FOREIGN TRADE OF GEORGIAN AGRICULTURAL PRODUCTS AND EXISTING POTENTIAL OF EXPORT TO THE EUROPEAN UNION MARKET

Abstract

This paper attempts to describe the high importance of the agricultural sector and export potential of agricultural products for Georgian economy, while presenting historical evidence and overview of recent trends. Georgian agriculture is primarily in very bad situation with small market surpluses and low productivity. According to World Bank surveys, approximately 83% of Georgia's rural population is entirely dependent upon their farms for subsistence and they consume approximately 73% of what they produce and remaining products which are supposed for export, are facing lots of difficulties for gaining appropriate success and outcomes. For reaching alternative markets of the United States or the European Union countries, will be needed structural reforms for strengthening Georgia's sustaining growth, attracting investment and improving overall productivity for further export diversification and sector development. Using statistical data it becomes more obvious who are the main export partners, which market segments and destinations are better for rising overall export potential and how export of Georgian agriculture products is changing over years - decline of agriculture's contribution to overall trade from 28% in 2000 to 18% in 2012 leaves a clear perspective for further development, improvement and better contribution to country's economy.