Dcfta Agreement Georgia

The agreement provides that, in the event of dumping imports, overruns and subsidies, the parties retain the right to apply safeguards in accordance with relevant WTO agreements. On the one hand, the most significant challenges for Georgia, particularly in the short term, will be: increased imports from the EU and additional pressure on domestic producers[14], costs and prices of goods and services have increased due to strict compliance with EU standards, potential job losses and potentially declining incomes. [15] For example, according to the European Commission`s case study, the Sustainability of Trade Assessment (TSIA), the poorest sections of the population are less likely to benefit from the DCFTA than the more populated people with above-average incomes. For the former, the negative effect of price changes will result in an estimated 1.2% reduction in disposable income, or about 2 to 3 times income, with the less well-off households spending more of their total spending on food. In addition, the authors of “An Appraisal of the EU`s Trade Policy towards its Eastern Neighbours: The Case of Georgia” believe that “preconditions for sanitary and plant health measures would result in an average 90% increase in the prices of major food products purchased by a third of the Georgian population living in poverty.” [17] Overall, as Tamara Kovziridze, a former Georgian leader with the EU, says, “In the short term, the benefits of this agreement are more political than economic.” [18] The Association Agreement (including the CCFTA), signed on June 27, 2014; Georgia was ratified on 18 July 2014 and has been applied provisionally since September 2014 and marks the beginning of a new qualitative process in EU-Georgia relations and is an important step on the road to the European integration process. The agreement regulates the terms of global safeguards, anti-dumping measures, subsidies and countervailing measures in trade. In the event of trade safeguards, the parties will use the corresponding agreements of the World Trade Organization (WTO). The EU and Georgia meet regularly to discuss issues and best practices in implementing the agreement. Committees meet regularly. Georgia has great potential for hydroelectric power generation and its development requires investment and new market openings that sell energy produced in Georgia, which increases trade.