WORLD TRADE WT/MIN(96)/ST/93
12December 1996
ORGANIZATION(96-5310)
Original: English MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
ALBANIA
Statement byH.E. Mrs. Suzana Panariti
Minister ofIndustry, Transport andTrade
Itisapleasure formetobeheretoday andtopresent toyouthegreetings onbehalf ofthe
Government ofAlbania.
ThisConference isaveryimportant meeting which willassist ofcourse, thedevelopment of
themultilateral trading system.
Respectful oftheroleoftheWTO intheprocess ofglobalization oftheworld economy and
international trade, Iwishtoemphasize theimportance thatAlbania 'sGovernment gives theaccession
ofourcountry intheWTO, considering thismembership oneofthepriorities ofitsforeign economic
policy.
Weappreciate better nowtheWTO, anditsobjectives andfunctions. Iwould liketomention
some issues concerning:
- TheevolutionandcurrentstatusofAlbania'sprogrammetoestablishamarketeconomy;
- theroleofinternational trade policy inAlbania 'seconomic reform programme;
- Albania 'sprospective membership intheWorld Trade Organization; howour
Government seesmembership supporting itseconomic policy objectives, andhowit
wouldexpecttofulfiltherequirementsofmembership,recognizingthatthismembership
involves obligations aswellasrights.
Albania 'ssuccess instabilizing itseconomy istheresult oftheimplementation ofcomprehensive
economic reforms since1992. Theobjectives weretohaltthedecline inoutput, reduce inflation, begin
structural changes needed forthetransition toamarket economy.
TheAlbanian Government hasestablished alegalframework providing forprivate ownership,
entrepreneurial activity, opencompetition, bankruptcy, foreign investment, protection ofconsumers,
privatization ofsmall, medium andlargeenterprises andmany other elements ofamodern commercial,
legalregime. Thesteady growth ofdomestic andforeign investment overthepastfouryears isavote
ofconfidence bytheprivate sector inAlbania 'scommercial lawreform.
NowtheAlbanian Government hasreduced itsroleinalmost allfields ofeconomic activity.
Asaresult, theprivate sector nowaccounts forabout 80-85 percentofGDP, 56percentofexports
and82percentofimports. Approximately 76percentofAlbania 'swork force isengaged inprivate
business.WT/MIN(96)/ST/93
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Price controls havebeenalmost completely eliminated. Controls remain ononlyafewpublic
services, suchaelectricity, water andpharmaceuticals. Even inthese areas, controls areonlypartial
andfurther liberalization isforeseen.
Albania 'snational currency, thelek,isinternally convertible andhasbeenfloating freely
since 1992. Therelative stability ofthelekoverthepastfouryears isonesign, among others, that
Albania 'sefforts toexercise fiscal andmonetary control andmore generally toensure macroeconomic
stability, havebeensuccessful.
Albania hasturned itsbackonisolationism andpursued aprogramme tostrengthen itsties
withtherestoftheworld. Wehaveconcluded bilateral economic, trade andindustrial agreements
with32countries and16other agreements areunder negotiation. Wehavealsoconcluded bilateral
agreements onpromotion andprotection ofinvestment with28countries and18other agreements are
under negotiation. Weareamember oftheInternational Monetary Fund, theWorld Bank, theEuropean
Bank forReconstruction andDevelopment, theBlack SeaEconomic Initiative andtheOrganization
ofIslamic States.
Looking tothefuture, Albania hasbeenworking hardsince 1992 onitsmembership ofthe
World Trade Organization, hopefully before 1997, andtowards aEurope Agreement withtheEU.
Over thepastfouryears, Albania hasvigorously pursued aprogramme toestablish amarket
economy andtobecome afullparticipant intheinternational community.
Privatization, asthekeytoafunctioning market economy, hasbegun since 1992based inthe
lawsandregulations approved intheParliament. Until now, more than75percentofnational wealth
hasbeenprivatized, among which:
- 96percentofagriculture land;
- 100percentofagriculture mechanics;
- 100percentofroadtransport, etc.
