0. Ministry of Agriculture of Georgia
From China to Europe: Agribusiness as emerging driver for export
America-Georgia Business Council`s 19th Annual Conference
USA 2016
Levan Davitashvili
Minister of Agriculture of Georgia

1. Country at Glance Fast growing Corruption free Western oriented
Above 5% average growth during the last 10 years
Above 5% expected growth over the next years
Corruption free
Tangible improvement in Corruption Perception Index over the 10 years – up by 82 places since 2005 (Transparency International)
“Globally, Georgia improved the most in the areas measured by Doing Business over the past 12 years” – DB 2016
Western oriented
Association Agreement (AA), including Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU since 2014
Visa Liberalization with the EU
Ongoing reforms
Good Governance
Improved governance and rule of law

2. Sovereign Ratings – Georgia
Government's debt burden remains modest and fiscal performance under control;
Long Term Growth potential remains strong;
Banking system well capitalized and liquid;
Regional competitiveness.
Major Rating Strengths
Strong support from the international community;
Strong commitment to economic and structural reforms;
AA with EU, DCFTA- easier access to EU market, which will boost Georgia's attractiveness as an investment location over the medium to long term;
Georgia's business environment very favorable with rating peers (ease of doing business indicators);
Prudent fiscal policy, sustainable debt level.
Regional logistics hub and transport corridor between Europe and Asia;
Very strong banking sector (Banking sector risk -Low);
High institutional strength relative to peers, reflected in strong government indicators. (Georgia has progress beyond its Soviet roots, and has arguably advanced further towards Western-style, independent institutions than any other country in the post -Soviet space.);
High Worldwide Governance indicator (WGI) scores and outperforms its peers;
Institutional capacity- and pro business operating environment, government's relative strong balance sheet and moderate debt burden.

3. Transit Hub 01 02 03 04 Roads Rail Maritime Air
Plan to finish all spinal projects by 2020 – Europe Caucasus-Asia & South-North Corridor 02
Rail
Baku-Tbilisi-Kars new railroad line
Railway modernization project 03
Maritime
Anaklia deep water black sea port
Capable of accommodating Panamax size cargo vessels
High capacity – up to 100 mln. tons turnover annually
Georgia – Participating Country in large investment projects within “New Silk Road Economic Belt”
Georgia – located on the crossroads of Europe and Asia, with new opportunities for various countries’ businesses – establishment of industrial infrastructure in Georgia and export to European countries without tariff barriers
Georgia – Hub of trade, logistics and transportation 04
Air
Tbilisi International Airport
2nd runaway to be constructed
International Cargo terminal
Expansion of the South Caucasus Pipeline through Azerbaijan and Georgia
Additional USD 2 bln FDI in Georgia
16 billion cubic meters of new natural gas to Europe and Turkey.

4. Reforms Agenda Promoting Open Governance Economic Reforms 4
Infrastructure Development
Education Reform 4

5. United Agroproject Plant The Future Preferential Agro Credit Project
Co-financing of Agro Processing Enterprises and storage facilities
Georgian Tea Rehabilitation Program
Agro Insurance
Small Farmers Support Program
Seasonal Projects
AMMAR

6. Current Results of Ongoing Projects
Up to 700 re-equipped
Enterprises
More than 5,000 ha of established intensive orchards
1.16 bln. preferential agro credits disbursed,
outstanding portfolio amounts 455 mln. Gel
Insured limits
Cultivation of more than 200,000 Ha agricultural land area annually
Established 154 new enterprises
– 193 mln. Gel
2016 – 126 mln. Gel

7. Trade Policy Outcomes DCFTA with EU Global Economic Integration
FTA with CIS countries
FTA with Turkey, China
EFTA - Iceland, Norway, Switzerland, Liechtenstein
GSP with - USA, Canada, Japan
Global Economic Integration
Economic growth
Export Expansion
Competitiveness
Foreign Investment
New Jobs

8. FTA with CHINA 02 03 01 04 05 06
Free trade negotiations with China successfully completed – Historical Deal for Georgia in terms of finalization of talks in a remarkably short time
Opportunities for increased business and trade turnover through the Free Trade Deal
Exports of Georgian products (i.e. wine, mineral and non alcoholic beverages, fruit, vegetables) to China with zero tariffs and without any transition period
Exports of Georgian products to the 1.4-billion-customers Chinese market without additional customs fees
Georgia – First country in the region with this type of deal with China
With China-Georgia Free Trade Agreement partnership of Georgian and Chinese businessmen for long term cooperation encouraged, general business environment definitely improved

9. Georgian Wine in Chinese Market02 03 01
China - already the second export destination for Georgian wine
First Georgian Wine Promotion Center established in Beijing (July 2015) with the aim of assisting Georgian Wine Companies to establish new business contacts with Chinese partners
Already 40 Georgian Wine Houses established in China

10. DCFTA –EU
The Deep and Comprehensive Free Trade Agreement (DCFTA) implies trade liberalization of goods and services

11. Future Objectives 02 03 01 04 05 06
Increase sustainable development of competitive Agribusiness
Increase effectiveness of export potential in Georgian Agribusiness
Strengthen Agriculture Extension
Stimulate development of efficient supply chain
Promote high value agricultural production
Identify new markets

12. THANK YOU FOR YOUR ATTENTION!
Ministry of Agriculture of Georgia
Levan Davitashvili
Minister of Agriculture of Georgia