POLICY PAPER N2024/01 - EVALUATION OF GEORGIA’S POTENTIAL FREE TRADE AGREEMENTS WITH THE USA, INDIA,

These positive gains are mainly attributed to the reduction of barriers hindering the cross-border provision of services, the reduction of non-tariff barriers on goods, and the easing of restrictions against FDIs in Georgia. [...] The feasibility study of an FTA between Georgia and South Korea and the memorandum on the commencement of negotiations between the parties was completed in November 2022, while the talks were planned to be launched by the end of 20232. [...] In the case of the FTA with the USA, reducing barriers on cross-border imports of services and barriers against the FDIs results in the most significant gains, followed by the liberalization of the non-tariff obstacles on goods in Georgia and the USA (Figure 3). [...] We specifically analyze the citizenship of the ultimate owners of the company to determine the source of FDI in these sectors. [...] The unique dataset was constructed to reflect the trade in services by countries and sectors23 for cross-border trade and the presence of foreign residents in the domestic market of services.