THE ECONOMY OF GEORGIA AND THE ASSOCIATION AGREEMENT WITH THE EUROPEAN UNION
Abstract
Georgia is one of the first post-Soviet countries that have chosen the path of market relations. As an independent state, it is a member country of various international organizations such as the International Monetary Fund, the World Bank (WB), the European Bank for Reconstruction and Development (EBRD), the World Trade Organization (WTO) and others.
At the modern stage, along with the development of democracy, the main goal of the country is to integrate into the European space.
In 2014, the Association Agreement between Georgia and the European Union was signed. Deep and Comprehensive Free Trade Areas (DCFTA), one of the components of the Agreement, entered into force the same year. The enhancement of trade and economic relations between the parties of this Agreement is one of the preconditions of socio-economic development of Georgia.
DCFTA envisages the abolition of customs duties between the member states, which opens up a market of over half a billion consumers to Georgian companies in 28 European countries. This is a good opportunity to the entrepreneurs who want to export their products to the European Union.
This agreement significantly simplified the export of services from Georgia to the EU. In most sectors, Georgian companies operating in service sectors will be gradually given an opportunity to:
- set up branches in the EU countries and supply services to European customers through these branches;
- employ Georgian managers and specialists and organize internships for their employees in their European branches;
- send their sales representatives to the EU to negotiate on selling their products;
- deliver services to the EU market from Georgia without opening branches in the EU.
Individually or based on the contracts signed between the companies, Georgian specialists will have the ability to provide services in the EU. The agreement also envisages the mechanisms for recognition of professional qualifications. After that, it will be much easier for Georgian specialists to provide services in the EU countries. In addition, it should be noted that the goods and services produced in Georgia will gradually gain access to public procurement in the EU member states.
