WORLD TRADE
ORGANIZATIONWT/REG120/3
29 October 2001
(01-5300)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN GEORGIA AND AZERBAIJAN
Communication by Georgia
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
Date of Signature: 8 March 1996 (Tbilisi), Georgia
Ratification: 16 April 1997 (Georgia)Entry into Force: 10 July 1996
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 the Republic of Azerbaijan.
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
originating from the customs territories of the contrac ting 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.WT/REG120/3
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4. Trade Data
Imports from Azerbaijan into Georgia, 1997-2000
(milion US$)
Total Trade Trade Covered % of Trade Covered
1997 125.9 35.2 27.9%
1998 68.1 20.3 29.8%
1999 66.3 62.1 93.7%
2000 54.9 53.3 97.0%
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 restrictionsParties will refrain from 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
Parties do not charge the export of goods.2.2 Quantitative restrictionsSides 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 localproduction or those produced in third countries.
3. Rules of Origin
The Rules of Origin were defined according to the decision of the Council of Heads of
Government of CIS of 30 November 2000.
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/REG120/3
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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 commodity is imported to the area of one of the Parties in such an
increased quantity or in conditions which are threatening to inflict damage todomestic producers of similar or directly competitive goods;
The Party which applies quantitative restrictions will provide another Party with necessary
information about the reason for establishment, forms and possible dates of the use of mentioned
restrictions.
6. Anti-Dumping and Countervailing Measures
Parties to the Agreement consider that unfai r business practice is incompatible with the
Agreement's objective.
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
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 interests of national defense;
- Trade in weapon, military materials, 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.
2. Accession
In case of approval from the Sides, any State may accede to the present Agreement in terms
that will be agreed between the Sides and the States striving for accession.
3. Dispute Settlement Procedures
Disputes regarding interpretation and application of provisions of the Agreement will be
settled through bilateral negotiations.WT/REG120/3
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4. Relation with Other Trade Agreements
Nothing in this Agreement shall prevent the Parties from implementing the relations with
third countries or international organizations without prejudice to the objectives and terms of the
present Agreement.
5. Institutional Framework
In order to implement the present Agreement and elaborate recommendations for
improvement of trade and economic cooperation be tween two countries, Parties to the Agreement
agreed to establish the joint Georgian-Azerbaijan Commission.
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