The Investors Council has submitted to the government its recommendations regarding the organic law on land. The Council states that the foreign private capital is important for development of agricultural sector in Georgia.
Majority of the members of the Council agree that restriction of agricultural land ownership for foreigners will impede development of the sector in Georgia.
“Experience shows that FDI and best practices of the west, alongside with good management, increase incomes, wellbeing and financial security for all the parties,” – is written in the recommendations of the Investors Council.
One of the recommendations is to replace word “land” with the term “agricultural land”, which has already been reflected in the adopted constitution. Besides, the Council has recommendations regarding to the organic law as well. Namely, the Council states that the explanation of special cases provided in the law should be transparent and clear to avoid any misunderstanding from the part of investors. The Council also notes that the constitutional changes might contradict mutual investment agreements, concluded by Georgia with up to 30 countries.
“Agreement with the United States of America (1995), states that for American investors and companies investment conditions should not be more complicated than it is set for Georgians,” – notes the Council.
Besides, one of the recommendations of the Council is that the organic law includes the records on already existing land ownership. “The law should state that investors that already own agricultural land, will be entitled to transfer or sell it to any foreign citizen. This will give a sign to investors that they will be protected in Georgia. Otherwise, this may terribly harm direct foreign investments in Georgia”.
The Council also recommended including the land ownership right for minority foreign investors.
“Minor amendments to the Law on Land can have significant negative impact. Georgia should take into consideration the international experience of development of organic laws”, – states the Investors Council.
