Country Report Georgia March 2011

Foreign trade and payments: Turkey and Azerbaijan remain Georgia's main trade partners

Turkey remained Georgia's most important trading partner in 2010, accounting for 16.5% of total trade, although this was down from the 18.4% share in 2009. Turkey absorbed 13.6% of Georgian exports in 2010, a share smaller than the 19.9% in 2009. The main reason for the reduction in exports to Turkey is Turkey purchasing a smaller share of Georgian exports of ferrous metals. In 2010 Turkey bought only 9% of this commodity, compared with 63% in 2009. In 2010 the US regained its position as the main buyer of Georgian exports of ferrous metals. Turkey continued to buy a wide variety of other products from Georgia; its most significant purchase was ferrous waste and scrap-the country accounted for 81% of Georgia's exports of this product in 2010. Turkey was the main source of imports for Georgia, selling a vast range of products including medicines, cement and domestic appliances.

Azerbaijan was Georgia's second most important trading partner in 2010, accounting for 10.6% of total trade (US$708.1m). Azerbaijan bought US$244m worth of Georgian exports, the highest figure for several years, or 15.4% of the total value. However, this figure is slightly misleading, as 43% of Georgian exports to Azerbaijan consisted of cars bought by Georgia and then resold. In addition to cars, Azerbaijan bought aircraft parts, iron bars and cattle. Azerbaijan provided Georgia with 43% of its imports of crude oil and petroleum products in 2010, and 58% of gas imports. Ukraine was Georgia's third most important trading partner. In 2010 Ukraine bought 47% of Georgian exports of ethyl alcohol and spirits, 46% of wine exports and 53% of mineral water exports. Ukraine sold Georgia a variety of goods, most importantly cigarettes, iron bars and sunflower seed oil.

Main trading partners
(trade turnover)
 2009 2010 
 US$ m% of totalUS$ m% of total
Turkey1,013.418.41,104.716.5
Azerbaijan542.19.9708.110.6
Ukraine502.39.1662.29.9
Germany324.45.9361.85.4
China180.63.3358.65.4
US260.74.7353.95.3
Russia307.05.6314.04.7
Armenia130.32.4205.83.1
Bulgaria235.14.3193.82.9
UAE127.12.3187.02.8
Others1,876.834.12,228.533.4
Total5,499.7100.06,678.5100.0
Source: National Statistics Office.

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