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The EU and Georgia have a long-standing relationship aimed at closer political association and economic integration. To achieve this objective, the EU and Georgia signed an Association Agreement in June 2014, which entered fully into force in July 2016. Additionally, a Deep and Comprehensive Free Trade Area (DCFTA) opens the EU market to Georgian businesses and products. For closer people-to-people contacts and mobility, visa free travel to the Schengen area for Georgian citizens is in place since 28 March 2017.

Following Georgia’s application for EU Membership in March 2022, the country’s European perspective was recognised in June of the same year, and Georgia was granted candidate country status on 14 December 2023. Half a year later, on 27 June 2024 the European Council announced that the EU accession process for Georgia was “de facto halted”, due to backsliding on the steps set out in the Commission’s recommendation for candidate status. On 17 October 2024, the European Council recalled that the EU accession process for Georgia was stopped and called on Georgia to adopt democratic, comprehensive and sustainable reforms, in line with the core principles of European integration.

The EU is Georgia’s largest donor and provides around €85 million of grant money annually to support Georgia’s ambitious reform agenda. However, as a result of democratic backsliding, Georgia will lose €121 million from the 2022, 2023 and 2024 allocations.

Political relations

Guided by their common values, the EU supports peace and stability in Georgia, as well as programmes of political and economic reforms aimed at social and economic development

In June 2014, the EU and Georgia signed an Association Agreement (AA), which entered into force on 1 July 2016. This, along with the Deep and Comprehensive Free Trade Area (DCFTA), builds a foundation for far-reaching Georgia’s political and economic integration with the EU. The joint objectives are promotion of democracy and the rule of law, human rights, good governance and economic development. The AA institutional framework establishes bodies such as the Association Council to oversee its application, with the Association Agenda defining priorities necessary for its implementation. Until 2022, the EU issued annual implementation reports to document the steps undertaken by Georgia in implementation of the AA/DCFTA.

The AA is itself an outcome of the EU's European Neighbourhood Policy (ENP), an important part of the EU’s foreign policy aimed at enhancing the prosperity, stability and security of an enlarged EU and its neighbours. The launch of the EU’s Eastern Partnership (EaP) in 2009, which includes Georgia, extended cooperation and further highlighted the importance of the region. As well as bolstering reforms, the EaP works towards greater mobility of citizens and stronger collaboration in a number of sectors, such as transport, energy and the environment.

On 3 March, 2022, Georgia submitted its application for membership of the European Union. On 23 June 2022, the European Council recognised the European perspective for Georgia and expressed readiness to grant the status of a candidate country once the 12 priorities specified in the Commission’s opinion on Georgia’s membership application have been addressed.

On 8 November 2023, the European Commission recommended that that European Council grants Georgia the status of a candidate country. The Commission published Report on Georgia together with Key Findings and issued 2023 Communication on EU Enlargement Policy which outlines 9 steps to be taken by Georgia.

On 14 December 2023, the European Council decided to grant the status of candidate country to Georgia, on the understanding that the relevant steps set out in the Commission’s recommendation of 8 November 2023 are taken.

Half a year after Georgia received the status of the candidate country, on 27 June 2024, the European Council announced that the EU accession process for Georgia is “de facto halted”, due to backsliding on the steps set out in the Commission’s recommendation for candidate status, in particular, the adoption of the law on transparency of foreign influence. On 17 October 2024, the European Council recalled that the EU accession process for Georgia was stopped and called on Georgia to adopt democratic, comprehensive and sustainable reforms, in line with the core principles of European integration.

On 30 October 2024, the European Commission published the second Enlargement Report on Georgia (extract on Georgia) and issued its 2024 Communication on EU Enlargement Policy (extract on Georgia). On this occasion, the Commission has noted that the granting of the candidate status to Georgia in December 2023 has not been followed by sufficient political commitment of the authorities to implement the necessary reforms for the country’s progress on the European path. In particular, the report showed that Georgia has made insignificant progress on the implementation of the nine steps. Unless Georgia reverts the current course of action, which jeopardises its EU path, and demonstrates tangible efforts to address outstanding concerns and key reforms, the Commission will not be in a position to consider recommending opening negotiations with Georgia.

The EU remains firmly committed to its policy of supporting Georgia’s territorial integrity within its internationally recognised borders as well as engagement with the breakaway occupied regions of Abkhazia and South Ossetia, in support of longer-term conflict resolution. Since 2008, an EU Monitoring Mission has operated in the vicinity of the administrative boundary lines. On 1 October 2023, EUMM marked its 15th year of presence in Georgia.

Useful links on EU Enlargement: https://euneighbourseast.eu/enlargement/https://eu4georgia.eu/eu-enlargement/ 

 

Economic and Trade Relations

Georgia has seen solid economic growth over the last few years, made possible partly due to ongoing economic reforms, which have included overhauling tax collection procedures, fighting against corruption, opening up the country to foreign trade and investment, improving infrastructure and simplifying the business environment

The EU supports Georgia in developing its economic potential through international cooperation. This includes assistance in alignment with EU legislative standards.

