RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/807/3
16 April 1999
(99-1520)
Working Party on the Accession
of the Former Yugoslav Republic of MacedoniaOriginal:  English
ACCESSION OF THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
Information on the Changes in the Foreign Trade Regime
 of the Former Yugoslav Republic of Macedonia
and on the Current Economic Situation
The Government of the Former Yugoslav Republic of Macedonia has submitted the following
information on the changes in its foreign trade regime and on the current economic situation, with the
request that it be circulated to Working Party members.
This document has been prepared in order to inform WTO Members of the most significant
changes that have occurred in the foreign trade regime since submitting the Memorandum for
accession to the WTO, that is since 16 July 1996.  The most recent parameters of the current
economic situation have also been included.  In order to track the changes in the regulation more
easily, the same titles and sub-titles that have been used in the Memorandum are used in the attached
information.  The parts that have not been changed are not included.
This document should be read in conjunction with the Memorandum on the Foreign Trade
Regime of the Former Yugoslav Republic of Macedonia (document WT/ACC/807/2). To facilitate
this task, a table of contents referring to both documents is attached hereto.  Questions on the present
document by members of the Working Party are also invited by 21 May 1999 for transmission to the
authorities of the Former Yugoslav Republic of Macedonia.
_______________WT/ACC/807/3
Page i
TABLE OF CONTENTS
Page No.
807/3Page No.
807/2
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
1. Economy
(a) General description (territory, population, economic
specialisation, main economic indicators) 1
(b) Current economic situation 1 3
2. Economic Policies
(a) Main directions of the ongoing economic policies 3 5(b) Monetary and fiscal policy 4 12
(c) Foreign exchange and payments system, relations with the
International Monetary Fund, application of foreignexchange controls6
18
(d) Foreign and domestic investment policies 8
(e) Competition policies 23
3. Foreign Trade in Goods and Services 9 23
4. Domestic Trade in Services Including Value and
Composition of Foreign Direct Investment10
25
5. Information on Growth in Trade in Goods and Services
Over Recent Years and Forecasts for Years to Come12
26
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN GOODS
AND TRADE IN SERVICES
1. Powers of Executive, Legislative and Judicial Branches of
Government13 27
2. Government Entities Responsible for Making and
Implementing Policies Affecting Foreign Trade13
28
3. Division of Authority Between Central and Sub-Central
Governments28
4. Any Legislative Programmes or Plans to Change the
Regulatory Regime14
29
5. Laws and Legal Acts 14 296. Description of Judicial a nd Arbitral or Administrative
Tribunals or Procedure 29
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing 30
(b) Characteristics of national tariff 15 30(c) Tariff quotas, tariff exemptions 15 31(d) Other duties and charges 31
(e) Quantitative import restrictions, including prohibitions,
quotas and licensing systems15
31
(f) Import licensing procedures 16 31WT/ACC/807/3
Page ii
Page No.
807/3Page No.
807/2
(g) Other border measures 32(h) Customs valuation 16 33(i) Other customs formalities 36(j) Pre-shipment inspection 16 36
(k) Application of internal taxes on imports 36
(l) Rules of origin 16 37(m) Anti-dumping regime 38(n) Countervailing duty regime 39
(o) Safeguard regime 39
2. Export Regulation
(a) Registration requirements for engaging in exporting 39
(b) Customs tariff nomenclature, types of duties, duty rates,
etc.40
(c) Quantitative export restrictions, including prohibitions,
quotas and licensing systems17
40
(d) Export licensing procedures 40(e) Other measures 41(f) Export financing, subsidy and promotion policies 41
(g) Export performance requirements 41
(i) Import duty drawback schemes 41
3. Internal Policies Affecting Foreign Trade in Goods
(a) Industrial policy, including subsidy policies 42
(b) Technical regulations and standards 42
(c) Sanitary and phytosanitary measures 17 43(d) Trade-related investment measures 17 45(e) State-trading practices 48
(f) Free zones 19 49
(g) Free economic zones 19 49(h) Trade-related environmental policies 49(i) Mixing regulations 49
(j) Government-mandated counter-trade and barter 19 49
(k) Trade agreements leading to country-specific quotas
allocation19 50
(l) Government procurement practices 20 50
(m) Regulation of trade in transit 51
4. Policies Affecting Foreign Trade in Agricultural Products
- Agricultural production 51
(i) Farming 21 51(ii) Viticulture and wine production 22 53(iii) Fruit growing 22 53
(iv) Livestock breeding 22 53
(a) Imports 23 54(b) Exports 54(c) Export prohibitions and restrictions 23 54(d) Export credits, export credit guarantees or insurance
programmes54
(e) Internal policies 55WT/ACC/807/3
Page iii
Page No.
