Expanded Summary

The process of economic integration of Georgia with the European Union, in order to maximize the use of available opportunities, requires in-depth scientific research. The article considers the statistical data of the ongoing process of Georgia's trade and economic integration with the European Union, outlines the main trends and draws the appropriate conclusions.

In July 2016, fully entered into force, Association Agreement between Georgia and the European Union signed in June 2014. One of its most important parts is the Agreement on Deep and Comprehensive Free Trade Area (DCFTA). Georgia has received access on the EU market. This was the result the fact that of the last 10-12 years, with the main economic indicators Georgia has become closer to EU member states, than other Eastern Partnership countries (Armenia, Azerbaijan, Belarus, Moldova, Ukraine).

Despite the existing opportunities, official statistics show that Georgia still could not use this potential completely in different directions.

In 2016, Georgia's foreign trade turnover in the EU countries amounted to 3,601 million USD, which is 14% more than that of 2015, including: exports (571 million USD) - amounted to 12% less, imports (3030 million USD) - 20% more.

In the foreign trade turnover of Georgia in 2016, the share of the European Union amounted to 30%, among them: export - 27%, import - 31% (in 2015 accordingly 32, 29 and 32 percent).

According to the data, in 2016, compared to 2015, the share of exports in the amount of 12%, that is, by USD 74 million decreased, and imports increased by 20%, that is, by 511 million USD.

Exports to the EU in 2016 amounted to 27% of the total exports, which was 2,3% less compared to the same indicator of 2015 (29.3%), nevertheless, it should be noted that this figure in 2012 amounted to only 14% of total exports Georgia.

 In 2016, compared with 2015, Georgia's foreign trade turnover with the CIS countries (Commonwealth of Independent States) decreased by 3% (2721 million USD). Exports amounted to less than 12%, that is, 739 million US dollars - And imports amounted to 1% more, that is 1,833 million US dollars.  Consequent, the EU is one of Georgia's main trading partners.

According to preliminary data of the Georgian National Statistical Service in 2016, the largest partner countries from the EU countries represent: Bulgaria - (317 dollars 552.0 million USA.), Germany - (504 dollars 345.7 million USA.) and Ireland - (844 dollars 658.6 million USA).

In 2016, the positive trade balance was only with Bulgaria (Export - 167 159.3, Import - 150 392.7, Balance - 16 766.6) and with Malta (Export - 1 778.6, import - 1 260.5, balance - 518.1).

Free trade regime with the EU, the opening of the EU market for Georgian agricultural products and the cancellation of the import duty, increased the demand for a number of agricultural products and consequently, employment. For example, by 2015,  83% of the Georgian export of nut was exported to the EU countries, as well as the export of Georgian wine to the EU countries since 2005 (732 thousand bottles), grew by 22% (3300 thousand bottles). The growing trend is the export of Georgian honey. Since 2005 its exports (0.7 tons) increased and in 2015 amounted to 8.3 tons.

According to preliminary calculations, in the long term, the process of integration with the EU should lead to an increase of 4-5% of Georgia's GDP, and wages will increase by 3-4%. But, on this path of integration, when there is still a big economic difference between Georgia and the EU, Georgia must overcome many difficulties, which requires more diligence and principle.

The government of Georgia actively working with DCFTA, organizes meetings with representatives of business, non-governmental organizations, local authorities, academic circles and other stakeholders, as in Tbilisi, as well as in various regions. Active work is underway to fulfill its obligations.

With the active actions of the Government of Georgia towards integration process, it is very important to intensify scientific research in order to: quantify and qualitatively analyze the development of the process, preliminary analysis, dependence on trade with the EU, trade complementary, effects, commodity structure of exports etc.