Victor Yushchenko thinks Ukraine and Georgia should establisha free trade zoneand unify transit and tariff policy, the President's press office reported.

“Economy of all countries that wish to be modern is based on these three things,” Yushchenko said at an international forum in Tbilisi.

The President noted that in the past weeks Ukraine and Georgia had signed intergovernmental agreements to establishthe zone.

“The second stage is our joint tariff policy,” he stressed.

The Head of State said the two countries saw this problem differently but would definitelycompromise.

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