807/3Page No.
807/2
5. Policies Affecting Foreign Trade in Other Sectors 58V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
1. General 24 58(a) Intellectual property policy 25 58
(b) Responsible agencies for policy formulation and
implementation25 59
(c) Membership of international intellectual property
conventions and of regional or bilateral agreements25
60
(d) Application of national and MFN treatment to foreign
nationals26 61
(e) Fees and taxes 61
2. Substantive Standards of Protection 26
(a) Copyright and related rights 26 62(b) Trademarks, including service marks 64
(c) Geographical indications, including appellations of origin 65
(d) Industrial designs 66(e) Patents 67(f) Plant variety protection 69
(g) Layout designs of integrated circuits 27 69
(h) Requirements on undisclosed information, including trade
secrets and test data28 69
3. Measures to Control Abuse of Intellectual Property Rights 70
4. Enforcement 29(a) Civil judicial procedures and remedies 29 71(b) Provisional measures 30 71
(c) Any administrative procedures and remedies 72
(d) Any special border measures 30 72(e) Criminal procedures 30 73
5. Laws, Decrees, Regulations and Other Legal Acts Relating
to the Above30 73
6. Statistical Data on Applications For and Grants of
Intellectual Property Rights74
(i) Patents 32 74
(ii) Trademarks 32 74(iii) Industrial designs 32 75
VI. TRADE-RELATED SERVICES REGIME
1. General
1. Banking 34 75
2. Insurance 35 77
3. Tourism 784. Telecommunications 36 805. Air traffic 37
6. Road transport sector 39WT/ACC/807/3
Page iv
Page No.
807/3Page No.
807/2
VII. INSTITUTIONAL BASE FOR TRADE AND
ECONOMIC RELATIONS WITH THIRD COUNTRIES
1. Bilateral or Plurilateral Agreements Relating to Foreign
Trade in Goods and Trade in Services 81
ANNEXES (WT/ACC/807/2)
Goods Which on Export and Import are on "KK" Regime – Quantity
Contingent for the Period from 1 January 1996 to 31 March 199683
Goods Which on Import are on "KK" Regime – Quantity Contingent
for the Period From 1 January 1996 to 31 March 199688
ANNEX I (WT/ACC/807/3)
Gross Domestic Product by Economic Activity 42
GDP at Constant Prices Expressed in 1990 Denars by EconomicActivity43
Imports by Main Commodity Group 1994-1998 44
Imports Structure by Main Commodity Group 1990 - 1998 44Exports by Geographical Region, Economic Classification ofCountries and Country of Destination45
Exports Structure by Geographical Region, Economic Classification
of Countries and Country of Destination 1994 – 199846
Imports by Geographical Region, Economic Classification of
Countries and Country of Destination 1994 – 199847
Imports Structure by Geographical Region, Economic Classification
of Countries and Country of Destination 1994 – 199848
Exports by Geographical Region, Economic Classification of
Countries, Country of Destination and Categories of Goods as
Defined by SITC in 1998 (preliminary data)49
Exports Structure by Geographical Region, Economic Classification
of Countries, Country of Destination and Categories of Goods as
Defined by SITC in 1998 (preliminary data)50
Exports by Geographical Region, Economic Classification of
Countries, Country of Destination and Categories of Goods as
Defined by SITC in 199751
Exports Structure by Geographical Region, Economic Classification
of Countries, Country of Destination and Categories of Goods as
Defined by SITC in 199752
Imports by Geographical Region, Economic Classification of
Countries, Country of Destination and Categories of Goods as
Defined by SITC in 1998 (preliminary data)53
Imports Structure by Geographical Region, Economic Classification
of Countries, Country of Destination and Categories of Goods as
Defined by SITC in 199854
Imports by Geographical Region, Economic Classification of
Countries, Country of Destination and Categories of Goods as
Defined by SITC in 199755WT/ACC/807/3
Page v
Page No.
