Impact of the Free Trade Agreement on the Foreign Trade of Georgia with GUAM Countries

The article researches the foreign trade in goods of Georgia with GUAM member countries in the context of GUAM Free trade agreement in the period from 2001 to 2018. The provisions of the FTA and the supplementing protocols are investigated. Based on a detailed analysis of the dynamics and structure of Georgia’s foreign trade with GUAM countries, the article substantiates the conclusion that the participation of Georgia in this FTA, as well as trade liberalization carried out inintegration block, have practically no impacton change the directions and quality of export-import flows of the country. To determine the mutual interest of Georgia and GUAM countries in trade, the speed of the growth of intra-regional trade and the level of intra-industry trade, the trade intensity index, trade introversion index and the Grubel-Lloyd index areestimated. The most significant factors that determine Georgia’s foreign trade with GUAM countries and its trends are the geographic location of Georgia (common borders and transport connection with GUAM members) and formedstable re-export channels. The future of Georgian foreign trade significantly depends on the subsequent completion of transport and logistics projects and transit position of Georgia in the region. © 2021, Springer Nature Switzerland AG.