On 27 June 2014 the European Union and Georgia signed the Association Agreement (AA), including the Deep and Comprehensive Free Trade Area (DCFTA). The DCFTA has an ambitious objective of integration with the EU’s internal market, therefore is considered as the unique free trade agreement. As the main pillar of the AA, it contributes to modernization and diversification of economy in Georgia.
The provisional application of the DCFTA started on 1 September 2014. Meanwhile, Georgia benefited from the Generalised System of Preferences for a number of years and on 1 January 2017, country graduated from the program.
Trade between the EU and Georgia has been growing steadily over the years and today the EU is Georgia’s main trading partner. The DCFTA deepens Georgia's economic ties with the EU, and includes provisions on public procurement, common customs’ rules, along with technical and sanitary standards for goods such as food items, intellectual property rights and competition rules.
The EU is also committed to supporting the Georgian Government in strengthening its export competitiveness, for example, through the setting-up of Quality Management Systems and Quality Infrastructure Systems to assure standards are met. Since September, 2017 the European Commission online portal “Export Helpdesk" changed its name into "Trade Helpdesk” - Your guide to the EU market's import rules and taxes http://trade.ec.europa.eu/tradehelp/ . This is an online service about market access to the EU.
Current Trade Figures
In accordance with 2016 Eurostat data, the EU is the most important trade partner of Georgia with 30% share in its overall trade (27% in total export and 31% imports). Georgia is the EU's 77th trade partner.
In 2016 the overall trade between the EU and Georgia slightly declined on year-on-year-basis by 2% and amounted to EUR 2.51 billion. Import from the EU to Georgia increased in that time by 6.7% while export from Georgia to the EU noted a decline of 25% compared to 2015. The price drop on raw materials and semi-finished products is mainly accountable for the decline. In terms of volume the level of exports from Georgia to the EU remained stable.
In January-March, 2017 Trade Turnover between EU and Georgia amounted to EUR 234 million. Import from the EU to Georgia increased by 2.3% and export from Georgia to the EU by 79.9%.