7/24/2019 Navigating the EU Integration Process

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8 GEORGIA TODAYNOVEMBER 17 - 19, 2015BUSINESS

Navigating theEU Integration

Process

At the ‘Making the Most of the DCFTA’ conference. (From left to right) Silvia Radu, GAS NATURAL FENOSA andPresident, EBA Moldova; H.E. Ambassador Pirkka TAPIOLA – Head of the European Union Delegation toMoldova; Cecilia Malmstrom – EU Commissioner Trade; and Octavian Calmic – Deputy Minister of Economy,Republic of Moldova.

BY KATIE RUTH DAVIES

In a conference entitled ‘Makingthe Most of the DCFTA,’ withinthe framework of the VisegradFund project ‘Sharing Experienceof Public-Private Dialogue in EU,’

the Policy and Management ConsultingGroup (PMCG) hosted high rankingrepresentatives of the Moldovan andGeorgian governments, the EU delega-tion, Hungarian, Polish, Czech and Slo-vakian diplomatic missions and repre-sentatives of EBRD, EIB, USAID, WB,and IFC in Chisinau, Moldova on Octo-ber 22-23. The aim was to discuss themost ef ficient ways for governments and

private sectors to navigate through theEU Integration Process, more specifi-cally, to assist Moldovan and Georgianbusinesses and government bodies tostrengthen dialogue and awareness aboutthe opportunities and challenges pre-sented by the signing of the AssociationAgreement.

Cecilia Malmstrom, EU Commis-sioner for trade; Luc Devigne, Headof the EU Commission unit Russia,CIS, Ukraine, Western Balkans, EF TA,EEA and Turkey; Archil Karaulashvili,Deputy Minister on European andEuro-Atlantic Integration of Georgia;Aleksi Aleksishvili, Former Ministerof Finance of Georgia, CEO- Policy

and Management Consulting Group- PMCG (Georgia) and other high-ranking of ficials shared their experi-ence and opinions regarding the pro-cess of EU approximation.

The focus of the event was on sharingthe experience of the Visegrad countries(Czech Republic, Hungary, Poland, Slo-vakia) in developing constructive public-private dialogue in a transition period,while harmonizing legislation and stand-ards with those of the EU. Key topicsdiscussed were ‘One year of the DCFTA,’‘external assistance for SMEs to meetthe requirements of the DCFTA,’ ‘access-ing EU markets,’ ‘building public-privatepartnerships,’ and ‘providing supportservices.’

Valerian Gvalia, Senior Adviser of EU-

Georgia Business Council: “The EU-Georgia Business Council (EUGBC), theonly European Business Association inGeorgia, pays paramount attention toexperience sharing with its business col-leagues. Indeed, joint efforts from East-ern Partnership member states are nec-essary in order to move forward towardsthe benefits of the Association Agree-ment and DCFTA. The InternationalConference in Chisinau ‘Making theMost of the DCFTA’ proved once againthat there is interest from the Georgianside to enhance the trade relationshipwith the EU.”

Georgia Today spoke with Nino Sam-velidze, EU Programs Manager of PMCG,

about some of the topics covered in theconference.

 WHAT KEY ACHIEVEMENTS AND CHALLENGES WERE HIGHLIGHTED ONCOMPLETION OF THE FIRST

 YEAR OF THE DCFTA INMOLDOVA AND GEORGIA?

Both Moldova and Georgia started imple-mentation of the norms and recommen-dations set out by the AA and DCFTAwhich also includes legal approximationof different sectors. The approximationprocess creates opportunities for eco-nomic advancement of the countries butthere are several areas which still remaina challenge, one being the capacity andreadiness of SMEs to catch up with the

process and regulations.The DCFTA has large political mean-

ing for these countries and its properimplementation is important. At thesame time it is essential not to sacrificebusiness interests to accelerated imple-mentation of the DCFTA, namely approx-imating legal and institutional frameworkwhile disregarding business needs andinterests.

The Moldova conference stressed thatanother challenge is possible increasedimports from the EU and additionalpressure on domestic producers, espe-cially in the short run. This, togetherwith increased costs due to strict com-pliance requirements with EU standards,

might be a trial for the economy. This iswhy assessing the countries competitiveadvantage is important; targeting themost promising fields in the short-runwhich might have spill-over effect anduseful gains in the future. Special atten-tion should be paid in correctly utilizingthe technical and financial assistanceprovided by the EU, EBRD, EIB and oth-ers so they bring tangible results.

