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Last update
2010-09-02


CASE Network Reports
No. 79   Economic Feasibility, General Economic Impact and Implications of a Free Trade Agreement Between the European Union and Georgia
Editor: Maryla Maliszewska
Authors: David Dyker
Michael Emerson
Michael Gasiorek
Peter Holmes
Malgorzata Jakubiak
Andre Jungmittag
Vicki Korchagin
Alina Kudina
Giorgi Pertaia
Evgeny Polyakov
Andrei Roudoi
Michael Tokmazishvili

Series: CASE Network Reports
Year of issue: 2008
Project: Economic Impact of EU-Armenia and EU-Georgia FTA (Free Trade Agreement)

Introduction:

The aim of this study is to evaluate the economic feasibility and implications of free trade agreement between the EU and Georgia as well as of greater regional integration. The study uses a mix of qualitative and quantitative analysis along with surveys, sectoral studies and local expert knowledge. Overall we conclude that a free trade agreement between Georgia and the EU is feasible, since Georgia has already taken liberalising measures going considerably beyond a classic Simple FTA and on the other hand Georgia benefits from the EU GSP . We analyze the range of scenarios for deep integration that show the benefits of the various degrees of integration. The greatest benefits would accrue with a Deep FTA scenario involving a significant approximation of law along the priorities of the ENP Action Plan for Georgia coupled with additional flanking measures on e.g. competition and corruption and their effective implementation, which would mean a re-branding of Georgia as a safe and attractive investment location.

Keywords: European Neighbourhood Policy, free trade agreement, institutional harmonization, EU, Georgia
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