WT/TPR/M/390  
8 October  2019 
(19-6475) Page: 1/33 
Trade Policy Review Body  
15 and 17 July 2019   
 
  
TRADE POLICY REVIEW  
THE REPUBLIC OF NORTH MACEDONIA  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
CONTENTS  
 
1  INTRODUCTORY REMA RKS BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT  BY THE REPRESENTATI VE OF THE REPUBLIC O F NORTH 
MACEDONIA  ................................ ................................ ................................ .....................  4 
3  STATEMENT BY THE DISCUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEM BERS  ................................ ................................ ........................  11 
5  REPLI ES BY THE REPRESENTA TIVE OF THE REPUBLIC  OF NORTH MACEDONIA AND 
ADDITIONAL COMMENTS  ................................ ................................ ...............................  26 
6  CONCLUDING REMARK S BY THE CHAIRPERSON  ................................ .........................  32 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies provided 
by the Republic of North Macedonia  are reproduced in document WT/TPR/M/ 390/Add.1 and will be 
available online at http://www.wto.org/english/tratop_e/tpr_e/tp_ rep_e.htm.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The second Trade Policy Review of the Republic of North Macedonia was held on 15 and 
17 July 2019. The Chairperson, H.E.  Mr. Manuel Teehankee (Philippines), welcomed the delegation 
of the Republic of Nort h Macedonia, headed by H.E. Mr. Kreshnik Bekteshi, Minister of Economy of 
the Republic of North Macedonia ; Ms. Natasha Hroneska, Counsellor, Chargé d 'affaires, a.i. at the 
Permanent Mission of North Macedonia to the UN, WTO and other International Organiza tions in 
Geneva; the rest of the delegation from the capital and other colleagues from the Mission in Geneva; 
and the discussant, H.E.  Ambassador Dagfinn Sorli (Norway).  
1.2.  The Chairperson recalled the purpose of trade policy reviews and the main elements of 
procedures for the meeting. The report by the Republic of North Macedonia was contained in 
document WT/TPR/G/390, and that of the WTO Secretariat in document WT/TPR/S/390.  
1.3.  Questions by the following delegations were submitted in writing before the deadline: European 
Union; Iceland; Canada; Japan; China; Brazil; Ukraine; United States; Republic of Korea; and 
Montenegro. The following delegations submitted written questions after the deadline: Argentina, 
Russian Federation; Republic of Moldova; and Tu rkey. 
1.4.  At the first Review, in 2013, Members had expressed strong appreciation for the progress made 
by North Macedonia in implementing policies that had fostered consistent growth and had stabilized 
the macroeconomic and financial environment. They had com mended North Macedonia for making 
significant progress in improving the business environment. It had also been noted that the 
progressive opening of North Macedonia 's economy following its accession to the WTO was a key 
factor contributing to the country 's growth and increasing competitiveness, and that the alignment 
of domestic legislation with WTO requirements and EU single market rules had led to a significant 
improvement of the regulatory framework in many areas.  
1.5.  Members had also identified areas where  they saw room for further improvements. These 
included: enforcement of intellectual property rights; transparency and predictability of the business 
environment; introduction of the EXIM electronic system for issuing import and export licences; 
applicatio n of the food safety law; accession to the Government Procurement Agreement; and 
application of certain agricultural trade restrictions.  
1.6.  As the Secretariat report for the second review notes, North Macedonia 's economy grew by 
2.2% per annum from 2012 to 2018, and the country witnessed a substantial increase in per capita 
GDP and declines in unemployment and poverty.  
1.7.  As a small economy, North Macedonia is dependent upon trade, with exports and imports of 
goods  and services representing around 133% of GDP in 2018. The share of merchandise exports in 
GDP increased significantly during the review period, from 30% in 2012 to 45% in 2018, and the 
share of manufactured products in total merchandise exports increased from 72% in 2012 to 82% 
in 2017. This was to a large extent a reflection of the country 's role in global value chains in the 
automotive sector where it experienced a substantial increase in foreign direct investment.  
1.8.  As stated in the Government report, No rth Macedonia is a strong supporter of the rules -based 
multilateral trading system embodied in the WTO. As a landlocked country, it has a keen interest in 
the full implementation of the Trade Facilitation Agreement. It implemented 99.2% of its 
commitments under the Agreement, which it accepted in October 2015, and will have implemented 
another 0.8% by December 2019 without capacity -building support. The simple average of the 2019 
applied MFN tariff was estimated at 8.5%, which remained almost identical to t hat of 2013. North 
Macedonia has regularly notified the WTO of its trade measures although, in certain areas, 
notifications were still pending. North Macedonia was in the process of negotiating its accession to 
the Government Procurement Agreement.  
1.9.  North Macedonia participates in five free trade agreements (FTAs), which, together, accounted 
for 95% of its exports and 78% of its imports in 2018. In terms of trade coverage, the two most 
important agreements were the 2004 Stabilization and Association Agreeme nt (SAA) with the 
European Union, and the Central European Free Trade Agreement (CEFTA).  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  1.10.   The European Union was North Macedonia 's largest trading partner, and the pursuit of EU 
integration was one of the main driving forces for the legal, institutional an d economic reforms 
undertaken by North Macedonia in recent years. The Secretariat report describes in some detail 
changes that North Macedonia made during the review period to align its laws and regulations with 
EU rules.  
1.11.   North Macedonia adopted various me asures to attract foreign direct investment through a 
variety of incentives, including Technological Industrial Development Zones, favourable tax 
conditions, and a very competitive taxation system. A key objective of recent measures was to 
promote investme nt, particularly in the manufacturing sector, and to promote linkages between 
foreign investors and domestic firms to enhance the country 's integration into global value chains. 
The new Economic Growth Plan adopted in 2018 sought to stimulate growth in the  industrial sector.  
1.12.   The Secretariat report also draws attention to certain challenges. It points out that, although 
there had been an improvement in certain aspects of North Macedonia 's business environment, 
structural challenges remained, including labou r market weaknesses, the size of the informal sector, 
and the quality of public institutions. Increasing productivity is generally seen as a key condition to 
improving North Macedonia 's economic performance. The Report also mentions institutional factors 
that may undermine the effective implementation of recent reforms in certain areas. In some cases, 
such as the recent initiatives regarding industrial policy and financial support, there may be a need 
to ensure effective coordination of different policies. With respect to intellectual property rights, the 
Report notes the absence of specialized courts and the lack of coordination between IPR -enforcement 
bodies.  
1.13.   North Macedonia received about 130 advance written questions for this Review. The main 
areas of i nterest to Members include d:  
1.14.   First, regarding the economic environment, Members expressed interest in North Macedonia 's 
policies with respect to some of the structural challenges it faces, including the size of the informal 
economy, the overall business c limate, and labour market weaknesses.  
1.15.   Second, a substantial number of the questions raised by Members pertained to the many 
changes North Macedonia made during the review period to its trade laws and procedures in specific 
areas. Members sought clarificati on from North Macedonia in respect of recent reforms of customs 
procedures; measures to support exports and investment; the recent evolution and application of 
the government procurement regime; and developments in the areas of TBT and SPS measures and 
in the protection of intellectual property rights.  
1.16.   Third, regarding sectoral developments, some of the themes that figured prominently in the 
questions posed by Members were North Macedonia 's agricultural policy and its policies to encourage 
the development of manufacturing, to attract foreign direct investment and to promote linkages 
between domestic and foreign investors.  
1.17.   The Chairperson was sure that these topics, as well as others, would be touched upon in 
greater detail on both days.  
1.18.   The Chairperson clo sed his introductory remarks by wishing North Macedonia a very 
successful second Trade Policy Review.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE OF THE REPUBLIC OF NORT H 
MACEDONIA  (H.E. MR. KRESHNIK BE KTESHI  
2.1.  It is an honour  for me today to represent the Republic of North Macedonia 's second  Trade Policy 
Review. On behalf of my country, I would like to thank Ambassador Dagfinn Sorli of Norway who 
volunteered to be the discussant for our TPR , and the Chair of this meeting, Amba ssador Manu el 
A.J. Teehankee, of the Philippines,  for his introductory statement. I would also like to pay tribute to 
the team of the WTO Secretariat : Mark Koulen, Martha Lara Fernandez and Pierre Latrille for their 
commitment and dedication to produc ing a quality report and for the excellent cooperation that we 
had. 
2.2.  Let me also put on record my appreciation to all delegations present here today for showing 
interest in North Macedonia 's TPR through questions submitted. We put our efforts to provide 
answers to all advanced questions.  
2.3.  North Macedonia 's TPR provides an excellent opportunity for a frank exchange and the 
functioning of the WTO as an intimate link with our trade policy.  
2.4.  As a Member of the World Trade Organization since 2003, North Macedonia remain s committed 
to be ing a strong supporter of the rules -based multilateral trading system that contributes to 
promoting open trade, increasing global economic growth , and governing the right to trade in goods 
and services, in compliance with WTO commitments.  
2.5.  North Macedonia ratified the Protocol concerning the Trade Facilitation Agreement in October 
2015 and is a signatory to the Agreement on Trade in Civil Aircraft.  
2.6.  Our recent target , to which we pay serious attention , is our accession to the GPA, as we appl ied 
in March 2017 and in February 2018, we submitted an initial market access offer. The offer is a 
subject of discussions at each Committee 's meeting ever since. We are challenged with the task of 
accelerating our negotiation to join the GPA , and we are r eady to submit the final market access 
offer as soon as practicable, with the intention of closing the accession negotiations by the end of 
2019.  
2.7.  With r espect to the developments that came out of the Eleventh WTO Ministerial Conference, 
recognizing the nee d to keep pace with the developments in the global economy, North Macedonia 
is a co-sponsor of the initiatives , and continues to work on e -commerce and domestic regulation of 
services, a proposal on gender equality, as well  as the informal Working Group on Micro, Small and 
Medium Enterprises (MSMEs).  
2.8.  Emphasizing our membership in the European Union is one of our strategic priorities ever since 
we were granted candidate status in 2005. Since 2009, the Commission has recommended to the 
Council to open accession negotiations, and , in 2019 , the recommendation to open negotiation s was 
unconditional in light of the progress achieved and in view of the sustained reform momentum. 
Respecting this, we focus our reform agenda on the achiev ement of, inter alia , harmonizing with the 
EU acquis.  
2.9.  Now, I will briefly present the achievements  as well as  the challenges in our economic, trade 
and sectorial policies.  
2.10.   The economic policy of North Macedonia is permanently focu ssed on improvement of the 
business environment, support of innovation and entrepreneurship , and attracting foreign investors, 
as main promoters of economic growth. With efforts to improve the general investment climate and 
make it more stable and predictable in o rder to attract higher levels of both domestic and foreign 
investment, the World Bank 's Doing Business ranked the Republic of North Macedonia 11th in 2018 
and 10th in 2019.  
2.11.   According to the IMF and the World Bank , notable risks to fiscal sustainability bui lt up over 
time, in terms of high gross financing needs and public debt . The Government , in 2018 , started to 
implement measures to achieve gradual fiscal consolidation. In 2019 , the budget introduces a second 
proposed income tax rate of 18% (from 10%), and increases the threshold of the  tax-free allowance WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  and the flat tax rate on capital income from 10 % to 15%. It is expected that these measures will 
have a net positive impact on the fiscal balance.  
2.12.   The Economic Reform Program me 2019-2021, in line with the Government Program me 
2017-2020, prescribes policy tools and measures to follow the economic and structural reforms, 
such as: energy and transport market reform, agriculture sector development, industry sector, 
business environment and red uction of the informal economy, trade -related reforms, education , and 
labour  market, in order to improve the economic condition of the country.  
2.13.   The Government 's new Economic Growth Plan contains measures for boosting the investments 
and competitiveness of North Macedonia 's economy, divided in to three pillars, giving the possibility 
of the private sector to utilize government support. One pillar is implemented by the Fund for 
Innovations and Technology Development , for co -financial support to newly -establish ed enterprises 
(start -ups and spin -offs); commercialization of innovations, which are in the phase of prototype; 
advanced technologies, know -how and technology process es; and establishment of accelerators.  
2.14.   Foreign direct investments are cornerstones for ec onomic growth , and many activities have 
been focused on wide -ranging reforms to raise FDI inflows. Gross capital formation reached 35.3% of 
GDP in 2018 , an increase of 6.5% compared to the previous TPR in 2013 (28.8%). Foreign direct 
investment was 5.8% of GDP in 2018, compared to 3.1% in 2013. Export s of goods and services 
increased by 21.2%, and import s of goods and services by 16.6%, which influence the high growth 
of gross capital formation.  
2.15.   Real GDP growth was 2.7% in 2018, and the growth in the first q uarter of 2019 reached 4.1%. 
FDI inflows increased to a record high amount of EUR 624 million in 2018 compared to EUR 182 
million in 2017.  
