Trade and economic cooperation as an important component of Turkmen – Korean relations was one of the main subjects of the talks of President Gurbanguly Berdimuhamedov with President Moon Jae-in in Oguzkhan Palace Complex.
Turkmenistan has rich natural resources, developing industrial and transport infrastructure and agrarian complex while the Republic of Korea has modern technologies and production, Turkmen leader said, having noted that our country considers for beneficial cooperation with Korean business circles on creation of new industrial facilities based on advanced and eco-friendly technologies.
Leading Korean companies participating in the implementation of the projects of construction and modernization of oil refining and petrochemical complexes were brought as an example of efficient joint activity. It includes gas processing plant at Galkynysh field and petrochemical complex for polymers production in Kiaynly settlement in Balkan Velayat.
In this context, President Gurbanguly Berdimuhamedov made proposal on detailed review of the implementation of joint energy projects in Turkmenistan in near future.
The most important of them were discussed recently in Seoul at the seventh session of Intergovernmental Turkmen – Korean Commission for trade, economic, scientific and technological cooperation. In this regard, it was proposed to have talks between Korean companies and relative structures of Turkmenistan on detailed discussion of the subjects related to organization of joint work in May – June this year.
Transport sphere was outlined as one of the main directions of bilateral cooperation. Big Korean transport, logistic and ship building companies as well as facilities producing modern high-class vehicles, locomotives and wagons would be able to take part in the development of transport and communication infrastructure f Turkmenistan as an important element of international cooperation in the sphere of sustainable transport.
For example, ship-building plant operates in the structure of Turkmenbashy International Seaport, which was put into operation in May last year. In case of the interest of profile Korean companies, Turkmen side is willing to establish close cooperation in this new field – the construction of sea ships for their use in Caspian Sea.
Partnership in supply of vehicles from the Republic of Korea with the opening of trade, service and maintenance bases of Korean vehicle building companies seems to be perspective in the partnership between our countries.
Turkmen side said about the willingness to detailed discussion of the main terms of cooperation in the sphere of railroad transport. Study of the capabilities of Korean companies in supply of relative equipment as well as their participation in modernization of railways in Turkmenistan is very current in this sphere.
Turkmenistan is also willing to develop joint projects in electronic industry having rich intellectual potential, wide financial and material resources for its development. Participation of Korean companies, which have high technologies, in creation of this industry in Turkmenistan can be another direction of the partnership. Advanced technologies of light industry of the Republic of Korea can be used in further development of Turkmen textile industry.
Systematic introduction of digital technologies in all spheres is strategically important for social and economic growth of our country, President Gurbanguly Berdimuhamedov said. In this regard, Turkmen side looks forward the exchange of practice with Korean colleagues in the sphere of digital economy and express the willingness to the establishment of direct contacts with relative government structures, institutes and companies of two states.
President Gurbanguly Berdimuhamedov proposed to establish joint Turkmen – Korean Business Council for strengthening of trade relations, coordination of existing and perspective joint economic projects and expansion of the spheres of the partnership. It composition may include Turkmen and Korean industrial facilities, trade companies, banks, financial and industrial institutes, centres of economic information. The Head of Turkmenistan has also expressed the confidence that regular and systematic communication of entrepreneurship structures under the above-mentioned Council would support significant promotion of bilateral trade and economic cooperation.
The state news agency of Turkmenistan
Free Trade Agreement between Georgia and Hong Kong /the Special Administrative Region of the People’s Republic of China/ became effective from February 13 this year.
Georgia-Hong Kong /China/ Free Trade Agreement was signed on June 28, 2018, in Hong Kong within the framework of the One Belt- One Road summit.
The purpose of the agreement is to determine the terms of the free movement of the goods between Georgia and Hong Kong – the Special Administrative Region of the People’s Republic of China as well as to promote trade of services. The new generation agreement between the parties also covers such topics as promotion of customs and trade, intellectual property rights, technical barriers to trade, sanitary and phytosanitary measures, etc.
Georgia is the first country in the region with whom Hong Kong has signed a free trade agreement. The agreement will increase awareness of Georgia, its business climate and promote trade and investment flows between Hong Kong and Georgia.
Hong Kong conducts open economic policy and represents one of the largest key transnational financial centers of the world.
Enactment of the Agreement will facilitate the growth of the trade turnover between the parties and give Georgian entrepreneurs chances to introduce their products and services without additional bureaucratic barriers to a 7-million consumer market.
Georgian designers and furniture producers strengthen international ties with support from EU4Business
A group of Georgian interior designers and furniture producers are visiting the German city of Cologne this week to showcase their products at the design fair taking place during Passagen Interior Design Week, Germany’s largest annual design event.
The visit agenda also includes trips to leading German furniture producers to explore the potential for cooperation.
All are members of the Georgian Furniture Cluster, which was established in 2017 with the support of the European Union and its EU4Business initiative.
The visit has been organised within the SME Development and DCFTA in Georgia project implemented under EU4Business. It assists Georgian small and medium-sized enterprises (SMEs) to become more competitive and adapt to the new regulatory environment created under the EU Deep and Comprehensive Free Trade Agreement.
