Session II - Deep and Comprehensive Free Trade Area: Legislative Reforms and Economic Impact

One of the important components of the EU-Georgia Association Agreement is the Deep and Comprehensive Free Trade Area. DCFTA aims at integrating Georgia’s economy into the EU economy through the legal approximation in the field of trade and trade related area. Within the scope of the DCFTA is the implementation of comprehensive reforms considered in the fields such as: sanitary and phytosanitary measures, standardization, competition policy, protection of intellectual property, public procurement, financial services and others. For the gradual and effective realization of the DCFTA, the Government of Georgia approved 2014-2017 Action Plan for implementation of the DCFTA. Since 2015, issues related to the DCFTA are also considered in the National Annual Action Plan for implementation of the Association Agreement. According to the mentioned Action Plans important activities were accomplished, amid: food safety strategy and program for approximation of legislation as well as development of strategy for competition policy was drafted; more than 1700 international and European standards have been registered as the Georgian standards; The Educational Center of intellectual property and Entrepreneurship Development Agency were established; a number of other important initiatives have been launched to support small and medium-sized businesses. Since partial entry into force of the DCFTA (September, 2014 to September, 2015) Georgia’s export to the EU countries increased by 15 %, and foreign trade turnover grew from 27% to 31%. In January-May, 2016 Georgia’s export to EU market decreased by 2%. Georgia’s export to the EU includes the following products: mineral and chemical fertilizers, alcoholic drinks, mineral water and sodas, kiwis, blueberries, nuts and other products. Negotiations on opening the EU market to Georgian honey and fish products are undergoing and it is expected that these products will be accepted by the end of the year. Implementation of the DCFTA will support and promote development of an investment climate and business environment in Georgia. At the same time, implementation of the DCFTA provides Georgia with possibilities to become an export platform to the EU for the countries which do not have free access to the European market.