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Georgia’s EU trade at risk amid political concerns

Vakhtang Bezhitashvili, head of the Georgian Fruit and Vegetable Exporters Association, highlighted concerns about Georgia's visa-free travel arrangement with the European Union. This arrangement is tied to the Deep and Comprehensive Free Trade Agreement (DCFTA), crucial for economic interaction with the EU. Bezhitashvili emphasized during a discussion on BMG's TV program Analitics that Georgia's market access under the DCFTA is linked to its pro-Western political stance.

He warned of the potential withdrawal of visa-free travel and trade advantages if there's a deviation from democratic norms. Bezhitashvili remarked, "If visa-free travel is abolished, it will be a huge blow, not only to the country's prestige, but also to its economy and export potential."

Georgia's EU candidate status was conferred based on its commitment to democratic values and Western alignment. Bezhitashvili expressed concerns over Georgia's increasing economic reliance on Russia amid declining EU exports, noting that Georgia's exports are nearly 90% concentrated in the Russian market. "Our trade has been adapted to Russia's market for years due to proximity, but the lack of diversification is dangerous," he added.

Despite agricultural capacity, exports to the EU are declining. He questioned, "If we could export even small quantities to the EU before, why can't we increase those volumes now? The trend is going in the wrong direction, and that's very concerning."

In 2014, Georgia signed the EU Association Agreement, including the DCFTA. The EU domestic export share fell to 15.8% by 2024, a record low since 2015. As Georgia's relationship with the EU faces scrutiny, export strategies remain vital.

Source: Business Media

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