Deputy Economy Minister: number of companies exporting to EU up 70% since Association Agreement

The number of Georgian companies exporting to the European Union in 2021 comprised an increase of more than 70 percent compared to the figure before the 2014 signing of the Association Agreement (AA), Deputy Economy Minister Genadi Arveladze said on Tuesday. 

During an address to the country legislative body, Arveladze said the increase had meant 962 companies were involved in exporting to the EU, adding the Deep and Comprehensive Free Trade Area (DCFTA) agreement - signed in 2014 as a part of the AA between Georgia and the EU - had made a “significant contribution” to the growth of foreign trade and exports in Georgia. 

The Deputy Minister also said Georgia’s turnover with the EU had grown by 19 percent last year and totalled 21 percent of the country’s total trade turnover, adding exports from Georgia to the EU market had increased by three percent, out of a total of 17 percent of Georgian exports. 

He further said exports of agricultural products to the EU had increased by 14 percent in 2021, including:

• Nuts and hazelnuts - 12%
• Mineral water - 20%
• Wine - 20%
• Sugar-containing carbonated waters - 97%
• Fruit juices - 6%
• Canned fruits and vegetables - 11%

Arveladze said the EU market had already been opened for Georgian fish and fish products, processed leather, wool and honey. He also highlighted the EU Commission Regulation of December 2021, based on which Georgia was added to the list of countries from which snails are allowed to be exported to the EU market.

We are actively cooperating with relevant EU structures to open up the EU market for animal products,” Arveladze said. 

The official also pointed out the EU Commission had commended the progress made by Georgia in fulfilling its commitments under the DCFTA and expressed readiness to continue to assist the country in the process.

He also announced the Georgian Government was “actively working” to create a product laboratory infrastructure in the country per European or international standards, saying the majority of laboratories in Georgia were unable to conduct testing in regulated areas according to those standards. 

In January-February 2022, Georgia exported locally produced goods worth $760.4 million, which was 54.5 percent higher year-on-year, while in the whole of 2021 the figure totalled $4.2 billion, an increase of 26.9 percent compared to the previous year.