MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development Dimitry Kumsishvili paid a one-day working visit to the Islamic Republic of Iran on May 7.

Within the frames of the visit, Dimitry Kumsishvili had meetings with the Minister of Foreign Affairs of Iran Mohammad Javad Zarif, the Minister of Economic Affairs and Finance Masood Karbassian, the Minister of Roads and Urban Development Abbas Ahmad Akhoundi and the Minister of Petroleum of Iran, Bijan Namdar Zangeneh.

Discussions focused on further deepening of the bilateral economic relations, energy direction, and development of cooperation in regional projects. Thus, cooperation in multilateral economic direction will contribute significantly to the development of the trade and economic relations between Georgia and Iran.

Intergovernmental Commission on Bilateral Economic Cooperation is a similar format to review bilateral economic cooperation and as it was decided at the meeting, the next session of the Commission will be held in Iran in the second half of 2018.

At the meeting with the Minister of Economic Affairs and Finance Masood Karbassian, bilateral trade between the two countries was given a positive evaluation. According to the statistics of 2017,the trade turnover between Georgia and Iran equaled to 181 million USD, which is by 38% higher indicator compared to the previous year, while the exports amounted to 76 million USD, which is by 64% higher indicator compared to the last year. It was also noted that the positive dynamic of the growth is maintained in the first quarter of 2018 – the trade turnover and the export amount was increase by 34% and 28%, respectively. 

At the same time, the sides underscored that despite the increase in the trade turnover, the existing data does not reflect the export potential of both countries. The Georgian side pointed out that Georgia can provide the Iranian market to produce products that Iran imports from different markets around the world. Such products include mineral waters, juices and canned fruits and vegetables, tea, non-alcoholic beverages, textile, etc.

The meeting also focused on the enhancement of the cooperation between Georgia and Iran customs offices, which will contribute to the increase of bilateral trade.

One of the main issues of the meetings was the cooperation between Georgia and Iran in the development of transport corridors. The cooperation will be regional and it will also refer to the neighboring states. For example, construction of a railway crossing Azerbaijan and Iran is close to the end and once is launched, it will facilitate additional freight-flow to the South Caucasus corridor.

It was noted that the development of new transport corridors will not only increase the consignment of Georgia and Iran but also promote regional economies, create new jobs and increase the awareness of these routes in the world.

At the meeting with the Minister of Roads and Urban Development Abbas Ahmad Akhoundi, it was noted that a special position was created at the Ministry to supervise the development of the transport corridors. The Iranian Minister also offered to the Georgian side to establish and develop special logistics centers in the Iranian ports of the Persian Gulf as well as the Caspian Sea. On the other hand, it was also said that the parties will promote the increase of the trade turnover between Iran and Georgia and the Black Sea region.

The meeting of the Joint Georgian-Iranian Automobile Transport Commission was also held. It was decided that the Georgian carriers will have access to any port of Iran.

The agreement also envisages 70% discount on petrolium purchased in Iran for Georgian cars, which will increase the competitiveness of Georgian carriers in the Iranian market.

Another issue discussed during the visit of the First Vice Prime Minister of Georgia, Dimitry Kumsishvili was the development of the petrochemical industry with Iranian investment in the Black Sea coast. At the meeting with the Minister of Petroleum of Iran, Bijan Namdar Zangeneh, Georgian side introduced Georgia’s strategic position, it Free Trade Agreements and the opportunities that they provide and the Iranian side confirmed their interested in those opportunities.

During the meeting with the Minister of Foreign Affairs of Iran Mohammad Javad Zarif, increased tourist indicators between Georgia and Iran were specially highlighted as well as the contribution of the visa-free regime between the two countries in this process. In 2017, the number of visitors from Iran was increased by 118% while only in the first quarter of 2018, Georgia hosted over 91000 visitors from Iran, which is by 64% higher number compared to the same period of the previous year.