WORLD TRADE
ORGANIZATIONWT/REG122/3
29 October 2001
(01-5302)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN GEORGIA AND TUKMENISTAN
Communication by Georgia
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership, Dates of Signature, Ratification and Entry into Force
Date of Signature: 20 March 1996 in Tbilisi (Georgia)
Entry into Force: 1 January 2000
The Agreement will be terminated after twelve months from the date when one of the Parties
to the Agreement submits the written notification to the other Party with the purpose of termination of
the Agreement.
2. Type of Agreement
The Agreement establishes a free-trade area in conformity with the definition set out in
Article XXIV:8(b) of GATT 1994.
3. Scope
The free-trade area established by this Agreement provides the framework for future trade
relations between Georgia and Turkmenistan.
The Agreement covers commodity and services.With the entry into force of this Agreemen t, Parties to the Agreement will not impose
customs duties, taxes or charges of equivalent effect on exports and imports of commodities
originated from the customs territories of the contra cting Parties.  Parties to the Agreement will also
not impose, directly or indirectly, local taxes or charges on goods covered by the present Agreement,in excess of the rate of relevant taxes or charges imposed on analogous goods of local production or
those produced in third countries.
4. Trade Data
Imports from Turkmenistan into Georgia, 1997-2000
(milion US$)
Total Trade Trade Covered % of Trade Covered
1997 - 13.6
1998 - 10.1
1999 - 22.2
2000 32.9 32.6 99.1%WT/REG122/3
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II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and charges
As provided for by Article 1 of the Agreement, the Parties shall introduce no customs duties
on imports or taxes and charges having equivalent effect.
1.2 Quantitative restrictionsThe Parties will refrain form applying the quantitative restrictions on imports of goods or
their equivalent measures in the framework of the present Agreement.
The Parties have also agreed on freedom of transit.
2. Export Restrictions
2.1 Duties and charges
The Parties do not charge the export of goods.
2.2 Quantitative restrictionsThe sides will not introduce special restrictions or demands towards export of goods, covered
by the present Agreement, that in similar cases are not used towards analogous goods of the local
production or those produced in third countries.
3. Rules of Origin
For objectives and within operating period of this Agreement, the following commodity is
considered being originated from the customs areas of the Parties:
(a) Commodity entirely produced on the areas of the Parties;
(b) Commodity processed on the areas of the Parties using raw materials and accessory
items of the third countries, and relati vely changed the identity according to the
classification of the commodity nomenclature of foreign economic activity.
(c) Commodities produced by using raw materials and accessory items noted in the
paragraph "b", provided that their aggregate cost does not exceed the fixed share in
export part of realized commodity.
4. Standards
The Agreement does not stipulate any provisions regarding the standards.
The Agreement does not provide for the provisions concerning sanitary and phytosanitary
measures.WT/REG122/3
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5. Safeguards
Quantitative restrictions may be introduced unilaterally in a reasonable manner having strictly
determined period and in the following cases only:
- In case of sharp commodity deficiency at the domestic market-till stabilization of
situation at the market;
- In case of a balance-of-payments deficit-till stabilization of the balance-of-payments;- In case when a commodity is imported to the territory of one of the Parties in such an
increased quantity or in conditions which are threatening to cause the damage to
domestic procedures of similar or directly competitive goods.
6. Anti-Dumping and Countervailing Measures
The Parties to the Agreement consider that unfair  business practice is incompatible with the
Agreement's objective.
III. GENERAL PROVISIONS OF THE AGREEMENT
Nothing in this Agreement shall prevent any Party from using the measures that it deems
necessary in order to protect its vital interests or implement the provisions of international agreements
to which it is a contracting Party, if such measures concern the following:
- Information concerning interest of national defense:
- Trade in weapon, ammunition, military equipment;
- Investigations and production concerning defensive needs;
- Supply with materials and equipment applied in nuclear industry,- Protection of the public moral and public order;
- Protection of industrial or intellectual property;
- Gold, silver or other precious stones and metals;
- Care of human, animal, plant health and environment.
3. Dispute Settlement Procedures
Disputes regarding interpretation and application of provisions of the Agreement will be
settled through bilateral negotiations.
5. Institutional Framework
In order to realize objectives of the present Agreement and to elaborate recommendation for
improvement of trade and economic cooperation between two countries, the Parties agreed to
establish the joint Georgian-Turkmenistanian Commission.
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