Support to the Implementation of the Deep and Comprehensive Free Trade Area and Small and Medium Enterprise Development in Georgia Georgia and the European Union (EU) maintain a close relationship with a far-reaching Association Agreement, including a Deep and Comprehensive Free Trade Area (DCFTA). The EU is the main trade partner of Georgia. Around 21% of its trade takes place with the EU. Following the year 2020 of pandemic-related contraction, the economy started to rebound strongly thanks to an overall increase in tourism and remittances inflows. This rebound is, however, impacted by the economic effects of Russia¿s war of aggression against Ukraine. The International Monetary Fund (IMF) has revised its previously estimated 5.8% GDP growth to 3.2%, as at June 2022. The goal of this Action is the promotion of inclusive and sustainable growth in Georgia. This will lead to a thriving business sector, improved livelihoods and decent employment for the population. This is even more important now in view of the current geopolitical developments in the region. The Action contributes directly to the Economic and Investment Plan, in particular the Flagship 3 for Georgia on economic recovery (¿80.000 small and medium enterprises (SME) reap the full benefits of the DCFTA¿) but also Flagship 6 on energy efficiency.&nbsp;The Action will support the following priorities:1) Better Goods and Services: conformity assessments body development programme, promoting quality labels, support to Georgia¿s quality infrastructure, consumer protection;2) Export, Small and Medium-Sized Enterprises (SME) internationalisation, innovation: facilitation of exports and trade, value chain and cluster support to selected industries with strong growth potential, support to logistics to lower shipping costs, incentives for innovation, start-ups and technology transfer;3) Green transition: promote eco-innovation and green finance, implementation of the Green Growth strategy, support to greening governmental programmes, awareness raising of SMEs; ensuring a just transition.4) Skills and Training; support to the new Skills Agency, sectoral partnerships by the private sector, strengthening employment support services;5) Coordination and institutional capacity: technical assistance to DCFTA implementation, policy advice, gender mainstreaming, women economic empowerment, awareness- raising and trainings to SME, monitoring.Georgia is a key partner of the EU in the region and has the ambition to further develop its relations with the EU, as proven by Georgia¿s recent EU membership application. On 23 June 2022, the European Council endorsed the European Commission opinion granting European Perspective to Georgia and recommending that Georgia be granted candidate status once a set of priorities will have been addressed. Georgian society continues to aspire to political and economic integration with the European Union. Overall, we have seen good progress in meeting the commitments of the AA. The Association Agenda for the next implementation period (2021-2027) has been agreed and has been publically available from May 2022, ahead of its formal adoption later in the year. This programme is furthermore rooted in the Multiannual Indicative Programming Document (MIP) 2021-2027, indicating priorities for EU financial support to the implementation of the AA for a resilient, sustainable and integrated economy.