The FINANCIAL — CBI agency of the Netherlands Ministry of Foreign Affairs and Georgian Chamber of Commerce and Industry has implemented the 4 year project ECP-WINE to help Georgian wine companies enter the European Union (EU) market.
The project’s purpose is to render assistance to Georgian companies in penetration into the EU market and promotion of international trade with EU countries. 7 Georgian winemaking companies were selected within the project: Telavi Wine Cellar, Tbilvino, Teliani Valley, Shumi, Vazi+, Corporation Kindzmarauli and Besini.
“CBI is a European centre that supports import from developing countries. This centre exists in Holland but covers the whole European Union,” Jemal Inaishvili, President of the Georgian Chamber of Commerce and Industry, says.
“All initiatives which are connected to Georgian wine are considered important, most of all during this time of recession when product sales have significantly reduced. Over 4 years this project will help companies to produce more wine and enter the European market. For Georgia, this project will be stimulating and an additional guarantee for European consumers,” Bakur Kvezereli, Minister of Agriculture, says.
“Since its independence Holland has held a very close relationship with Georgia. The Government of the Netherlands has made some facilities be at the disposal of Dutch companies to help them start projecting together with Georgian companies. Since then there have been several projects implemented by Dutch companies in Georgia in different fields. There are also some private Dutch companies who have their own businesses in Georgia. The Netherlands Financial Institution also supports several Georgian banks,” Onno Elderenbosch, Ambassador of the Kingdom of the Netherlands in Georgia, says.
“The most frequent products which are exported from Georgia to Holland are wine and nuts. Negotiations are being held about bringing Georgian vegetables and some juices to the Dutch market too. Wine and nuts are among the most prioritized Georgian products on the Netherlands market. These are products which are easily transferred and sold,” Man.Dir.DRS. Theo Jansen, Romanian and Georgian wines management consultancy specialist on food and drinks, says.
“From Holland to Georgia we import juices, grapes, flowers, meat and different agricultural products,” Theo Jansen states.
According to the Dutch Embassy in Georgia, the largest commodity categories that the Netherlands imports from Georgia are: ferro-alloys, nuts, scrap and chemicals.
The Georgia-Netherlands business portal notes that after the Rose Revolution many successful European companies were looking with interest at the political and economical process of development in Georgia. Things were changing very quickly and in a positive direction.
“In spite of the fact that the new government created free competition, a stable economic and political situation, simplified tax legislation and decreased taxes, a lot of companies did not want to take a risk and enter the new market,” the Georgia-Netherlands business portal notes.
Theo Jansen states that Georgia isn’t really an easy partner. “Lots of Dutch people have started working in Georgia only to become disappointed. Georgians don’t usually respond to questions and if they do, are late in answering. So it’s very difficult to maintain faith.”
“Since 2004 Georgia has reoriented its policy toward further improvement of the business climate, deregulation and privatization, establishment of free markets and improved control of corruption. The results of their performance have gained international recognition. Georgia was ranked no. 1 reformer in the World Bank’s 2007 “Doing Business Survey”, improving its overall ranking from 112 to 37. In “Doing Business 2008” Georgia was further promoted to 18th place in the overall aggregate rankings. Georgia also improved from 52nd to 35th place on the Heritage Foundation’s 2007 Economic Freedom Index,” the Dutch Embassy in Georgia notes.
Foreign direct investments in Georgia from the Netherlands was about USD 1,738,935 in the (Q1-Q3) of the year 2007. In January and February of the year 2007, the export of goods from Georgia to the Netherlands amounted to USD 112,048 and import of goods from the Netherlands to Georgia amounted to USD 90,045.
“Foreign Direct Investments from EU member countries in 2006 amounted to USD 407.1 million (a USD 163.4 million increase from the parameter of the last year). Despite nominal growth however, the EU share in total investments sharply dropped in both annual and quarterly terms. This can be explained by the fact that the South Caucasus (Shah-Deniz) gas pipeline entered the final phase of its construction. In 2007 FDIs from EU member countries amounted to USD 1,132.7 million (increased by USD 725.6 million in comparison to 2006). In January-September 2008 FDIs from EU member countries amounted to USD 376.1 million,” the Ministry of Foreign Affairs of Georgia notes.
The official website of the Dutch Embassy in Georgia notes that since 2004, Georgia has reoriented its policy toward further improvement of the business climate, deregulation and privatization, establishment of free markets and improved control of corruption. The results of their performance have gained international recognition.
According to the Georgian Statistics Department, Georgian foreign trade amounted to USD 6,456.9 million in twelve months of 2007, growing by 39.9 percent as compared to 2006. The country’s exports experienced 32.5 percent increase and reached the sum of USD 1,240.2 million, while imports grew even more – by 41.8 percent – and amounted to USD 5,216.7 million. The largest trading partners for Georgia were Turkey (first place), Ukraine (second place), Russia (third place), Azerbaijan (fourth place), also Germany, the USA, Bulgaria, the United Arab Emirates (UAE), China and Turkmenistan.
Written By Tako Khelaia
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