76
84 MACHINERY 0.280 0.593 0.311 3.69 8.54 2.18 -47.54
85 ELECTRICAL MACHINERY 0.656 0.355 0.266 8.65 5.11 1.87 -25.02
13 LAC;VEGETABL SAP,EXTRCT 0.000 0.000 0.209 0.00 0.00 1.46 ###.##
99 O SPECL IMPR PROVISIONS 0.014 0.018 0.119 0.18 0.26 0.84 562.13
90 OPTIC,NT 8544;MED INSTR 0.090 0.461 0.092 1.19 6.64 0.64 -80.15
98 SPECIAL OTHER 0.014 0.053 0.087 0.18 0.76 0.61 63.70
29 ORGANIC CHEMICALS 0.000 0.005 0.083 0.00 0.08 0.58 ###.##
12 MISC GRAIN,SEED,FRUIT 0.059 0.090 0.074 0.78 1.30 0.52 -18.02
48 PAPER,PAPERBOARD 0.017 0.000 0.072 0.22 0.00 0.50 ###.##
87 VEHICLES, NOT RAILWAY 0.021 0.008 0.042 0.28 0.11 0.30 450.37
70 GLASS AND GLASSWARE 0.115 0.000 0.038 1.51 0.00 0.27 ###.##
91 CLOCKS AND WATCHES 0.013 0.000 0.035 0.17 0.00 0.25 ###.##
97 ART AND ANTIQUES 0.019 0.012 0.034 0.25 0.17 0.24 180.35
71 PRECIOUS STONES,METALS 0.000 0.000 0.022 0.00 0.00 0.16 ###.##
33 PERFUMERY,COSMETIC,ETC 0.072 0.101 0.018 0.95 1.45 0.13 -81.91
69 CERAMIC PRODUCTS 0.003 0.000 0.015 0.04 0.00 0.11 ###.##
11 MILLING;MALT;STARCH 0.000 0.000 0.014 0.00 0.00 0.10 ###.##
57 TEXTILE FLOOR COVERINGS 0.001 0.000 0.014 0.02 0.00 0.10 ###.##
38 MISC. CHEMICAL PRODUCTS 0.138 0.000 0.012 1.81 0.00 0.09 ###.##
51 ANIMAL HAIR+YARN,FABRC 0.000 0.000 0.009 0.00 0.00 0.06 ###.##
60 KNIT,CROCHETED FABRICS 0.000 0.000 0.004 0.00 0.00 0.03 ###.##
40 RUBBER 0.003 0.016 0.004 0.04 0.24 0.03 -77.76
08 EDIBLE FRUIT AND NUTS 0.000 0.006 0.003 0.00 0.08 0.02 -43.55
83 MISC ART OF BASE METAL 0.002 0.000 0.003 0.03 0.00 0.02 ###.##
88 AIRCRAFT,SPACECRAFT 0.070 0.058 0.002 0.92 0.83 0.01 -97.37
54 MANMADE FILAMENT,FABRIC 0.000 0.000 0.001 0.00 0.00 0.01 ###.##
62 WOVEN APPAREL 3.323 0.096 0.001 43.79 1.38 0.01 -99.17
61 KNIT APPAREL 0.000 0.000 0.000 0.00 0.00 0.00 ###.##
63 MISC TEXTILE ARTICLES 0.000 0.000 0.000 0.00 0.00 0.00 ###.##
15 FATS AND OILS 0.003 0.000 0.000 0.04 0.00 0.00 0.00
16 PREPARED MEAT,FISH,ETC 0.000 0.000 0.000 0.00 0.00 0.00 0.00
19 BAKING RELATED 0.039 0.000 0.000 0.51 0.00 0.00 0.00
20 PRESERVED FOOD 0.084 0.000 0.000 1.11 0.00 0.00 0.00
21 MISCELLANEOUS FOOD 0.000 0.047 0.000 0.00 0.67 0.00 0.00
25 SALT;SULFUR;EARTH,STONE 0.000 0.038 0.000 0.00 0.55 0.00 0.00
27 MINERAL FUEL, OIL ETC 0.000 0.000 0.000 0.00 0.00 0.00 0.00
31 FERTILIZERS 0.034 0.019 0.000 0.45 0.27 0.00 0.00
34 SOAP,WAX,ET;DENTAL PREP 0.000 0.000 0.000 0.00 0.00 0.00 0.00
36 EXPLOSIVES 0.000 0.005 0.000 0.00 0.07 0.00 0.00
41 HIDES AND SKINS 0.004 0.000 0.000 0.05 0.00 0.00 0.00
44 WOOD 0.041 0.000 0.000 0.54 0.00 0.00 0.00
49 BOOK+NEWSPAPR;MANUSCRPT 0.021 0.006 0.000 0.27 0.09 0.00 0.00
55 MANMADE STAPLE FIBERS 0.000 0.000 0.000 0.00 0.00 0.00 0.00
59 IMPREGNATD TEXT FABRICS 0.000 0.000 0.000 0.00 0.00 0.00 0.00
64 FOOTWEAR 0.000 0.000 0.000 0.00 0.00 0.00 0.00
73 IRON/STEEL PRODUCTS 0.069 0.877 0.000 0.90 12.63 0.00 0.00
74 COPPER+ARTICLES THEREOF 0.000 0.000 0.000 0.00 0.00 0.00 0.00
76 ALUMINUM 0.000 0.022 0.000 0.00 0.31 0.00 0.00
81 OTHER BASE METALS, ETC. 0.000 0.000 0.000 0.00 0.00 0.00 0.00
82 TOOL,CUTLRY, OF BASE MTL 0.001 0.010 0.000 0.02 0.14 0.00 0.00
86 RAILWAY;TRF SIGN EQ 0.000 0.000 0.000 0.00 0.00 0.00 0.00
92 MUSICAL INSTRUMENTS 0.011 0.000 0.000 0.14 0.00 0.00 0.00
94 FURNITURE AND BEDDING 0.004 0.003 0.000 0.05 0.05 0.00 0.00
95 TOYS AND SPORTS EQUIPMT 0.000 0.001 0.000 0.01 0.02 0.00 0.00
96 MISCELLANEOUS MANUFACT 0.115 0.000 0.000 1.51 0.00 0.00 0.00
Source of Data: U.S. Dept of Commerce, Bureau of the Census
