On May 21, First Deputy Prime Minister Stepan Kubiv and Minister of Economy and Sustainable Development of Georgia Natela Turnava signed the Protocol, which amended the Free Trade Agreement between the Government of Ukraine and the Government of the Republic of Georgia.
The amendments to the Agreement will allow Ukraine and Georgia to use identical rules of origin for goods in bilateral trade and apply the provisions of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), in particular, the diagonal cumulation rule. As is known, from January 1, 2019, Ukraine began to apply the provisions of the PEM Convention in trade with the EU.
"Changes to the Free Trade Agreement with Georgia will allow us to create the first functioning triangle of diagonal cumulation EU-Ukraine-Georgia", Stepan Kubiv emphasized. "In practice, this means that Ukrainian producers will be able to import raw materials and components from Georgia, process those in Ukraine and export, for example, to Germany with Ukrainian certificates of origin with nil or preferential duty rates. PEM is one of the tools for changing the emphasis of international trade from exports of mainly raw materials for the export of more high-tech value-added products that are produced in Ukraine."
Amendments to the Free Trade Agreement will come into force after ratification by the Parliaments of both countries. As is known, the free trade regime between Ukraine and Georgia has been in place since 1996.