Georgia EU Free Trade Agreement: A Step towards Economic Growth and Stability
The Georgia EU Free Trade Agreement (FTA) is a landmark agreement that has the potential to bring tremendous benefits to Georgia`s economy. Signed on June 27, 2014, in Tbilisi, this agreement offers a unique opportunity for the country to deepen its economic ties with the European Union (EU) and to take advantage of the many benefits that come with it.
What is the Georgia EU Free Trade Agreement?
The Georgia EU Free Trade Agreement is a comprehensive trade agreement that removes barriers to trade between Georgia and the EU. This agreement covers a wide range of issues, including the elimination of tariffs on goods, the liberalization of services, and the protection of intellectual property rights. It also includes provisions on competition, state aid, and public procurement.
The implementation of this agreement has been a gradual process, with various components being implemented at different times. For instance, the agreement on the liberalization of trade in services was provisionally applied in September 2016, while the agreement on the protection of geographical indicators came into effect in August 2017.
Benefits of the Georgia EU Free Trade Agreement
The Georgia EU Free Trade Agreement offers a wide range of benefits to Georgia`s economy, including:
Increased trade: The removal of tariffs and non-tariff barriers to trade under the agreement is expected to increase trade between Georgia and the EU significantly. This is particularly important since the EU is Georgia`s largest trading partner, accounting for over a quarter of its total trade.
Improved investment climate: The agreement includes provisions on the protection of intellectual property rights, which is expected to improve the investment climate in Georgia. This will make it easier for businesses to operate in the country, attract foreign investment, and develop new products and technologies.
Enhanced competition: The agreement includes provisions on competition and state aid that are designed to promote fair competition and prevent anti-competitive practices. This will encourage companies to innovate and improve the quality of their products and services, benefiting consumers.
Increased economic growth: The Georgia EU Free Trade Agreement is expected to contribute significantly to Georgia`s economic growth by boosting trade, investment, and competition. This will lead to increased employment, higher wages, and better living standards for the people of Georgia.
Challenges
Despite the many benefits of the Georgia EU Free Trade Agreement, there are also challenges that need to be addressed. One of the main challenges is the need for Georgia to modernize and improve its infrastructure. This will require significant investment in areas such as transportation, telecommunications, and energy.
Another challenge is the need to improve the business environment in Georgia. While the country has made significant progress in recent years, there is still a need to reduce bureaucracy, increase transparency, and strengthen the rule of law. This will make it easier for businesses to operate in the country and attract foreign investment.
Conclusion
The Georgia EU Free Trade Agreement is a significant milestone in Georgia`s efforts to deepen its economic ties with the European Union. The agreement offers many benefits to Georgia`s economy, including increased trade, improved investment climate, enhanced competition, and increased economic growth. However, there are also challenges that need to be addressed, particularly in the areas of infrastructure and business environment. Nevertheless, the implementation of this agreement is a step towards greater economic growth and stability in Georgia.