807/3Page No.
807/2
Imports Structure by Geographical Region, Economic Classification
of Countries, Country of Destination and Categories of Goods as
Defined by SITC in 199756
Retail Prices 57
Total Investments in Fixed Assets by technical Nature 57Balance-of-payments 58
Exports and Imports of Goods by Intended Use of Product 58
ANNEX II
List of Customs Quotas  of Goods that are Imported in the Republic
of Macedonia from the Republic of Croatia for 199959
List of Customs Quotas  of Goods that are imported in the Republic
of Macedonia from the Republic of Slovenia for 199961
Export of Goods from the Republic of Macedonia in Federal
Republic of Yugoslavia that are on Quantitative Restrictions in 199962
Import of Goods from the Federal Republic of Yugoslavia to the
Republic of Macedonia that are on Quantitative Restrictions in 199962WT/ACC/807/3
Page 1
II. ECONOMY, ECONOMIC POLICY AND FOREIGN TRADE
1. Economy
(b) Current economic situation
The most important event after the submission of the Memorandum in 1996, was the cease of
the decreasing trend of the gross domestic product (GDP). It is assessed that the 3 per cent 1998 GDP
growth was basically owed to the growth in industry, agriculture, trade and transport, which together
make up 50 per cent of the GDP.
In the field of industry the following branches had the largest share in the country’s 19981
GDP: food products (4.6 per cent); energy sector (3.7 per cent); textile and leather processing industry
(2.6 per cent); equipment and durable consumer goods (2.2 per cent); base metals (2.1 per cent);
chemical industry (1.8 per cent); non-metals and construction materials (1.7 per cent), etc.
However, despite the above-stated, the level of utilization of the available production
capacities was 50 per cent.
The 1998 macroeconomic policy of the Republic of Macedonia maintained the basic
postulates and global macroeconomic goals defined in the Stabilization Programme, adopted by the
Government of the Republic of Macedonia by the end of 1993.
In 1998 there was a low inflation rate, stable exchange rate of the Denar, and an increase of
the country’s foreign currency reserves. In addition, there was a production and export-import growth.
It should be underlined that the production growth had a relatively low starting basis. The process of
organisational and ownership restructuring of the economic operators continued, and produced theinitial effects in the enterprises’ management and operation.
In 1998, on an annual basis, there were deflation trends. This indicates the low purchasing
power of the largest part of the population.
The low inflation rate is primarily owed to the restrictive monetary and fiscal policy, as well
as to the package of measures for prevention of the operation of the so-called inflationary spiral, afterthe devaluation of the Denar in 1997.
The limitation of the aggregate demand was also applied on the consistent implementation of
the monetary policy.
The National Bank started using the exchange rate of the Denar, as the intermediary aim of
the monetary policy, in the last quarter of 1995 and this has since coincided with the period of law
inflation rates, thus far.
The trends in the monetary sphere have been basically determined by the situation at the
foreign exchange market, and were conditioned by the disturbed relations in the balance of payments
and the need to intervene with regard to the supply.
In conditions of still underdeveloped financial market, the regulation of the money supply was
conducted by using the money emission in the narrowest sense of the word. In this regard, there was acontinuation of the intensified use of operations on the open market (deposit and treasury bill
auctions). For the purpose of regulating the money supply there were limitations of the Denar sales of
                                                     
1 Source: Statistical Office of the Republic of Macedonia.WT/ACC/807/3
Page 2
banks, while for the purposes of more efficient utilization, a fluctuating basis for distribution of the
banks’ credit limits were also used.
In the last period, there has been a permanent decrease of the share of the current deficits of
the country’s budget and of the social funds budgets in the country’s GDP. It should be underlinedthat the budget deficit was projected and realized at a very low level, characteristic of countries with
developed market economy (about 2 per cent of the GDP) and is exclusively related to the liabilities
for foreign debts.
