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Monday, 23 April 2018


An export bankrupt

2010-07-23 17:46

6438.jpegOn July 21-26, workshops on increasing export within the generalized system of trade preferences and meeting the USA import standards will be held in the context of Program for the development of commercial law of the U.S. Department of Commerce in Tbilisi, Batumi and Kutaisi. The events are aimed to deepen the Georgian experts' knowledge of the USA export trading standards,which should help increase the export of Georgian products included into the general trade preference system.


In 2008, the USA intended to take a number of actions to ensure the availability of American market for Georgian companies. "The USA will not only provide economic assistance to Georgia but will also set up cooperation with your country in other fields to ensure Georgia's stable development", - Deputy Secretary of the U.S. Department of Commerce John Sallivan stated.

The USA have already provided a 1-billion-dollar assistance to Georgia, of which 370 million will be transferred to the Georgian state budget this year. A trade mission has been created to identify other lines of cooperation; the mission is actively involved in expanding the list of Georgian products that will be allowed to American market on special terms. It means the USA are setting up the system of trade preferences for Georgia. The system has been created but what good will it do to the Georgians?

According to the Georgian statistics department, the export to the USA in 2009 was 37 mln laris (which is 3% of the total export) and included just 9 product items out of 3400 products included into the generalized system of trade preferences.

That is why, perhaps, Georgian business community took the Americans' attempts to play the role of well-doers with open skepsis, which, in turn, caused the government's irritation.

Following the example of Minister of Economic Affairs and Stable Development Vera Kobalia, Mikhail Saakashvili also criticized Georgian businessmen for taking no part in the workshops. During the meeting with the middle management at the Ministry of Agriculture he stated that if a businessman is unable to get up at 9 o'clock a.m. he will have no business.

"If we want to be strong we must work hard. If you have no wish to conquer the largest American market and, primarily, get certain benefit, what are we talking about, then?" - Saakashvili said.

It is interesting whether he believe in what he says. If so, let him read the summaries of tests performed at his enterprises as if they were battlefield reports.

Within six months of year 2010, National Product Security, Veterinary and Plants Protection Service at the Georgian Ministry of Agriculture tested 72 product types. Laboratories checked 50 specimens of milk and diary products, including 27 specimens of milk, 5 types of cottage cheese, 10 types of sour cream and 8 specimens of Caucasian milk. Besides, the test included 7 specimens of ready-made products, 5 specimens of oil, 5 specimens of chocolate and 5 specimens of drinking water. Following the test results, 16 companies were fined for violating the standards; they were charged 1000 laris each. With indicators like this, one has to exist on the export available and Americans will hardly teach anything new. The list of ten Georgian export products is topped by ferrous scrap, ferroalloys and sawn timber.

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