Russia’s suspending free trade not to damage Georgian economy
The Georgian Presidential Advisor for Economic Affairs, Giorgi Abashishvili, has recently met with representatives of the country's small business.
"The issue of signing a comprehensive free trade zone agreement with the EU was the main topic of discussion during the meeting," Abashishvili told media on August 1.
"The promotion of Georgian products, as well as Russia's reactions was among other issues which were discussed in the meeting," he added.
Abashishvili further said Russia's suspension of free trade agreement with Georgia will not greatly damage the Georgian economy.
"It is very difficult to find the economic motives behind Russia's decision, as the Free Trade Agreement with the EU poses no threat to the Russian market," he said. "It is necessary to stress that this means the transition to a tariff regime, rather than a ban on trade. We, like other countries, will continue trading with Russia, but not in the free trade regime. Unlike past years, today the export structure of Georgia is significantly diversified. Thus, the reduction of trade turnover with Russia will not greatly damage our economy," he noted.
Introducing the tariffs can lead to a rise in the price of Georgian products in the Russian market, Abashishvili added.
Earlier, the Russian Ministry of Economy and Development worked out the government's draft decree on suspending the free trade agreement between Russia and Georgia. The relevant document is available on the single legal information portal, RIA Novosti reported.
The suspension of the free trade agreement with Georgia was coordinated with Russian relevant Ministries - Foreign Ministry, the Ministry of Economic Development and the Ministry of Justice - according to the draft decree. The agreement was signed on February 3, 1994.