The pace of development of the world economy and globalization have further strengthened and deepened the interdependence between countries. Given this, the role of foreign trade in rapid integration into the world economy is growing and becomes decisive day by day.
The development of bilateral, regional and multilateral trade relations, as well as preferential and free trade regimes is a cornerstone of the country’s economic development. Nowadays, when the political-economic relations between the states are getting closer and closer, we can say that globalization is an irreversible process. It is therefore self-evident that the aim is to strengthen business relations between the countries, especially in the economic context.
The government is taking intensive steps for Georgia’s active involvement in the world economy. Many reforms were carried out to facilitate international relations, in particular foreign trade, which served to establish a sound and strategic action plan.
For example, the Georgian government has implemented reforms in both tariff policy and technical regulation, resulting in Georgia having one of the most liberal foreign trade policies in the world today, which includes simplified foreign trade regime and customs procedures, low import tariffs and minimum non-tariff regulations.
Trade regimes and international agreements in force in Georgia further facilitate the country’s intensive operation in the world economic market. The Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union, which is one of Georgia’s great successes, should be noted.
Of course, all the above circumstances contribute to the development and strengthening country’s economy. This year’s results in terms of international commodity turnover are promising. According to Geostat, Georgia’s foreign trade turnover in January-September 2021 exceeded 10 billion USD, compared to the same period last year, the volume of foreign trade turnover has increased by 22.3%. Exports increased by 24 to 2.9 billion USD, while imports has increased by 21.6% to 7 billion USD.
According to the same report, Georgia’s three largest trading partners were named: Turkey (1.48 billion USD), Russia (1.14 billion USD) and China (1.07 billion USD).
It is obvious that foreign trade is economically fruitful and profitable through the export-import process. Opening borders and simplifying policies for the exchange of production will in itself have a positive impact on the general background of the country’s economy.
Editor’s blog