On 27 June 2014, the EU and Georgia signed the Association Agreement (AA), including the Deep and Comprehensive Free Trade Area (DCFTA). The DCFTA has an ambitious objective of integration with the EU’s internal market, therefore is considered as the unique free trade agreement. This regime increases market access between the EU and Georgia based on having better-matched regulations. As the main pillar of the AA, it contributes to the modernisation and diversification of the economy in Georgia.

The provisional application of the DCFTA started on 1 September 2014. Meanwhile, Georgia benefited from the Generalised System of Preferences for a number of years and, on 1 January 2017, the country graduated from the program.

Trade between the EU and Georgia has been growing steadily over the years and today the EU is Georgia’s main trading partner. The DCFTA deepens Georgia's economic ties with the EU and includes provisions on public procurement, common customs’ rules, along with technical and sanitary standards for goods such as food items, intellectual property rights and competition rules.

The EU is also committed to supporting the Georgian Government in strengthening its export competitiveness, for example, through the setting-up of Quality Management Systems and Quality Infrastructure Systems to assure standards are met.

Economic & Investment Plan

The EU supports Georgia with concrete investments to help post-pandemic recovery and improve the lives of Georgian citizens. In the coming years, the EU will invest in the following flagship projects:

  • Reliable internet through a Black Sea data cable and electricity cable
  • Ferry connections in the Black Sea
  • Support to 80,000 SMEs
  • High-speed internet access to 1,000 rural communities
  • Cleaner air and energy efficiency for 1 million people

New Trade Portal and Current trade figures

Access2Markets is an online portal for trade information. It serves as a single access point for practical information for import and export (e. g. how to export goods to over 120 countries outside the EU, how to import goods from any country in the world, trade within the EU, the benefits of the EU's trade agreements with over 70 countries; product-specific information, such as tariffs, national taxes, rules of origin, customs procedures, import formalities and product requirements, trade barriers and trade flows).

The Eastern Partnership Trade Helpdesk assists SMEs to identify new market opportunities for importers and exporters in the EU and the Eastern Partnership countries. This platform will assist companies to identify new opportunities, potential partners and check necessary requirements and procedures.

It complements the Access to Markets database, which empowers European companies to benefit from trade agreements to the fullest by breaking down complex trade rules into practical, tailored information.

Current trade figures

The EU countries are still the main trade partner of Georgia and accounts for 20.5% share in its total trade turnover. The share of the top trading partners in total exports for 2022 for Georgia are EU countries (15.4%),(China (13.2%), Azerbaijan (12%) Russia (11.5%), and Turkey (7.8%), for all National Statistics Office of Georgia, GEOSTAT).

EU27 trade with Georgia (ranked 75th) accounts for a share of 0.1% worth € 4.256 billion in 2022 (EUROSTAT).

EU exports to Georgia amounted to € 3.23 billion in 2022. The key export products are mainly non-agricultural products such as mineral products, machinery, appliances and transport equipment.

The key EU imports from Georgia include mainly industrial products such as mineral products. Additionally products of the chemical or allied industries, textile, and vegetable products. The EU imported goods to the value of € 1.026 billion from Georgia in 2022 (all EUROSTAT).

Sustainable development and green economy

Climate change and environmental degradation are an existential threat to Europe and the world. The EU promotes the approach of the European Green Deal of a fair transition towards sustainable, resource-efficient and climate neutral economies and energy systems

The EU is a climate leader with the objective of reaching climate neutrality by 2050. In Georgia, the EU supports efforts to tackle and adapt to climate change, through EU4Climate, among others and financing numerous infrastructure investments contributing to the reduction of GHG emissions.

The EU also promotes and accelerates the global transition of the energy sector. To this end, the EU supports Georgian efforts to promote energy efficiency and renewable energy deployment, through investing in energy efficiency rehabilitation of hundreds of public buildings.

Biodiversity is essential for life, providing us with food, health and medicine, materials, recreation, and wellbeing. In this area, the EU supports Georgia in the development of protected areas and in the protection of water resources through the development of water sanitation infrastructure and the provision of equipment to monitor quality and flows.

The EU has been working to improve natural resource management and towards a climate-neutral, resource-efficient and circular economy for many years. In Georgia, the EU supports improved waste management, policy development like the Extended Producer Responsibility, a sustainable packing industry through cluster development, etc.  

The transition towards sustainable food systems is a key component of the green transition, ensuring social, environmental and economic sustainability. The EU supports Georgia’s work in this field under the ENPARD programme(s).

Energy, Environment, Climate change

Cooperation between the European Union and Georgia in the field of energy, environment and climate change

The EU is supporting Georgia with expertise to bring environmental legislation closer to EU standards and is also directly supporting the development of natural parks, improvement of air quality, unlocking opportunities for greener growth, improving waste management and water infrastructure, and setting mechanisms to better manage environmental risks and impacts. The EU is funding numerous infrastructure projects in the sectors of Water Supply and Sanitation, Waste management and eco-friendly transports. This common work together also directly contributes to reducing greenhouse gas emissions and fighting Climate change.

