The European Union and Georgia successfully concluded negotiations for a Deep and Comprehensive Free Trade Area (DCFTA), as part of the Association Agreement between them. The Association Agreement, together with the DCFTA, will provide for the close political association and economic integration of Georgia with the EU.
The comprehensive FTA, negotiated in just 17 months and seven rounds, will see Georgia gaining better access to the EU market for its goods and services. The FTA also sets a path for further reforms in trade-related policies, such as hygiene standards for agricultural products and the approximation of regulations for industrial products. This will boost access for Georgian goods to the EU market whilst also increasing consumer safety in Georgia. The Agreement is expected to boost the inflow of European direct investment to Georgia thanks to an open, stable and predictable policy-making environment.
An independent study – a Trade Sustainability Impact Assessment – carried out for the EU forecasts that the DCFTA will increase Georgia’s exports to the EU by 12% and imports from the EU by 7.5%. Full implementation of trade-related reforms could increase Georgia’s long-term GDP by +4.3% or €292 million.
The DCFTA will be included in the Association Agreement and signed as soon as internal EU and Georgia procedures are completed.
Monday July 22, 2013/ EC/ European Union.