Georgia signed free trade agreement with the European Free Trade Association (EFTA) in Bern on June 27.

The signing took place on the sideline of Georgian PM Giorgi Kvirikashvili’s two-day official visit to Switzerland, which started on Monday, and on the margins of EFTA ministerial meeting.

EFTA is made up of Norway, Iceland, Liechtenstein and Switzerland, who are not the EU members. Georgia has deep and comprehensive free trade agreement with the EU.

The free trade agreement will enter into force after completion of the necessary internal procedures for ratification by the parties.
 
According to EFTA the free trade agreement with Georgia has a “comprehensive coverage”, including trade in goods – industrial and agricultural goods, fish and other marine products, as well as trade in services; investment; competition; protection of intellectual property rights. A joint committee of Georgia and EFTA will oversee the implementation of the agreement.

Trade between the EFTA member states and Georgia has increased at an average annual rate of 19% between 2005 and 2015, according to the EFTA.

In 2015, total merchandise trade between the EFTA states and Georgia was valued at USD 53.3 million, with EFTA’s exports to Georgia amounting to USD 49.4 million and exports from Georgia to the EFTA states reaching USD 3.9 million.

EFTA’s key exports to Georgia were pharmaceuticals, fish and watches while Georgia’s exports to EFTA mainly consisted of apparel and hazelnuts.

Georgia and EFTA concluded free trade negotiations after third and final round of talks held in Tbilisi in February, 2016.

On the first day of his official visit, the Georgian PM met on June 27 with Switzerland’s President and economic affairs minister Johann Schneider-Ammann.

“Bilateral talks focused on efforts to promote peace in the Caucasus and Switzerland’s cooperation strategy for the South Caucasus region,” the Swiss Federal Department of Economic Affairs said.

Switzerland acts as a diplomatic mediator between Russia and Georgia as the two countries have their diplomatic relations cut since the August 2008 war.

“The president [Johann Schneider-Ammann] stressed that Switzerland was ready to support Georgia’s efforts for better relations with Russia,” the Swiss Federal Department of Economic Affairs said.