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EFTA Free Trade Agreement with Georgia Came Into Force

The EFTA States, Iceland, Liechtenstein, Norway and Switzerland, signed a free trade agreement with Georgia in Bern, Switzerland, on 27 June 2016.

From September 1, 2017 agreement came into force.

As a broad-based agreement, the FTA covers trade in goods, trade in services, establishment, the protection of intellectual property rights, government procurement, competition, and trade and sustainable development.   In the area of trade in goods, the Parties abolish all customs duties on industrial products as of the entry into force of the Agreement.

Merchandise trade between the EFTA States and Georgia has increased at an average annual rate of 19 % between 2005 and 2015. In 2015, total merchandise trade between the EFTA States and Georgia was valued at USD 53.3 million, with EFTA’s exports to Georgia amounting to USD 49.4 million and exports from Georgia to the EFTA States reaching USD 3.9 million. EFTA’s key exports to Georgia were pharmaceuticals, fish and watches while EFTA’s imports mainly consisted of apparel and hazelnuts.

With a combined population of around 13 million, and a combined GDP of USD 1.2 trillion, the EFTA States are the world’s 9th largest merchandise trader and the 5th largest trader in commercial services, as well as significant actors in the area of foreign direct investment. They now have 27 FTAs with a total of 38 partners outside the European Union.