Eurasian Union - politically scary, economically attractive
10 October, 2013
Eurasian Union - politically scary, economically attractive
Eurasian Union, a scare-structure endangering the Georgian west-oriented political vector, may be fairly beneficial from economic points of view if used properly. “I am observing and scrutinizing the Eurasian Union. We have no definite position at the moment but if we find it interesting for the strategy of our country, why not?” Bidzina Ivanishvili, Prime Minister of Georgia, stated during his meeting with media early last month and opened a Pandora’s box of rumors and speculations.
His political opponents accused
the administration of covert negotiations with the Kremlin on the topic of Russian-initiated common customs space, incorporating Russia, Belarus and Kazakhstan at the moment but looking forward to integrating all former Soviet satellites plus China and India on top of them. They predict a change of political course of Georgia as Eurasian Union integration excludes the EU-integration. After a month of finger-pointing and futile attempts on the part of the authorities to disperse the suspicions of alleged change of the political course, a special conference was held past week where the authorities confirmed once again that the EU is a national political choice and it doesn’t depend on the power shift. On the other hand, another video-conference with Moscow, held at the Russian new agency RIA Novosti, discussed the possible Eurasian Union prospects for Georgia. Notwithstanding political insinuations depicting Eurasian Union as a hazard, certain Georgian economic analysts believe this union can be economically very attractive to Georgia and economic prospects should not become victim of political games. Lia Eliava, a financial analyst, downplays the warnings that Eurasian Union may bar western partnership or free trade with EU.
According to her, the more commercial unions country joins, the bigger are the market opportunities as such unions remove not only customs barriers but imply lots of trade preferences. Eurasian Union already that incorporates huge markets where Georgian product is popular unlike the EU, is a brilliant opportunity for Georgian export. “EU market is far away even if we get it immediately. The conclusion of the agreements itself does not open the market. Enactment of regulations and quality demands required by the EU will take a decade, whereas markets of less regulated post-Soviet countries and Asia may be more lucrative with much better opportunities,” Eliava said. “The time of wars is gone. All former political rivals fighting each other for centuries including Russia, Germany and France, are now economic allies. We should do the same. EU and USA are nervous about Eurasian Union because they fear that the latter may become their powerful trade competitor; in particular, if China joins the union.”
Based on the trade statistics, Soso Archvadze, an economic analyst, points out that whatever the Georgian political vector is, the country is apparently tied economically to the CIS space more than any of the three South Caucasus republics. Wheat, raw materials and fuel resources all come from the CIS space, particularly from Azerbaijan, Russia and Kazakhstan, while ready-made products of China, India and Turkey flood the Georgian market.
As a matter of fact, statistics of the last decade show that the major market for Georgian export is Commonwealth of Independent States (CIS) which makes up to 50% of the export, whereas EU countries follow with less than 30%. Meantime, roughly 30% of the Georgian import falls on EU and less than 23% comes from the CIS space. “Today we are the sale market to EU while the CIS space is a sale market to us,” Eliava elaborates.
Besides, Georgia should not neglect the fact that the scale of “richness” is moving toward Asia. Archvadze sees no harm to join economically profitable projects in Asia if the country will adhere to its declared political and democratic values and never bargain on its independence or territorial integrity. “The UK slogan is that there are no constant partners and constant enemies but only constant needs. We should take this pragmatic attitude. Our economic unions must be multi-vectored,” he sums up.
Print
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
16.11.2018
17.11.2018
USD
1
USD
2.6818
2.6727
EUR
1
EUR
3.0299
3.0268
GBP
1
GBP
3.4332
3.4240
RUB
100
RUB
4.0185
4.0447
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6727
EUR
1
EUR
3.0268
GBP
1
GBP
3.4240
RUB
100
RUB
4.0447
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30