Georgia may be backing off free trade and economic reform

December 17, 2009 by georgiamedia

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There are concerted moves in the Georgian parliament to impose protective tariffs on certain types of good - including chocolate - in a way that suggests the Georgian government may be about to abandon its commitment to free trade in response to either lobbying or in pursuit of populist votes in the approaching elections.

Opposition sources are worried that the proposal - of 12% import tariffs - will damage Georgia's efforts to tackle its chronic balance of payments problems as well as its reputation as a liberal and reforming economy.

Although chocolate has been suggested as one of the manufactures to be protected there are no significant chocolate producers in Georgia today: leading to concerns an unknown special interest is being courted by the regime with the promise of the creation of an effective monopoly.

Recent moves to end protective tariffs on tobacco were opposed by the Christian Democrats.

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