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- Negotiations and agreementsTrade policy
The EU and Georgia signed an Association Agreement on 27 June 2014. It has been in force since 1 July 2016.
The agreement introduces a preferential trade regime – the Deep and Comprehensive Free Trade Area (DCFTA). This regime increases market access between the EU and Georgia based on having better-matched regulations. The DCFTA has been provisionally applied since 1 September 2014.
Georgia has been a member of the World Trade Organisation since 2000.
- The EU is the main trade partner of Georgia. 20.5% of its trade takes place with the EU, followed by Turkey (14.6%) and Russia (13%).
- EU trade with Georgia accounts for 0.1% of its total trade, with a turnover of around €4.25 billion in 2022.
- EU exports to Georgia amounted to €3.2 billion in 2022, an increase of 57.9% compared to the previous year. The key export products are mineral products, machinery and appliances, and transport equipment.
- The key EU imports from Georgia include mineral products, chemical products, and textiles. The EU imported goods to the value of €1 billion from Georgia in 2022, with imports increasing by 25.8% since 2021.
The EU and Georgia
- Before the DCFTA, Georgia benefited from the unilateral Generalised Scheme of Preferences (GSP). Under the current GSP regulation Georgia qualified for a special incentive rewarding sustainable development and good governance (GSP+) with better access to the EU market. Georgia benefited from GSP+ until 31 December 2016. This transition period allowed business to adjust to the new preferential trade regime provided by the DCFTA.
- The DCFTA creates a closer economic integration of Georgia with the EU based on reforms in trade-related areas. It is based on the principles of the World Trade Organisation. It removes all import duties on goods and provides for broad mutual access to trade in services. It allows EU and Georgian companies to set up a subsidiary or a branch office on a non-discriminatory basis. This allows the foreign company to benefit from the same treatment as domestic companies in the partner’s market.
- The DCFTA allows Georgian trade-related laws to generally match selected pieces of the EU legal framework. Georgia's adoption of EU approaches to policymaking will improve governance, strengthen the rule of law and provide more economic opportunities by expanding the EU market to Georgian goods and services. It will also attract foreign investment to Georgia.
Georgia and the European Neighbourhood Policy
Georgia is a partner country of the Eastern Partnership within the European Neighborhood Policy. In 2014, the EU and Georgia agreed an Association Agenda. The Agenda outlines the priorities for reform in Georgia, and is based on the commitments included in the 2014 Association Agreement. In 2021, negotiations on the Association Agenda for 2021-2027 were ongoing.
On 3 March 2022, Georgia presented its application for EU membership. On 17 June 2022, the European Commission presented its opinions on the applications for EU membership submitted by Ukraine, Georgia and the Republic of Moldova.
Based on the Commission’s opinion on Georgia’s application for EU membership, Georgia was given an EU membership perspective on 23 June 2022, by unanimous agreement between the leaders of all 27 EU Member States.
The EU issues annual implementation reports to document the steps undertaken by Georgia in the reform process.
Committees and Dialogues
The EU and Georgia meet regularly to discuss issues and best practices and oversee the proper functioning of the Agreement.
Trading with Georgia
- Importing into the EU from Georgia
- EU trade defence measures on imports from Georgia
- Exporting from the EU to Georgia
- Trade relations are part of the EU's overall political and economic relations with Georgia
- Georgia is a member of the World Trade Organization
- DCFTA and Industrial products
- DCFTA and Investment
- Reading guide to the DCFTA
- Trade Sustainability Impact Assessment in support of negotiations of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and respectively Georgia and the Republic of Moldova