EU-Georgia free trade may boost Polish-Georgian relations, report says

The implementation of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia may create attractive conditions for Polish exports and investments in Georgia, a bulletin reports.

The Polish Institute of International Affairs released a bulletin which said even if Poland was currently not a significant economic partner of Georgia’s, "both countries may still benefit from the DCFTA.”

The benefits could come into effect once the Association Agreement is signed this June.

"For its part, Georgia needs to enhance its economic cooperation with European countries in order to strengthen its still fragile economy," the report stated.

"The Polish and Georgian governments should encourage Polish entrepreneurs to enter the Georgian market and provide them with the necessary support and information,” the report read.

The Institute believed despite good political relations between Poland and Georgia, the intensity of the two countries relations had remained relatively low over the last couple of years.

However, a steady increase in bilateral trade has been recorded.

The value of bilateral trade amounted to $53 million USD in 2009 but this number nearly doubled to $96.4 million by 2012.

Although in 2012, Polish export to Georgia were worth $86.8 million USD and imports $9.6 million USD (meaning a $77.2 million trade surplus). Georgia’s share of Polish overall trade was only about 0.05 percent and 0.01 percent respectively.

The report reads Polish investors in Georgia are barely noticeable, with their contribution ranked 37^th among investment sources with $1.37 million in 2013.

The biggest Polish investor in Georgia is Asseco, an IT company that bought Onyx Consulting (now Asseco Georgia) for $1.3 million in mid-2013.

"The implementation of the DCFTA could prompt companies to search for prospective niches in both markets,” the report read.

The report believed, for Polish exporters, opportunities may arise in such areas as agricultural machines and equipment for processing and food storage.

"Producers of chemical products and pharmaceuticals also could enlarge their presence in Georgia.”

The report said as more Polish people showed their interest in visiting Georgia, tourism cooperation should be enhanced.

"This is especially obvious for mid-range services, as the country is now visited mostly by backpackers seeking cheap stays and those who book into luxury hotels.”

The bulletin also issued the recommendations reads that the promotion of Polish businesses as well as the "Made in Poland” brand campaign in Georgia should be intensified.