Historic goals of the Ukrainian and Georgian peoples are: to confirm renewed independent states at their territories, to transform political and economic systems in direction of democratic society and market economy creating.
100 bilateral documents have been concluded between Georgia and Ukraine.
Basic documents between two states relations are Treaty of Friendship, Cooperation and Mutual Aid, Declaration on the bases of economic relations and perspectives of cooperation and common approaches concerning international relations issues development, Treaty of Economic Cooperation between Ukraine and Georgia for 1999 to 2008.
The following intergovernmental agreements are significant in deepening foreign economic relations: on free trade, on industrial cooperation, on assistance and mutual protection of investments.
Thus, there is concluded the sufficient treaty and legal basis on principally new bases, generally acknowledged legal mechanisms.
Taking into account special friendly relations accomplished between our countries, stability at different levels of political administration, the current trade and economic cooperation state leaves much to be better.
Rise in the turnover reserves, in the first place, should be found in the two countries traditional types of products assortment. Attention should be paid to the law export volume from Ukraine to Georgia of wheat and wheat flour, sugar, sunflower oil, medicinal means, steel assortment and reinforcement.
In its turn, Georgia has a potential possibility to increase export of alcohol products, tea, citrus plants, mineral waters and etc. The abovementioned and the Black Sea ports existence create favorable conditions for Georgia to become the springboard of wheat shipment to the South Caucasus regions, and wheat exchange sale may become a highly profitable business. In this regard Ukraine’s participation as a traditional wheat exporter is rather actual.
It is no lesser important in two countries trade relations development - Georgian wine and wine materials marketing on the Ukrainian market. Their export increasing up to 1 million US dollars testifies the Ukrainian consumers interests in Georgian wines.
Taking into account the eastern countries (Japan, China) interests in goods transporting through Georgia, “Large Silk Way” development, in future Ukraine might use its territory for transit its goods to the Asian countries and transporting energy-carriers (oil, gas) and goods (e.g. Uzbek cotton) from the Central Asia to the local consumers.
Despite the fact that our two countries turnover is not sufficient, the interregional development has a perspective - to fill Georgian markets and throughout Georgia all markets of the South Caucasus with Ukrainian goods.
For our two countries it’s necessary to cooperate closely in the most important spheres of economy including aircraft and machine building, transport, defence industry conversion, environment protection, trade and investments, science and technique, culture and education. Mutual aid will be positive in getting foreign investments to develop our countries energy resources. The key target is getting oil and gas from the neighboring Caspian states to the West throughout territories of Ukraine and Georgia.
For developing new projects, common economic reforms assistance, reaching investment climate improvement in our countries and achieving integration into the main European, Transatlantic and world economic institutions it is more reasonable to involve international economic structures (European Union, EBRD, BSTDB).
In January-September, 2000 Georgia’s foreign trade turnover (besides unorganized marketing) was 777.6 mln. US dollars i.e. 130.4 per cent of the data of the previous year same period.
Hence the export is 234.6 mln. US dollars (correspondently 147.5 per cent) and import – 537.0 mln. US dollars (124.1 per cent ). The negative trade balance of Georgia was 302.3 mln. US dollars in January-September, 2000.
In January-September, 2000 Georgia had negative trade balance with 78 country-partners (with 39 countries more than 1 mln. US dollars), trade deficit with them was 311.1 mln. US dollars, instead of 86 countries and 279.2 mln. US dollars in comparison with the correspondent period of the previous year.
In January-September, 2000 Georgia had positive trade balance (8.7 mln. US dollars) with 25 countries but in January-September, 1999 - with 15 countries (5.7 mln. US dollars). In January-September, 2000 Georgia had positive trade balance more than 1 mln. US dollars with Lithuania, Armenia and Congo.
30.4 per cent of the trade deficit falls on CIS countries (30.6 per cent – for the correspondent period of the previous year). In January-September, 2000 the foreign trade turnover is 288.0 mln. US dollars with these countries (18.7 per cent more in comparison with the correspondent period of the previous year) and with other countries – 483.6 mln. US dollars (correspondently 38.5 per cent more). The CIS countries part from the total foreign trade turnover is 37.3 per cent, of which, export is 41.8 per cent and import – 35.4 per cent (the previous year same data correspondently are 41.0, 49.9 and 37.7 per cent).
With Russia the trade turnover was 134.8 mln. US dollars, i.e. 14.8 per cent more in comparison with the correspondent period of the previous year. The trade turnover share with the country reduced at 2.5 points – from 19.8 to 17.5 per cent.
Georgia’s trade balance for 9 months of 2000 is 14,151.6 thsd.
Among Georgia’s ten trade partners Ukraine is on the sixth place (the seventh place – for the correspondent period of the previous year).
In the IV quarter of 2000 increasing of metal rolled stock and reinforcement, grain and grain materials, spirits, sunflower and corn seeds, pharmaceutical means and equipment from Ukraine is expected. In its turn, the Ukrainian side increases citrus plants, tea, brandy spirits and nuts purchasing.
According to the forecast, this year trade turnover between Georgia and Ukraine might be the highest for the last ten years.
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