(1)

The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (1) (the ‘Agreement’) was signed on 16 June 2014 and entered into force on 1 July 2016.

(2)

The Preamble to the Agreement recognises the commitment of Georgia to progressively approximating its legislation in the relevant sectors with that of the Union, in accordance with the Agreement and to implementing it effectively. The Preamble also recognises the commitment of the Parties to the Agreement (the ‘Parties’) to respecting the principles of sustainable development, to protecting the environment and mitigating climate change, to continuous improvement of environmental governance and meeting environmental needs, including cross-border cooperation and implementation of multilateral international agreements, as well as their willingness to improve the level of public health safety and protection of human health as an essential element for sustainable development and economic growth. In the Preamble, the Parties express the belief that the Agreement will create a new climate for economic relations between the Parties and above all for the development of trade and investment, and will stimulate competition, which are factors crucial to economic restructuring and modernisation.

(3)

Article 1 of the Agreement establishes the aim of supporting Georgia’s efforts to develop its economic potential through international cooperation, including through the approximation of its legislation to that of the Union.

(4)

Pursuant to Article 283 of the Agreement, the Parties are to develop their cooperation and harmonise policies in counteracting and fighting fraud and smuggling of excisable products. That cooperation is to include, inter alia, the gradual approximation of excise rates on tobacco products, as far as possible, taking into account the constraints of the regional context, and in line with the World Health Organisation Framework Convention on Tobacco Control.

(5)

Pursuant to Article 285 of the Agreement, Georgia is to carry out approximation of its legislation to the Union acts and international instruments referred to in Annex XXII to the Agreement in accordance with the provisions of that Annex.

(6)

Pursuant to Article 406(1) and (3) of the Agreement, the Association Council may adopt decisions for the purpose of attaining the objectives of the Agreement. In particular, it may update or amend the Annexes to the Agreement, taking into account the evolution of Union law and applicable standards set out in international instruments deemed relevant by the Parties.

(7)

The Association Council is therefore to amend Annex XXII to the Agreement,

(i)

5 % of the retail selling price or EUR 12 per 1 000 items or per kilogram for cigars and cigarillos;

(ii)

50 % of the weighted average retail selling price or EUR 60 per kilogram for fine-cut smoking tobacco intended for rolling of cigarettes; and

(iii)

20 % of the retail selling price or EUR 22 per kilogram for other smoking tobacco.