GEORGIA’S TRADE PERFORMANCE IN THE LIGHT OF EU-GEORGIA DEEP AND COMPREHENCIVE FREE TRADE AREA

Abstract

The EU-Georgia Association Agreement (AA) with its integral part on Deep and Comprehensive Free Trade Area (DCFTA) is an important step towards Georgia’s close political association and gradual economic integration with the EU. The EU-Georgia DCFTA is considered as the best mechanism available to Georgia to promote exports, attract foreign direct investments and achieve high economic growth rate. In recent years Georgia’s trade analysis demonstrates some optimistic developments in trade performance. However, in short period since provisional application of the DCFTA, its positive outcomes are not significant. Georgia’s gains from the AA/DCFTA directly depend on scope and speed of legal approximation and regulatory convergence with the EU, which is challenging process, especially in short term. Nevertheless, it is clear that Georgia should continue economic reforms, namely reforms in all trade related areas in order to fully benefit from close economic and political relations with the EU foreseen by the agreement.