Changed situation for re-exporting
By Messenger Staff
Friday, May 30Georgian Government is taking steps to encourage export. Currently, the major item of Georgian export is the re-exporting of cars into neighboring Armenia, Azerbaijan and Kazakhstan. In all these countries, new regulations have been adopted and the re-export of cars from Georgia will be restricted or even stopped. Azerbaijan has moved to new European standards and will not allow cars made before 2005, Armenia is entering the Eurasian Union which will increase their import tariffs and Kazakhstan is already in the Russian-led trade union. It looks like the time of the automobile export paradise is ending in Georgia. For several years, the re-export of cars was a very profitable business; more than a hundred companies were involved in it. Unfortunately, Georgian businesspersons tend to concentrate their attention to one and the same product. In the nineties of the last century it was the re-export of spirits, then it was wine and alcohol and mineral waters, now alcohol has returned back together with fruits and vegetables. It can be very dangerous to target only one market for economic growth, as this can lead to a high level of instability if that market declines. The Georgian economy should take measures to target the European market and produce compatible goods as signing the agreement with EU will give Georgia a big opportunity to enter the European market.