Home / Business / Research: Only 6% of Georgian Companies Enjoyed DCFTA Preferences by End of 2015
Research: Only 6% of Georgian Companies Enjoyed DCFTA Preferences by End of 2015

Research: Only 6% of Georgian Companies Enjoyed DCFTA Preferences by End of 2015

“Only 6% of Georgian companies prove that they enjoy the DCFTA-provided trade regime”, the research conducted as part of the Governing for Growth (G4G) project, financed by the USAID, in September 2915, reads.

Sixty percent of the mentioned companies represent a limited liability company.

“Enterprises must satisfy certain criteria to enjoy the agreement preferences. That’s why only a few small individual companies have joined the process.

The DCFTA agreement has recently come into force and that’s why a few companies enjoy the DCFTA preferences. The  companies show low interest in this trade regime and this fact come into collision with expectations and hopes of the Authorities. Sixty-three percent of questioned companies noted that they are not interested in the mentioned trade regime, because the ratio of exporter companies is very small among questioned companies. However, if we analyze exporter companies separately, we will see that 70% of them do not use the mentioned regime and almost a half part of (46%) is interested in this regime.

If the exiting reality does not change, it will be difficult to justify the expectations that are related to Georgia’s involvement in DCFTA, namely, growth in Georgia’s exports potential, investment attractiveness, development of new enterprises and exports items. Therefore, additional research work is required to determine reasons why Georgian business shows less interests  in the mentioned issues”, the research authors noted.