2.16.   North Macedonia is a signatory of 40 bilateral agreements for mutual protection and promotion 
of foreign investment , and of 39 treaties for avoiding double taxation. Also,  North Macedonia  is a 
party to the Convention on the Settlement of Investment Disputes between States and Nationals of 
Other States, the Convention Establishing the Multilateral Investment Guarantee Ag ency (MIGA) and 
the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.  
2.17.   The country is dependent on trade, with exports and imports of goods and services 
representing around 133% of GDP in 2018. North Macedonia 's external trade is closely tied to the 
European Union's economy, which calculates to more than 80% of its merchandise exports and more 
than 60% of its imports in 2018.  
2.18.   North Macedonia is a party to five free trade agreements (FTAs). It concluded agreements  
with EU members, EFTA States, CEFTA Parties, and two bilateral agreements with Turkey and 
Ukraine, in line with Article XXIV of GATT. These agreements provide very high trade liberalization, 
regional cooperation and deeper integration into European econom ic and political processes. The 
foreign trade of North Macedonia is mostly carried out within these agreements, and the trade figures 
for 2018 were 95.2% for export s and 77% for import s. 
2.19.   These agreements allow North Macedonia to be included in the mechanis m of diagonal 
cumulation of origin. In that respect, the Protocols for rules of origin with the European Union , CEFTA 
and the Republic of Turkey were harmonized in 2016 -2018, in line with the rules of the Regional 
Convention on pan -Euro-Mediterranean prefe rential rules of origin. The protocol with Ukraine is 
under final negotiation.  
2.20.   North Macedonia is very committed to regional cooperation, especially with CEFTA Parties 
and, since 2015 , full trade liberalization is established with all CEFTA Parties. Furth er progress on 
CEFTA has been made within the Additional Protocol on Trade Facilitation in force in 2018 and the 
Additional Protocol on trade in services, which is in the process of adoption.  
2.21.   Recently, the Western Balkans developed  a Multi-annual Action P lan as a proposal for a joint 
approach to furthering economic cooperation in the context of further trade integration, introducing 
a dynamic regional investment space, facilitating regional mobility, and creating a digital integration 
agenda.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  2.22.   Focus sing on  policy for strengthening public -private dialogue to improve the participation of 
businesses and other stakeholders in the trade legislative and policy -making process, we established 
a National Committee on Trade Facilitation in 2017 according to the WTO T rade Facilitation 
Agreement.  
2.23.   Many recent developments are made to facilitate trade . The Customs Code remains the main 
piece of legislation governing customs procedures, including the Law on Customs Tariff and the new 
Law on Excise Duties of 2019. The Cust oms Administration continues to collect revenues, oversee 
enforcement of the laws on the protection of the border, as well as be responsible for transparency 
and accountability in Customs operations.  
2.24.   North Macedonia became a member of the Convention on a C ommon Transit Procedure and 
the Convention on the Simplification of the Formalities in Trade in Goods in July 2015. The 
Conventions provide for easier and faster movement of goods, as transit procedures require only a 
single transit declaration to be submi tted in electronic form.  
2.25.   The Customs Administration , from July 2019 , applies the new Customs Declarations and 
Excise Documents Processing System (CDEPS). This System establishes a paperless environment in 
customs operation s. The scope of this System is to integrate and interconnect with the New 
Computerized Transit System  (NCTS ), EXIM (Single Window System for Import, Export and Transit 
Certificates and Customs Quotas) and the Integrated Tariff Environment  (ITE). 
2.26.   North Macedonia adopted several laws, regulations, decisions and monitoring program mes in 
the veterinary, food safety and plant protection  sectors , as applied and monitor ed by the Food and 
Veterinary Agency.  
2.27.   Also, North Macedonia recognizes the importance of protecting intellectual property t o create 
an open and competitive economy. In accordance with its commitments under the WTO TRIPS 
Agreement , and as part of its efforts to harmonize with EU legislation on intellectual property rights, 
North Macedonia carried out modifications and adjustmen ts of the legislation for the purpose of 
providing more efficient protection of intellectual property rights.  
2.28.   The public procurement system continues to be decentralized ever since 2008. North 
Macedonia is committed to following the  EU acquis on public pro curement and , in that sense, has 
adopted a new Law on Public Procurement that became applicable as of 1 April 2019.  
2.29.   Agriculture remains an important sector for North Macedonia 's economy. The main priorities 
of agricultural policy are defined in the Nationa l Strategy for Agriculture and Rural Development until 
2020, the objective s of which are to an increase in the competitiveness of domestic agricultural 
production and the food industry, the development of rural areas , and the sustainable management 
of natu ral resources.  
2.30.   The basic goal of the energy policy of North Macedonia is contained in the Strategy for Energy 
Development until 2030 . It refers to energy activities to ensure security in the supply of various 
types of energy; connection of the energy syst ems; transmission and distribution capacities of 
energy; potential of renewable energy sources; incentive measures for increasing energy efficiency; 
conditions for ensuring environmental protection ; and mitigation of climate change. North Macedonia 
is a Party to the Energy Charter Treaty; the Energy Community; the Agreement of the United Nations 
Framework Convention on Climate Change, including the Kyoto Protocol ; and the Paris Agreement.  
2.31.   A New Energy Law was adopted in May 2018 in line with the requirement s from the Third 
Package of energy directives of the European Union. Further, to fully complete the EU legislation 
related to the promotion of biofuels and energy efficiency, two new laws on biofuels and energy 
efficiency are under preparation . 
2.32.   The l ong-term transport policy of North Macedonia is defined in the National Transport 
Strategy until 2030, adopted in December 2018. The Strategy aims mainly to improve economic 
efficiency, the safety and accessibility of transport, and the environmental impact mana gement, and 
to ensure the integration of transport with other sectoral policies. Its specific objectives address  the 
weaknesses of the transport sector at regional and national levels. The Treaty establishing the 
Transport Community was ratified in Decembe r 2017 ; its aim is to create community in the fields of WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  road, rail, inland waterway and maritime transport , as well as to develop  the transport network. 
Since  April 2018, the entire Corridor X is a highway and the railway part of this corridor is expected 
to be fully completed by the end of 2019. Full intention is given to Corridor VIII to be a highway and 
the works continue westwards.  
2.33.   The telecommunication sec tor in North Macedonia is largely liberalized , and offers a dynamic , 
competitive landscape , although prices remain relatively high by international standards. In that 
respect, regarding roaming fees, a multilateral agreement among Western Balkans countries  to fully 
abolish roaming fees was signed in April 2019 and became applicable as at 1 July.  
2.34.   The National Tourism Development Strategy until 2023, adopted at the end of 2018, 
envisages the development of tourism , in particular mountain resorts in the wester n part of the 
country, hot waters springs and health tourism, as well as wine growing areas.  The total number of 
tourists in 2018 reached 1.12 million.  
2.35.   Finally , before the floor is open to Members, I would like to point out that my country will 
continue to  be determined to have an active role within the World Trade Organization . Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Let me begin by welcoming the delegation of the Republic of North Macedonia, headed by 
H.E. Kreshnik Bekteshi, Minister of Economy.  
3.2.  I would like to thank the Government of the Republic of North Macedonia and the Secretariat 
for your efforts and for the co mprehensive reports you have produced, and to thank Minister Bekteshi 
for his comprehensive opening statement. Together, these reports and your statement, Mr. Minister, 
provide Members with an excellent basis for this second Trade Policy Review of North Ma cedonia.  
3.3.  Norway and North Macedonia are not neighbours, despite our common reference to "North ". 
But almost exactly 1,000 years ago, a Norwegian Viking named Harald became the Commander of 
the Varangian Guard in Constantinople. Harald did his part in keep ing the Byzantine Empire together, 
including in your neighbourhood, Mr. Minister. Those efforts did not make him a very popular man 
in the area. Suffice it to say that the stories of his exploits contain material for several new seasons 
of Game of Thrones.   
3.4.  Incidentally, Harald left your region as a very wealthy man. This wealth enabled him , first of 
all, to marry the daughter of Yaroslav the Wise in Kiev, and secondly to take over Norway, becoming 
the third King of Norway named Harald, and earning the nick name Hardråde – meaning tough ruler 
or stern counsel.  
3.5.  Fortunately, the current King of Norway is Harald the 5th, not Harald the 3rd, and I can assure 
you, Mr. Minister, that as a discussant, I have only peaceful intentions.  
3.6.  Joke aside, we are fortunate t o live in a time and age where we can meet as peers, address 
issues in a civilized manner within an agreed framework of common rules, on an arena where small 
and large nations have the same opportunity to be heard.  
3.7.  Personally, I have had the pleasure of b eing involved in three Trade Policy Reviews of my own 
country. While the TPR definitely requires considerable effort from the authorities of the Member 
under scrutiny, it is an extremely useful exercise. Not the least as a tool to remind various parts of 
the Government apparatus about the need to comply with our international commitments.  
3.8.  But compliance with agreed rules is not only a legal duty, it is also smart. Adherence to and 
compliance with multilaterally agreed rules and standards are important buil ding blocks in providing 
a stable and predictable policy framework for traders and investors, domestic as well as foreign.  
3.9.  For small and trade -dependent economies like Norway and North Macedonia, stability and 
predictability are fundamental to facilitatin g sustainable economic growth, employment and welfare 
for our citizens.  
3.10.   On this background , I am delighted to contribute to the Trade Policy Review of the Republic 
of North Macedonia.  
The economic and political context of trade policy.  
3.11.   Before touching on  issues more directly related to trade policy, permit me to make a few 
observations concerning the economic and political context of trade policy, as trade policy cannot be 
seen in isolation from the broader political and economic environment.  
3.12.   My first ob servation relates to economic growth, which has been relatively stable since the 
last TPR in 2013, with one notable exception. In 2017 , growth nearly stalled, which to a large degree 
must be understood on the background of uncertainty caused by political f actors.  
3.13.   Hence, there is good reason to welcome the restoration of political stability in North Macedonia 
and the renewed commitment to an ambitious reform agenda. The fact that growth rates have 
rebounded is not only encouraging, but also a confirmation o f the fundamental importance of 
predictability and stability, both in terms of policies and politics.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  3.14.   In a longer -term perspective, the growth trajectory has been positive, with numbers that most 
other European countries can only dream about. But the exce ptions from that trajectory has also 
highlighted fundamental challenges that will have to be addressed in order to ensure a sustainable 
growth pattern.  
3.15.   Securing stable growth is crucial in order to overcome structural economic and social 
challenges, inclu ding the high levels of emigration and unemployment. Sustainable growth demands , 
in its turn , a stable legal and political environment for making investments and doing business.  
3.16.   This leads me to my second observation which relates to the business environme nt. At the 
first TPR in 2013, the discussant praised North Macedonia for being ranked as number 25 out of 
189 countries in the World Bank "Ease of Doing Business " index. North Macedonia has by no means 
rested on its laurels, as it now ranks as number 10 ou t of 190 countries in the Ease of Doing Business 
Index.  
3.17.   Given the modest size of the country, population and economy, and the many challenges 
North Macedonia has faced in the years since independence, the authorities deserve to be 
commended for this remar kable achievement.  
3.18.   In particular , I note the high score related to the protection of minority investors, which 
corresponds with the investment promotion strategies and incentives to attract foreign investors 
that is highlighted in the report from the Secr etariat.  
3.19.   The good news is that policy seems to be working. The report from the Secretariat points out 
that FDI net inflows were almost four times higher in 2018 compared to 2012.  
3.20.   While there is no doubt that North Macedonia has been successful in improvin g the business 
environment, a number of challenges remain as pointed out in the report by the Secretariat. One of 
the most significant challenges is the large size of the informal sector, which was estimated to 
represent 34% of GDP in 2014 and 18% of emplo yment in 2018. The large size of the informal 
economy has several negative effects, including on the business environment, as it creates a 
situation where competition is unfair to those who play by the rules.  
3.21.   This leads to my third observation which relates to a very different index, addressing an issue 
of fundamental importance to the sustainability of economic, political and social structures. 
According to the Corruption Perception Index from Transparency International, North Macedonia 
ranks as numb er 93 out of 180 countries. Furthermore, the trend has been negative rather th an 
positive since the last TPR. It feels almost unnecessary to point out, but unless this issue is addressed 
effectively, other achievements may be in serious danger of being und ermined.  
Trade related policies.  
3.22.   Turning to issues closer to the center of attention in this Organization, I am delighted to note 
the strong support of North Macedonia for the rules -based multilateral trading system embodied in 
the World Trade Organi zation, which gives greater certainty in trade relations, especially for small 
countries, and contributes to promote open trade, global economic growth and job creation.  
3.23.   As a land -locked and trade -dependent country , North Macedonia has taken a particular 
intere st in the implementation of the Trade Facilitation Agreement. North Macedonia is also in the 
process of negotiating its accession to the Government Procurement Agreement. Furthermore, North 
Macedonia should be commended for supporting future -oriented initi atives related to e -commerce, 
domestic regulations of services and micro, small and medium sized enterprises.  
