Prospective FTA between Georgia and India: Another result of DCFTA?

Tamara Kovziridze

Op-ed No. 15/2019

Even though the EU-Georgia DCFTA has not yet had any substantial impact on trade and Georgia’s exports to the EU, it undoubtedly changed in a positive way Georgia’s prospective attractiveness as a trade and investment hub. After the entry into force of the EU-Georgia DCFTA in 2014, Georgia concluded further FTAs with EFTA, China and Hong Kong. The DCFTA increased Georgia’s potential attractiveness as a market where in principle its FTA partners can invest, produce and then export to the EU, taking advantage of tariff-free trade as well as of comparatively attractive business environment in the country. The real benefits of these new FTAs in terms of trade and growth remain still to be seen, but Georgia continues to pursue actively its liberal trade policies and conclude more FTAs with the aim to broaden its market. The next big market after China is India, and exploratory talks are also envisaged with the CEFTA (Central European Free Trade Agreement) region and possibly Israel as well.

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