FACT SHEET: REPUBLIC OF GEORGIA
As of April 30, 1999
1. GENERAL PROFILE
A. Population:5.11 million (July 1998 est.)
B. Religions: Christian Orthodox 75%, (Georgian Orthodox 65%, Russian Orthodox 10%),
Muslim 11%, Armenian Apostolic 8%, unknown 6%.
C. Government:Republic
Chief of State: President Eduard Amvrosiyevich Shevarnadze
Head of Government: President Eduard Amvrosiyevich
Shevarnadze
D. Languages: Armenian 7%, Azeri 6%, Georgian 71% (Official), Russian 9%, Other 7%
E. Next Election:April 2000 (Presidential)
2. ECONOMY 94 95 96 97 98
A. GDP (in billions $): $1.3 $2.4 $3.6 4.1 4.8
B. GDP Growth Rate: -11.0% 2.4% 11.4% 11.3 2.9
C. GDP Per Capita: n/a n / a $1,350 n/a n/a
D. Inflation: n/a n/a 13.3 8 10.6
E. Unemployment: n/a n/a 21% n/a n/a
F. Foreign Exchange Reserves: n/a n/a n/a n/a n/a
G. Average Exchange Rate: $1=1,102,300$1=1.29 $1=1.26 $1=1.31 $1=2.15
H. External Debt: $987m $1,215m $1,373m 1.31m 1,525
I. Industrial Production (%change): n/a n/a 7.7 n/a 8.1
3. TRADE 94 95 96 97 98
A. Total Exports (fob) $381m $290m $372m $400m $194m
B. Total Imports (cif) $744m $711m $686m $900m $1048m
C. U.S. Exports $87m $105m $82m $141m $137m
D. U.S. Imports $1m $11m $8m $7m $14m
E. Principal U.S. Exports, 1998: meat, beverages, malts and starches, fats and oils.F. Principal U.S. Imports, 1998: Iron and steel (ferrosilicon manganese) iron, beverages, inorga nic chemic als, rare earth metals, plastic, spices, coffee, tea.
G. Foreign Market Share of Georgian Imports: Turkey leads market share with $117m. Other
leading
trading
partner
s are:
1)
Russia,
with a
total of
$108
million
, 2) the
U.S.,
with
$91
million
3) Bulgaria, with $83 million andAzerbajian with $74 m.. Figures are for 1996. 1997 and 1998
n/a.
H. Balance of Payments, Current Account:
94 95 96 97 98I. Trade Balance with Leading Trading Partners: 1998: $-854m
($m) -446 -474 -380 -550 -710
J. Import Policy: Import duties on most goods are set at 12%. Georgia has a VAT of 20% and a varying customs fee. There is also a list of goods subject to excise tax. Bilateral Trade Agreement with the U.S. in has achieved Most Favored Nation Status. (MFN)
K. Best U.S. Export Prospects: 1997: Mineral Products; Food, Drink and Tobacco; Machinery.
4. INVESTMENT
A. Foreign Investment Restrictions: Although the business environment is improving, it remains
burdened by
government
influence and
bureaucracy.
Personal
contacts play a
significant role
in the
successful
establishmen
tof a business.
Although the
legal
framework for
private
business is in
place, the
enforceability
of contracts
depends on the
independence
of courts. This
is still not the
case in
Georgia.
B. Total Foreign Investment in Georgia:
94 95 96 97 98
n/a n/a n/a $200m n/a
C. Total U.S Direct Investment in Georgia: 1996: $10,220,434D. U.S. Share of Foreign Investment in Georgia: n/a
E. Principal Foreign Investors in Georgia: Israel, Ireland, U.S. , Korea, Germany, Great Britain, netherlands, Russia, Bermuda Islands, Turkey
F. Total Georgian Direct Investment in the United States: n/a
5. COMMERCIAL INFORMATION
A. Top Ten U.S. Subsidiaries in Georgia: n/a
B. Senior Commercial Officer: Sandra Clark
C. Date of Arrival: n/a
D. Previous Post: n/a
Business Information Service for the Newly Independent States (BISNIS) Tel: 202/482-4655
E-mail: bisnis@ita.doc.gov www.bisnis.doc.gov Fax: 202/482-2293
This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)