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Representatives of International Postal Companies Protest against a New Draft Law on Postal Service

DHL, TNT and other companies operating in Georgia went on strike for one day.

The action is preventive in nature and is against  a draft law on postal services developed by the Ministry of Economy, which, in their opinion, envisages a monopolization of the market by a state-owned company “Georgian Post”. They also state that the prepared bill contradicts the commitments undertaken by the country under the Association Agreement with the EU.

However, despite the protests, the Ministry of Economy of Georgia refused to take into account the requirements of international carriers and does not intend to make changes to the developed bill.

The document provides for the legal regulation of work rules in the postal market of the country, and the regulation of the activities of private companies in this sector.

Not only foreign companies, but also a number of non-governmental organizations and experts are against the bill. In particular, a respected non-governmental organization “Transparency International – Georgia” which explored the project,  has concluded that there are serious contradictions between the prepared documents and Georgian legislation.

According to  the organization’s experts,  the  planned regulations will have a negative impact  on the work of private postal operators, and will artificially restrict competition in the market.

Representatives of the companies operating in the country say that the bill provides for the monopolization of the market in favor of the  Georgian Post. A founder of Star Group Tea Machavariani says that  if the law is  adopted, the company’s losses will amount to  GEL 2 million, while in the large companies such as DHL and TNT they will be  even higher.

TNT Director  Nino Menteshashvili also speaks about a violation of the Agreement with the EU. In her words, if the law is passed in its current form, the international companies will be forced to leave the Georgian market.

“Work on the document is transparent. Ministry of Economy actually hides the document, “- she says.

According to the expert at “Transparency International” Natia Kutivadze, the adoption of the law will mean monopolization of  the market and a sharp restriction of competition.

“It is possible that in the future economically unjustified regulation will be adopted in the postal sector, ” – she adds.