3.24.   North Macedonia has secured Free Trade Agreements that covers 95% of its exports and 
almost 80% of imports. While the agreement with the EU natur ally is the most important, I have to 
point out that the FTA between EFTA and North Macedonia entered into force in 2002, and that trade 
in goods between the EFTA countries and North Macedonia have grown by an average annual rate 
of 7.8% since 2002.  
3.25.   By the way, as the bilateral trade balance suddenly has resurfaced as a fashionable concept, 
I can congratulate North Macedonia with a solid bilateral trade surplus with EFTA countries. I think WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  it is fair to say, however, that the potential for future grow th is substantial, as the current trade 
volume remains at a quite modest level.  
3.26.   Membership in the European Union is a strategic priority for North Macedonia. Consequently, 
alignment of national legislation with EU law has a high priority and is a main dri ving force behind 
the reform programme.  
3.27.   As a representative of a country that chose to be integrated in the internal market without 
becoming a full member of the EU, I can certainly understand and support the notion of regulatory 
alignment with what is by  far your most important export market and source of imports and 
investments.  
3.28.   In general, North Macedonia should be commended for having made considerable efforts to 
adhere to the disciplines of the multilateral trading system and other international stan dards and 
norms.  
3.29.   As other Members can be trusted to ask more specific questions and point to areas where 
improvements might be recommended, I will limit myself to highlight one such issue.  
3.30.   The report of the Secretariat confirms that North Macedonia has a  sound legal framework for 
the protection of Intellectual Property Rights but points out that the enforcement of these rights 
through the court system remains a challenge, since there are no specialized courts to handle IPR 
cases, and prosecutors and judge s lack adequate experience.  
3.31.   Most companies will be reluctant to engage in an environment where rule of law is weak and 
where you risk losing control over valuable assets. Making sure that intellectual property is 
adequately protected should therefore be a  matter of the highest priority and an integral part of the 
Government 's efforts to make North Macedonia an attractive place to invest and operate a business.  
Concluding remarks  
3.32.   As a discussant, I have focused my comments on some key points which I consid er to be of 
particular importance to the ambitions and objectives of the Government of North Macedonia, where 
a sound trade policy aligned with international commitments is an indispensable and integral part of 
a comprehensive policy framework and reform a genda.  
3.33.   I have underlined the fact that trade policy cannot be seen in isolation. Other policies and 
political and social factors may work in tandem with trade policy and take developments forward in 
the intended direction. But the positive effects of a so und trade policy may also be weakened and 
even undermined by such other factors.  
3.34.   The fact that North Macedonia is represented here today at the highest political level, with a 
number of relevant Government authorities represented in the delegation, is for me a confirmation 
of the importance that North Macedonia attaches to this exercise and gives me confidence that the 
comments and recommendations you will hear from your peers will be taken seriously.  
3.35.   In my comments I have strived to be direct and honest, b ecause honesty works better in the 
long run, and because friends can be honest with each other. Both Norway and North Macedonia 
have fortunately come a long way since the days of Harald Hardråde.  
3.36.   I thank you and I wish the delegation of North Macedonia a s uccessful Trade Policy Review, 
and good luck with the follow -up across your administration once you are back in Skopje.  Thank 
you. 
  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4  STATEMENTS BY MEMBER S 
EUROPEAN  UNION  
4.1.  This is North Macedonia 's second Trade Policy Review. The EU welcomes this opportunity to 
discuss the developments in North Macedonia 's trade policies and practices since the previous Trade 
Policy Review in 2013.  
4.2.  The EU is very pleased to participate in North Macedonia 's review as we enjoy a close relation 
due to the fact that No rth Macedonia has been an EU candidate country since December 2005. This 
year also marks the 15th anniversary of the entry into force of the Stabilisation and Association 
Agreement (SAA). As it is described in the Secretariat report, the SAA is a contractu al bilateral free 
trade area between the EU and North Macedonia that included a transition period of 10 years, which 
has now expired.  
4.3.  In the light of the significant progress achieved in advancing EU reforms, the European 
Commission has once again recommen ded opening the negotiations with North Macedonia in its 
Communication on the EU Enlargement Policy published in May 2019. The EU Council is expected to 
reach a clear and substantive decision on the opening of accession negotiations as soon as possible 
and no later than October 2019.  
4.4.  Regarding trade, which is the core subject of this review, the EU is the largest partner of the 
country with increasing importance. Indeed, in 2018 we exchanged goods worth EUR 10.5 billion 
and services worth almost EUR 2 billion. The EU is also the biggest investor in North Macedonia with 
direct investment stocks in the country of almost  EUR 2.5 billion in 2017.  
4.5.  Regarding EU aid to the country, it is comprehensive and reflects the common strategic 
objective of EU integration.  It covers areas such as private sector development, agriculture, rural 
development, transport, environment and climate change, employment and education and a number 
of reforms related to governance, justice and home affairs. The budget allocated for the p eriod 
2014-2020 amounts to about EUR 600 million.  
4.6.  Overall, North Macedonia can be commended for showing its strong determination to advance 
the EU reform agenda, including a number of policy reforms supporting fiscal consolidation. After a 
prolonged stagn ation, growth resumed at 2.7% in 2018 and unemployment continued to decrease 
but remains still high (around 20%) even if it is probably inflated by the remaining high level of 
informal activities.  
4.7.  The EU would like to encourage North Macedonia to further c ontinue on its reforms path in 
order to boost the growth of its economy. We particularly welcome the new Public Procurement Law 
which is expected to increase transparency and predictability on the market.  
4.8.  We take note of North Macedonia 's strategy and acti on plan for the formalisation of the informal 
economy and would like to know more about initial results and possible further plans for improving 
the business environment in the country. The EU would also be interested to hear the views of the 
authorities o n the progress achieved to improve the competitiveness of its manufacturing sector 
with a view to increase the level of integration of its domestic companies into global value chains. 
The EU would also be eager to learn more on the concrete measures to inc rease the spill over effect 
of FDI to the rest of the economy as well as on how to monitor efficiency and cost -effectiveness of 
different business support schemes.  
4.9.  Again , we would like to commend North Macedonia for its efforts in pursuing reforms and at 
the same time we encourage the authorities to keep the momentum going. This is needed because 
businesses still face important trade barriers, including high logistical and  customs costs. In other 
areas such as competition, regulatory framework and public administration are encouraged.  
4.10.   Finally, when it comes to compliance with WTO rules, the EU very much appreciates efforts 
made by North Macedonia in view of complying with i ts notification obligations, particularly under 
the SCM Agreement. The EU also appreciates the fact that North Macedonia implemented a vast 
majority of its implementation commitments under the Trade Facilitation Agreement following its 
ratification in 2015 . WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4.11.   We wish all the best to the delegation of North Macedonia in this challenging exercise that a 
TPR represents.  
ICELAND  
4.12.   Iceland and North Macedonia enjoy a good bilateral relationship in the field of trade. EFTA and 
North Macedonia have had a free trade ag reement in force since 2002. Over the last five years , 
imports from North Macedonia into Iceland grew by 2 .4% and exports from Iceland by 6%, although 
looking at overall  trade, imports from North Macedonia are greater in value than exports from 
Iceland.  
4.13.   Iceland welcomes the various positive developments that have taken place since the last 
review in North Macedonia, including a reduction in unemployment and growth in GDP by capita by 
more than 40%. We also welcome recent reforms of business regulations that  have resulted in a 
better doing -business climate, both for domestic and foreign investors, although structural economic 
and social challenges remain. We also note the update and modernisation of customs legislation and 
excellent results in implementing co mmitments under the Trade Facilitation Agreement.  
4.14.   North Macedonia is amongst the WTO members that are working on highlighting the 
importance of gender and trade. North Macedonia is among the 127 members and observers that 
support the joint declaration on women and economic empowerment that was launched on the 
occasion of the 11th Ministerial Conference in Buenos Aires. The declaration aims inter alia at sharing 
best practices and working together here at the WTO to remove barriers for women 's economic 
empo werment and increase their participation in trade.  
4.15.   The trade policy review provides an excellent opportunity to share best practices in this field. 
Iceland submitted advance written questions on the participation of women in the economy of North 
Macedonia, as well as on the initiatives that the country is undertaking on making economic growth 
more inclusive. We wish to thank North Macedonia for the responses to our written questions. We 
will review the answers thoroughly and request clarifications  as necessary during the course of this 
TPR. The answers are very useful as we implement the joint declaration on trade and women 's 
economic empowerment and gather best practices, which we will present at the next Ministerial 
conference.  
4.16.   In only two days I  will fly from Geneva and leave my post as deputy permanent representative 
of Iceland to the WTO. It has been a privilege to represent my country here in Geneva and it gives 
me great pleasure that my last intervention in this house in my capacity as DPR is  for the trade 
policy review of North Macedonia, so I ask for the chairs indulgence for me to add a personal 
comment.  
4.17.   North Macedonia is very close to my heart as I had the fortune of living in Skopje, for a period 
of nine months in the year of 2003 and h ad the opportunity to travel to many areas of this beautiful 
country and to get to know its people, traditions and culinary delights. I was working as a journalist 
at the time and was deployed there by my government to work for Concordia, the EU 's first mi litary 
operation where countries outside the EU were also participating. Iceland does not have an army so 
I was one of only two civilians working for the mission.  
4.18.   North Macedonia was facing many challenges in 2003. Although I have not been back to 
Skopje since I left fifteen years ago it is pleasurable to see, both through the news and which is also 
confirmed in today 's trade policy review, how North Macedonia is achieving what it was aspiring to 
back in 2003. The resolution of the name issue, upcoming NAT O membership, continued reforms 
and European integration are all examples of this , and which should be congratulated.  
4.19.   Iceland appreciates North Macedonia 's active engagement in the WTO and their continued 
support for the multilateral trading system. We wis h the delegation of North Macedonia every 
success for their second trade policy review.  
CANADA  
4.20.   Canada congratulates the Government of North Macedonia on the occasion of its first Trade 
Policy Review at the WTO as a newly named country.   WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4.21.   North Macedonia is  an active and engaged WTO Member and has contributed to our work 
since joining the Organization in 2003. Over the past 16 years, North Macedonia has kept apace of 
developments, with the acceptance of the Protocol Amending the TRIPS Agreement, adherence to  
the Government Procurement Agreement, and implementation of the expansion of the Information 
Technology Agreement. North Macedonia has also contributed to the WTO through active 
participation in various negotiation groups.  
4.22.   We would like to particularly co mmend the government of North Macedonia for its leadership 
on trade and sustainable growth. Canada looks forward to continuing to work together and to follow 
through on the Innovation policy and the TRIPS Agreement. We appreciate North Macedonia 's 
openness  to exploring new ideas and fresh approaches that are responsive to the needs of Members 
of the Organization including green growth.  
4.23.   We also note positively that North Macedonia is taking an active role in the MC11 joint 
initiatives on Services Domestic R egulation, Electronic Commerce and on MSMEs, and we commend 
North Macedonia for supporting the Buenos Aires Declaration on Women and Trade.  
4.24.   We invite North Macedonia to join efforts towards advancing our work on Investment 
Facilitation for Development.  
4.25.   North Macedonia 's efforts to abide by its notifications ' commitments are noticed. One area 
where we encourage North Macedonia to do further work is with regard to notifications on 
quantitative restrictions.  
4.26.   The Government of North Macedonia deserves credit for the important strides it has made in 
improving the business sphere. This is amply demonstrated by North Macedonia improving its 
ranking relating to the environment for business, trade and investment, according to the World 
Bank's Doing Business reports . In 2019, it ranked in 10th place out of 190 economies in comparison 
to 23rd place out of 185 economies in 2013.  
4.27.     North Macedonia has negotiated important agreements in support of trade and economic 
cooperation, including free trade agreements, investmen t promotion and protection agreements and 
double taxation avoidance agreements, evincing its commitment to remain open to trade, a goal 
that Canada applauds.  
4.28.   Permit me to briefly identify four areas that merit focus in the North Macedonia ongoing reform 
efforts.  
4.29.   First, we encourage North Macedonia to continue to modernize its infrastructure. Continuing 
to modernize North Macedonia 's road and railways will support stakeholders, including exporters 
and importers, in their objective of furthering their operati ons by providing them with the tools to 
become more efficient and compete globally.  
4.30.   Secondly, we note the Secretariat 's observation of North Macedonia 's efforts to address its 
productivity -related challenges through structural reforms and reforms aiming at  spurring 
productivity growth. These will be particularly important in areas of foreign trade and investment 
facilitation.  
4.31.   Third, we encourage North Macedonia to keep up its efforts towards institutional reform so as 
to decrease the substantive size of its  informal sector which the Secretariat 's report noted 
represented 34% of GDP in 2014.  
4.32.   Finally, moving forward, Canada has been following North Macedonia 's accession negotiations 
with the European Union and looks forward to their successful conclusion. In this context, Canada 
commends North Macedonia on its wide -ranging work in aligning with the EU acquis communautaire. 
