Georgia & South Korea To Begin Work On A Free Trade Agreement
FTA would open up a Free Trade Area including access to much of Eurasia and South East Asia
A joint feasibility study on a free trade agreement between Georgia and South Korea has confirmed that the deal would have a positive impact on the economic welfare of both countries. The conclusion comes after Georgian deputy economy minister Genadi Arveladze and Gi Wook Young, director general on free trade agreements of Korea’s ministry of trade, industry and energy, signed the declaration on the completion of the study on Wednesday (November 30) in Seoul.
The parties agreed to implement “relevant internal state procedures as soon as possible” to start negotiations on the actual agreement, with the first round of talks planned for 2023.
Georgia’s economy ministry said the agreement would open the Korean market of 50 million consumers “with high purchasing power” to Georgian exporting companies.
In addition, the free trade agreement between Georgia and the Republic of Korea will be a catalyst for strengthening trade and economic relations between the two countries. 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”, the state body added.
Arveladze also held negotiations on an agreement on promotion and protection of investment between the countries.
The potential FTA is likely to have wide ranging effects for savvy Georgian and South Korean export manufacturers. Georgia has free trade agreements with the Commonwealth of Independent States (CIS), which includes Armenia, Azerbaijan, Belarus, Kazakhstan, Moldova, Russia, Tajikistan and Uzbekistan as well as Turkiye. It also signed a Deep and Comprehensive Free Trade Area with the EU, which has become valuable for manufacturing in Georgia and subsequent access to the European Union markets.
South Korea meanwhile has Free Trade Agreements with the ten ASEAN nations, Australia, Canada, Central America (Partial), Chile, China, Colombia, European Free Trade Association (Norway, Switzerland, Iceland and Liechtenstein), the European Union, India, New Zealand, Peru, the Regional Comprehensive Economic Partnership (RCEP), Singapore, U.K., U.S., Turkey and Vietnam.
This array of national ties means that South Korean manufacturers, should they establish manufacturing operations in Georgia and be registered as a local entity, be able to access the massive Central Asian, Russian, Turkish and European markets. Georgian investors in South Korea likewise may access much of South East Asia, including Australia, ASEAN, China, and India.
Interested parties may contact our firm, Dezan Shira & Associates, for advice on either of these two markets. Email: asia@dezshira.com
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