The role of the Association Agreement with the European Union in the process of recovery and development of agriculture in Georgia
2022
Verulidze, Vazha
Given the challenges facing the Georgian economy, it is especially important to restore agriculture and develop rural areas to overcome poverty and improve living standards, which is achievable in condition of efficient use of the country's natural resources potential. In the process of agricultural recovery and development in Georgia, the Association Agreement with the European Union also plays a strategically important role, helping to stimulate agricultural production and diversify exports. The paper aims to assess the reasons for the setback in agricultural development and the prospects for its recovery within the framework of the Association Agreement with the European Union. The study focused on Georgia's failure to take full advantage of the Deep and Comprehensive Free Trade Area (DCFTA), which is hampering economic modernization, investment and economic integration into the European Union. Initial expectations for the Association Agreement were much more positive. Since 2016, after the entry into force of the Agreement, no changes have been made to the structure of exports by commodity items. The country's agricultural sector cannot compete either on the domestic or foreign markets. The main problems in the export of Georgian products to the EU market are non-compliance with EU standards and disruptions in the production chain, the primary reason for which is improperly planned and implemented reforms. In the current situation, Georgia needs an accelerated pace of targeted reforms to modernize and develop the agricultural sector, and this requires developing the agricultural sector in two stages: a return to the domestic market and an expansion of the export structure.
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