Recently the Georgian National Investment Agency launched the internet portal Trade with Georgia. This internet page aims to facilitate exports by providing information to Georgian firms on export procedures and regulations, and by providing potential foreign buyers with a database of Georgian products.

The customs reforms that lowered and abolished import tariffs, and reduced bureaucratic import procedures are well-known; at the same time, export procedures have also been simplified. Of course, one obstacle remains: Georgia can reform its export procedure, but it has little say on the corresponding import tariffs and bureaucratic procedures and regulations of partner countries.

In the World Development Report 2009 (page 251), the World Bank reports on an interesting export facilitation project in Peru:

In many countries small enterprises are often excluded from export chains because they operate in villages or small towns or do not have the needed information to export. In Peru a trade-facilitation program called “Easy Export” connects small producers to markets. The key to this program is the most basic of transport networks—the national postal service.

How does it work? An individual or firm takes a package to the nearest post office, which provides free packaging. The sender fills out an export declaration form, and the post office weighs the package and scans the export declaration form. The sender pays the fee for the type of service desired. Goods with values of $2,000 or less can be exported. The main benefit is that the exporter does not need to use a customs agent, logistics agent, or freight forwarder or to consolidate the merchandise; even the packaging is provided. Firms or individuals need only to go to a post office with a scale and a paper scanner and to use the Internet to complete the export declaration for the tax agency.

Has it made a difference? Within six months of inception, more than 300 firms shipped goods totaling more than $300,000. Most users are new exporters—micro entrepreneurs and small firms, producing jewelry, alpaca and cotton garments, food supplements (natural products), cosmetics, wood art and crafts, shoes and leather, and processed food. And many of them are in the poorest areas of the country.

While the aggregate impact might be small, it can make a difference for small firms or individual entrepreneurs. One might question whether the Georgian Postal Service is capable to provide such services, especially in rural communities. One could also question whether small producers are capable of overcoming formidable barriers such as phyto-sanitary regulations or the lack of information on Georgian products. Nevertheless such a project could work if government agencies provide services which small firms and individual entrepreneurs are not capable of providing: marketing, dissemination of information and quality certification for agricultural products.