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The EU and Georgia signed an Association Agreement on 27 June 2014, and it has entered into 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.

Better Regulation Agenda

Trade agreements with Georgia and Moldova – evaluation

Trade picture

  • The EU is the main trade partner of Georgia. Around 23% of its trade takes place with the EU, followed by Turkey (14%) and Russia (12%).
  • EU trade with Georgia accounts for 0.1% of its total trade with a turnover of €2.6 billion in 2018.
  • EU exports to Georgia amounted to €2 billion in 2019. The key export products are mineral products, machinery and appliances, and chemical products.
  • The key EU imports from Georgia include mineral products, agricultural products, base metals and chemical products. The EU imported goods to the value of €600 million from Georgia in 2019.

EU-Georgia: Trade in goods

Trade in goods 2018-2020, € billions
Year EU imports EU exports Balance
2018 0.6 2.0 1.4
2019 0.7 2.0 1.4
2020 0.8 1.6 0.8

EU-Georgia: Trade in services

Trade in services 2017-2019, € billions
Year EU imports EU exports Balance
2017 0.4 0.5 0.1
2018 0.5 0.8 0.3
2019 0.7 0.8 0.2

EU-Georgia: Foreign direct investment

Foreign direct investment 2019, € billions
Year Inward stocks Outward stocks Balance
2019 0.1 1.3 1.2

Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States.

Date of retrieval: 12/04/2021

More statistics on Georgia

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 will allow 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 policy-making 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 2017 a revised Association Agenda for 2017-2020 was adopted.

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 when applying the agreement. The committees meet regularly.

Technical committee meetings agendas and reports

Trading with Georgia