Georgia’s exports to Kyrgyzstan surged in January, making it the largest export market for the country. The main reason behind this increase was the re-export of cars, which accounted for more than half of the total exports to Kyrgyzstan. Georgia also imported more products from Kyrgyzstan, mainly fruits and nuts.
Re-export of Cars Drives Georgia’s Exports to Kyrgyzstan
According to the National Statistics Office of Georgia (GEOSTAT), Georgia exported $46.4 million worth of products to Kyrgyzstan in January, which was 13.7% of the total exports of $338.6 million. This made Kyrgyzstan the top export destination for Georgia, followed by China and Russia. In comparison, in January 2023, Georgia exported only $8.9 million worth of products to Kyrgyzstan, which was 3.1% of the total exports of $287.8 million.
The main product that Georgia exported to Kyrgyzstan was cars, which amounted to $25.8 million, or 55.6% of the total exports to Kyrgyzstan. These cars were mostly re-exported, meaning that they were imported from other countries and then exported to Kyrgyzstan without any significant processing or value addition in Georgia. Georgia is a transit country for car re-exports, as it offers low tariffs and customs fees for car imports and exports. Most of the cars that Georgia re-exports come from the European Union, Japan, and the United States, and are destined for Central Asian countries, such as Kyrgyzstan, Kazakhstan, and Uzbekistan.
Georgia Imports More Fruits and Nuts from Kyrgyzstan
Georgia also increased its imports from Kyrgyzstan in January, although the volume was much lower than the exports. Georgia imported $430.5 thousand worth of products from Kyrgyzstan in January, which was 0.1% of the total imports of $699.4 million. In January 2023, Georgia imported $356.1 thousand worth of products from Kyrgyzstan, which was also 0.1% of the total imports of $614.2 million.
The main product that Georgia imported from Kyrgyzstan was fruits and nuts, which amounted to $296.9 thousand, or 69% of the total imports from Kyrgyzstan. Kyrgyzstan is one of the leading producers of fruits and nuts in Central Asia, especially apples, apricots, cherries, walnuts, and almonds. Georgia imports these products to meet the domestic demand, as well as to re-export them to other countries, such as Russia, Armenia, and Azerbaijan.
Trade Relations between Georgia and Kyrgyzstan
Georgia and Kyrgyzstan have established diplomatic relations in 1992, after the collapse of the Soviet Union. The two countries have signed several bilateral agreements on trade, economic, and cultural cooperation, as well as on visa-free travel for their citizens. Georgia and Kyrgyzstan are also members of the World Trade Organization (WTO) and the Organization for Security and Co-operation in Europe (OSCE).
The trade turnover between Georgia and Kyrgyzstan has fluctuated over the years, depending on the supply and demand of various products, as well as the political and economic situation in both countries. In 2023, the trade turnover between Georgia and Kyrgyzstan was $86.4 million, which was 0.6% of the total trade turnover of Georgia. In 2023, Georgia exported $75.8 million worth of products to Kyrgyzstan, and imported $10.6 million worth of products from Kyrgyzstan. The trade balance was positive for Georgia, as it had a trade surplus of $65.2 million with Kyrgyzstan.
