The effect of the DCFTA on Georgian exports to the EU
Georgia and the EU established a deep and comprehensive free trade area (DCFTA), which came into force in 2014. In a recent comparative study, which also includes Ukraine and Moldova, we look at the effect of the DCFTA on Georgian exports to the EU.
Between 2013 and 2018, exports to the EU – as defined in our study – increased by a rather moderate 9% in US dollar terms. However, in the same period prices for key Georgian export products declined heavily. In real terms, i.e. using constant prices of 2013, Georgian exports to the EU increased by 115%. Having said that, the EU was not able to increase its share as an export destination for Georgian products: the share remained flat at 16%. All in all, we conclude that the DCFTA had a positive, but moderate effect on Georgian exports to the EU.