Benefits and Costs of DCFTA: Evaluation of the Impact on Georgia, Moldova and Ukraine

The study provides an impact evaluation of the DCFTA implementation in Georgia, Moldova and Ukraine. We analyse benefits and costs that have already materialised or are yet expected to manifest themselves in the longer run in the public and private sectors. While there is little doubt that in the long run the DCFTA will help the beneficiary economies to modernise and transform to a more competitive state, the analysis suggests that the net benefits are highly asymmetric along the time dimension (high costs in the short and medium run - benefits accruing mostly in the longer run), as well as across regions and economic sectors (less competitive sectors and regions will face particularly onerous adjustment costs).