The Black Sea region is often referred to as a gateway between Europe and Asia, though its potential benefits are far from being fully realized. This is especially true for maritime trade - the Black Sea region’s share in international maritime trade is only just 2.5%, while the North Sea region accounts for 17%. And despite there being huge potential in the enhancement of port infrastructure and connectivity in the Black Sea region countries, the varying and distinctive geopolitical orientations of these countries largely hinder any significant advancement in regional cooperation.

The problem became even more severe with the latest military conflict in the region – the Russian invasion of Ukraine in February 2022, which besides aggravating cooperation problems has significantly shaken up the landscape of the Black Sea’s port infrastructure and maritime trade in the region and the security dynamics not only in the wider Black Sea region, but it has also affected the European and, arguably, global security architecture.

The main objective of the research is to study the impacts that free trade agreements with the EU (DCFTA) and China had on Georgian economy and political implications that they might result in.

The following research discusses the New Peace Initiative entitled “A Step to A Better Future,” launched in April 2018 by the Government of Georgia.

Publication provides an overview of how the initiative could advance relations between China and the three countries of the South Caucasus, namely Armenia, Azerbaijan, and Georgia. The publication also sketched out the dynamics of the BRI related to transport connectivity, bilateral trade and foreign direct investment.

The purposes of this policy paper are to present the priorities of the Government of Georgia (GoG) in economic diplomacy, to map economic diplomacy institutions, and to describe their functions. It also aims to present practical cases of conducting economic diplomacy. Case studies of selected EU Member States which have assigned strategic importance to economic diplomacy in achieving their economic development goals are presented and these contribute to the elaboration of recommendations for Georgia.

The aim of the project is to study the impact of the BRI on the countries of Central Asia and the South Caucasus (CASC) and ascertain how these countries individually and through regional cooperative efforts can maximize the benefits of the BRI and manage any potential risks.

This study compares the following four alternatives: keeping the status quo (Option 1); the 2009 Tbilisi Railway Bypass Project (Option 2); a city tunnel from Navtlughi district to Didube district (Option 3); and retaining the city’s main railway line and central station, but relocating all other railway infrastructure from the Didube-Nadzaladevi districts to the city’s peripheral districts (Option 4).

This paper has identified a clear interconnection between the BRI and Georgia’s economic development strategy in terms of infrastructure development and trade facilitation. Furthermore, this paper has suggested that Georgia could leverage the advantages of its trade agreements (DCFTA with the EU; FTA with China) and favourable business environment to be an important transit hub in the South Caucasus region and beyond.

Armenia’s decision to join the Eurasian Economic Union (EEU) exempted traders from union member countries from paying value added tax (VAT) and excise tax, thus putting Georgian traders in a disadvantaged position and breaking the main principles of the FTA between Georgia and Armenia.

The research aimed to assess the effects of this FTA on the Georgian economy, thereby enabling policy makers to limit possible negative effects and maximize benefits.