The agreement covers trade in goods and services and also provides for the protection of intellectual property rights. The essential elements of the agreement are the abolition of customs duties and other taxes of similar effect, the prohibition of the application of new quantitative restrictions and possible taxes after the implementation of the agreement (with a few exceptions), the application of the treatment of the initants and the treatment of the most favoured nation; Fixing import and export duties (licence fees, customs clearance, verification, control, etc.), harmonization of customs regimes, exemption from the application of VAT and excise duties on goods originating in the territory of a party to the agreement, removal of export subsidies and subsidies resulting in unfair competition, setting conditions for free movement and reciprocal liberalisation of the services sector. Georgia and Ukraine have notified 12 and 18 free trade agreements to the WTO, respectively. Ukraine is negotiating three other agreements with Turkey, Singapore and Serbia. The most important agreement for the two countries is the Association Agreement/FTA that they concluded with the EU in 2014. The economic effects of free trade agreements were rapidly felt in both countries. The EU-Georgia application was launched in September 2014. While exports to the EU began to decline due to lower world mineral prices (2015-2016), they recovered rapidly, with a 23% increase in 2016-17. Over the same period, the volume of imports from the EU increased slightly. The EU is Georgia`s largest trading partner (with 26.6% of total trade in 2017). In return, the EU-Ukraine free trade agreement has been in force since January 2016. While trade growth was modest in the first year, exports to the EU increased by 3.6 billion euros in 2017, or 27%, and imports from the EU by 3.7 billion euros and 22% respectively.
The EU was Ukraine`s main trading partner and accounted for more than 40% of Ukraine`s total trade in 2017. Overall, free trade agreements with the EU have had a positive influence in both cases, helping to diversify Russian exports, increase trade flows and increase the number of products exported. The negotiations include discussions to strengthen trade cooperation between the EU and Azerbaijan.