The level of tax burden and the disproportionately great use of budget funds for public
administration, social problems and similar, l eave very little manoeuvring room for capital
investments and development support, in general.
The primary goals of the external sector policy are foreign trade liberalization, increase of
goods and services exports, conclusion of free trade agreements, normalization of the relations with
the multilateral and bilateral creditors, maintena nce of the stable exchange rate of the Denar.
The large foreign trade deficit is a consequence of the high foreign trade liberalization level,
but also of the demand of industry for raw materi als and semi-manufactures, and of the necessity to
raise the technical-technological level. The deficit was financed by using commercial, commodity and
financial credits and by official and private transfers.
The Cooperation Agreement with the European  Union has had a positive influence on the
foreign trade sector. This has also been the case with the agreements on economic and other types of
cooperation concluded with a large number of countries. With the aim of intensifying regional and
other types of cooperation, free trade agreements have been signed with several states.
In the period thus far, the policy of management flexibility, the market defined exchange rate
of the Denar has been continuously pursued. Thus, its highly stable rate has been secured and
maintained. Namely, except the devaluation in June 1997 which was a consequence of the high costs
for its long term maintenance, in the remaining period the fluctuations, as related to the Deutsche
Mark, have been minimal – about one per cent.
In 1996 conditions were created for a gradual overcoming of the recession phase of the
economic cycle which uninterruptedly continued as of 1989, and the Macedonian economy, although
with a low level, entered the stage of slight (m odest) economic growth. In 1989 there was a relatively
accelerated growth of the real GDP, which was assessed to three per cent. However, the Macedonian
economy is below the potential level of its development, since the real GDP in 1998 was half of the
1989 GDP.
Economic activities are undertaken in conditions characterized with problems and limiting
factors, and are especially related to the transformation processes. Furthermore, there have been
extremely unfavourable financial situations in part of  the enterprises, there has been a lack of long-
term strategy with the largest number of businessmen, as well as obsolete technological lines, highdepreciation equipment level, low level of utilization of the capacities, high costs and operative losses,
low prices at foreign markets, not very satisfactory raw material and semi-manufactures supply,
critically low stockpile levels of basic raw materials, semi-manufacturers and spare parts, and finally
there have been a large number of businessmen complaining of difficulties in marketing their
products.
The high unemployment rate is still present. The number of registered persons unemployed as
a result of the structural changes and processes of defensive restructuring of the economic operators
had the expected decreasing trend. In 1997 and in 1998 this intensity declined. The 1998
unemployment rate was 34.5 per cent (in 1997 it was 36.0 per cent).WT/ACC/807/3
Page 3
In the period thus far there have been further activities undertaken for the realization of the
restructuring process and for rehabilitation of the banking sector.
However, the situation in the banking sector is still featured with uncompleted processes of
restructuring and rehabilitation, low quality credit portfolios, insufficient capitalization, and in certain
financial institutions there has been insufficiently rational and inefficient management and
organisational set-up.
2. Economic Policies
(a) Main directions of the ongoing economic policies
The parameters and the basic rationale of the Government in the design of the institutions and
relations in the economic systems have not been changed.
In 1999, the basic tasks of the macro-economic policy and of the structural reforms are the
following:
– Establishment of conditions and prerequisites for maintenance of the current trends
and increasing the intensity of the production and services growth;
– Increase of the number of employed persons and decrease of the persons seeking
employment;
– Increase of the goods and services exports and improvement of the standard of living
of the population.
With the aim of achieving these goals, there will be an investment cycle initiated, primarily in
the small and medium private enterprises, by way of increased engagement and mobilization of the
domestic accumulation, foreign capital inflow on different basis, restructuring, revitalization,
modernization and financial consolidation of the existing capacities, etc.
The attraction of foreign direct investments is of utmost importance. In order to reach this
goal the necessary legal framework will be promptly finalized. Furthermore, an institutional solution
is being prepared, which will facilitate the investment coordination.
In 1999 the policy of controlled payment of salaries for budgetary beneficiaries will be further
pursued, in order to bring the aggregate expenditure within the possibilities and prevent it from acting
as the generator of uncontrolled inflation trends.
