Japan–Georgia Economic Relations Enter a New Phase: Interview with Ambassador Teimuraz Lezhava
Japan and Georgia are gradually entering a new phase of economic cooperation. Interest from Japanese companies is growing, and the increasing investment flows suggest that Georgia and the Caucasus region are no longer viewed solely through a geopolitical lens—they are now recognized as potential business hubs. The environment is becoming increasingly favorable for expanded Japanese investment.
What are the nearest prospects, particularly in terms of technology and startups?
The timing of this interview is ideal, as a Japanese startup delegation will arrive in Georgia on June 16. Organized by the Japan–Georgia Chamber of Commerce, the mission includes 34 participants from 24 different organizations—one of the largest delegations to date. This level of interest highlights Japan’s growing focus on Georgia’s startup ecosystem.
What’s the current status of a possible free trade agreement (FTA) with Japan?
At this stage, there are no new developments in formal negotiations for a free trade agreement. However, we remain in continuous dialogue with the Japanese side and are working actively toward this goal. It is a top priority for us, as many Georgian companies are interested in entering the Japanese market. While an official agreement has not yet been launched, the geopolitical shifts—including recent U.S. tariffs—may create new opportunities, and we hope to share positive news soon.
Are there any updates on establishing direct flights between Georgia and Japan?
This is a frequent topic in discussions with Japanese officials. There is notable interest, especially amid the ongoing World Expo in Japan. As trade ties deepen, the likelihood of establishing direct flights increases. We are actively working on this and are hopeful for progress.
How strong is the interest of Japanese tourists in Georgia?
Awareness of Georgia is steadily increasing in Japan. This is the third year we’ve hosted the Georgian Festival in Japan, which last year welcomed 150 Georgian participants and nearly 40,000 visitors. Georgian cuisine, wine, music, and culture were all showcased. While Japan’s weak yen and the pandemic slowed travel, we expect a rebound, potentially even record tourist numbers in 2024 and 2025.
What can you say about Japanese tourists' spending habits?
Japanese tourists have substantial spending capacity. Their average expenditure can be two to three times that of typical visitors. This makes Japan a highly valuable tourism market for Georgia. Beyond the economic benefits, tourism deepens cultural ties and mutual understanding. We have excellent relations with Japan’s tourism agencies, and joint campaigns are already underway. More investment in promotional activities in Japan would be highly worthwhile.
How are Georgian wine exports performing in Japan?
Georgian wine exports to Japan are showing a positive trend. Japan has a refined gastronomic culture, and interest in Georgian wine is rising—especially given our unique 8,000-year winemaking history. However, popularity does not yet equate to accessibility. Although Georgian wine has good visibility in Japan through events and exhibitions, broader market access remains a challenge we are working to address.
How would you assess Japan’s growing investment in Georgia?
Japanese interest in Georgia has clearly intensified, especially in energy and logistics. The Middle Corridor positions Georgia as a strategic link between Asia and Europe. Japan is not only an economic powerhouse but also a steadfast political partner that supports Georgia’s sovereignty and territorial integrity in all international forums.
Notably, two key agreements—the Investment Protection Treaty and the Double Taxation Avoidance Agreement—have laid a strong foundation. Following these, Japan’s leading insurer, NEXI, signed a memorandum with the Georgian government, enabling Japanese companies to insure their ventures in Georgia.
A major milestone came in 2020 when TEPCO Renewable Power, a subsidiary of Japan’s energy giant TEPCO, acquired a 31.4% stake in the Daryali HPP project, marking Japan’s entry into Georgia’s renewable energy sector.
Are there other sectors beyond energy where Japan is investing?
Yes. The Joint Credit Mechanism (JCM) agreement between the two governments promotes decarbonization projects, offering incentives for emissions-reducing initiatives.
In December 2024, Japanese financial firm Gojo & Company, Inc. acquired a 16.8% stake in Credo Bank—its first investment in Georgia—signaling growing interest in the financial sector.
What role does institutional support play in fostering Japan–Georgia economic ties?
Institutional support is crucial. The Japan–Georgia Chamber of Commerce, founded by former Japanese Ambassador Tadaharu Uehara and authorized by Japan’s Ministry of Economy, Trade and Industry, now includes about 20 companies. Such platforms deepen business connections and strengthen bilateral relations.
Since 2021, Japan has rapidly moved up the ranks as an investor in Georgia—from 27th to 8th place by 2024. Trade turnover also rose significantly, from $205,691 in 2021 to over $564,000 in 2024.
Japan’s consistent economic and diplomatic engagement marks it as one of Georgia’s most valuable international partners—and a key force in the region’s development.
