2019 brought a new wave of initiatives aimed at deepening economic cooperation between Georgia and the U.S. private sector engagement has increased significantly in Georgia and regionally, bringing up to $100 million in direct investments and collaboration on the largest projects in the country.
Among American companies with recent investments in Georgia is Trammo, a Fortune 500 company headquartered in New York City. Trammo is developing a network of cargo terminals from Georgia to the Caspian Sea aimed at delivering minerals to global markets. The total investment in this project exceeds $20 million for the construction of a new terminal for mineral fertilizers in the Georgian Black Sea port of Batumi.
The Overseas Private Investment Corporation (OPIC) increased its portfolio last year, which now includes $50 million in funding for the development, construction and operation of the multifunctional marine PACE Terminal at the Georgian Black Sea port of Poti, developed by Pace Georgia Limited. Also, OPIC committed $15 million to JSC Liberty Bank to upgrade its infrastructure, including the roll-out of approximately 500 state-of-the-art ATMs.
These developments reflect the growing interest of U.S. corporate leadership in increasing investment in Georgia. This is supported by Congress and the current Administration’s clear recognition of the strategic importance of Georgia as a gateway for U.S. geopolitical and economic interests in the wider region. Therefore, throughout 2019 Georgia continued to advance its work with the U.S. Executive and Legislative branches of strengthening bilateral trade relations and paving the way towards closer commercial ties between the nations. A Memorandum of Understanding between the Ministry of Economy and Sustainable Development of Georgia and the Department of Commerce of the United States on cooperation to expand bilateral commercial relations was signed on June 13th, 2019. Members of Congress expressed strong bipartisan support for the Memorandum and the possibility of a Free Trade Agreement between the United States and Georgia.
On October 22nd, 2019 the House of Representatives unanimously passed bipartisan legislation H.R. 598, the Georgia Support Act, which asserts the United States’ continued support for the independence and sovereignty of Georgia, and requires the United States Trade Representative to make progress toward negotiations with Georgia to enter a bilateral free trade agreement.
Ranked 16th in the Index of Economic Freedom by the Heritage Foundation, 7th in the World Bank’s Doing Business ranking and enjoying preferable trade regimes with countries representing more than two billion people (including the EU, EFTA, China, Turkey, Ukraine and CIS countries), Georgia is rapidly becoming a regional gateway for commerce at the center of the new Silk Road.
Since Georgia regained its independence in 1991, the U.S. has been a major partner in helping Georgia deepen its Euro-Atlantic ties and strengthen its democratic institutions. In 2019, the Georgian Embassy teamed up with its partners to introduce U.S. audiences to the benefits of investment in the country and wider regional projects. In June of 2019, the Embassy of Georgia, in partnership with the U.S. Institute of Peace (USIP) and The Heritage Foundation hosted the Third Annual U.S.-Georgia Strategic Partnership Conference a Strategic Alliance in the Making. The conference looked at how the United States and Georgia can further strengthen ties between the two nations. It also provided a unique chance for U.S. decision-makers, experts, scholars, and journalists to focus on geopolitical regional trends and challenges, and explore bilateral opportunities from both regional and international perspective.
Emphasizing the importance of trade and transportation routes between Asia and Europe the Georgian Embassy in partnership with the Embassies of Afghanistan, Azerbaijan, Kazakhstan, Turkey, Turkmenistan, Uzbekistan, the Caspian Policy Center and the U.S. Chamber of Commerce hosted the 4th Annual Trans-Caspian Forum as well as 2nd Annual Caspian Business Forum. U.S. policy and business leaders and representatives of the Trans-Caspian countries discussed the economic and transportation potential of the region and underlined the importance of strengthening the transportation routes between East and West, fostering increase in trade, commerce, investment and security.
The Embassy intensified targeted visits to different states in order to further increase cooperation with local governments and representatives of the business community, as well as explore new initiatives for collaboration in innovation, technology, manufacturing, agriculture and other fields. California, Washington, Massachusetts, Texas, Virginia, Maryland, New York, Pennsylvania, Illinois, Oregon and South Carolina were among the targeted states throughout 2019.
The Embassy also organized the Investment Road Show for Prime Minister Bakhtadze which was held in June, 2019. The Prime Minister and others made public presentations and held private meetings with investment and venture funds, Fortune 500 companies such as Kimberly Clark, Facebook, SSA Marine and others in San Francisco, Seattle, Dallas and Washington DC. The outreach resulted in the successful engagement of more than 10 projects with a cumulative investment amount of over $75 million.
During 2019, the first TV advertisement campaign promoting Georgia was aired throughout different U.S. states, reaching more than 40 million people during a 6-month period. The main campaign slogan “Georgia – Good for business, Good for America” received positive reviews driving a new level of knowledge about Georgia among different segments of the U.S. business community. As part of the marketing campaign, the Embassy also launched an online portal “Businesses for Georgia” to provide business related information on the legal framework, investment opportunities and support tools available in Georgia to U.S. investors and business people. This portal will be managed by Washington, D.C. based America-Georgia Business Council with the support of the Embassy.
The Embassy of Georgia also supported successful continuation of the ღVino Forum of the United States, this time in Boston/Massachusetts, which aimed to further advance the understanding of the origin of wine, the historical geopolitical and economic influence of wine for Georgia, in the region, and the current role of the Georgian wine sector on the worldwide stage. The three-day forum, organized by the America-Georgia Business Council (AGBC), was attended by over six hundred people, including wine experts, journalists, sommeliers and wine enthusiasts from all over the United States and greatly contributed to raising awareness about Georgian wine on the U.S. market.