Hindering Factors for exporting Georgian Agri-food Products to the EU Market (DCFTA)

Abstract

In 2014 after signing the Association Agreement between the European Union and Georgia, a wide range of trade relations has been opened for the state of Georgia and was given the opportunity for the free trade. Chapter IV of the Agreement - "Trade and Trade-Related Issues", the agreement about Deep and Comprehensive Free Trade Area (DCFTA) includes the mechanism of economic integration with the EU and opens its internal market for Georgia. According to the agreement, if the required conditions are achieved, the world’s largest market will be opened for Georgia, which currently unites 28 countries and more than the 500 million customers. Utilizing this opportunity will lead increasing investment flows in the country, the emergence of new enterprises and export products, suppling of safe and harmless products to the customers. This will ultimately have a positive impact on the country's economic growth and the development, nevertheless it is still a distant prospect. In order to receive all the foreseen benefits of the Association Agreement, it became necessary to identify and eliminate problems in the number of areas. According to the agreement, food safety is recognized as a political priority of the European Union. Created program of legislative approximation with the EU includes the fulfillment of commitments and the deadlines, which is an ongoing process. In the years of 2015-2020, in accordance with the DCFTA agreement, 146 legal acts had been aligned with the EU legislation in the fields of food safety, veterinary and phytosanitary. Despite all these achievements, the major challenge for both the regulators and business operators still remains to be the enforcement and putting into effect the EU required standards. As the most products in the EU market are subject to harmonized rules, that protect the consumers, public health and the environment, it excludes the adoption of different national rules - the product made in Georgia must comply with the EU standards. That is why the Georgian business operators have to: introduce internationally recognized systems in the enterprise; adapt to the new regulatory environment; create a harmless, quality and competitive product; attract the European partners and be able to produce the required quantity, which may need to involve the different and modern production technologies. Therefore, it is essential to understand, that using the terms of the agreement do not completely depend on the smooth running of government agencies, as it largely depends on the personal progress of the business operators and the relevant associations. Keywords : Economic integration with Europe, food safety, international commitment, Association Agreement.