Economic Feasibility, General Economic Impact and Implications of a Free Trade Agreement between the European Union and Georgia

Abstract

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Deep Integration with the EU and its Likely Impact on Selected ENP Countries and Russia

“…It is built on the basis of the MRT -Multiregional Trade Model -by Harrison, Rutherford and Tarr (1996) implemented in their evaluation of the impact of the completion of the Single Market, but has been modified in several ways to fit this analysis. Similar analysis has been recently applied in the feasibility studies for Georgia and Armenia (Maliszewska et al., 2008a(Maliszewska et al., , 2008b and Russia (Dabrowski, Emerson, Maliszewska Eds., 2007) and Ukraine by Ecorys and CASE-Ukraine (2007) and earlier in the analysis of the Eastern EU Enlargement (Maliszewska, 2004) and Albanian Integration with the EU (Maliszewska and Kolesnichenko, 2004).…”

“…Further, Ecorys and CASE-Ukraine study (2007) analyses the implications of an FTA between the EU and Ukraine, while Maliszewska (2008aMaliszewska ( , 2008b analyse the implications of EU-Georgia and EU-Armenia FTAs. The CGE models applied in those studies are a modification of Harrison-Rutherford-Tarr (1996) as in Maliszewska (2004) (see section 5.1 for details).…”

“…Up to now, it has already registered 20,000 GOST standards, 400 ISO standards and ASTM (for pe-31 http://www.mfa.gov.ge/files/55_61_133510_CurrentTradeRegime.pdf. troleum products) standards (see Maliszewska et al, 2008a). Adoption of new national standards based on EU standards is proceeding very slowly.…”

“…This potentially creates a scope for the cost reduction for domestic firms exporting to the EU, as now they do not need to modify their production to satisfy differing domestic and EU technical regulations. Still, so far very few international technical regulations has been registered at the Agency suggesting the difficulties faced by domestic producers in application of international technical regulations (see Maliszewska et al, 2008a). …”

The EU-Georgia Association Agreement: An Instrument To Support The Development Of Georgia Or Lip Service?

“…There is an earlier quantitative study, coordinated by CASE, but it is not relevant today as it was prepared in a period when the content of the AA was not known (in 2008) and projected scenarios were purely theoretical. See : Maliszewska 2008. development policy for Georgia. It requires Georgia to adopt and implement an enormous amount of imprecisely identified EU internal market regulations that go way beyond strictly trade-related matters, with no attempt to identify those that make sound economic sense for Georgia.…”