Twinning project Strengthening the Capacity of the Georgian

Twinning project - "Strengthening the Capacity of the Georgian Statistical System" Component 1. Development of External sector statistics Sub-component 1. 1 - Mirror Comparison in International Merchandise Trade Statistics Examination of Some Asymmetries External Trade Statistics Division External Trade and Foreign Investments Statistics Department June, 2020 Tbilisi, Georgia

Examination of Some Asymmetries in 2018 Copper Ores and Concentrates (HS-2603) Partner Country Commodit y Code Import of Export of Georgia Partner Country Asymmetry (1000 USD) Absolute Asymmetry Relative Asymmetry Bulgaria 260300 241 732. 2 319 133. 3 -77 401. 2 0. 14 Romania 260300 50 675. 8 50. 675. 8 1. 00 Spain 260300 32 851. 3 3 622. 4 29 228. 9 0. 80 Data Sources: GEOSTAT data, UN COMTRADE database 2

Main Exporters in EU Countries Georgian Exporters of Copper Ores and Concentrates in EU countries are presented by only two companies. Country Organization Total 2018 Thsd. USD 325 259. 3 Bulgaria Organization 1 96 984. 7 Bulgaria Organization 2 144 747. 4 Romania Organization 2 50 675. 8 Spain Organization 2 32 851. 3 2019 2018 -2019 Total Tons Thsd. USD Tons 462 787 218 519. 4 261 565. 8 480 085. 2 001. 5 260. 8 102 199 56 498. 9 46 049. 7 102 548. 6 393. 8 378. 5 161 305 102 360. 3 96 282. 0 198 642. 3 215. 1 962. 6 166 217 37 106. 9 101 077. 5 138 184. 4 735. 6 411. 5 31 64 22 553. 4 18 156. 6 40 710. 0 657. 0 508. 3 Data Source: GEOSTAT data 3

Comparison of GEOSTAT and COMEXT Data Copper Ores and Concentrates Export of Georgia 2018 Country Thsd. USD Tons Bulgaria 241 732. 2 158 859. 1 Romania 50 675. 8 37 106. 9 Spain 32 851. 3 22 553. 4 Import of Partner Country 2018 Thsd. USD 319 458. 4 3 622. 2 Tons 210 752. 0 3 350. 6 Asymmetries in 2018 Thsd. USD Tons -77 726. 2 -51 892. 9 50 675. 8 37 106. 9 29 229. 1 19 202. 8 Export of Georgia 2019 Thsd. USD Tons Import of Partner Country 2019 Thsd. USD 263 608. 9 166 735. 6 142 331. 7 101 077. 5 253 334. 7 31 657. 0 18 156. 6 27 651. 8 Tons Asymmetries in 2019 Thsd. USD 147 987. 8 20 874. 5 Tons 10 274. 2 -5 656. 1 166 735. 6 101 077. 5 4 005. 2 -2 717. 9 Main finding: Export to Romania of Copper Ores and Concentrates recorded by Georgia were destined for other EU countries. There is a possibility that the cargo, which arrived at the Romanian warehouse, went to e. g. Bulgaria in 2018 and Spain in 2019, which recorded Georgia as country of origin. Data Sources: GEOSTAT data, COMEXT database 4

Comparison of GEOSTAT and COMEXT Data Import of Copper Ores and Concentrates of EU (Comext) Reporter Partner 2018 Other Partner Thsd. USD Total Bulgaria Spain Finland Georgia Armenia Georgia Armenia Turkey Georgia 2019 Tons Thsd. USD 2018 -2019 Total Tons Thsd. USD Tons 370 330. 6 248 664. 4 365 033. 7 231 872. 8 735 364. 4 480 537. 2 307 104. 7 12 353. 7 3 622. 2 47 249. 9 0. 1 199 823. 9 10 928. 1 3 350. 6 34 561. 5 0. 3 200 442. 4 52 892. 3 27 651. 8 84 047. 3 - 111 698. 4 36 289. 4 20 874. 5 63 010. 5 - 507 547. 1 12 353. 7 52 892. 3 31 274. 0 131 297. 2 0. 1 311 522. 3 10 928. 1 36 289. 4 24 225. 1 97 572. 0 0. 3 Export of Copper ores and concentrates of Georgia Country Total EU 2018 Thsd. USD 2019 Tons Thsd. USD 2018 -2019 Total Tons Thsd. USD Tons 325 259. 3 218 519. 4 462 001. 5 261 565. 8 787 260. 8 480 085. 2 Bulgaria 241 732. 2 158 859. 1 263 608. 9 142 331. 7 505 341. 1 301 190. 8 Romania 50 675. 8 37 106. 9 166 735. 6 101 077. 5 217 411. 5 138 184. 4 Spain 32 851. 3 22 553. 4 31 657. 0 18 156. 6 64 508. 3 40 710. 0 Data Sources: GEOSTAT data, COMEXT 5

Additional Finding Spain recorded import from Armenia which was transit via Georgia in January-February 2018. There is a possibility that Armenia is recorded as country of origin by Spain for all other trade flows from Georgia. Period Total Import of Spain from Armenia Export to Spain from Georgia COMTRADE GEOSTAT 1000 USD 63 522. 8 Tons 1000 USD 44 32 871. 7 851. 3 COMEXT Tons 22 553. 4 Of Which: 20 700. 1 6 107. 1 7 579. 1 15 244. 8 4 531. 6 4 964. 0 - - 201811 13 295. 5 - 9 961. 1 - 201812 - - 201801 201802 201806 201809 201810 Reporte Other Partner Period Spain 01. 201812. 2018 40 008. 4 01. 2019 13 875. 7 Georgia Spain - - 6 061. 3 12 445. 1 4 467. 6 9 007. 8 - - 14 344. 9 9 078. 0 15 data, UN 10 COMTRADE and COMEXT Data Sources: GEOSTAT 201901 841. 1 170. 2 databases Armenia 1000 EUR 1000 USD 47 249. 9 16 387. 2 Tons 34 561. 4 10 170. 2 6

Explanations from Exporter Company Export of Organization 2 in 2018 -2019 2018 -2019 Total Country Thsd. USD Tons 161 305 Bulgaria 144 747. 4 102 360. 3 96 282. 0 198 642. 3 215. 1 962. 6 166 217 Romania 50 675. 8 37 106. 9 101 077. 5 138 184. 4 735. 6 411. 5 31 64 Spain 32 851. 3 22 553. 4 18 156. 6 40 710. 0 Data Source: GEOSTAT 657. 0 508. 3 data Main points from copper exporter company: • Goods intended for Bulgaria and Spain are exported separately; • Goods Exported to Romania recorded by Georgia: ü Travel to Romania; ü Stored in the warehouse located in port of Romania near Serbia; ü Goods travel from Romania to Serbia; ü Final destination of goods is unknown (main organizer of the process is Swiss company). • Not only copper ores imported from Armenia are intended for EU countries. Goods could imported from other countries also. • Goods for processing – concentration of copper ores are changed to meet EU regulations. 7

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