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Georgia | Brussels, 18 December 2014

Malmström welcomes Parliament’s green light for EU-Georgia trade area

Commissioner Malmström today welcomed the consent given by the European Parliament to the EU-Georgia Association Agreement that includes creation of a Deep and Comprehensive Free Trade Area. Applied provisionally since September, it provides for a close economic integration between the two partners.

The European Parliament today gave its formal backing to the EU-Georgia Association Agreement. This includes a 'Deep and Comprehensive Free Trade Area' and a close economic integration between the two partners.

'This is indeed good news and a tangible step towards closer ties between the EU and Georgia. I see the comprehensive FTA negotiated by the Commission as a chance for an ambitious upgrade of our current trade relations. We have provisionally opened our market already as of 1 September and we are already seeing positive results. I look forward to seeing Georgia developing its exports and getting closer to the EU economy,' said Cecilia Malmström, EU Commissioner for Trade.

The agreement endorsed today by the European Parliament offers Georgia better access to the EU market for its goods and services. It sets also a path for trade-related reforms that will boost access for Georgian goods to the EU market and increase consumer safety in Georgia. In addition, as the agreement promotes an open, stable and predictable policy-making environment, it is expected to encourage European direct investment in Georgia.

The first figures following application of the agreement are optimistic: imports from Georgia into the EU increased by more than 50% in September, the first month of agreement's application.

The EU is Georgia's largest trading partner. Bilateral trade in goods amounted to €2.7 billion in 2013. According to independent economic predictions, full implementation of the agreement and the related reform programme could increase Georgia’s GDP by more than 4% or nearly €300 million in the long term.

For further information:

On EU trade relations with Georgia
On ratification by Member States
Trade Sustainability Impact Assessment on the EU-Georgia DCFTA