Georgia : An Integrated Trade Development Strategy
Georgia became a member of WTO in June 2000. It has low import tariffs and no quantitative restrictions. The VAT (20 percent) and excise taxes are equally applied to imports and domestic output. However, the implementation of trade policies is unde...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/11/2821196/georgia-integrated-trade-development-strategy http://hdl.handle.net/10986/14356 |
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okr-10986-143562021-04-23T14:03:17Z Georgia : An Integrated Trade Development Strategy World Bank AGRICULTURE BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BUSINESS ENVIRONMENT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPETITIVENESS CPI CURRENCY CUSTOMS DEBT DEVELOPMENT STRATEGY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC GROWTH EMPLOYMENT EXCHANGE RATE EXPORT CREDIT EXPORT GROWTH EXPORT OPPORTUNITIES EXPORTERS EXPORTS EXTERNAL TRADE FISCAL YEAR FOOD EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FORESTRY GDP GROSS DOMESTIC PRODUCT IMPORT TARIFF IMPORTS INCOME INDUSTRIAL PRODUCTS INDUSTRY INSURANCE INTEREST RATES INTERNATIONAL PRICES INVESTMENT FLOWS LDCS MARKET ACCESS MARKET INTEGRATION NATURAL RESOURCES PREFERENTIAL ACCESS PRIVATIZATION PRODUCTIVITY PROFIT MARGINS PROPERTY RIGHTS PROVEN RESERVES REAL GDP REGIONAL TRADE SMALLHOLDER AGRICULTURE TARIFF SCHEDULE TAXATION TECHNICAL ASSISTANCE TIMBER TOURISM TOURISM DEVELOPMENT TRADE TRADE DEVELOPMENT TRADE FACILITATION TRADE POLICY TRADE REGIME TRANSPORT TRANSPORT COSTS UNEMPLOYMENT UNEMPLOYMENT RATES VALUE ADDED WAGE RATES WORKING CAPITAL WORLD TRADE WORLD TRADE ORGANIZATION WTO IMPORT TARIFFS TRADE DEVELOPMENT IMPORTS OUTPUT CUSTOMS DUTIES TRADE ARRANGEMENTS FOREIGN INVESTMENT TAXATION RATES CORRUPTION IN GOVERNMENT CRIME EXPORT COMPETITIVENESS TRANSITION ECONOMY DOMESTIC MARKET VALUE ADDED TAXES TRANSPORTATION COSTS ECONOMIC GROWTH AGRICULTURE EMPLOYMENT POVERTY INEQUALITY WELFARE ACTIVITIES Georgia became a member of WTO in June 2000. It has low import tariffs and no quantitative restrictions. The VAT (20 percent) and excise taxes are equally applied to imports and domestic output. However, the implementation of trade policies is undermined by corruption and poor customs and tax administration. Moreover, a new tariff schedule adopted in January 2003 increased the number of tariffs from four to 22! and the top duty rate from 12 to 30 percent. Although the weighted average tariff will go up only by a fraction of a percent and the new tariffs are in line with the upper bounds agreed with the WTO upon accession, such a schedule is a step back from the previous, simpler schedule. Georgia faces no significant trade barriers in world markets and main export destinations include the Commonwealth of Independent States (CIS) region (45 percent)-e.g., Russia, Azerbaijan, Ukraine, and Armenia- where Georgia enjoys duty-free access, followed by Turkey (20 percent), and the EU (18 percent)-mainly Germany. Like most CIS countries, the cost of doing business in Georgia is high and adds significant investment risk. Not surprisingly, outside of two large energy project, foreign direct investment (FDI) in Georgia has been insignificant. According to the 2002 Business Environment and Enterprise Performance Survey (BEEPS) conducted in Georgia, taxation and corruption are the main obstacles to doing business. Along with crime, these problems are somewhat worse in Georgia than its regional counterparts. Issues relating to regulations, the judiciary, infrastructure, and access to finance while still problematic appear more or less the same across the CIS region. More specifically, the industry case studies conducted for this study identified several institutional constraints which significantly undermine the export competitiveness of Georgian firms and create barriers to entry, a critical issue for a transition economy. Notably, exporters do not have assured access to inputs at world prices, particularly of those procured in the domestic market, because of the lack of a functioning VAT refund mechanism. 2013-07-03T15:49:13Z 2013-07-03T15:49:13Z 2003-11-05 http://documents.worldbank.org/curated/en/2003/11/2821196/georgia-integrated-trade-development-strategy http://hdl.handle.net/10986/14356 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work Europe and Central Asia Georgia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BUSINESS ENVIRONMENT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPETITIVENESS CPI CURRENCY CUSTOMS DEBT DEVELOPMENT STRATEGY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC GROWTH EMPLOYMENT EXCHANGE RATE EXPORT CREDIT EXPORT GROWTH EXPORT OPPORTUNITIES EXPORTERS EXPORTS EXTERNAL TRADE FISCAL YEAR FOOD EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FORESTRY GDP GROSS DOMESTIC PRODUCT IMPORT TARIFF IMPORTS INCOME INDUSTRIAL PRODUCTS INDUSTRY INSURANCE INTEREST RATES INTERNATIONAL PRICES INVESTMENT FLOWS LDCS MARKET ACCESS MARKET INTEGRATION NATURAL RESOURCES PREFERENTIAL ACCESS PRIVATIZATION PRODUCTIVITY PROFIT MARGINS PROPERTY RIGHTS PROVEN RESERVES REAL GDP REGIONAL TRADE SMALLHOLDER AGRICULTURE TARIFF SCHEDULE TAXATION TECHNICAL ASSISTANCE TIMBER TOURISM TOURISM DEVELOPMENT TRADE TRADE DEVELOPMENT TRADE FACILITATION TRADE POLICY TRADE REGIME TRANSPORT TRANSPORT COSTS UNEMPLOYMENT UNEMPLOYMENT RATES VALUE ADDED WAGE RATES WORKING CAPITAL WORLD TRADE WORLD TRADE ORGANIZATION WTO IMPORT TARIFFS TRADE DEVELOPMENT IMPORTS OUTPUT CUSTOMS DUTIES TRADE ARRANGEMENTS FOREIGN INVESTMENT TAXATION RATES CORRUPTION IN GOVERNMENT CRIME EXPORT COMPETITIVENESS TRANSITION ECONOMY DOMESTIC MARKET VALUE ADDED TAXES TRANSPORTATION COSTS ECONOMIC GROWTH AGRICULTURE EMPLOYMENT POVERTY INEQUALITY WELFARE ACTIVITIES |