InMarch 1995, onthebasis ofaPresidential decree, began amass privatization oflarge
enterprises through vouchers, andAlbania nowhasitsfirstshareholders.
Duringthepastsixmonthswehaveheldtwonationalelectionswhichhadimportantimplications
forthefuture direction ofAlbania 'seconomy. Theresult wasaresounding victory fordemocracy
andeconomic reform. These results willallow Albania tobuild ontheprogress thathasbeenmade
overthepastfiveyears andtopursue without interruption important international initiatives. Inthis
context,thedemocraticGovernmentthatIrepresenthertoday,attachesparticularimportancetoAlbanian
accession totheWTO. Wewishtomake upforlosttime.
Itisimportant toconsider theroleofinternational trade policy inAlbania 'soverall economic
reform programme. Trade liberalization hasbeenoneoften main pillars ofeconomic stabilization
andreform along withprice liberalization, exchange liberalization, fiscal control, monetary restraint
andrapid privatization ofagricultural landandsmall enterprises.
Thechoice wasmade early inthereform process topursue rapid trade liberalization rather
thanslow, progressive liberalization.
TheGovernment ofAlbania recognizes thatanopentrade regime hasmade andcontinues to
make important contributions toAlbania 'seconomic andsocial well-being.WT/MIN(96)/ST/93
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Total tradehasgrown steadily overthepastfouryears andin1995represented approximately
19.9percentofGDP. Imports accounted for31.5percentofGDP andexports 9percent. Export
activity isgrowing andbecoming amore important source offoreign exchange.
Thegrowth intotaltrade hasbeenfacilitated byarelatively opentrade regime. Iwould like
tohighlight themain characteristics ofAlbania 'strade regime:
- Simple import tariff structure;
- noquantitative restrictions onimports orexports;
- noexport subsidies;
- norestrictions oncurrent transactions;
- notrade-related investment measures.
WebelievethatAlbania'straderegimeiscomparativelyopen,transparentandnon-discriminatory
initstreatment offoreign goods, services andservice providers.
Howwould membership intheWorld Trade Organization affect theeconomic reform process
andwhyisAlbania seeking membership?
Theanswers tosuchquestions mayseem obvious foryourcountries, butIbelieve thatitis
useful foryoutohaveanunderstanding oftheconsiderations thatmotivate ouraccession efforts and
ourperspective onwhatmembership entails.
First, thismembership willhelpincrease foreign direct investments.
Second, itisintheinterest ofAlbania tomake known thatitsprogramme ofeconomic reform
isinconformity withinternational trade standards.
Third, WTO membership willsupport ourefforts inincreasing exports, obtaining better and
more secure access toforeign markets, andinthemeantime tooffer similar access toourpartners,
especially inthesectors where Albania hasexport potential suchasagriculture, textiles andclothing.
Another consideration concerns themaintenance ofanopentrade regime. Itisonething to
establish anopentraderegime. Itisanother thing tomaintain one.AstimegoesonandasAlbania 's
domestic production begins tore-establish itself andgrow, there willbeincreasing pressures touse
trade policy instruments toprotect domestic producers. Asallofyouknow, thecommitments that
anacceding country mustmake regarding theopenness ofitstrade regime canbeuseful inresisting
thetemptation toslidebackintoprotectionism, atemptation thatallcountries faceatonetimeoranother.
Wealsorecognize thatsuchcommitments serve asastamp ofcredibility forthepermanence
ofeconomic reforms. Thiscredibility isessential foracountry intransition thatistrying toconvince
potential investors thattoday'sreforms willnotdisappear tomorrow.
Inconclusion,Iwishtoemphasizeonceagain,theimportancethatAlbaniaattachestocooperation
inworld trade tothebestofourability.
Onthisoccasion, Iwould liketowishtheMinisterial Conference success initswork, andhope
thatitisabletobring among thecountries acloser cooperation.