PROSPECTS FOR DEEPENING TRADE AND ECONOMIC RELATIONS BETWEEN GEORGIA AND THE EUROPEAN UNION

Abstract

The association agreement aims at developing political and economic relations between European Union and Georgia. By association agreement Georgia has received a huge opportunity to become a competitive member of the European Union market and with Deep and Comprehensive Free Trade Area (DCFTA) preferences, introduce Georgian products at the world market with zero customs charge. DCFTA includes a wide range of issues concerning trade and considers gradual approximation of Georgian legislation to EU legislation. DCFTA implies liberalization of both goods and service trade. It gives Georgia a chance to receive all four EU freedoms from EU internal market: goods, service, capital and free movement of persons on EU territory (based on the liberalization of visa regime). And yet, what is DCFTA for Georgia: A special trade regime which, if used correctly, can significantly improve investment potential of Georgia and steadily develop the economy of the country; The preference which can ensure the growth of competitiveness of Georgian products and the demand for products produced in Georgia; The agreement which gives the Georgian side a very good chance to increase the volume of export with EU countries and significantly improve negative balance of trade; The regime which gives Georgian products a chance to enter EU with zero Customs charge and establish themselves at one of the largest world markets, which unites 500 million consumers and 21 million small and medium enterprises.