These are positive steps that have cut red tape, enabled stakeholder involvement in policy 
formulation, and improved the country 's trade an d investment laws and regulations.  
  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  JAPAN  
4.33.   We can easily see how trade is important for North Macedonia 's economy if we look at the 
Secretariat report, which says that exports and imports in goods and services represented around 
133% of the country 's GDP in 2018. We highly appreciate North Macedonia 's strong commitment to 
the rules -based multilateral trading system embodied in the WTO in spite of the challenges it faces 
as a landlocked country. Also, we positively evaluate North Macedonia 's stable econ omic growth, as 
evidenced by the 2.2 % annual growth it recorded from 2012 to 2018. We would further like to note 
that North Macedonia participates in five trade agreements, which enable the country to achieve 
further liberalization in the region. On the w hole, North Macedonia has been actively involved in the 
multilateral trading system and improved its economic performance during the review period.  
4.34.   We understand that integration into the EU has been a major concern for North Macedonia. 
We are delighted t o observe the progress made by the North Macedonian Government in the areas 
of legal, institutional and economic reforms, which paves the way for accession negotiations with 
the EU. An example of the significant achievements of this reform is North Macedon ia's updating 
and modernization of its customs legislation to meet EU customs rules.  
4.35.   North Macedonia is a party to the Trade Facilitation Agreement (TFA), and the full 
implementation of the TFA is highly important for the country in order to facilitate tr ansit procedures 
and reduce the trading costs associated with a landlocked environment. Therefore, we appreciate 
North Macedonia 's commitment to apply almost all the TFA provisions upon the entry into force of 
the Agreement.  
4.36.   Additionally, we hope to see N orth Macedonia further engaging with the agendas of the "Joint 
Statement on Electronic Commerce " and the "Declaration on the Establishment of a WTO Informal 
Work Programme for MSMEs ", which the country has agreed on at the Eleventh Ministerial 
Conference i n Buenos Aires in 2017.  
4.37.   We believe that active participation in and appropriate implementation of such agreements 
will further strengthen North Macedonia 's economy, and can encourage countries with similar 
backgrounds to participate actively in the rule -based multilateral trading system.  
4.38.   We should also acknowledge that FDI net inflow to North Macedonia has increased remarkably 
during the review period due to the country 's commitment to improving the business environment 
to attract higher levels of domestic  and foreign investment. As a result, many foreign investors enjoy 
the tax advantages provided by technological industrial development zones. North Macedonia 's 
efforts have been recognized, as shown by its high ranking in the World Bank 's Ease of Doing 
Business report for 2017 and 2018.  
4.39.   We appreciate North Macedonia 's efforts to become an increasingly attractive destination for 
FDI. At the same time, if North Macedonia intends to target greater FDI inflows we believe it is 
important that the country careful ly observe the balance of trade in order to sustain its current 
account.  
4.40.   We appreciate North Macedonia 's formulation of its "Economic Growth Plan ", which was 
published in February 2018. We believe that the implementation of the plan contributes to the furt her 
development of national industries. Having said that, we also strongly hope that North Macedonia 
will continue its endeavours  for an open, fair and non -discriminatory market environment.   
4.41.   In this regard, North Macedonia can improve its price control m easures, which remain in place 
in some sectors. We believe that greater liberalization of its market will contribute to North 
Macedonia 's further economic growth.  
4.42.   In addition, North Macedonia can improve on some pending notifications, particularly domesti c 
support for agricultural products. For this, we would like to encourage North Macedonia to make 
further efforts in the area of notifications to achieve a predictable and transparent business 
environment.  
4.43.   In conclusion, we are convinced that North Macedo nia will be well placed to continue pursuing 
an open, transparent and non -discriminatory market by observing its commitments to the WTO. We WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  believe that the recent resolution of the name issue will also be a positive factor in promoting North 
Macedonia 's further integration into the regional and global economy, leading to a better future for 
the country. We wish North Macedonia a successful and productive TPR and look forward to hearing 
of further progress regarding its trade and investment policies at its next TPR.  
CHINA  
4.44.   We are pleased to see that North Macedonia has achieved steady economic growth with an 
average annual rate of 2.2%, a remarkable increase of GDP per capita by more than 40% and a 
substantial reduction in unemployment and poverty since the l ast TPR. We are confident that North 
Macedonia would maintain such positive trend with its continuous efforts in the legal, institutional 
and economic reforms.  
4.45.   We commend North Macedonia 's strong support of the rule -based multilateral trading system. 
We are especially impressed by its commitment to apply almost all the TFA provisions upon the entry 
into force of the Agreement. At the Eleventh WTO Ministerial Conference, North Macedonia 
co-sponsored the initiatives on e -commerce ，domestic regulat ion on services, and MSMEs, which 
indicates its active participation in the WTO.  
4.46.   Recent years have seen a rapid and smooth progress in bilateral economic and trade 
cooperation between China and North Macedonia. China is currently North Macedonia 's largest trade 
partner outside Europe. In the first 5 months of this year, bilateral trade in goods reached USD 97.5 
million, increased by 71.4% year -on-year, in which China 's imports from North Macedonia increased 
by nearly 150%. We would kindly invite North Maced onia to participate in the China International 
Import Expo, which we believe will further increase our imports from North Macedonia.  
4.47.   China has close cooperation with North Macedonia through the Belt and Road Initiative. The 
two sides started constructing t wo highway sections in 2014. It is nice to see that one highway 
section, which connects North Macedonia 's Capital Skopje with the eastern part of the country, 
opened on July 6th this year. We believe this highway section will promote regional development 
and facilitate the transport of people and goods. We hope the two sides will work together to speed 
up the other highway construction and complete it at an earlier date. Besides, we hope North 
Macedonia could improve its visa and work permit procedures so a s to facilitate more Chinese 
companies to seek cooperation opportunities with North Macedonia.  
4.48.   To better understand the latest development of North Macedonia 's trade policy, we have 
submitted some written questions in the a griculture area. We appreciate th e replies provided by 
North Macedonia, which we will duly study.   
4.49.   To conclude, we wish this Review a complete success.  
BRAZIL  
4.50.   Brazil is pleased to take part in the second Trade Policy Review of the Republic of North 
Macedonia. The Member is a supporter of  the rules -based multilateral trading system embodied in 
the WTO. In the period under review, the Republic of North Macedonia economy has grown by an 
average of 2.2% each year. The adoption of appropriate strategic priorities under the 2017 -2020 
Government 's Programme to maintain its EU accessions is a driven force to legal, institutional and 
economic reforms. These bring positive results in trade which contributed to its economic expansion.  
4.51.   We congratulated North Macedonia for the implementation of 99.2% o f its commitments under 
the TFA, ratified by the member in October 2015, and its attempt to implement the other 0.8% of 
provisions by December 2019.  
4.52.   In 2018, bilateral trade flows reached USD 12 million. The average bilateral annual trade flows 
in the last  ten years is around USD 27 million. 94% of Brazilian exports to The Republic of North 
Macedonia are made up of agricultural products, such as poultry and bovine meat and tobacco. 
Nonetheless the importance of meats products in our bilateral trade flow, no t only the high applied 
tariffs but also the unilateral imposition of sanitary barriers, since 2009, are hindering the realization 
of imports from Brazil to the member. As a result, meat and edible meat offal exports from Brazil to 
the member decreased fro m about USD 27 million in 2009 to USD 15 million in 2018.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4.53.   In other hand, North Macedonian exports to Brazil are mainly composed by motor vehicles 
parts and accessories and articles of clothing and accessories. We then believe that there are 
opportunities for diversification and that our bilateral trade relations have a clear potential for 
growth.  
4.54.   Brazil will continue to follow with interest domestic developments of The Republic of North 
Macedonia regarding its trade policies. Let me conclude  by wishing th e delegation of The Republic 
of North Macedonia a successful Trade Policy Review.  
UKRAINE  
4.55.   We commend North Macedonia for its positive economic performance represented by constant 
GDP growth, rise of GDP per capita (by more than 40%), declining unemployment rate and a 
substantial reduction in poverty.  
4.56.   Ukraine also highly appreciates efforts of the Government of North Macedonia in 
implementation of recent business regulations reforms resulted in a significant improvement of 
investment climate and gaining higher ranking in the World Bank "Doing Business " Index in 2019 - 
the tenth position of North  Macedonia.  
4.57.   At a multilateral level, we recognize North Macedonia 's commitment to the WTO rules and 
principles and highly value meaningful steps made in trade facilitation area. We would like to also 
welcome North Macedonia`s recent deposit of the instrume nt of accession to the Agreement on 
Trade in Civil Aircraft.  
4.58.   Noting importance of trade for North Macedonia as for small, landlocked country Ukraine 
acknowledges its progress in implementation of the legal, institutional and economic reforms 
undertaken wit h the purpose of the EU integration.  
4.59.   In terms of our bilateral trade relations, Ukraine and North Macedonia have been enjoying the 
free trade regime according to the Agreement (the FTA) since 2001.  
4.60.   According to the trade statistics, import of North Maced onian goods to Ukraine grew constantly 
since 2016 increasing by 36% last year. Export of Ukrainian goods to North Macedonia almost 
doubled compared to 2013 and increased to US$ 16 million. Our bilateral merchandise trade covers 
agricultural products, ferro us metals and articles thereof, wood, paper, machinery and transport 
equipment, pharmaceutical products, chemical and other industrial goods.  
4.61.   Bilateral trade in services between North Macedonia and Ukraine increased more than fourfold 
during the last thre e years.  
4.62.   In order to better understand the latest developments in North Macedonia 's trade policy, we 
submitted written questions in areas of agriculture, tariffs, investment and customs regimes, 
standards and technical requirements, sanitary and phytosanitary measures, intellectual property 
rights, financial services, work on electronic commerce and domestic regulation in services.  
4.63.   We appreciate the replies provided by North Macedonia to our questions, which we are 
reviewing thoroughly.  
4.64.   In conclus ion, Ukraine is looking forward to continuing  further strengthening of our 
cooperation with North Macedonia, both in the framework of the existing FTA, which has a significant 
potential, and at the WTO, which provides greater certainty in trade relations a nd contributes to 
trade liberalization, global economic growth and job creation.  
4.65.   On behalf of Ukraine, we wish the delegation of North Macedonia the utmost success during 
its TPR.  
UNITED  STATES  
4.66.   We congratulate the Government of North Macedonia on implemen ting the historic Prespa 
Agreement with Greece. This is a significant development for North Macedonia, opening a pathway WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  for EU and NATO membership. North Macedonia 's progress and pursuit of economic reform is notable 
since becoming a WTO Member in April 2 003 and its last TPR in 2013, driven by both WTO 
commitments and determination to draw closer to the European Union. Through such reforms, North 
Macedonia has sought increased integration into the multilateral trading system, integration 
bilaterally with t he European Union, and increased regional trade. The United States has supported 
North Macedonia 's Euro -Atlantic integration via U.S. Government assistance since 1991 in various 
priority areas needed for reform and improvement of North Macedonia 's business  climate and trade 
barriers.  
4.67.   We look forward to continuing our work with North Macedonia to make it a full member of the 
WTO Government Procurement Agreement. While we understand that North Macedonia would like 
to align its offer with that of the EU due t o its status as a candidate country, North Macedonia should 
accede to the GPA with a market access schedule that is fully reflective of the market access it is 
granting at the time of GPA accession. Any changes to North Macedonia 's GPA schedule as a result  
of European Union membership should be notified to the GPA Committee at that time.  
4.68.   Noting the efforts undertaken since the last TPR in 2013, there are a few issues where we 
hope to obtain clarification from North Macedonia, as reflected in United States ' questions submitted 
in advance for this review.  
4.69.   For example, with respect to its WTO tariff bindings, we would be interested in North 
Macedonia 's timeline to reconcile actual and bound tariff rates.  According to the Secretariat analysis, 
applied rates ex ceed bound rates for thirteen tariff lines.   
4.70.   In the area of intellectual property rights, while North Macedonia appears to have put in place 
an IPR legislative framework that generally fulfils the requirements of the Agreement on Trade -
Related Aspects of Intellectual Property rights (TRIPS) and other international agreements, we have 
concerns about inconsistent or insufficient enforcement in North Macedonia 's court system. We 
would appreciate additional information on whether North Macedonia plans to addre ss the lack of 
specialized IP courts and the absence of reliable statistics to measure IPR infringement.  
4.71.   With respect to Sanitary and Phytosanitary Measures (SPS) measures, given North 
Macedonia 's anticipated adoption of aspects of the EU acquis, including  streamlining practices and 
implementing various SPS measures, we would like to know how North Macedonia is conducting SPS 
risk assessments and how North Macedonia is meeting transparency obligations under Article 7 
Annex B of the SPS Agreement. We would a lso be interested in an update regarding pending 
notifications, including the notification of SPS measures. The Secretariat noted the notification by 
North Macedonia of only five SPS measures. We would be interested in the status of remaining SPS 
notificat ions.   
