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ISET Economist Blog

A blog about economics in the South Caucasus.
Jun
22

The Impact of Food Safety Regulations on Agricultural Trade

From a trade perspective, the most important aspects of the EU-Georgia Association Agreement, signed on 27 June 2014, including the Deep and Comprehensive Free Trade Area (DCFTA), are the Sanitary and Phytosanitary (SPS) measures and the food safety standards and technical regulations required for access to European markets. Georgia’s export to the EU is still rather limited, and one possible cause for this deficiency, amongst others, is the limited capacity to comply with food safety regulations and standards. The DCFTA is, moreover, different from othe...
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Mar
17

It’s Not Who You Trade With – It’s Who You Produce With: Measuring Georgia’s Integration into Global and Regional Value Chains

  GLOBAL VALUE CHAINS AND THE CHANGING NATURE OF COMPARATIVE ADVANTAGE We live in the world where production of a single good typically involves manufacturing inputs from many different countries around the globe. For example, a typical iPhone production takes place in as many as 7 countries, including USA, Mongolia, Japan, Korea, Taiwan, China and even Switzerland. This is what is known to economists as global value chains (GVC). The emergence of GVC more than two decades ago transformed the way economists think about countries’ comparative advanta...
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Jul
09

Great Expectations: Does the DCFTA Really Boost Georgia’s Economic and Export Potential?

On June 27, 2014, Georgia and the EU signed an Association Agreement (AA) and its integral part – the Deep and Comprehensive Free Trade Area (DCFTA). On July 1st, 2016, DCFTA fully entered into force. Until then, trade between Georgia and the EU was regulated by the Special Incentive Arrangement for Sustainable Development and Good Governance that contained a Generalized System of Preferences+ (GSP+) agreed to in 2005.  GSP+ covered 7,200 products for which the customs duty was reduced or eliminated when exporting to the EU market. It is w...
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Recent Comments
Guest — HansG
interesting post __ a factor you are missing is that the ban on ownership of agricultural land for non-Georgians is not conducive ... Read More
Tuesday, 10 July 2018 11:11 AM
Salome Deisadze
Dear Hans, thank you!Indeed, the ban on ownership of agricultural land for non-Georgians should be considered as the hindrance for... Read More
Tuesday, 10 July 2018 1:01 PM
Guest — DavidLee
The European Business Associations mission is: To advocate/lobby for European Businesses in Georgia;To facilitate the development... Read More
Thursday, 12 July 2018 2:02 AM
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Feb
20

Price and Prejudice on the Georgian Market for Cigarettes

Benjamin Franklin once said, “In this world, nothing can be said to be certain, except death and taxes.” Yet we have a tax that could prevent hundreds of millions of premature deaths. It is time to use it more effectively. -Prabhat Jha It is a truth universally acknowledged, that cigarettes are bad for human health. Yet, whenever the government tries to regulate consumption of cigarettes by increasing their price, it gets a very mixed reaction from the public. Some people (mostly non-smokers) welcome these policies, while others accuse the government of ...
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May
02

Will Georgia Be Able to Benefit from Bilateral Free Trade Agreements?

The Deep and Comprehensive Free Trade Agreement between Georgia and the EU, brought into effect in 2014, was hailed at the time by many as being of great importance to Georgian manufacturers and food/beverage producers. Yet, skeptics commented that 1) Georgia had already have more than 7000 articles duty-free and quota-free under the pre-existing GSP+ trade terms granted by the EU for many years, and 2) very few exporters had been able to take advantage of these concessions. Georgia’s wine and spirits exports are an excellent case in point. While constit...
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Florian Biermann
I am wondering what is the significance of wine for Georgian agriculture. To my knowledge, the maxium possible amount of land was ... Read More
Wednesday, 04 May 2016 11:11 AM
Simon Appleby
I did some back-of-the-envelope calculations in 2014, which indicated that if one considered both table grapes and wine/brandy/cha... Read More
Wednesday, 04 May 2016 12:12 PM
Simon Appleby
Direct from the horses mouth, Hiro Tejima, Wine Australia’s Head of Market for Asia Pacific, discusses the impact of the Korean an... Read More
Wednesday, 11 May 2016 5:05 AM
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Oct
15

The New Silk Road Chain is Only as Strong as Its Weakest Link

Speaking at the opening of the Tbilisi Silk Road Forum, Georgia’s new Minister of Foreign Affairs Giorgi Kvirikashvili evoked electric circuitry as a metaphor to describe the future of rail and road connections between Europe and Asia. A graduate of the prestigious math and physics Komarov School, Kvirikashvili explained that a sequential circuit – a simple chain – crucially depends on each and every one of its links. A parallel circuit, on the other hand, allows to redirect electricity flows (or cargo and passengers) through alternative routes.  Th...
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