16.Feb .2021 13:30

What will change diagonal cumulation with Turkey and the EU? – Explanation

What will change diagonal cumulation with Turkey and the EU? – Explanation
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Giorgi Gudabandze, Chief Export Adviser at Export Development Association declares, that Free Trade Agreement as diagonal cumulation, signed between Georgia, EU and Turkey will attract Turkish businessmen, as well as it will encourage investments from Turkey in the Georgian economy and help to create new jobs.

"The agreement does not include agricultural products. As for the rest of the sector, primarily textiles and furniture production was highlighted as the export-oriented sectors. I think that this agreement will greatly help these two areas. Both sectors are successful. But, in terms of furniture and textile production, the country is short of raw materials and everything is imported. After the introduction of diagonal cumulation, the situation will change in favor of the country," - Gudabandze said.

On February 10, 2021, the Turkish Grand National Assembly ratified the Agreement on Diagonal Cumulation. According to the Ministry of Economy, the introduction of diagonal cumulation will increase the range of produce that can be exported to the EU, as well as it will encourage investments from Turkey in the Georgian economy and help to establish joint companies and create new jobs.

Diagonal cumulation will fully be activated after this information is published in the official journal of the European Commission on the basis of the notification from Georgia and Turkey.

Georgia-made products that include Turkish raw inputs will be exported to the EU under the Free Trade Agreement as diagonal cumulation. The ministry reports that diagonal cumulation will support the further development of the following sectors in Georgia: textile, manufacture of furniture, construction products, plastic products, steel products and paper and cardboard.