4.72.   To conclude, we congratulate North Macedonia on its sixteen years of WTO Membership. 
Opening its economy to trade and investment within the framework of the WTO 's rules and 
obligations has undoubtedly contributed to North Macedonia 's growth and glo bal competitiveness.  
4.73.   The United States appreciates this opportunity to participate in the discussion of North 
Macedonia 's trade and investment regime. We thank the delegation for its answers to our written 
questions and look forward to reviewing them. We a lso look forward to continuing to work together 
with North Macedonia to strengthen and build on the WTO 's rules -based system as agreed by its 
Members.  
REPUBLIC  OF KOREA  
4.74.   Before I comment on the specifics, I would like to first congratulate the Republic of N orth 
Macedonia and its people on the peaceful resolution of the naming dispute with Greece carried out 
in the spirit of mutual respect and compromise. The Korean Government hopes that this historic 
event will provide an important stepping stone for the fut ure development of North Macedonia, as 
well as for the sustainable peace and prosperity of the region and Europe.  
4.75.   Korea is also pleased to note that North Macedonia achieved positive economic growth in 
2018, in particular by increasing foreign direct inve stment and reducing unemployment. More 
specifically, foreign direct investment in 2018 increased more than threefold, from USD 205 million WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  in 2017 to USD 737 million in 2018, while the unemployment rate has steadily declined in recent 
years. Korea welcomes  North Macedonia 's implementation of reforms in various areas including 
investment, business regulations and custom legislation, with a view to achieving convergence with 
EU regulations. Meanwhile, Korea also takes note the challenges confronting these ref orms as stated 
in the annual report by the EU Commission, namely enhancing the transparency and predictability 
of its policies and expanding transport infrastructure. Korea hopes North Macedonia will continue its 
reform efforts to address these challenges and achieve strong and sustainable economic growth.  
4.76.   In this regard, I would like to take this opportunity to express Korea 's strong interest, which 
lies primarily in the tenders for the construction of photovoltaic power plants launched by the 
Government of the Republic of North Macedonia. Korea believes that the selection procedure of the 
tenders should be transparent and based on the principles of fair competition. In addition, Korean 
companies have a keen interest in the various policies of the renewabl e energy sector in North 
Macedonia, an interest that we conveyed in the form of written questions two weeks prior to this 
meeting. Korea is eagerly looking forward to receiving and carefully reviewing the responses to our 
questions. Energy is just one of t he many sectors in which Korea looks forward to cooperating with 
North Macedonia. In this regard, Korea hopes that the scope of economic collaboration between the 
two countries will continue to expand.  
4.77.   Korea believes that trade centred on a rules -based mu ltilateral trading system as well as an 
active flux of foreign investment are not just engines for growth, but also catalysts for strengthening 
political and diplomatic ties with its partners. I stand by this belief in creating a future of long -term 
co-prosperity between the two countries through enhanced bilateral ties. In this context, Korea 
sincerely hopes that North Macedonia will expand its free trade network and continue to 
constructively participate in the WTO.  
4.78.   I would like to conclude by extending my deep appreciation to the delegation of the Republic 
of North Macedonia for its efforts in preparing for TPR, and I wish the delegation every success in 
its second review.  
MONTENEGRO  
4.79.   I would like to express our appreciation to the delegation of North Macedonia led by Minister 
Bekteshi for their hard work and thoroughness in preparation for this TPR.  
4.80.   According to the Secretariat report, North Macedonia 's trade in goods and services rep resents 
133% of GDP and services sector and is the largest contributor to GDP reflecting the country 's 
intention to become integrated in the global economy.  
4.81.   North Macedonia and Montenegro are enjoying free trade regime under CEFTA agreement, 
which North Ma cedonia and Montenegro are part of and which continues to support diversification 
of our trade in 12 years of its existence.  
4.82.   Among other CEFTA members, Montenegro and North Macedonia remain committed to further 
strengthening economic ties. Our two Governm ents have signed the Agreement on Economic 
Cooperation in October 2010 whose aim is to further explore potential collaboration in industry 
energy, agriculture protection of environment, tourism and transport.  
4.83.   The total turnover in goods between North Mace donia and Montenegro amounted 40 million 
in 2018 and increased by 5% comparing to 2017. Mutual cooperation of our countries covers  
different spheres of interest: product of steel and iron, edible offal, woods product, coal and 
vegetables.  
4.84.   Montenegro has a ddressed several questions to North Macedonia aimed at facilitating a better 
understanding issues relating to North Macedonia 's labour market. I would like to thank for a 
comprehensive response .  
4.85.   As a conclusion, Montenegro wishes to North Macedonia a succ essful and productive Trade 
Policy Review and we are looking forward to continu ing our good cooperation  in trade and economy.  
  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  ARGENTINA  
4.86.   Argentina observes with interest the growth in the country's per capita GDP, which rose from 
EUR 3,678 in 2012 to EUR  5,169 in 2018, and the steady downward trend in unemployment, 
from 31% in 2012 to 20.7% in 2018, maintaining a positive correlation with poverty reduction.  
4.87.   Our country also notes that GDP growth averaged 2.2% per annum from 2012 to 2018, and 
it is hoped t hat this growth will continue in the medium term.  
4.88.   Argentina welcomes in particular the actions taken with a view to meeting the imperative of 
increasing economic productivity and achieving inclusive growth. These include reforms to address 
weaknesses in th e labour market, combating informality in the economy, institutional strengthening, 
combating corruption, and greater efficiency and equality in the taxation system. We also welcome 
the launch of government policies to improve the country's public financia l management.  
4.89.   We also note with great interest that both imports and exports of goods registered positive 
growth during the period under review (except imports in 2013), with exports growing at a steadier 
rate. Mention should also be made of the increase i n foreign direct investment flows from EUR 
131 million in 2012 (1.5% of GDP) to EUR 621.9  million in 2018 (5.8% of GDP).  
4.90.   As regards bilateral relations between Argentina and North Macedonia, it should be noted that 
in 2018 Argentine exports amounted to USD  6.8 million (representing an increase of 9.6% compared 
to 2017) and imports amounted to USD 2.5  million.  
4.91.   With regard to the composition of export trade, we wish to highlight the pre -eminence of 
frozen hake, while we also trade in prepared groundnuts, corn, bird's eggs not in shell, dried, and 
frozen fish fillets. Imported products include silver nitrate, auto catalysts, fennel seeds, parts of 
electrical machinery and electronic controllers for vehicles.  
4.92.   Argentina also acknowledges North Mac edonia's commitment to the multilateral trade system 
since its accession to the WTO in 2003, among other things, and the country's participation in free 
trade agreements with several partners.  
4.93.   In conclusion, while reiterating our appreciation for this rene wed opportunity to exchange 
information and reflections on the trade policies and practices of North Macedonia, we would like to 
draw attention once again to the importance of this exercise in transparency, in all its aspects, and 
to wish the authorities h ere present a successful conclusion of this review.  
RUSSIAN  FEDERATION  
4.94.   The Russian Federation follows with interest the economic performance of North Macedonia. 
Its GDP during the review period was growing by an average annual rate of 2,2%. We congratulate  
the Government of North Macedonia on pursuing an effective economic policy, which led to an 
increase in GDP per capita by more than 40% between 2012 and 2018 and to a significant decline 
in unemployment rate.  
4.95.   This year marks the 25th anniversary of the es tablishment of diplomatic relations between 
Russia and Macedonia. We note with appreciation that our bilateral economic cooperation is 
strengthening. The Intergovernmental Commission on Trade, Economic, Scientific and Technical 
Cooperation between our coun tries provides a suitable framework for that.  
4.96.   In 2018, the total trade turnover between our countries amounted to almost USD 120 million, 
with North Macedonian exports of USD 67 million and imports of USD 52 million. Among North 
Macedonian export products  to Russia are fruit, vegetables, pharmaceutical products, machinery 
and mechanical appliances. Main imports from Russia – mineral fuels, iron and steel, plastics, 
fertilizers. Our cooperation in the oil and gas sector is actively developing. I hope that o ur bilateral 
relations and economic ties will continue to flourish.  
4.97.   The Russian delegation has addressed written questions on the investment regime as well as 
sanitary and phytosanitary requirements. We highly appreciate comprehensive answers from North 
Macedonia and we will review them carefully.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4.98.   To conclude , we look forward to continue working with Skopje in order to expand our trade 
and investment cooperation for mutual benefit. We wish the delegation of North Macedonia a 
successful Trade Policy Review.  
REPUBLIC  OF MOLDOVA  
4.99.   Trade plays a central role in the Republic of North Macedonia, which is, as well as my country, 
a small, landlocked country, with exports and imports in goods and services representing the main 
source of GDP.  
4.100.   We are pleasured to note t hat the period under review is characterized by the constant 
growth of exports and imports, in particular of services. The trade policies promoted by the 
Government in the last 6 years were orientated towards European and regional integration engaged 
in order to align national legislation with EU law. The reforming progress has contributed to the 
enhancement of the business climate, both for foreign and domestic investors. As concluded by the 
Secretariat in its report, the investment regime is generally ope n to the FDI, and as a part of the 
governmental strategy in this respect, targeted investment promotion, financial and other types of 
incentives are promoted.  
4.101.   We appreciate the great deal of governmental attention that is granted to the institutional 
and operational framework of banks. It is important that the operated reforms re synchronized with 
the regional and European Union 's framework.  
4.102.   The Republic of Moldova would like to commend the active engagement of the Republic pf 
North Mace donia within the regional integration processes. For a trade dependent economy, the 
benefits of a strong network of trade agreements cannot be underscored. Our countries have 
concluded a free trade agreement back in 2005 but since 2006 we are part of the f ree trade area 
created by the CEFTA agreement (together with Bosnia and Herzegovina, Montenegro, Serbia, 
Albania).  
4.103.   Prior to today 's meeting, we have submitted 16 questions and we are looking forward to 
carefully examine the written answers.  
4.104.   In conclusion,  I would like to express our appreciation to the delegation of North Macedonia 
and to the team of the Mission of North Macedonia in Geneva for their hard work in preparing for 
this TPR and our interest to further enhancing of our bilateral economic and tra de relations.  
TURKEY  
4.105.   North Macedonia is a crucial actor in the Balkans regarding success in maintaining peace and 
harmony in a multi -ethnic society.  
4.106.   We believe stability and peace in North Macedonia is crucial for the entire region.  
4.107.   We believe with satisf action that the pursuit of EU integration has been one of the main 
driving forces for the legal, institutional and economic reforms undertaken so far by North 
Macedonia.  
4.108.   It is stated in the Secretariat 's report that recent reforms of business regulations resulted in 
a significant improvement in certain aspects of the climate for doing business, both for domestic and 
foreign investors. At the same time, structural economic and social challenges remain, including with 
respect to labour market weaknesses, the  large size of the informal sector and the quality of public 
institutions. The continued effective implementation of institutional reforms would boost confidence 
in North Macedonia 's economy.  
4.109.   We commend the investment regime of North Macedonia which is ge nerally open to FDI, 
with only a few legal restrictions, in domestic and international air transport and gambling, and 
foreign ownership of non -agricultural land. North Macedonia is cooperating with five other West 
Balkan economies to harmonize national in vestment policies and align them with EU standards and 
international best practices.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  4.110.   We learn from the Secretariat 's report that North Macedonia offers numerous support 
measures to enterprises as part of its overall economic strategy to promote industrial development, 
competitiveness, and the creation of new and better -paid jobs. A key objective of many of these 
measures n to encourage investment, particularly in manufacturing, and to promote linkages 
between foreign investors and domestic firms to increase the country 's integration in global value 
chains. The Economic Growth Plan, published in February 2018, which is closely related to the new 
Industrial Strategy, seeks to stimulate growth in the industrial sector, focusing on manufacturing.  
4.111.   We a pplaud North Macedonia 's process of harmonizing its technical regulations and 
standards with relevant EU rules, with a view to preparing for accession to the European Union. The 
Standardization Institute of the Republic of North Macedonia adopted 28,898 st andards, most of 
which are European standards. The authorities aim to achieve full harmonization with the EU acquis 
in product safety during the period 2019 -21, particularly through the transposition of EU New 
Approach Directives. Since the last Review, No rth Macedonia submitted one notification to the WTO 
Committee on Technical Barriers to Trade.  
4.112.   Although North Macedonia managed to integrate successfully into certain global value chains, 
particularly in the automotive industry, significant challenges must  be addressed to improve the 
competitiveness of the manufacturing sector. The new Industrial Strategy, with a focus on the 
manufacturing sector, adopted in 2018, emphasizes the critical role of manufacturing to economic 
growth, productivity, high -quality j obs, innovation, and promotion of the circular economy. Its 
overall objective is to promote industrialization by stimulating the growth and development of the 
manufacturing sector to boost productivity, create good jobs, raise income, and strengthen human 
capital, while addressing the challenges of the circular economy.  
