The average cost of cooking one standard Imeretian Khachapuri in November 2014 was 3.34 GEL, which is 0.2% lower month-on-month (m/m, that is compared to the previous month), and 2.4% lower year-on-year (y/y, that is compared to the same month of last year). However, Khachapuri became even cheaper for foreign currency earners because of a sudden GEL depreciation (m/m and y/y) relative to USD and EUR during the last two weeks of November.

The conclusion of the Association Agreement (AA) with the European Union was euphorically acclaimed by Georgian media as well as political and economic decision-makers. Part of the AA is the Deep and Comprehensive Free Trade Agreement (DCFTA). The DCFTA is intended to liberalize trade between Georgia and the EU by lowering tariffs and reducing non-tariff barriers. For agriculture, the most relevant changes relate to food safety (bacterial contaminants, pesticides, inspection, and labeling) as well as animal and plant health (phytosanitation).

“I’m Georgian, and therefore I am European.” These were the words late Georgian Prime Minister Zurab Zhvania chose to express Georgia’s EU aspirations when speaking in front of the Council of Europe in 1999. Reading very much like Martin Luther King’s “I have a dream”, Zhvania’s dramatic statement conveyed twin desires: i) to join the European family of nations and ii) to break out of Russia’s traditional sphere of influence, its political, economic, and cultural domination of Georgia since early 19th century.

After the break-up of the Soviet Union, Georgia went through a process of civil war and economic collapse. Official estimates suggest that Georgia’s GDP shrunk by more than 70% between 1990 and1994.

ISET-PI played a relatively minor role in this project, supporting a consortium consisting of Ecorys (Netherlands) and CASE (Poland). The study was commissioned by the European Commission (DG Trade). The Georgian component of the study identified considerable compliance costs related to the EU-required phyto and veterinary controls, reflected in higher prices for meat and meat products, and an increase in EU meat exports to Georgia. These findings were reported to the Georgian Prime Minister’s office and to the consortium members.