Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered keynote remarks at the America Georgia Business Council (AGBC) annual conference. Founded in 1998, the AGBC promotes trade between North America and Georgia by helping companies focus and accelerate decision-making to forge bilateral business partnerships.
During his remarks, Deputy Secretary Andrews discussed his recent visit to Tbilisi and reflected on the successful diplomatic and commercial ties forged between the United States and Georgia in the 25 years since its independence. The Deputy Secretary emphasized Georgia’s progress in opening and reforming its economy, noting the important contributions of public-private partnerships such as the AGBC. Deputy Secretary Andrews highlighted ongoing efforts at the Commerce Department to work with Georgia to build a more welcoming climate for business and investment as Georgia emerges as a key player in global commerce.
Remarks as Prepared for Delivery Thank you, Mamuka, for that kind introduction. I am in the unenviable position of standing between people and Georgian wine. It is wonderful to be with all of you this evening to celebrate 25 years of Georgian independence and to highlight the Department of Commerce’s efforts to strengthen the U.S.-Georgia commercial relationship.
For the last 18 years, our efforts were bolstered by our close collaboration with the America Georgia Business Council. Since 1998, AGBC’s voice has been instrumental to Georgia’s progress in opening and reforming its economy. Your work has created a precedent of close dialogue between government and business.
Put simply, the work done by the America Georgia Business Council not only benefits your membership - it benefits all of Georgia. Your members employ hundreds of Georgian workers, pay Georgian taxes, and contribute to Georgian society.
At the Department of Commerce, we believe that each of you is critical to the innovation, entrepreneurship, and employer-driven workforce that Georgia needs to succeed. And, as we pursue greater economic cooperation through our U.S. - Georgia Economic Working Group and our High Level Trade Dialogue, we look forward to continued support from the AGBC and its members.
Over the last few years, I have had the privilege to meet with key policy-makers and business leaders from all around the world. As my time as Deputy Secretary of Commerce comes to a close, one of my key takeaways is that capital is more mobile than ever in the 21st Century. Countries must compete for foreign investment – not just against their neighbors, but against the entire world. Companies can – and do – invest anywhere.
To win in this environment, it is not enough to make your market slightly more attractive. Rather, countries must do everything possible to be as attractive as possible. And Georgia is no different. Each of us knows that a strong commercial relationship between the United States and Georgia benefits both nations. Since 1991 – and especially over these last few years – Georgia has made significant strides to eliminate corruption and instill investor confidence through greater transparency.
Georgia’s rise in the World Bank’s Ease of Doing Business rankings demonstrates that with effective policy-making, improvements are possible. It is an impressive feat to be among the best markets year after year. You deserve a great deal credit for the work that you have done.
We know that addressing commercial issues, protecting intellectual property, and removing unnecessary regulatory barriers leads to new investments and greater economic growth. That is why we have worked so closely with Georgia’s leaders to implement reforms. And it is working. Georgia’s economy is growing and it is becoming a better and better place to do business.
More than two thousand years ago, the original Silk Road served as the first true link between eastern and western markets. This corridor connected South and Central Asia with Europe and the Middle East, moving not only goods but also religious and cultural traditions that continue to influence our world. The result was an explosion in commerce and the creation of newfound wealth for cultures and communities from China to Europe.
Today, Georgia has an opportunity to once again embrace commerce through regional integration. I saw this firsthand at the inaugural Tbilisi Silk Road Forum in October 2015. It was clear that Georgia has an emerging role in global commerce.
Of course, today is not only about embracing the past. It is an opportunity to focus on what is possible in the years ahead. Your success is important to the United States. A prosperous, successful Georgia is in all of our best interests. And we think that American companies can – and should – be part of your success.
That is why the Department of Commerce looks forward to participating in the second Silk Road Forum in April. The Forum is a great opportunity to discuss the actionable steps needed to turn the modern Silk Road into a thriving economic powerhouse – and to link American companies to new opportunities in the region. We stand ready to help you develop and implement reforms, including the elimination of barriers that slow investment and hold back growth.
The Commercial Law Development Program, for example, is currently providing legal expertise to help Georgia craft its legal framework in a way that ensures a level playing field for all. The Special American Business Internship Training Program, or SABIT, is providing direct technical assistance to Georgian businesses by sponsoring study tours to the United States where they meet with U.S. counterparts and learn American best practices. And we are working closely with Georgian officials. In fact, Deputy Assistant Secretary Michael Lally, just returned from a trip to Georgia, where he met with members of the newly-elected government to discuss our ongoing efforts.
Of course, as close friends and partners, our two governments have an obligation to speak candidly. And that means being honest about the challenges that we continue to face. If Georgia is to fully realize its potential – and its vision of shared prosperity – it must continue to enact reforms that enable its economy to more fully integrate into the global marketplace, attract investment, and promote greater innovation. The time is now for Georgia to embrace a forward-looking, economic growth agenda.
This means working closely with the business community. Let’s face it: government does not have the answers to every problem. Government can’t build all the infrastructure that is needed. It can’t invent the next great technology or deploy the newest app. As this group knows well, the private sector must be part of making the New Silk Road a reality.
Fortunately, U.S. companies are ready and able to assist in Georgia’s efforts. Take the Conti Group and their work as a part of the Anaklia Development Consortium. In October, they signed a contract with the Ministry of Economy and Sustainable Development, to provide construction, banking, equipment, program management, and operation services for a new Anaklia Deep Sea Port in the Black Sea. The value of the first phase of the project is estimated at $695 million with a potential for $225.2 million in U.S. export content.
Finally, I would be remiss if I didn’t mention our tremendous team. Matt Edwards, Danica Starks, and Joshua Bartlett are some of our best people – and they are committed to seeing this relationship flourish even further. Because of the quality of our team and the willingness of groups like AGBC to engage in the policy making process, I am confident that the next 25 years of Georgian independence will be even better than the last quarter century.
So let’s continue the collaboration that we have developed since 1991. If we do, the next 25 years will bring greater promise and prosperity for both our countries. Thank you.
Source: U.S. Department of Commerce
