Green Light Given to Georgia-EU Free Trade Talks

The European Union has decided to launch negotiations on deep and comprehensive free trade area with Georgia and Moldova with the first round expected for early, 2012.

"A deep and comprehensive free trade area will help Georgia and Moldova to become more competitive and enjoy the benefits of the EU single market," EU Trade Commissioner Karel De Gucht said on December 5.

"Moldova and Georgia have achieved sufficient progress with the necessary reforms and have fulfilled a set of conditions to be able to proceed further in the gradual economic integration with the EU internal market," EU Commissioner for Enlargement and European Neighbourhood Policy Štefan Füle said.

Georgia already has with the EU General System of Preferences (GSP+), which allows Georgia enjoy preferential access to the EU market through lower import duties. But as observers note GSP+ system remains underused by Georgia.

"Existing import duties are already very low, so the benefits of the future deep and comprehensive free trade area lie predominantly behind the border, in the regulatory area," the EU said on December 5.

"Both countries [Georgia and Moldova] need to continue their work toward stability, transparency and predictability of the legislative regimes. These are essential to improve foreign direct investment inflows, bring jobs and long-term growth. Projected gains for Georgia and Moldova lie therefore behind the border and as such will impact their long-term development perspective," the EU said.