EU enters into promising Association Agreements with the Republic of Georgia, Moldova, and the Ukraine

eubrusselsGood 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.

read more: https://www.gov.uk/government/news/pm-signs-eu-agreements-with-georgia-moldova-and-ukraine

 

About fafc

The goal of the “Find a Free Country Project” is to research, explore and find a safe and secure free country outside the USA, that is not too large, has a relatively open immigration policy, has a friendly business climate, has a non-intrusive government committed to freedom, and then move to it.

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15 Responses to EU enters into promising Association Agreements with the Republic of Georgia, Moldova, and the Ukraine

  1. Croatian Capitalist says:

    It will be interesting to see the effects of this if it does go through, I think that the loses from losing the Eurasian Union market will be bigger than any gains they may make on the European Union market, but we shall see.

    • fafc says:

      I agree. But perhaps after the dust settles, why not both? At least for Georgia, and maybe Moldova. It is a win-win for everyone to open up the economy. Russia has an embargo on Georgia very similar to what we have on Cuba. Both are ineffective. Russia and the USA would be wise to open up their markets. Prosperity and wealth are a much more powerful incentive to positive relations.

  2. Croatian Capitalist says:

    Maybe it would be a win-win situation, but that’s not how the World works, Russia is not going to allow countries with anti-Russian governments in it’s traditional “sphere of influence” to become rich on the account of their companies (and foreign companies based in those countries) having free access to the Russian market, losing Ukrainian, Georgian and Moldovan products is no serious blow to Russia, but losing the Russian market is/would be a big blow to those countries (especially for certain sectors like for example the wine-making industries in Moldova and Georgia).

    • fafc says:

      Then maybe the Russians need to reconsider their policies? Russia would benefit from open markets, and so would its neighbors. Example Georgia; even if the EU opens to Georgia it still needs Russia. Probably more than Russia needs Georgia. But Georgia is learning to live without Russia much like Cuba has learned to live without the USA. To neither sides benefit.

  3. Croatian Capitalist says:

    Cuba is a poor third World socialist country, while the USA is still a rich first World capitalist country, so the only country really suffering from the embargo is Cuba itself (of course the USA would probably make billions of USD a year on Cuba if not for the embargo, but in the grand scheme of things by itself that amount of money has no real barring on the general status of the US economy, while the fact that there is no American investment has a big effect on the Cuban economy), so that argument would not convince the Russians to change their minds in regards to Georgia. Russia doesn’t really need anyone (especially Georgia), along with the USA, Canada and a few other countries, Russia is a part of a small group of countries which could become fully self-sufficient if they choose to do so.

    • fafc says:

      Cuba has also been working tirelessly to destabilize the Americas, and there is a lot of evidence that the Embargo has done absolutely nothing to hurt the Cuban economy. They are selling just as much sugar and cigars as before. The problem with the economy is Socialism, but the Embargo gives the Cuban government something else to blame. I think the USA and Russia could do much better by using its market as a lure to attract nations into economic (and perhaps political) cooperation than as a hammer to beat them. It certainly has not worked for the USA-Cuba, and I doubt it will work for Russia-Georgia. Already Georgia is doing everything possible to move away from Russian economic dependence out of necessity. Like the USA and Cuba, Russia will have less influence on Georgia over time, not more. An Embargo only works if you can make it universal by blocking all trade to the target.

  4. Croatian Capitalist says:

    Speaking of Russia and Cuba, Russia recently wrote off about 30 billion USD worth of Soviet-era debt, so you can expect a big expansion of Russian activity on Cuba.

    • fafc says:

      Good luck to Russia. I wouldn’t put a penny into Cuba. More Europeans have been hustled by Cuban investment scams than you can shake a stick at. Reform is always just around the corner, and then things are going to be better.

  5. Croatian Capitalist says:

    I think the vast majority of the investment will be state investment, not private investment, and I doubt that the Cuban leadership would dare to mess with the Russian state.

    • fafc says:

      Also I think the Russians are far to smart and experienced with their own crooked politicians to fall for that sort of thing. Plus they have the Crimea to invest in. That looks more promising IMHO.

  6. Croatian Capitalist says:

    I agree, the Crimea looks very promising, even though if I end up moving to Russia, I will most probably move to Krasnodar Krai, not Crimea.

  7. Croatian Capitalist says:

    It is richer than Crimea, Sochi is the warmest city in Russia and thanks to the Winter Olympics being held there, it now probably overall has the best infrastructure in Russia. Yes, Krasnodar Krai borders Abkhazia.

  8. Croatian Capitalist says:

    Yes, it does, I hope to visit it next year.

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