In the energy sector, the EU is working on alignment with key EU energy legislation, development of energy infrastructure and connectivity, and promotion of energy efficiency and renewable energy. The EU is investing in energy efficiency rehabilitation of hundreds of public buildings, this helps reducing energy bills, contributes to environmental protection and helps to create better conditions for building users.

Human Rights, Democracy and Rule of Law

Human Rights are at the core of EU values as well as in EU-GE relations. In Georgia, the EU supports the positive development of human rights practices, democracy and rule of law

The Association Agreement concluded in 2016, and the Association Agenda 2021-2027 guides EU-Georgia cooperation on human rights and democracy.

While a culture of human rights still has to take firm root throughout the country, there has been significant progress in the field of human rights and democracy. Important electoral and judicial reforms have taken place, which has created a more solid legal basis for the democratic consolidation of the country, although important challenges remain in both areas.

EU support to human rights, democracy and rule of law is particularly directed towards transparency and inclusiveness of the electoral process, independence and impartiality of the judiciary, gender equality and LGBTI rights, rights of persons belonging to minorities, rights of persons with disabilities and labour rights.

Global Gateway in Georgia

Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world

Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as with the Paris Agreement on climate change.

Global Gateway aims to mobilise globally up to €300 billion in investments. By September 2024, the EU leveraged EUR 2.1 billion in public and private investments for Georgia in the framework of Global Gateway under the Economic and Investment Plan (EIP).

Through a 'Team Europe approach', Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact.

Global Gateway covers five main themes (digital, climate and energy, transport, health, education and research).

In Georgia, Global Gateway is implemented mainly through the following six flagships, which are included in the economic and Investment Plan:

Georgia Flagship 1 - Black Sea Connectivity

Black Sea connectivity is the top priority for Georgia. The two projects under this Flagship for Georgia are also priority projects of Global Gateway.

a) Deploying a submarine optic fibre cable

The deployment of a submarine fibre optic cable -will further integrate the Georgian market with the EU, and people and businesses will benefit from a faster and more stable direct internet connection between Georgia and the EU. This optic fibre cable will create a direct connection between the South Caucasus and South-East Europe and will diversify the connection between Europe and Asia.

b) Deploying a submarine electricity cable

The Black Sea Submarine Cable (BSSC) project connecting Georgia with the EU is a priority for both the EU and Georgia. Studies on the exact cost of the investment and its economic and technical viability are ongoing.

Georgia Flagship 2 - Transport across the Black Sea – Improving physical connections between Georgia & EU

Both Georgia and the EU have declared transport connectivity across the Black Sea to be a priority. One step to closer ties between Georgia and the EU Member States is increasing and reinforcing direct transport connections across the Black Sea. Among other things, this flagship involves developing new ferry/feeder services and refurbishing ports, including making them more energy efficient, which will promote trade in goods and facilitate the movement of people by creating a direct link with the EU Member States.

Georgia Flagship 3 - Economic Recovery – Supporting 80,000 SMEs to reap the full benefits of the DCFTA

This flagship provides support for 80.000 Georgian SMEs, including equity investments to accelerate their integration into wider EU value chains. This will contribute to the diversification of trade between the EU and Georgia. A significant part of the EU’s support goes to SMEs in the agri-food sector. For small producers and farmers, access to finance is as important as easy access to product testing in laboratories. In order to reap the full potential of the DCFTA, the private sector needs technical support to adapt to the DCFTA requirements e.g. sanitary and phytosanitary (SPS) measures. There is a particular need for support to develop laboratory capacity for product testing. Therefore, the EU will also invest in flanking measures to develop the SPS/food-testing system.

Georgia Flagship 4 - Digital Connectivity for Citizens – Developing high-speed broadband infrastructure for 1,000 rural settlements

The development of high-speed broadband infrastructure for around 1,000 rural settlements and strengthened last-mile connectivity will reduce digital inequalities, including the rural-urban divide. This will contribute to economic development and recovery in line with Georgia’s ambition to position itself as a hub in the global digital economy.

Georgia Flagship 5 - Improved Air Quality - Cleaner Air for over 1 million People in Tbilisi

Air quality is a growing concern in Georgia. It particularly affects Tbilisi and other urban centres outside of the capital, especially post-industrial spaces.

The EU works on improving air quality monitoring in Georgia and its regions by installing air monitoring equipment and building capacities. Besides work to identify pollution sources, concrete investments will be made to improve the situation.

Georgia Flagship 6 - Energy efficiency in residential buildings

EU investments through regional and bilateral projects will enhance energy efficiency. Citizens will have lower energy costs and better quality of life through the reduction of energy poverty.

The EU is providing comprehensive assistance for the establishment of an energy efficiency framework in Georgia and for enabling the scaling-up of investments in energy efficiency. This will contribute to sustainable economic recovery, with a focus on vulnerable social groups, job creation, environment, climate change mitigation as well as increased resilience and energy security.

Further information on Global Gateway can be found at: Global Gateway - European Commission (europa.eu)