Association Agreement is a document on bilateral relations, based on the partnership of the parties, their needs and opportunities for mutual assistance. The Agreement describes in detail the country’s development plan  according to European standards, the implementation of which, Georgia will be transformed into a country compatible with EU standards.

The document deals with the mandatory reforms (in the area of human rights, the rule of law, the fight against corruption and transnational organized crime, etc.) that will bring peace and stability to the country. One of the most important components of the Agreement is the EU-Georgia Deep and Comprehensive Free Trade Area (DCFTA), which has opened up the European Union market for goods and services produced in Georgia.

Georgia and the European Union launched talks on the preparation of the Association Agreement in July 2010. In 2011, the component of the Deep and Comprehensive Free Trade Area (DCFTA) was added to the negotiation agenda. The Association Agreement is a document on bilateral relations, based on the partnership of the parties, their needs and opportunities for mutual assistance. This Agreement is of special importance to Georgia,as it is a detailed unified plan for the development of democracy and competitive economy, after the implementation of which Georgia, with its democracy and free market economy, will become a country on a par with EU member states.

The Association Agreement is an action plan to bring Georgia closer to the European Union,  which concerns almost all spheres of the country’s political, social, and economic life. It also includes the component of Deep and Comprehensive Free Trade Area – DCFTA and envisages important concrete mechanisms for rapprochement with the European Union.

The EU-Georgia Association Agreement will replace the Partnership and Cooperation Agreement (PCA) signed in 1996 and will create a new legal framework for cooperation between Georgia and the European Union. Compared to the PCA, the Association Agreement envisages greater scope of partnership between Georgia and the European Union in all priority areas of cooperation.

Negotiations between Georgia and the European Union on the “Association Agreement” officially began in July 2010 (and on the component of the Deep and Comprehensive Free Trade Area – in December 2011). During the negotiations, 15 plenary sessions were held on the political part of the Agreement, 6 rounds on the Deep and Comprehensive Free Trade Area, and about 100 video conferences on sectoral cooperation and DCFTA. The negotiations came to an end in July 2013. All relevant ministries and agencies of Georgia were involved in the process of negotiations. The initialing of the Agreement (confirmation of the negotiated text by putting initials on each page of the Agreement by the heads of delegations of the parties) took place on  November 29, 2013, within the framework of the Eastern Partnership Vilnius Summit. Alongside Georgia, another two EaP countries: Moldova and Ukraine- signed the European Union Association Agreement. The European Union has the association agreement signed with other countries as well, however, the AA with the three Eastern Partnership countries – Moldova, Georgia and Ukraine – is of special importance, as it includes,  the component of Deep and Comprehensive Free Trade Area along with political and sectoral cooperation issues

The agreement envisages such a high level of convergence with the European Union and its legislation that its effective implementation actually makes the country’s Europeanization process irreversible. The Association Agreement aims at ensuring political association and gradual economic integration with the European Union. The Association Agreement acknowledges  Georgia’s European aspirations and European choices, and stipulates that the common values on which the European Union is based – democracy, protection of human rights and fundamental freedoms, and the rule of law, are the cornerstones of political association and economic integration.

The Agreement expresses full respect for the principles of Georgia’s independence, sovereignty, territorial integrity and inviolability of internationally recognized borders. Special attention is paid to joint promotion of post-conflict rehabilitation and reconciliation efforts. Peaceful resolution of the conflict will be one of the main topics of the political dialogue between the parties, as well as with other relevant international actors (the initial draft of the Association Agreement did not include a separate article on the peaceful resolution of the conflict, and this article was incorporated through the efforts of the delegation from Georgia).

The Association Agreement is equally binding on both signatories – Georgia and the European Union. This is an agreement between two equal parties. The Association Agreement, as an international agreement, is superior to national law, while the Constitution of Georgia takes precedence over the Association Agreement. Thus, in case of legal conflict between the Association Agreement and the national law, the law should be changed, while in case of inconsistency  with the Constitution, amendmends will be made to the Association Agreement.

In the general part of the Agreement, the parties agree to the basic democratic principles of human rights and freedoms as defined by the United Nations Declaration of Human Rights (1948), the European Convention (1950), the Helsinki Final Act (1975) and the Paris Charter (1990); to be guided by these documents both in internal and external relations; to observe the principles of non-proliferation of weapons of mass destruction. The Agreement commits the parties to a free market economy, sustainable development and effective multilateralism. By upholding the rule of law, good governance, the fight against corruption and transnational organized crime, the parties remain committed to regional peace and stability, as well as to ensuring the territorial integrity and independence of countries.

The Agreement identifies specific areas where Georgia is carrying out concrete reforms with the support of the European Union:

• Strengthening and protection of common European values – commitment to and spread of democracy and the rule of law, good governance, human rights and basic freedoms; respect for the principles of international law, including sovereignty and territorial integrity within internationally recognized borders; promotion of peaceful conflict resolution.
• Foreign and security policy – deepening a political dialogue and cooperation in relevant fields, including domestic reform, non-proliferation of international weapons of mass destruction, regional stability and others.
• Justice, freedom and security – increasing the independence of the judiciary, access to justice and ensuring the right to a fair trial; migration management, effective fight against human trafficking; fight against money laundering, organized crime and corruption; prevention of, and fight against illegal drug trafficking; ensuring personal data protection and preventing terrorist financing; enhancing cooperation on border management issues, personal data protection and others.
• Modernization of all areas of sectoral policy and implementation of European standards – cooperation in such areas as: transport, energy, environmental protection, agriculture, tourism, research and technology, employment and social policy, healthcare, education, culture, civil society, regional development and others.
• Trade and trade-related issues – provides for the establishment of the Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the European Union. The incorporation of trade-related issues in the Association Agreement creates a real mechanism for the gradual economic integration of Georgia into the internal market of the European Union.

