The first round of negotiations on economic partnership between Georgia and the Republic of Korea was opened in Tbilisi on February 21, 2024. The two countries aim to enhance their trade and investment relations by establishing a comprehensive and mutually beneficial agreement.
Background and Objectives of the Negotiations
The opening of negotiations was preceded by many years of intensive work with the side of the Republic of Korea. The two countries conducted a joint feasibility study on a free trade agreement, which confirmed that the deal would have a positive impact on the economic welfare of both countries.
The agreement covers areas of economic cooperation such as energy, transport, and investment, as well as issues such as trade in goods and services, rules of origin, sanitary and phytosanitary measures, customs procedures, and technical barriers to trade.
The main objectives of the negotiations are to:
- Eliminate or reduce tariffs and non-tariff barriers on trade in goods
- Facilitate trade in services and enhance market access opportunities
- Promote and protect investment flows and ensure a level playing field for investors
- Strengthen cooperation in areas of mutual interest such as digital economy, intellectual property rights, and sustainable development
Benefits and Opportunities for Both Countries
The economic partnership agreement between Georgia and Korea will open the Korean market of 50 million consumers with high purchasing power to Georgian exporting companies. Korea is the 12th largest economy in the world and the fourth largest in Asia, with a GDP of $1.6 trillion in 2023.
According to the Georgian Ministry of Economy, the agreement will not only facilitate the expansion of trade and investment, but also provide a comprehensive institutional framework for a wide range of bilateral cooperation.
Some of the potential benefits and opportunities for both countries are:
- Increased exports of Georgian products such as wine, mineral water, nuts, fruits, and textiles to Korea
- Increased imports of Korean products such as automobiles, electronics, machinery, and cosmetics to Georgia
- More Korean investment in Georgia’s strategic sectors such as tourism, energy, infrastructure, and agriculture
- More Georgian investment in Korea’s innovative and high-tech industries such as biotechnology, information technology, and green energy
- Enhanced cooperation in education, culture, science, and technology
Next Steps and Expectations
The first round of negotiations on economic partnership between Georgia and Korea will last for two days, from February 21 to 22, 2024. The two sides will exchange views on the scope and modalities of the agreement, as well as the main issues and challenges to be addressed.
The negotiations are expected to be concluded within a reasonable period of time, taking into account the level of ambition and the complexity of the issues involved. The two sides will hold regular meetings and consultations to advance the negotiations and resolve any outstanding issues.
The economic partnership agreement between Georgia and Korea will be a catalyst for strengthening the strategic partnership and friendship between the two countries. It will also contribute to the regional and global economic integration and stability.
