Georgia US Free Trade Agreement: A Boon for Trade and Investment
The Georgia US Free Trade Agreement (FTA) is a treaty signed between the United States and the Republic of Georgia in 2006. The agreement provides a framework for the two countries to expand and improve bilateral trade and investment relations.
The FTA aims to reduce barriers to trade and investment, promote economic growth, and create new opportunities for businesses in both countries. Since its implementation in 2007, the agreement has had a positive impact on trade and investment flows between the US and Georgia.
Benefits of the Georgia US Free Trade Agreement
The Georgia US Free Trade Agreement has brought several benefits to both countries. Some of the main benefits are:
1. Increased Trade: The FTA has helped to increase bilateral trade between the US and Georgia significantly. According to the Office of the United States Trade Representative, the total bilateral trade in goods and services between the two countries was worth $1.3 billion in 2020, up from $1.1 billion in 2019.
2. Lower Tariffs: The FTA has eliminated or reduced tariffs on a range of goods and services, making them more affordable and increasing their competitiveness in each other`s markets. This has benefited businesses in both countries and helped to boost trade volumes.
3. Improved Investment Climate: The FTA has created a more favorable investment climate for US companies in Georgia. The agreement provides for the protection of intellectual property rights, the elimination of investment restrictions, and the establishment of a dispute settlement mechanism to resolve investment disputes.
4. Economic Growth: The FTA has contributed to the economic growth of both countries. By lowering barriers to trade and investment, the agreement has helped to create new business opportunities, stimulate innovation, and promote economic development.
Areas Covered by the Georgia US Free Trade Agreement
The Georgia US Free Trade Agreement covers a wide range of areas, including trade in goods, trade in services, investment, intellectual property, labor, environment, and dispute settlement. Some of the key provisions of the agreement are as follows:
1. Tariff Elimination: The FTA eliminates tariffs on 80 percent of US exports to Georgia immediately, with the remaining tariffs phased out over time. Georgia has also eliminated tariffs on 98 percent of its exports to the US.
2. Investment Protection: The agreement provides for the protection of US investments in Georgia and Georgia`s investments in the US. It also includes provisions for the resolution of investment disputes and the free transfer of investment-related funds.
3. Intellectual Property: The FTA includes provisions for the protection of intellectual property rights, including patents, trademarks, copyrights, and trade secrets. The agreement also establishes a framework for cooperation on intellectual property issues.
4. Labor and Environment: The FTA includes labor and environmental provisions, which aim to ensure that trade and investment do not lead to a race to the bottom in terms of labor and environmental standards.
Conclusion
The Georgia US Free Trade Agreement has been a success story for both countries. By reducing barriers to trade and investment, the agreement has helped to increase bilateral trade, promote economic growth, and create new business opportunities. With the ongoing implementation of the FTA, US and Georgian businesses can continue to benefit from increased trade and investment flows in the years ahead.