| spellingShingle |
AGRICULTURE BANK LOANS BANKING SECTOR BANKING SECTOR DEVELOPMENT BUSINESS ENVIRONMENT COMMERCIAL BANKS COMPARATIVE ADVANTAGE COMPETITIVENESS CPI CURRENCY CUSTOMS DEBT DEVELOPMENT STRATEGY DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC COOPERATION ECONOMIC GROWTH EMPLOYMENT EXCHANGE RATE EXPORT CREDIT EXPORT GROWTH EXPORT OPPORTUNITIES EXPORTERS EXPORTS EXTERNAL TRADE FISCAL YEAR FOOD EXPORTS FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FORESTRY GDP GROSS DOMESTIC PRODUCT IMPORT TARIFF IMPORTS INCOME INDUSTRIAL PRODUCTS INDUSTRY INSURANCE INTEREST RATES INTERNATIONAL PRICES INVESTMENT FLOWS LDCS MARKET ACCESS MARKET INTEGRATION NATURAL RESOURCES PREFERENTIAL ACCESS PRIVATIZATION PRODUCTIVITY PROFIT MARGINS PROPERTY RIGHTS PROVEN RESERVES REAL GDP REGIONAL TRADE SMALLHOLDER AGRICULTURE TARIFF SCHEDULE TAXATION TECHNICAL ASSISTANCE TIMBER TOURISM TOURISM DEVELOPMENT TRADE TRADE DEVELOPMENT TRADE FACILITATION TRADE POLICY TRADE REGIME TRANSPORT TRANSPORT COSTS UNEMPLOYMENT UNEMPLOYMENT RATES VALUE ADDED WAGE RATES WORKING CAPITAL WORLD TRADE WORLD TRADE ORGANIZATION WTO IMPORT TARIFFS TRADE DEVELOPMENT IMPORTS OUTPUT CUSTOMS DUTIES TRADE ARRANGEMENTS FOREIGN INVESTMENT TAXATION RATES CORRUPTION IN GOVERNMENT CRIME EXPORT COMPETITIVENESS TRANSITION ECONOMY DOMESTIC MARKET VALUE ADDED TAXES TRANSPORTATION COSTS ECONOMIC GROWTH AGRICULTURE EMPLOYMENT POVERTY INEQUALITY WELFARE ACTIVITIES World Bank Georgia : An Integrated Trade Development Strategy |
| geographic_facet |
Europe and Central Asia Georgia |
| description |
Georgia became a member of WTO in June
2000. It has low import tariffs and no quantitative
restrictions. The VAT (20 percent) and excise taxes are
equally applied to imports and domestic output. However, the
implementation of trade policies is undermined by corruption
and poor customs and tax administration. Moreover, a new
tariff schedule adopted in January 2003 increased the number
of tariffs from four to 22! and the top duty rate from 12 to
30 percent. Although the weighted average tariff will go up
only by a fraction of a percent and the new tariffs are in
line with the upper bounds agreed with the WTO upon
accession, such a schedule is a step back from the previous,
simpler schedule. Georgia faces no significant trade
barriers in world markets and main export destinations
include the Commonwealth of Independent States (CIS) region
(45 percent)-e.g., Russia, Azerbaijan, Ukraine, and Armenia-
where Georgia enjoys duty-free access, followed by Turkey
(20 percent), and the EU (18 percent)-mainly Germany. Like
most CIS countries, the cost of doing business in Georgia is
high and adds significant investment risk. Not surprisingly,
outside of two large energy project, foreign direct
investment (FDI) in Georgia has been insignificant.
According to the 2002 Business Environment and Enterprise
Performance Survey (BEEPS) conducted in Georgia, taxation
and corruption are the main obstacles to doing business.
Along with crime, these problems are somewhat worse in
Georgia than its regional counterparts. Issues relating to
regulations, the judiciary, infrastructure, and access to
finance while still problematic appear more or less the same
across the CIS region. More specifically, the industry case
studies conducted for this study identified several
institutional constraints which significantly undermine the
export competitiveness of Georgian firms and create barriers
to entry, a critical issue for a transition economy.
Notably, exporters do not have assured access to inputs at
world prices, particularly of those procured in the domestic
market, because of the lack of a functioning VAT refund mechanism. |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Georgia : An Integrated Trade Development Strategy |
| title_short |
Georgia : An Integrated Trade Development Strategy |
| title_full |
Georgia : An Integrated Trade Development Strategy |
| title_fullStr |
Georgia : An Integrated Trade Development Strategy |
| title_full_unstemmed |
Georgia : An Integrated Trade Development Strategy |
| title_sort |
georgia : an integrated trade development strategy |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/11/2821196/georgia-integrated-trade-development-strategy http://hdl.handle.net/10986/14356 |
| _version_ |
1764428236122488832 |