Title V of the Association Agreement envisages sectoral cooperation between Georgia and the European Union in the following 23 areas: 1) transport; 2) energy; 3) environmental protection; 4) climate action; 5) industrial and enterprise policy and mining; 6) Company law, accounting and auditing and corporate governance; 7) financial services; 8) information society; 9) tourism; 10) agriculture and its development; 11) fisheries and maritime governance; 12) research, technological development and demonstration; 13) consumer policy; 14) employment, social policy and equal opportunities; 15) public healthcare; 16) education, training and youth; 17) cooperation in the cultural field; 18) cooperation in the audio-visual and media fields; 19) cooperation in the field of sport and physical activity; 20) civil society cooperation; 21) regional development, cross-border and regional- level cooperation; 22) civil protection; 23) Participation in European Unuin agencies and programmes.

To monitor the implementation of the Association Agreement, the Association Council (at the level of ministers), the Association Committee (at the level of deputy ministers) was created. The latter helps the Association Council in performing its duties and functions. The Association Committee is assisted by specially created thematic sub-committees. Sub-committees meet at the level of civil servants and discuss issues related to a specific area. To exchange opinions on the Association Agreement, the members of the European Parliament and the Parliament of Georgia created the Parliamentary Association Committee. The Parliamentary Association Committee has the opportunity to request relevant information regarding the implementation of the Agreement from the Association Council.

The EU- Georgia Association Agenda (Association Agenda) is a plan of priority commitments under the Association Agreement. This plan provides preparations for the implementation of the Association Agreement and promotes its effective implementation. The Association Agenda is the main implementing instrument of the EU-GeorgiaAssociation Agreement and includes specific priorities of cooperation agreed between Georgia and the EU as provided for in the Association Agreement.

Georgia has made significant progress in implementing the priorities of the Association Agenda for 2014-2016 and 2017-2020. The fundamental reforms carried out by the country during this period, which ensured the country’s progress and advance towards deep political association and economic integration with the European Union, are recognized and positively evaluated in the new agenda (2021-2027).

Currently, Georgia is going through the active phase of implementing the Association Agreement – legislative and institutional rapprochement with the European Union is in progress, European standards are being intensively introduced in various fields, sectoral cooperation is developing and deepening, European practices are being established and relations – intensified through participation in specialized agencies and programmes of the European Union, etc. Accordingly, the new Association Agenda reflects these aspirations as well.

The Deep and Comprehensive Free Trade Area between Georgia and the European Union is the most important part of the Association Agreement, which opens the EU market for the sector of goods and services produced in Georgia. Unlike the Free Trade Agreement, it involves the elimination of both tariff and non-tariff barriers and regulates a wide range of issues related to trade (e.g.: food safety, product safety, competition policy, intellectual property protection, customs issues, public procurement, others). The DCFTA envisages the gradual approximation of trade-related laws and institutions with those of the European Union, including the administrative mechanisms.

With the implementation of the DCFTA, goods produced in Georgia gained access to the world’s largest market, which currently unites 27 countries and 446 million consumers. The EU market also means: a stable market, open game rules, a well-functioning distribution network, rising food prices, growing demand for natural products.

DCFTA regulates the following areas:

• Trade in goods (tariffs);
• Rules of origin of goods;
• Customs and trade facilitation;
• Trade in services;
• Sanitary and phytosanitary measures;
• Technical barriers to trade;
• Protection of intellectual property rights.

The establishment of Deep and Comprehensive Free Trade Area between Georgia and the European Union contributes to: creating a trade system complying with the EU market requirements; establishing a transparent, stable business environment; boosting investment attractiveness of Georgia and respectively increasing foreign direct investments; sustainable development of the country and rational use of natural resources; creating new enterprises and export products; creating new jobs as a result of increase in the local production; diversifying and expanding export markets of Georgian products; Reducing export-related expenses for Georgian exporters; providing safe and harmless products to Georgian consumers; protecting intellectual property rights; developing state administration bodies, in accordance with European best practices; stimulating economic growth and economic development of the country,in general. Reforms carried out in the area of sanitary and phytosanitary measures and technical barriers to trade will open up the EU market for Georgian agricultural and industrial products and, at the same time, will facilitate the supply of harmless and safe products to the local market.

During the negotiation process, Georgia reached an unprecedented agreement with the European Union on tariff liberalization. Upon entry into force of the agreement,  all products of Georgian origin (except garlic, which will be subject to quantitative restrictions), are exempted from customs tariffs when imported to the EU market.

Free (free of tariffs and technical restrictions) trade in goods contributes to the growth of the potential of the export of Georgia-made products to the countries of the European Union and, accordingly, to economic growth in Georgia. Based on this, the dynamics of EU-Georgia trade relations remain positive and Georgian exports to the European Union keep increasing from year to year.