The EU is the world’s largest market and a Deep and Comprehensive Free Trade Agreement with Georgia, the Republic of Moldova and Ukraine offers new opportunities for companies in these countries. Fashion house ‘Materia’, based in Tbilisi, is one of them, says an article published by the European Bank for Reconstruction and Development (EBRD).
Offering its customers a premium clothing line and more affordable products, the fashion house also sells its clothing to various public institutions in Georgia including the army, police, post office staff and many more.
It works closely with the Georgian Rugby Federation to produce uniforms for the national team’s junior players and a wide range of rugby clubs, including Goris Jiki, which won this year’s domestic club championship.
The business has secured financing to modernise its equipment and introduce the best workplace health and safety practices for a new clothing factory, in line with EU standards. This will help the fashion house to take full advantage of export opportunities. The firm was one of the first to benefit from the EU4Business-EBRD Credit Line.
The EU4Business-EBRD Credit Line – a joint initiative between the EBRD and the European Union – targets small and medium-sized enterprises in Georgia, the Republic of Moldova and Ukraine. All three countries are signatories to an Association Agreement and benefit from signing up to the Deep and Comprehensive Free Trade Area with the EU.
The Credit Line helps interested businesses to make the most of open access to the EU, the world’s largest trading block, by modernising their production and services in line with EU standards.
The hereby Agreement will allow Georgian entrepreneurs introducing own goods and services to the largest world market without bureaucratic impediments.
Besides, the agreement will facilitate to increase of trade turnover between the signatory countries. The document provides active cooperation in various directions and defines free trade conditions.
The Agreement facilitates to economic development of the country and better employment. Besides, the document will encourage entry of potential foreign investors to Georgia.
The negotiations on the agreement started on November 10, 2015 in China within the World Economic Forum after the meeting of the Prime Ministers of Georgia and China. Georgia is the first country in the region with free trade agreement with China.
Senator Neale Richmond, the Irish Government spokesman on EU Affairs wrote on sluggerotoole about Ireland’s business opportunities in Georgia.
According to the Senator, in February 2017 the Embassy of Georgia in Ireland hosted a presentation on Georgia’s business and investment environment that was organized in partnership with the Irish Chamber of Commerce in Central and Eastern Europe. Besides, there is currently an exhibition focussing on the potential of Georgia as a trading and investment partner.
Neale Richmond writes that the Deep and Comprehensive Free Trade Area – an integral part of the EU-Georgia Association Agreement increases market access between the EU and Georgia based on having better-matched regulations. The EU is the main trade partner of Georgia.
“Seen as a gateway market, Georgia has an extensive Free Trade network with other countries in the region such as Turkey, the Middle East, certain Gulf States and recently with China” – writes the Senator.
According to the senator, there is a 0% tax to attract investors to establish industries in Georgia with the operations in the regional market while the stable banking sector with no restrictions on currency convertibility or repatriation of capital and profit is attractive for many as is the tax system that is liberal and business friendly with only six low and flat taxes. Corporate tax is at 15%. Georgia has been a member of the World Trade Organisation (WTO) since 2000. Visa free travel from Georgia to the EU came into effect in March 2017.
Looking at the pharmaceutical, agri-food and construction sectors in particular, the Senator believes that there is huge potential for increased cooperation between Irish and Georgian enterprises directly as well as for Irish businesses to utilise Georgia’s gateway status into the region.
“Ireland supports EU initiatives to promote peace between Georgia and Russia. Ireland recognises Georgian sovereignty over the separatist regions of Abkhazia and South Ossetia. Ireland also condemned the decision of Russia to recognise South Ossetia and Abkhazia as independent states” – Richmond writes.
Senator Neale Richmond discussed Georgia’s trade potential at a meeting with Charges d’Affaires of the Georgian Embassy to Ireland Giorgi Zurabashvili.
In Q2 2016 the real growth of Gross Domestic Product (GDP) amounted to 3.0 percent yearon-year, while the GDP deflator increased by 0.7 percent. The nominal GDP totaled GEL 8 059.8 million.
The largest shares of GDP by activity are held by Industry (16.6 percent) and Trade services (15.1 percent), followed by Agriculture, hunting and forestry, fishing (10.6 percent), Transport and communication services (9.4 percent), Public administration (9.2 percent), Construction (8.5 percent), Real estate, renting and business activities (6.3 percent), Health and social work (6.0 percent).
Real growth was registered in the Mining and quarrying (24.1 percent), Construction (12.8 percent), Hotels and restaurants (10.8 percent), Financial Intermediation (9.4 percent), Other community, Social and Personal Service Activities (8.7 percent), Manufacturing (8.3 percent), . A decrease in the real value-added occurred in Transport (-5.8 percent), and Trade services (-2.8 percent). Public infrustructural projects have led an increase of real gross value added in Construction.
Calculation of the quarterly Gross Domestic Product is based on monthly and quarterly data. Therefore, there arises a necessity to adjust the GDP taking into account annual data. Data from annual surveys usually differ from quarterly data. Before receiving annual data, the annually adjusted data from the previous year are used in quarterly calculations. For example, preliminary data for 2015 are used during the initial calculations of the GDP for the first and second quarter of 2016.
In November 2016 data for first and second quarters of 2016 will be corrected taking into consideration annually adjusted data for 2015 and changed data for quarters of 2015. Finally adjusted data for 2016 will be published by the end of November 2017, when the annual data for 2016 become available.