Russian market cannot be substituted by EU market
By Messenger Staff
Tuesday, December 20Currently, Georgia is in free trade negotiations with the EU. Most experts hail this development however there are some skeptical notes being sounded as well. Some analysts say that at least in the initial stage the EU market will not substitute Georgia opportunities it had in Russian markets.
It is known so far that Georgia has been granted by the EU a so-called GSP program which means that more than 7,000 different products could enter European markets from Georgia in very favourable conditions, however Georgia can only use this opportunity extremely modestly. Experts therefore think that Georgia needs to modernize its approach to increase the quality of production in order to utilize completely the chance which Europe gives it.
So far it is obvious that most Georgian products cannot compete with European products. In return it is suggested that it will be beneficial for Georgia to try to target first a return to the Russian market and only after that should further moves be taken. According to this opinion, Georgian products are still well known in the former Soviet space and little marketing efforts would be required, especially compared to the EU market.