4.113.   We would like to congratulate North Macedonia for adopting a series of by -laws aimed at 
strengthening the institutional and operational framework of banks and transposed several pieces 
of EU banking legislation during review period.  
4.114.   Our bilateral trade volume amounted to 504 million USD in 2018 and this number was 
USD 461 million in 2017. Our foreign trade volume indicates that we are still below our actual 
commercial potential.  
4.115.   Thus, we sh ould work more to reach our common goal of USD 1 billion trade volume. We 
need to raise our economic cooperation to a level reflecting our close political relations and strong 
ties of friendship.  
4.116.   We are pleased to observe the growing interest of large Turk ish companies in North 
Macedonia. Turkish direct investments have reached USD 1,3 billion. There are around 100 Turkish 
companies, providing employment for over 5000 persons.  
4.117.   We continue to encourage our companies to invest more in North Macedonia and we need 
to work together to incentivize mutual investments. In this sense, we believe that acceleration of 
bureaucratic processes regarding the Turkish companies in operation will contribute to the increasing 
level of Turkish investments in North Macedonia to  a great extent.  
4.118.   Turkish Cooperation and Coordination Agency (TIKA) has so far implemented 650 projects 
in order to contribute to the development of North Macedonia. Total value of TIKA projects in North 
Macedonia amounts to USD 116 million. TIKA will cont inue to increase its involvement in this regard.  
4.119.   Turkey will continue its close and fruitful dialogue with North Macedonia in both bilateral and 
multilateral platforms.  
4.120.   We raised some advance written questions to Northern Macedonia on a range of sectors and 
we would be happy to have replies to these questions. Finally, we wish Northern Macedonia a 
productive and successful second Trade Policy Review.  
SINGAPORE  
4.121.   We welcome North Macedonia 's strong support of the rules -based multilateral trading system 
embod ied in the WTO, including its ratification of the Protocol amending the Agreement on WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  Trade -Related Aspects of Intellectual Property Rights and the Trade Facilitation Agreement. We note 
that North Macedonia is in the process of acceding to the Government Pr ocurement Agreement. 
Additionally, North Macedonia may wish to consider becoming a party to the Information Technology 
Agreement (ITA) to further develop its ICT infrastructure. North Macedonia is a signatory of the Joint 
Statement Initiative on E -Commerce , and we welcome its participation in the ongoing negotiations, 
which seeks to further enhance the benefits of E -Commerce for businesses, consumers and the 
global economy.  
4.122.   We are heartened to note that North Macedonia has regularly notified the WTO of the  trade 
measures it has adopted since the previous TPR in 2013. However, we encourage North Macedonia 
to continue to fulfil its outstanding notifications, including those on domestic support for agricultural 
products. The WTO 's monitoring function is a cruc ial aspect of the organisation, and Members ' timely 
and complete notifications contribute to the predictability and transparency of the international 
trading system. We further note that tariffs applied to agricultural products remain considerably 
higher ( about three -fold) than on non -agricultural goods. We look forward to North Macedonia 
progressively reducing these in due course.  
4.123.   On the domestic front, we are encouraged to learn from the reports by North Macedonia and 
the Secretariat about the steps that  North Macedonia has taken to improve the domestic business 
environment and spur economic growth. North Macedonia was ranked 29th under the World Bank 
Group Doing Business Report 's Trading Across Borders Index, and 10th in the World Bank "Doing 
Business " Index in 2019. These are positive developments and we encourage North Macedonia to 
keep up the good work.   
4.124.   Singapore sees potential to deepen economic collaboration with North Macedonia. We look 
forward to identifying new areas of bilateral cooperation goi ng forward, and we wish North Macedonia 
every success in its second Trade Policy Review.  
INDIA  
4.125.   During the period under review, the GDP of the Republic of North Macedonia grew at an 
average rate of 2,2% and the per capita income increased from EUR 3 678 in 2012 to EUR 5 169 in 
2018. As a result of the growth, unemployment and poverty also reduced during the period. North 
Macedonia is dependent on trade, with the services sector the largest contributor in the economy 
followed by manufacturing, agriculture and  forestry. The structure of exports has also evolved during 
the period under review with machinery and electrical equipment becoming the largest exporting 
items replacing base metals and textiles. Foreign direct investment flows have increased from 
EUR 141 million in 2012 to EUR 621 million in 2018. As a middle income and locked country, Republic 
of North Macedonia also faces challenges including addressing low productivity, infrastructure needs, 
public debt, and integration within the European Union. We co mmend the Government of the 
Republic of North Macedonia for the various measures it has undertaken to address their challenges 
including strengthening institutions and economic reforms for aligning national legislations with the 
European Union and also pro moting an environment to attract investment with 10th place in the 
World Bank 's ease of doing business ranking in 2019.  
4.126.   India shares warm, friendly and cordial relations with North Macedonia. Trade between both 
countries which stood at USD 43.63 million though modest, has considerable potential to grow in 
sectors like textiles, agricultural products, pharmaceuticals, chemic als, Ferro alloys, marble, cotton 
and other areas. Indian companies are also exploring investment opportunity in North Macedonia in 
areas like steel, pharmaceuticals and manufacturing and Macedonian companies are also exploring 
the opportunities to invest in India.  
4.127.   For capacity building and human resources development, India is also regularly offering slots 
to professionals of the Republic of North Macedonia in various institutions in India under Indian 
Technical and Economic Cooperation programme.  
4.128.   To conclude, India looks forward to working closely with the authorities of the Republic of 
North Macedonia for further expanding and harnessing the potential of our trade and investment 
ties. We wish the delegation of the Republic of North Macedonia a produ ctive and successful TPR.  
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  THAILAND  
4.129.   Thailand is pleased to highlight that total trade between Thailand and North Macedonia 
expanded by 47% from the last review in 2013. Although the bilateral trade is still relatively small 
at USD 6.1 million, there is tr ade potential that can be explored. For exports from Thailand, such 
potential may exist in prepared fish, ores, motor vehicles, air conditioning machines, and telephones. 
While parts of railway, electrical capacitors, marble, furniture, and tubes can be co nsidered potential 
exports from North Macedonia.  
4.130.   The trade policy reports brought to light several areas of macroeconomic improvement of 
North Macedonia during the review period. We welcome the constant growth of GDP; the reduction 
in unemployment and pov erty; the decrease in trade balance deficit; and the increase in FDI net 
inflows. North Macedonia has taken steps to continually improve its business and customs 
regulations as well as to increase its attractiveness to foreign investors. We believe that th ese efforts 
will contribute to sustainable economic growth and boost confidence in North Macedonia 's economy.  
4.131.   Thailand commends North Macedonia for showing its commitment to the rules -based 
multilateral trading system, including by ratifying the Trade Fac ilitation Agreement and regularly 
notifying the WTO of its trade measures. However, some notifications are still pending, including 
those on domestic support for agricultural products. In this context, we urge North Macedonia to 
fulfil its notification obl igations because Members ' timely and complete notifications are crucial to 
the WTO 's monitoring function and contribute to the predictability and transparency of the 
multilateral trading system.  
4.132.   In addition, according to the Secretariat report, applied ta riffs on 13 tariff lines appear to 
exceed corresponding bound rates. Thailand is interested to seek clarification from North Macedonia 
in this regard.  
4.133.   We wish North Macedonia every success in its second Trade Policy Review.  
URUGUAY  
4.134.   Uruguay wishes to extend  a most cordial welcome to the delegation of North Macedonia on 
the occasion of its second Trade Policy Review.  
4.135.   First, we applaud the fact that GDP growth averaged 2.2% annually between 2012 and 2018 
and is expected to remain at this level in the medium te rm. During the period under review, per 
capita GDP grew by more than 40% and unemployment dropped from 31% to 20.7%, which led to 
a substantial reduction in poverty.  
4.136.   Imports and exports of goods grew constantly during the review period, but the growth rate  
of exports was more sustained. The share in GDP of merchandise exports increased from 30.4% 
in 2012 to 45.5% in 2018, while that of merchandise imports rose from 56.9% to 61.6%.  
4.137.   We note that the surplus of the services balance grew during the review perio d, driven by 
an increase in the value of services exports exceeding that of services imports. The growth of 
services exports is mainly due to construction, IT services and professional services.  
4.138.   At the multilateral level, we wish to emphasize that the coun try has regularly notified the 
WTO of the trade measures it adopted since its previous review. Some notifications are still pending, 
including those on domestic support for agricultural products. Similarly, we note that it has 
implemented 99.2% of its comm itments under the Trade Facilitation Agreement, which it adhered 
to in October  2015, and will have implemented another 0.8% by December  2019 without having 
received any capacity -building support. During the Eleventh WTO Ministerial Conference, recognizing 
the need to keep pace with the developments in the global economy, North Macedonia co -sponsored 
the initiatives to continue working on e -commerce and on domestic regulation of services, as well 
as on the creation of the Informal Working Group on MSMEs.  
4.139.   We underline that recent reforms of business regulations resulted in a significant 
improvement in certain aspects of the business climate, both for domestic and foreign investors, 
offering numerous support measures to businesses as part of its overall economi c strategy to WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  promote industrial development, competition, and the creation of new jobs. It is also pursuing 
measures to foster the development of micro, small and medium -sized enterprises. In fact, it 
emphasizes the Economic Growth Plan (EGP), published i n February  2018. Measures for promoting 
the development of MSMEs include trade financing programmes for fast -growing SMEs that commit 
to increasing their annual income and number of employees, and MSMEs that invest in technological 
development, as well as those that promote innovation.  
4.140.   Lastly, at the bilateral level, we underscore that in 2018, Uruguay exported well over 
USD 4 million worth of goods, particularly medical and surgical furniture, frozen fish and leather. We 
encourage the country to continue e xpanding its trade with us.  
4.141.   Uruguay wishes North Macedonia every success in its second Trade Policy Review.  
GEORGIA  
4.142.   I would like to express my appreciation to the Government of the Republic of North 
Macedonia and the Secretariat for their outstanding work in compiling the comprehensive report on 
trade policy developments over the course of the review period.  
4.143.   Georgia commends the endeavours  taken by North Macedonia towards the economic 
development since the last review in 2013, which resulted in growth of GDP per capita by more than 
40% between 2012 and 2018. It is also important to note that investment trends in country is 
excessively promi sing FDI net inflows rose from approximately EUR 131.0 million in 2012 (1.5% of 
GDP) to EUR 621.9 million in 2018 (5.8% of GDP).   
4.144.   Despite the fact that trade relations between Georgia and North Macedonia is relatively low, 
we are looking forward to boosti ng bilateral trade relations in future. It should be mentioned that 
trade turnover in 2018 increased by 57% and amounted to USD 1.1 million . Export increased by 
109% and amounted to USD 0.3 million , import increased by 42% and amounted to USD 0.7 million .  
4.145.   In February 2019, foreign ministers of Georgia and North Macedonia have signed an 
agreement regarding the establishment of diplomatic and consular relations during the Munich 
Security Conference.  
4.146.   We strongly believe that the existing cooperation will be developed through continued joint 
efforts in the future.  
4.147.   We wish North Macedonia a successful TPR.  
ALBANIA  
4.148.   Albania highly values the very good and close cooperation it has with North Macedonia. We 
note with appreciation the progress made by the Macedonian Government in implementing policies 
that have fostered consistent growth and stabilized the macroeconomic and financial environment, 
as well as for undertaking important reforms to strengthen the rule of law, build confidence in the 
market and p romote trade and investments. Such reforms have clearly contributed to the country 's 
growth, rising competitiveness and overall improvement of the business environment.  
4.149.   We commend the Government for continuing the reforms needed to bring domestic 
legislat ion into line with WTO requirements and with the EU single market regulations and policies. 
It is encouraging that the regulatory framework has further been consolidated in areas such as 
privatization, customs, government procurement, standards and competi tion policy.  
4.150.   As the Secretariat report notes, North Macedonia has taken measures aimed at increasing 
its attractiveness to foreign investors, such as targeted investment promotion strategies and 
financial and other types of incentives, including in the co ntext of Technological Industrial 
Development Zones. We also wish to recognize the Macedonian Government 's efforts to promote a 
more sustainable, business -friendly environment for foreign investors.  
4.151.   We congratulate North Macedonia for the impressive rise of GDP per capita by more than 
40% during the period under review. We encourage the Government to continue and intensify the WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  implementation of initiated reforms to properly address labour market weaknesses and to combat 
informality, convinced of the necess ity of such measures for increasing productivity and inclusive 
growth.  
4.152.   As neighbouring countries, Albania and North Macedonia enjoy a strong and stable 
relationship. Both countries have ratified the WTO Trade Facilitation Agreement, an important 
instrumen t for building more effective cooperation between customs and other appropriate 
authorities, and ultimately making for quicker and more efficient movement of goods and cross -
border cooperation.  
