The Necessity to Improve the Logistic Processes of the Transport System

The South Caucasus states are engaged in a complex and contradictory process of simultaneous regional integration and disintegration. The main instrument of regional integration could be a network of bilateral Free Trade Agreements (FTA) which those countries have signed and adopted. As is well known, trade integration within a free trade area can also lead to trade diversion which may lead to a loss of tariff revenues although this should be less of a problem in the case of a low external tariff towards third countries.