Good news for Republic of Georgia, Moldova, and the Ukraine. Last month the EU entered into Association Agreements with the three countries which seem to be set for a fast ratification by the other European nations.
I am still suspicious that Europe will actually follow through with anything, but it seems like these agreements will fly through ratification. Once these agreements enter into effect we should expect rapid improvement in the the three countries economies:
Signing the agreements allows Georgia, the Republic of Moldova and Ukraine to modernise trade relations with the EU and further open up their markets. As a result, all three can expect to see increases to imports and exports with the EU, increasing not only the number of goods and services available to their citizens, but also making the countries more attractive to international investors. These effects will also benefit the wider region.
When the reforms following from the Association Agreements are completed, it is expected that Georgia will see 4.3% growth per year (€292 million in national income), Moldova’s GDP will be boosted by 5.4% annually, and Ukraine’s income will increase by €1.2 billion per year…
A European Union Association Agreement is a treaty between the European Union (EU) and a non-EU country that creates a framework for co-operation between them. This covers a wide range of areas including political dialogue and reform, rule of law and judiciary, anti-corruption, conflict resolution, agriculture and financial services. The agreements with Ukraine, Moldova and Georgia also include provisions for a Deep and Comprehensive Free Trade Area (DCFTA). This will allow businesses and investors who meet EU standards to trade freely within the EU market. The same benefits will apply to those in the EU wishing to trade or invest in Ukraine, Georgia and Moldova.