The Committee on Foreign Affairs adopted the report by Andrejs MAMIKINS (S&D, LV) on the draft Council decision on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part.
Members recalled that the Association Agreement (AA) aims to create the most ambitious free trade agreement that the EU has ever negotiated with a third country, save for countries of the European Economic Area.
By establishing a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia should increase its market access to the largest economic block, by taking binding commitments on the adoption of laws, standards and common values, whereas the EU will benefit from smoother commercial flows and better investment conditions in Georgia.
It is expected that the DCFTA will boost trade between the EU and Georgia – by 12% as regards Georgia’s exports to the EU, and by 7.5% on imports from the EU.
The Agreement, as a whole, is expected to improve the current account balance of Georgia and boost the GDP by 4.3% (EUR 292 million in national income), provided that the reforms are completed.
Therefore, Members recommended that the European Parliament give its consent to the conclusion of the Agreement.