Brussels, 18/12/2014 (Agence Europe) - It was by a majority of 490 votes to 76, with 57 abstentions, the European Parliament voted on Thursday 18 December to approve conclusion of the association agreement, establishing a deep and comprehensive free-trade area, signed by the EU and Georgia on 27 June.
“This is an exceptional day, very important for my nation”, stated Georgian President Giorgi Margvelashvili, who was present in Strasbourg for the vote. “With this new agreement, Georgia has gained a new reform instrument … and Europe has gained a reliable country for which this partnership is very important, a country which shares the same values and one which wants to strengthen peace, security and stability in the Caucasus region and beyond”, he added. Rapporteur Andrejs Mamikins (S&D, Latvia) said that “the European Parliament's ratification of the association agreement with Georgia has opened a new chapter in European Union relations with Georgia”. Parliament President Martin Schulz described the vote as a “historic moment. It is now crucial that Georgia fully implements the agreement and shows its firm commitment to the EU's common values and principles. The maintenance of the rule of law and the continuation of reform of the judicial system are of particular importance”, he added.
In adopting a second report (491 votes to 84, with 63 abstentions), MEPs welcomed the signing of the association agreement, which constitutes significant progress in relations between the EU and Georgia. Parliament notes that ratification of the agreement “is not the end in itself” and that full implementation as quickly as possible is essential. It also calls on the member states to ratify the agreement swiftly. According to the Georgian president, ten member states have already ratified the agreement. The Georgian parliament voted unanimously for ratification on 18 July.
Parliament calls on Georgia to continue its reforms and its efforts to tackle organised crime, corruption, fraud and money laundering, and to put in place a fully operational judicial system. Public administration must be depoliticised, Parliament says. “All prosecutions must be transparent, proportionate and free from political motivation”, MEPs state. Parliament also repeated its support for the sovereignty and territorial integrity of Georgia. It condemns the conclusion of the “alliance and strategic partnership” treaty between the occupied territory of Abkhazia and Russia, which it considers a step towards conclusion of full annexation of Abkhazia.
Free trade will increase Georgian GDP by 4%. Commissioner Cecilia Malmström welcomed the association agreement which will bring ambitious updating of bilateral trade relations. The agreement establishes a free-trade area, complemented by a trade-related reform programme, in particular in the area of hygiene standards for agricultural products and safety standards for industrial goods. The reforms also seek to ensure a stable and predictable climate to encourage foreign investment in Georgia.
Bilateral trade in goods was worth €2.7 billion in 2013. The free-trade area has been operating provisionally since 1 September. According to initial figures, Georgian exports to the EU increased by more than 50% in September.
An independent study says that the EU-Georgia free-trade area will increase exports one to the other by 7.5% and 12% respectively. Over the long term, the agreement could increase Georgia's GDP by 4.3% (close to €300 million). (CG/EH)