4.153.   While the political relations between our two countries are ve ry good, the level of bilateral 
economic and trade relations remains modest. In 2018, the trade volume of exchanges with North 
Macedonia was EUR 142 million. The value of goods imported with North Macedonia was 75 million 
Euros, or 1.5% of the total value of Albanian imports. It nonetheless represents an increase of 15.2% 
in the value of imports from North Macedonia compared to the previous year. Meanwhile, the value 
of Albanian exports to North Macedonia was EUR 66.7 million, accounting for 2.8% of the tot al value 
of exports. Compared to 2017, there is an increase of about 6% of the value of Albanian exports to 
North Macedonia in 2018.  
4.154.   The upward trend is an indication of the potential to increase and strengthen the economic 
and trade relations between our  two countries. Tourism may well be one such sector, in line with 
Albania and North Macedonia 's respective strategies.  
4.155.   Both Albania and North Macedonia are EU candidate countries. Both are members of CEFTA 
(Central European Free Trade Agreement), and both  participate in the Western Balkans Regional 
Economic Area (REA), the newest initiative based on EU rules and principles aiming to facilitate 
integration in regional and European value chains and to help increase the attractiveness of the 
regional economie s for FDIs in tradable sectors.  
4.156.   In conclusion, Albania wishes to North Macedonia a successful and productive Trade Policy 
Review, and we look forward to continuing our excellent and constructive engagement with the 
delegation of North Macedonia in Geneva.  
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  5  REPLIES BY THE REPRE SENTATIVE OF THE REPUBLIC OF NORT H MACEDONIA  AND 
ADDITIONAL COMMENTS  
5.1.  Firstly , let me express my sincere appreciation for your participation in the second TPR of North 
Macedonia.  Thank you for your valuable comments and questions we have received.  
5.2.  The questions raised showed interest and encouragement, and showed that both, the 
Secretariat report and the report of the Government of North Macedonia were examined with 
attention, and that the main messages we wanted to convey were well received.  
5.3.  We appreciate the interest of Members in the TPR of North Macedonia. We understand some of 
the comments as the willingness to make an additional effort towards engaging in a constructive 
dialogue in order to improve bilateral relations. As we expressed during the TPR, North Macedonia 
will continue to cooperate with all the countries in line with the WTO rule -based multilateral trading 
system to which North Macedonia is fully committed.  
5.4.  We have  noted all the written consideration s and issues raised by Member States and my 
colleagues from our delegation made efforts and answered all written questions during the course 
of this TPR process.  
5.5.  We also systemized the interests of issues as questions, mentioned by particular Members on 
Monday and want to highlight some positive advancement as recognized through their statements.  
5.6.  In the economic environment and main features of the economy, referring  to improving the 
business environment and improv ing competitiveness, North Macedonia focus ses on creating a more 
receptive and business -friendly environment , and remains committed to creating a functional and 
competitive market economy. Structural reforms are aimed at strengthening human capital, 
stimulating  innovation and creativity, improving competitiveness, creating higher -paid jobs , and 
facilitating trade. Further alignment of the national legislation to implement rule s of law and create 
a predictable and favourable  business climate is envisaged.  
5.7.  Regarding progress achieved to improve the competitiveness of its manufacturing sector, the 
latest analysis shows that the export structure is changing in the last decade from low value added 
towards higher value -added products. In the forthcoming period, we expect that the manufacturing 
sector will grow, based on knowledge and innovation. Sets of measures are focussing on: support 
of companies ' growth and investments in modernization, automatization and digitalization; 
stimulation of collaboration, innovat ion and R&D; internationalization; as well as skills development 
according to industry needs.  
5.8.  Regarding the increase in the level of integration of domestic companies into global value 
chains, there is potential for integration into global value chains in automotive components, the 
machinery and equipment sector, the food processing sector, and others. The Economic Growth Plan 
focusses on the support of enhancing competitiveness , and stimulates the establishment of links and 
improvement of the level of coll aboration of FDI with domestic firms. As one of the measures for the 
companies to be more integrated in global supply chains, companies are encouraged to become 
Authorized Economic Operators (AEOs). This measure facilitates companies ' trade operations on t he 
international markets, decreases the number of customs controls, and increases trade compliance. 
Mutual AEO recognition is part of the CEFTA additional Protocol 5 to the agreement.  
5.9.  Concrete measures to increase the spill-over effect of FDI to the rest o f the economy envisage 
stimulating collaboration between FDI and domestic companies, institutions and universities.  
5.10.   In creating a skills spill -over effect , the dual education system , which was introduced in 2018, 
provides students from vocational schools  the opportunity to acquire knowledge and practical work 
in foreign companies.  
5.11.   For monitoring efficiency and cost effectiveness of different business support schemes, every 
institution which implements programmes for business support develops a plan for mon itoring and 
cost effectiveness of the business support scheme they implement, which serves as the basis for the 
further improvement of the measures and actions undertaken under different programmes. The 
Ministry of Economy recently developed rules of proce dure for monitoring and evaluating the system WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  of strategic documents referring to industrial policy and entrepreneurship. With donors ' support, 
activities for capacity building in monitoring and evaluation, as well as a policy impact assessment 
are being l aunched. The Fund for Innovation and Technology Development monitors its beneficiaries 
through several indicators: revenues throughout the years; net profit; profit tax; number of 
employees and average salary; profit as a percentage of the generated income ; social and health 
contributions paid to the national budget; innovation and management practices; etc.  
5.12.   Regarding the initial impact of the recent measures to reduce the size of the informal 
economy, I would like to inform Members that, in March 2018, th e first medium -term Strategy for 
Formalization of the Informal Economy 2018 –22 was adopted. It aims to reduce the number of 
informally employed, and to reduce the share of unregistered business entities. Due to the 
complexity of the informal economy, the S trategy unites all relevant aspects of many sectorial 
policies, such as improving the regulatory and business environment, enhancing the institutions in 
the labour market, increasing the inspection of informal economy flows, and raising awareness of 
citizens and businesses of the importance of the formalization of informal activities. For the 
implementation of the Strategy, the Action Plan for Formalization of the Informal Economy was 
adopted in August 2018, containing 29 measures. Also, in September 2018, a Coordinative Body 
was established to monitor the implementation of the Action Plan.  
5.13.   The first tangible results of the Action Plan were the latest amendment of the Law on VAT, 
with the possibility of VAT reimbursement to citizens. This measure is estimat ed to significantly 
increase the issuance of fiscal receipts, by decreasing non -registered sales. Another to mention is 
latest amendment in the Law on Cash Registry Payment, where the threshold for cash payments 
was decreased from EUR 1,000 to EUR 500.  
5.14.   With regard to trade policy objectives and practices by measures, we are pleased to see that 
Members recognized North Macedonia 's efforts to contribute to the multilateral trading system. 
Members commended our efforts to join plurilateral agreements, the e arly acceptance of the TFA, 
and co -sponsoring initiatives raised at the 11th Ministerial meeting. Some Members were interested 
in MFN tariffs of North Macedonia, as applied MFN rates are in excess of bound rates for 13 tariffs 
lines. The Customs Administra tion of North Macedonia analysed the differences in the MFN applied 
rates and WTO bound rates due to several HS amendments in 2007, 2012 and 2017, and found that 
in five tariff lines there were inconsistencies. For others, it is in line with the WTO commit ments. 
These adjustments shall be done with the next amendments of the National Customs Tariff, to be 
applied from 1 January 2020. For the remaining eight tariff lines, which are consistent with the WTO 
commitments, the Customs Administration, along with t he Ministry of Economy, shall provide to the 
WTO Secretariat a comprehensive explanation of the application of MFN rates.  
5.15.   Some Members noted that certain notifications are pending concerning notifications on 
domestic support for agriculture, SP S and quanti tative restrictions. All others consider  that trade 
measures are regularly notified to the WTO. I would like to note that five SPS notifications were 
made in March 2019.  
5.16.   The pending notifications are in the process of preparation by the relevant institutio ns in North 
Macedonia and, by the end of 2019, most prepared notifications will be distributed to the WTO 
through the Mission of North Macedonia in Geneva. Also, I would like to note, regarding the 
notification of Quantitative Restrictions, it will be noti fied by the end of this year according to Annex 
2 of the QR Decision   
5.17.   When it comes to measures affecting production and trade, here we note  that r egarding 
transparency obligations under Article 7 and Annex B of the SPS Agreement, where it refers to the 
Law on Plant Health, the Phytosanitary Directorate (PD) regularly publishes new and amended 
legislation and adopted measures on the Ministry 's web pa ge. Additionally, these changes, including 
copies of the relevant documents, are reported regularly through the IPPC portal by the national 
contact point, and it was circulated by e -mail to all EPPO member countries.  
5.18.   In order to improve transparency, a Phytosanitary Information System  (PIS) for plant health 
and plant protection products, contributing to better communication, coordination and more efficient 
functioning of all stakeholders involved in the phytosanitary sector  has been put in place . According 
to the working plan , the PIS will be fully operational by the end of 2019. The PIS will include a public 
portal with a website, where drafted and published national phytosanitary measures will be WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  published. The National WTO Notification Contact Point is go ing to implement the SPS Notification 
Submission System for informing third countries on draft phytosanitary measures, as well as the 
TBT Notification Submission System on draft plant protection products measures.  
5.19.   For conducting the SPS risk assessment, al low me to point out that SPS risk assessments 
system was established with reference to veterinary and food safety issues. However, the risk 
assessment in the phytosanitary sector is in the early phase of implementation. For the risk 
assessments of new spec ies of harmful organisms (PRA), important for North Macedonian agriculture 
and forestry, the international standard ISPM 11 was adopted as a by -law in 2014.   
5.20.   The EU IPA 2015 project provides technical support for using quantitative PRAs, in comparison 
to quantitative PRAs in the CAPRA scheme of the EPPO, as started in January 2019. In the framework 
of trade facilitation activation within the CEFTA, a pilot project was initiated for the facilitation of 
phytosanitary certification for certain fruits and veget ables, where risk assessment issues will be 
covered.  
5.21.   When it comes to the trade of meat products with third countries, please note that North 
Macedonia respects the commitments that rise from the Stabilisation and Association Agreement 
with the European Un ion. North Macedonia fully revised the text as a by -law document in May 2019, 
applicable as of 1 July 2019, in which the Commission Regulation (EU) No. 206/2010 that refers to 
certain animals and fresh meat and the veterinary certification requirements is transposed. Some 
commodities that are not on the list of third countries allowed for export into the European Union, 
accordingly are not in position to be imported into North Macedonia. Such treatment is due to respect 
SPS import requirements related to an imal health status and food establishment status.  
5.22.   We duly note the words of encouragement extended by the parties to the positive 
developments of our public procurement system, as well as the ongoing accession negotiations of 
the Republic of North Macedoni a to the GPA. We would like to, once again, reaffirm our determination 
to close our negotiations by the end of this year. During the last round of negotiations in June, we 
offered a possible creative solution addressing the concerns some GPA parties expres sed, by 
considering a transitional period in our revised offer that we plan to submit in due course. We will 
actively engage with the other GPA parties in the coming period to see if common ground can be 
found to move forward, based on this proposed soluti on. 
5.23.   Since no specialized court dealing with IPR cases exists in North Macedonia, even though we 
have full power enforcement established in the Law on Industrial Property and in the Law on 
Copyrights and Related Rights in line with the EU enforcement direct ive, the relevant institutions in 
North Macedonia in charge of IPR cooperate to train judges and public prosecutors. In order to 
improve the experience of judges and public prosecutors, an academy for judges and public 
prosecutors, in cooperation with the State Office of Industrial Property, continuously organize 
training for judges and public prosecutors. Training courses in 2018 were organized in the following 
topics: enforcement of industrial property rights, civil -legal protection of copyright and relat ed rights, 
administrative court protection of industrial property rights, and misdemeanour -legal protection of 
IPRs. Also, the State Office of Industrial Property, in cooperation with the European Patent Office, 
gives the opportunity to the judges and publ ic prosecutors to participate in different seminars and 
study visits that are foreseen within the training programme of the EPO.  
5.24.   Statistics on IP enforcement is part of the methodology for collecting and processing data, 
which is in process of improvement due to developing the e -network.  
5.25.   Regarding trade policies by sector, the transport infrastructure in the Republic of North 
Macedonia is permanently developing when it comes to road and railway infrastructure. In the next 
period, will be supplemented by th e implementation of horizontal measures, part of the connectivity 
reform measures. Implementation of intelligent transport systems (ITS), along Corridor  X, is 
expected to result in an increase in safety and in saving time. Time savings will increase the 
competitiveness of Corridor X, especially for international transport. Companies carrying out 
transport activities will have lower costs and shorter transport times, which will create conditions for 
increasing the volume of transport along this Corridor.  
5.26.   In order to reduce the border crossing time with neighbouring countries, in 2015, an 
agreement on the establishment of rail border procedures for the Macedonian -Serbian border was WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  signed. Construction of a joint railway border crossing, introducing a one -stop-shop principle, will 
contribute towards efficient cross -border movement of passenger and freight traffic. Due to travel 
time savings, as anticipated, the competitiveness of Corridor X will increase, especially for 
international transportation. Companies w ill benefit the most from increased transport volume by 
railway.  
