DCFTA – Deep and Comprehensive Free Trade Area Agreement
Date of signature: June 27, 2014
Date of Pre-Conditional Enactment: September 1, 2014
Date of Enactment: July 1, 2016
Within the framework of the Association Agreement between Georgia and the European Union, DCFTA regulates trade-related issues. With its support, many economic and trade opportunities emerged in Georgia, that are reflected in the simplification of trade processes between EU countries and Georgia.
DCFTA implies liberalization of trading:
- Access to new markets / ease of new market entry;
- Reduced customs barriers;
- New trade opportunities;
- Economic cooperation;
- New investment opportunities;
- Fair competition;
- Simplicity of trade procedures;
In the frames of DCFTA and in compliance with European standards of production by Georgian farmer, the largest market is open for Georgia (28 countries and more than 500 million users). This will contribute to the development of Georgian economy, as the export potential will increase, new enterprises will be opened, foreign investors’ interest towards Georgia will increase and new jobs will be created.
In addition to economic and trade advantages, DCFTA-‘s existence helps to increase quality of goods produced in Georgia, which will most clearly be reflected in food safety, as within the Deep and Comprehensive Free Trade Agreement, the locally produced food will be strictly controlled, therefore, Georgian customers will get healthy, safe and harmless food.
The additional benefit created by DCFTA is a healthy business environment that significantly affects the development of small and medium enterprises in the country. In the course of negotiations with the EU, Georgia has achieved an unprecedented agreement, in which all products of Georgian production, in case of compliance with the relevant conditions and standards, will enter the EU with zero customs tariff. Over time, Georgian products will be accepted in state procurement of EU member states.