China and Georgia agree to upgrade free trade agreement

China and Georgia have agreed to modernise their bilateral free trade agreement, which has been in force for eight years, strengthening cooperation in investment, e-commerce, and trade facilitation.

A memorandum on the updated deal was signed in Beijing on 22 April by Chinese Commerce Minister Wang Wentao and Georgian Economy Minister Mariam Kvrivishvili, News.Az reports, citing Georgian media.

According to Georgia’s Economy Ministry, Kvrivishvili said the revised agreement “will further strengthen and consolidate trade and economic relations between the two countries.”

Chinese officials said the updated version introduces two new chapters covering investment and electronic commerce. It also revises existing provisions on sanitary and phytosanitary measures, as well as technical barriers to trade.

Under the new investment framework, the two sides agreed to improve regulatory transparency and simplify procedures for approving capital investments. In e-commerce, the agreement includes a temporary exemption from tariffs on electronic transactions, alongside commitments to protect consumer rights and personal data.

The updated provisions on sanitary standards and technical barriers aim to reduce unnecessary restrictions and speed up dispute resolution over agricultural product quality.

The original free trade agreement entered into force in January 2018, becoming China’s first such deal under the Belt and Road Initiative and its first with a country in the Eurasian region.

Since then, bilateral trade has increased more than 2.5 times. In 2025, trade turnover reached nearly $2.7 billion, marking a 175% increase compared to 2017.

Georgian wine, coffee, and mineral water exports to China have grown, while Chinese electronics and digital services have seen rising demand in Georgia.

Negotiations on the upgrade began in July 2025, with two rounds of consultations held. In November 2025, ministers from both countries signed a memorandum in Shanghai confirming the completion of talks, in the presence of Chinese Premier Li Qiang and Georgian Prime Minister Irakli Kobakhidze.

The revised agreement will enter into force after both sides complete domestic ratification procedures. The exact implementation date will be announced once these processes are finalised.

News.Az