We recently started working on the first part of a three-stage initiative of the USAID Economic Security Program entitled “Investment and Export Promotion via Diagonal Cumulation between Georgia, EU, and Turkey.”
The project aims to reveal the most promising sectors and value chains that could benefit from utilizing diagonal cumulation (DC) and to identify Turkish and Georgian businesses potentially interested in participating in a match-making event planned for the third and final stage of the activity.
To achieve the project objectives, we are carrying out research in partnership with the Ministry of Economy and Sustainable Development of Georgia (MoESD) and apply the PPD approach with the help of the Trade Advisory Group (TAG).
“Georgia, the European Union and Turkey have agreed on diagonal cumulation for trade of industrial products, which enables Georgian entrepreneurs to use raw materials and intermediate goods from Turkey and the EU in the production of final goods and to export them to the above-mentioned markets under the free trade regime” said Mikheil Janelidze, Senior Consultant at PMCG. He added: “With this project, we help entrepreneurs to see specific opportunities in production development in Georgia using Turkish raw materials and intermediate goods. Turkey is one of the largest suppliers of industrial products to the EU market, with well-developed and diversified value chains, which enables Georgia to participate in these chains and develop industrial production for export purposes.”