One of the challenges for SMEs in thesecountries is the lack of available and costeffective advisory services, lack of inter-regional and international mechanismsto exchange best practice, as well as alack of internal funding due to underde-veloped capital markets and a financialsector still in transition. For this, Geor-gia, Moldova and Ukraine need to develop

local expertise capacity to provide costeffective advisory services to SMEs,facilitate exchange of best practice, andimprove access to funding for SMEs tofoster economic development

 WHAT KIND OF ASSISTANCE /SUPPORT HAS BEEN OFFEREDTO SMES IN GEORGIA ANDMOLDOVA IN PARTICULAR?

The European Commission - jointly withthe European Investment Bank (EIB)and the European Bank for Reconstruc-tion and Development (EBRD)– has putin place the DCFTA Facility for SMEs.The DCFTA Facility for SMEs is an inte-gral part of the SME Flagship Initiative,

a wide-ranging regional initiative of theEU which aims to provide support toSMEs in the Eastern Partnership to tacklethe challenges impeding them fromreaching their full potential. The Facilitywill complement the EU programs ineach country that help small businessesgrow and prepare for the new marketopportunities of the DCFTA and helpnational authorities to implement theirAssociation Agreements.

The DCFTA Facility for SMEs willreceive approximately €200 million ofgrants from the EU budget. This contri-bution is expected to unlock at least €2billion of new investments by SMEs inthe three countries, to befinanced largelyby new loans supported by the Facility.

The funding will:

• Help SMEs to seize new trade oppor-tunities with the EU and within theregion which have been opened up thanksto the DCFTA;

• Improve access to finance for SMEs,enabling them to make the necessaryinvestments to increase their competi-tiveness;

• Allow SMEs to integrate into globalvalue chains by becoming business part-ners of foreign direct investors;

• Enable SMEs to comply with newsanitary, phytosanitary, technical andquality standards, as well as with envi-ronmental protection measures, therebybenefiting local customers and boostingexports to the EU and beyond.

 WHAT IS TRACTION CAMPTRACTION Camp is a three-day training project for advanced early stage startups based in Georgia,Armenia, and Azerbaijan. This project is produced by USAID-REG, and is aimed at helping found-ers of existing startups improve their skills and enhance their competitiveness position globally. Anaverage of seven (7) founders will be selected from each country to participate in the Camp, withthe goal of augmenting their business operations with top industry insights and best practices.

This will be the third TRACTION Camp, after two successful editions in June in Macedonia, andOctober (forecasted) in Odessa, Ukraine. In each edition, 20-25 regional founders participated, learn-ing from six renowned international experts.

The TRACTION Camp agenda is based on experiential, demand-driven skill transfer from expe-rienced operators (founders, growth experts, and investors) to local startup founders. These are thetopics of learning for the three-day program of TRACTION Camp:

• Pitching to international investors• Presentation and (oral/written) communication skills• Understanding marketing systems and metrics-based growth• Sales and distribution channels• Hiring strategy and execution• Investment structuring• Cashflow management and optimization

TRACTION Camp will be organized by USAID-REG, with support from local sponsors and part-ners. Partners will provide assistance and sponsorship in covering a part of the logistical expenses,and in offering (in-kind) prizes for winning entrepreneurs.

 WHEN AND WHERETRACTION Camp will take place in Tbilisi, Georgia, on November 27-29, 2015, at Tbilisi’s state-of-the-art High Tech Park. Previous editions have been held at off-season resorts (Mavrovo skiing resortin Macedonia in June, and Odessa seaside resort in Ukraine in November).

EXPERTSThree US/Silicon Valley and two leading European experts will be invited to provide the trainingsat TRACTION Camp free of charge (no fees, only expenses). Based on previous TRACTION Campexperience, the project will attract proven investors, exited entrepreneurs and top domain expertsin business development.

 APPLICATIONS AND ADMISSIONApplications for TRACTION Camp will open on October 1, 2015. USAD-REG will contact a num-ber of partner organizations in each country to submit applications, which will be handled withpriority. If startup slots remain unfilled, a public call will be announced through the TRACTIONCamp website (http://tractioncamp.me).

Partner organizations in Armenia, Azerbaijan, and Georgia are:• Armenia

• Microsoft Innovation Center, Yerevan• Granatus Ventures, Yerevan• Enterprise Incubator Foundation, Yerevan• Saryan Tumanyan, Yerevan• Gyumri IT Center, Gyumri

• Azerbaijan• Khazar Ventures, Baku• High Tech Park Azerbaijan, Baku

• Georgia• Georgia’s Innovation and Technology Agency, Tbilisi• Smartex Capital, Tbilisi• Bank of Georgia Incubator, Tbilisi• IBSU Idea Lab, Tbilisi