5.27.   I would also like to use this opportunity to thank all Members who have supported us and 
provided technical assistance. Their help was instrumental in achieving the fulfilment of obligations 
from the WTO Agreement.  
5.28.   On behalf of the Macedonian delegation, I would like to reiterate my appreciation to you, 
Chair, Discussant, and to thank the Secretariat, and all Members that raised questions and showed 
interest in the North Macedonia TPR, which w as a very constructive and useful experience for us.  
DISCUSSANT  
5.29.   First of all, I would like to thank Minister Bekteshi and his team for their hard work in replying 
to the Members ' questions and their open and constructive attitude towards this exercise. It is an 
honour to contribute to the conclusion of this Trade Policy Review by highlighting some of the main 
issues discussed.  
5.30.   Members appreciated the strong commitment of North Mac edonia to the rules -based 
multilateral trading system embodied in the WTO. Members applauded the active engagement of 
North Macedonia in the WTO, including the acceptance of the Protocol amending the TRIPS 
Agreement, implementation of the Trade Facilitatio n Agreement and implementation of the 
expanded Information Technology Agreement.  
5.31.   Furthermore, several delegations underlined the importance of the ongoing negotiations to 
join the GPA, and many commended the active participation of North Macedonia in the follow -up of 
the joint initiatives from MC11 on Services Domestic Regulation, Electronic Commerce and MSMEs, 
as well as the support for the Buenos Aires Declaration on Women and Trade.  
5.32.   Several delegations welcomed the recent resolution of the name issue a s a positive step that 
will also be helpful in advancing the integration of North Macedonia into the regional and global 
economy.  
5.33.   The progress made by North Macedonia in aligning rules and regulations with EU law were 
highlighted, and many delegations exp ress their confidence that this will pave the way for accession 
negotiations with the EU in the not too distant future.  
5.34.   Members praised North Macedonia 's impressive achievements in improving the business 
environment and encouraged North Macedonia to conti nue on its reform path to further boost its 
economy, and to address structural challenges related to i.e. the large informal sector, the need to 
increase productivity and the need to improve the physical infrastructure.  
5.35.   Most of the questions posed by Members were requests for more information, which confirms 
the keen interest of Members in the trade and investment regime of North Macedonia. As can be 
expected in a peer review like this, critical questions were also asked. The enforcement of Intellectual 
Property Rights was raised by a number of delegations. Members also touched upon issues related 
to rule of law and quality of government institutions.   
5.36.   The review was carried out in a constructive spirit and positive atmosphere. Members engaged 
actively wit h pointed questions and relevant comments, and North Macedonia has responded with 
the same engagement and respect. I trust that the Government of North Macedonia will make use 
of this review as an encouragement and inspiration to continue with the reform a genda, where an 
open and predictable trade policy anchored in the rules -based international trading system is an 
indispensable element.  
5.37.   Let me conclude by congratulating the delegation of the Republic of North Macedonia with a 
successful Trade Policy Revi ew. Thank you.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  UKRAINE  
5.38.   Ukraine would like to thank the delegation of North Macedonia for the very informative TPR 
meeting and for the comprehensive responses to our advanced written questions. Our sincere 
appreciations go to Mr Kreshnik Bekteshi, Head of North Macedonian delegation, and to the 
discussant, Ambassador Dagfinn SØRLI, for the comprehe nsive analyses of trade and economic 
developments in North Macedonia since its previous T rade Policy Review in 2013.  
5.39.   We do not have for the moment additional follow -up questions to raise.  
5.40.   Nevertheless, we would like to note the importance of agriculture ma rket access 
improvement, where Ukraine has its specific interest.  
5.41.   We believe that our mutual cooperation under the Free Trade Agreement and harmonization 
of rules of origin as provided by the Pan -Euro-Med Convention will create the new trade opportunities  
contributing to economic growth in our countries. Ukraine also counts on cooperation with North 
Macedonia in the WTO to further strengthening the multilateral trading system.  
5.42.   We encourage North Macedonia to successfully continue its economic reforms and w e believe 
in greater developments and further achievements of North Macedonia by its next Trade Policy 
Review.  
5.43.   We wish the delegation of North Macedonia safe and pleasant journey home.  
EUROPEAN  UNION  
5.44.   Let me first thank the Republic of North Macedonia for the comprehensive overview presented 
on Monday and this morning  of the main developments occurred in its trade and economic policy 
during the review period.  
5.45.   We would also like to thank the authorities  of the country for having provided timely and 
comprehensive replies to the questions raised by the EU. The answers gave  us useful clarifications 
on the issues we had raised.  
5.46.   The EU hopes that North Macedonia will duly take into account some of the few ch allenges 
highlighted by Members during this Trade Policy Review. The EU would also like to encourage North 
Macedonia to continue in its ambitious efforts to reform the economy.  
5.47.   We look forward to continuing our cooperation in the framework of the Stabilisa tion and 
Association Agreement. We also hope that a decision can be taken this autumn to open EU accession 
negotiations.  
5.48.   We look forward to our continued co operation in all the relevant multilateral, plurilateral and 
bilateral fora.  
5.49.   On behalf of the EU, I congratulate North Macedonia  for concluding this productive and 
successful review.  
UNITED  STATES  
5.50.   The United States would like to sincerely thank Minister Kreshnik Bekteshi and the members 
of the delegation of North Macedonia for their thorough preparation for and constructive participation 
in their second Trade Policy Review. We also thank Ambassador Sorli for his clear and informative 
insights and, as always, the Secretariat for excellent work.  
5.51.   We also thank Minister Bekteshi for his remarks this morning a nd his efforts to address the 
comments offered by Members during this review.  
5.52.   We have a few follow -up questions that we submitted formally as well  this morning . With 
regard to the 13 tariffs lines that exceed bound rates, North Macedonia noted a portion of  the WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  13 were already in line with WTO commitments. We welcome identification of which tariff lines will 
be lowered,  and which tariffs lines are already in conformity. In the area of intellectual property 
rights, North Macedonia 's Law on Copyright and Relat ed Rights contains provisions for persons with 
special needs. We hope to learn how North Macedonia defines a person with special needs. With 
respect to laws and regulations that govern copyright and piracy in the digital environment, does 
North Macedonia i ntend to align its legal framework with the new 2019 European Union Directive on 
Copyright in the Digital Single Market? Lastly, with respect to enforcement of IPRs through the court 
system, what was the cause of the judicial authorities rejecting 11 of th e 26 criminal charges for 
infringement of intellectual property rights? Are there further steps that could increase the number 
of cases the judicial authorities accept, such as evidence rules or specialized IP courts?  
5.53.   In conclusion, we appreciate the oppo rtunity to participate in North Macedonia 's second  Trade 
Policy Review. We offer our congratulations to Minister Bekteshi and the entire delegation on a 
successful Trade Policy Review.  
BRAZIL  
5.54.   Let me first congratulate the delegation of the Republic of North Macedonia, headed by the 
Minister of Economy. Also thank the discussant and the Chairperson. And I would also like to 
congratulate the North Macedonia Government that recently opened an Emba ssy in our country, and 
special greetings to Ambassador Ivica Bocevski, your first Ambassador to Brazil.  
5.55.   Furthermore, I would like to reemphasize our question to maybe reconsider your policy 
towards Brazilian meat exports that we have some current barrier s, tariff and non -tariff barriers. So 
if you could reconsider that, we would be very thankful.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The second Trade Policy Review of the Republic of North Macedonia has provided an excellent 
opportunity to deepen our understanding of the recent trade and economic policy developments in 
North Macedonia.  
6.2.  I would like to thank the delegation of the Republ ic of North Macedonia, led by H.E. Kreshnik 
Bekteshi, Minister of Economy, for their constructive engagement in this Review. I would also like 
to express my appreciation to the discussant, Ambassador Dagfinn Sorli of Norway, for his very 
insightful and ver y direct remarks, and to all the delegations that have contributed to this process 
through their questions and/or statements.  
6.3.  The questions raised, and the statements made by 20 delegations on Monday, attest to the 
importance attached by Members to the tr ade and investment policies of North Macedonia.  
6.4.  Members have been very appreciative of the progress that North Macedonia has made in recent 
years in its economic performance and its trade and investment policies, and of its strong support 
for the multilat eral trading system. Several Members emphasized the significance of the recent 
resolution of the name dispute with Greece under the Prespa Agreement.  
6.5.  Members highlighted several positive aspects of North Macedonia 's recent economic 
performance. Economic g rowth at an average annual rate of 2.2% in the period under review has 
resulted in significant increases in GDP per capita and substantial reductions in unemployment and 
poverty. The period since the previous Review also witnessed improvements in certain a spects of 
the business climate, as illustrated by the change in North Macedonia 's ranking in the World Bank 
Index, from 29 in 2013 to the top 10 in 2019. The almost fivefold increase in foreign direct 
investment inflows from 2012 to 2018 was another indica tor of the recent improvement in North 
Macedonia 's economic performance.  
6.6.  Members noted with appreciation that, as a small landlocked country very dependent upon 
trade, North Macedonia 's trade and investment policies seek to use openness to the regional an d 
global economy within the framework of the WTO and regional trade agreements to improve the 
competitiveness of its economy. Members also noted North Macedonia 's strategic objective of EU 
integration, and welcomed the progress made by North Macedonia in a chieving convergence with 
EU rules in many areas of its trade and economic policy. Among the recent changes in specific areas 
that were mentioned were the increased transparency and predictability under the new Public 
Procurement Law; the modernization of the customs legislation and procedures; the implementation 
of trade facilitation measures; and the existence of a generally open regime for foreign direct 
investment.  
6.7.  Members also commended North Macedonia for its active role in the WTO. North Macedonia 
accepted the Protocol amending the TRIPs Agreement, acceded to the Civil Aircraft Agreement, and 
has applied almost all Trade Facilitation Agreement provisions immediately upon the entry into force 
of the TFA. Moreover, it has also demonstrated its openness to new ideas on the evolution of the 
trading system by participating in several Joint Statement initiatives on domestic regulation in 
services, electronic commerce, MSMEs and in the Declaration on Women and Trade. It is currently 
in the process of accessio n to the Government Procurement Agreement, which it hopes to conclude 
by the end of 2019.  
6.8.  Members also pointed to aspects of North Macedonia 's economic and trade and investment 
policies that they consider require some attention in the ongoing reform proce ss. Members requested 
that North Macedonia vigorously pursue recently -initiated structural reforms to improve the 
functioning of its labour market, reduce the size of the informal sector, ameliorate the quality of 
public institutions, and develop a more ef ficient and fairer tax system. Such reforms are essential to 
enable North Macedonia to address the fundamental problem of low and stagnant productivity. 
Members were also interested in how North Macedonia will implement measures provided for in its 
recent Economic Growth Plan and Industrial Strategy to promote the growth of the manufacturing 
sector, attract foreign direct investment, and promote the development of spill -over effects of foreign 
direct investment to domestic investment. The question of the co st-effectiveness of the different 
business support schemes applied by North Macedonia was also raised.  WT/TPR/M/3 90 • The Republic of North Macedonia  
 
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  6.9.  The need to prioritize the modernization of the transport infrastructure and of reducing the 
reliance on price controls was mentioned. We thank the Minis ter for his updates on the modernization 
programme. Regarding North Macedonia 's tariff commitments, a concern was expressed that, 
according to the WTO Secretariat 's analysis, applied tariff rates are higher than bound rates in 
13 tariff lines. And we note also the clarification that some of these lines have already been brought 
into conformity. We would appreciate further updates on the issue of these tariff rates still higher 
than bound rates. While Members welcomed efforts of North Macedonia to comply wit h notification 
obligations, it was noted that, in certain areas, notifications were outstanding, particularly regarding 
domestic support in agriculture, SPS measures and quantitative restrictions. We do note also the 
Minister 's update on these pending noti fications. The point was made further that effective 
enforcement of North Macedonia 's intellectual property rights posed a significant challenge in the 
absence of a system of specialized IPR courts and the lack of reliable statistics on IPR enforcement. 
In this regard, we also note the Minister 's update today of increased training for judges and 
prosecutors relating to IPR cases. Clarification was sought as to how North Macedonia conducted 
risk assessments for SPS purposes and complied with its notification  obligations under the SPS 
Agreement.  
6.10.   I hope this summarizes some of the key issues that have emerged in our discussions. And I 
am certain that the delegation of North Macedonia will take these concerns into account, and reflect 
on these issues and on the  many constructive comments and questions received during this Review. 
North Macedonia has provided answers to all the more than 130 advance written questions submitted 
prior to this meeting, and this has been highly appreciated by Members. The Trade Polic y Review of 
the Republic of North Macedonia will be successfully concluded once North Macedonia has replied to 
any follow -up questions that emerged during the meeting in a month 's time.  
__________