Free Trade and Connectivity Opportunities in the South Caucasus : Free Trade and Connectivity Opportunities in the South Caucasus

The three policy papers—Azerbaijan: Free Trade in South Caucasus, Georgia: Future of a South Caucasus Free Trade Area, and Armenia: Scaling Up Trade Potential—offer an in-depth exploration of the trade dynamics, economic landscapes, and collaborative opportunities among Armenia, Azerbaijan, and Georgia. These studies critically examine the region's unique challenges and vast potential, showcasing how strategic cooperation and economic integration can foster mutual prosperity. By addressing key issues such as economic diversification, trade liberalization, and regional harmonization, the papers illustrate the transformative potential of collaborative policies in advancing stability, growth, and sustainable development in the South Caucasus. Together, they present a comprehensive roadmap for policymakers, regional leaders, and stakeholders committed to building stronger economic ties and overcoming barriers to trade in this strategically vital region.

Azerbaijan: Free Trade in South Caucasus analyzes Azerbaijan’s heavy reliance on oil and gas exports, highlighting the urgent need for economic diversification and exploring opportunities to strengthen trade ties with its neighbors. Georgia: Future of a South Caucasus Free Trade Area positions Georgia as a leader in regional trade integration, drawing inspiration from its successful partnership with the EU through the Deep and Comprehensive Free Trade Agreement (DCFTA). It outlines a vision for creating a unified South Caucasus Free Trade Area (SCaFTA). Meanwhile, Armenia: Scaling Up Trade Potential focuses on Armenia’s trade relationships, emphasizing strategies to reduce import dependency and unlock high-potential trade partnerships across the region.