Kazakhstan and Georgia have reached agreements on mutual trade growth, investment cooperation, and transport infrastructure development during a meeting between Prime Minister Alikhan Smailov of Kazakhstan and Prime Minister Irakli Garibashvili of Georgia. The meeting took place on June 23 in Tbilisi, as part of Smailov's official visit to Georgia, Astana Times reported.
Both prime ministers emphasized the need to strengthen mutual growth and expand investment cooperation between the two countries. Smailov highlighted the positive results already achieved in the trade and economic sector, with trade turnover reaching a record high of $600mn last year. The prime minister expressed confidence that the two countries would soon surpass the $1bn mark in trade.
In the first four months of 2023, mutual trade between Kazakhstan and Georgia has shown significant growth, reaching $167mn, a fivefold increase compared to the same period last year.
Regarding investment cooperation, Smailov noted that Georgian entrepreneurs have invested approximately $400mn in Kazakhstan over the past 17 years, with over $100mn recorded in 2022 alone. On the other hand, Kazakhstan has invested over $530mn in Georgia's economy. To further encourage investment, Smailov invited Georgian partners to work in the Astana International Financial Centre (AIFC), which offers legal protections for foreign investments in Kazakhstan.
The prime ministers also emphasized the importance of developing transport infrastructure and highlighted the role of the transit and transport sector in their cooperation. Both countries serve as crucial transit hubs for major transcontinental transport corridors, providing the shortest routes from Europe to China and Southeast Asia.
Smailov specifically mentioned the Trans-Caspian International Transport Route (TITR) as a key focus of their discussions. The two countries adopted a joint roadmap for the period of 2022-2027, aimed at eliminating bottlenecks and further developing the corridor. Smailov expressed the desire to increase the volume of cargo transportation via the TITR to 10mn tons in the mid-term perspective. The establishment of a logistics operator on the TITR and the digitalization of cargo traffic passing through the route were also discussed.
To facilitate transportation processes and enhance cooperation, a trilateral agreement on the basic principles of establishing and operating a joint venture between Kazakhstan Temir Zholy and Georgian Railway was signed. This agreement, along with a similar agreement signed with Azerbaijani Railroads, aims to address tariff policies and cargo handling.
Garibashvili emphasized Georgia's commitment to modernizing its railroads and undertaking significant projects, including the construction of a new port. He expressed the desire to make the TITR more attractive for Central Asia, China, and other Asian countries in general.
The prime ministers revealed plans to expand cooperation with Georgia on developing routes in the Caspian-Black Sea basin, underscoring the importance of freight transport operations using the capacity of Kazakh seaports. Also, Smailov explored prospects for cooperation in agriculture and tourism, as well as the implementation of new technological products. Commercial agreements were signed between Kazakhstan's Canadian Chicken and AgroTechManagement companies and Georgia's Industrial Group, involving an investment of approximately $50mn in the construction of an agricultural and special machinery plant in Kazakhstan. The funds will also be allocated to create an agricultural cluster, including a bird and animal feed plant, a poultry farm, and a fish feed plant.
In addition, the Kazakh Ministry of Energy and the Georgian Ministry of Economy and Sustainable Development signed a memorandum of understanding to further develop cooperation at the Batumi oil terminal.
The agreements reached between Kazakhstan and Georgia signal a deepening of economic ties and a commitment to fostering trade, investment, and transport infrastructure development.
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