In 1999, in principle, the policy of free price formation will also be pursued, on the basis of
demand-supply. Price control will be applied only to a small number of goods and services, which are
of importance for the standard of living of the population and which have a certain monopoly status
on the market, as stated in the Memorandum.
With the aim of securing complete compatibilit y of the tax system with the European Union
tax system, further reforms in this sphere will be undertaken.
Ending with 31 December 1998, the ownershi p transformation of a total number of 1,435
enterprises (85 per cent) was completed, while 177 enterprises are in the process of privatization. It isexpected that this process will be completed within the next several months.  95.3 per cent of the total
number of enterprises have been privatized or are in the process of privatization.
The privatization processes, assessed according to the number of employed persons,
demonstrates that the completely privatized enterprises employ 213.013 persons or 84 per cent of theWT/ACC/807/3
Page 4
total number of employed persons. The enterprises, which are in the process of privatization, employ
27.208 persons or 11 per cent of the total number of employed persons, encompassed with the
privatization process. According to this determinant, about 95 per cent of the enterprises have
completed or are currently undergoing this process.
In 1998, the efforts for organised and comprehensive support to the small and medium-size
enterprises continued, this being the key element for the restructuring process.
Several credit lines intended for small and medium enterprise development are being realized
and these are the credit lines from: the European Bank for Reconstruction and Development (EBRD),
International Bank for Reconstruction and Development (IBRD), credit from the Government of
Federal Republic of Germany (German Bank of Settlement) for the Government of the Republic ofMacedonia, the International Fund for Agricultural Development (IFAD) and the PHARE Programme
for support of small and medium size enterprises.
The Macedonian Bank for Development Support was established in 1998, one sector of which
will be engaged on the support of the development of small and medium size enterprises. This Bankwas established through the technical assistance from the German Bank for Reconstruction and
Development (KfW) from Frankfurt, as part of the technical assistance which the Government of the
Federal Republic of Germany has approved for the Republic of Macedonia.
(b) Monetary and fiscal policy
The basic feature of the monetary policy in the last several years has been its orientation
towards decrease and maintenance of the low inflation rate. One of the results of such a monetary
policy has been the rapid decrease of the inflation rate, which in 1998 was 0.8 per cent annual rate
(average 1998 rate). According to the realized price stability (four-year continuos one digit inflation),
the Republic of Macedonia is the most successful among the transition countries.
The basic aim of the 1999 monetary policy is the maintenance of the low inflation rate.The growth of the money stock M1 (deposit money and cash money in circulation) in 1998
was 8.5 per cent, what is in accordance with the projected 9.3 per cent growth rate. The National Bank
of the Republic of Macedonia has secured such a growth by applying instruments of direct control(deposit and treasury bill auctions of the National Bank) and by a lesser use of the direct control
(limitation of the Denar bank credits), which as an instrument of monetary regulation, is gradually
abandoned.
Fiscal policy
The structure of the budgetary revenues of the Republic of Macedonia is given in the table
below.
Structure of the 1998 Budgetary Revenues of the Republic of Macedonia
Total Revenues 100.0 per cent
Tax Revenues 78.5 per cent
- Personal Income Tax 24.0 per cent
- Profits Tax 4.6 per cent
- Tax on Turnover of Goods and Services 23.1 per cent
- Excise Tax 26.8 per cent
Duties 2.3 per cent
Customs and special duties 17.7 per cent
Other revenues 1.5 per cent
Source: B-2 FormsWT/ACC/807/3
Page 5
Property Tax
After the submission of the Memorandum, the property tax has been unified and has been set
to 0.10 per cent proportional rate.
Inheritance and Gift Tax
Meanwhile, there has been a decrease of the inheritance tax rates. The inheritors or the
recipients of the gift, in the first line of inheritance, do not pay tax. A taxpayer of the second
inheritance line pays 3 per cent tax, while taxpayers of the third inheritance line or taxpayers that are
not related to the person leaving the inheritance pay five per cent tax.
Tax on Turnover of Goods and Services
After the submission of the Memorandum, with the aim of improving the collecting of excise
tax, the Government of the Republic of Macedonia introduced control stickers (banderoles) which areobligatory for tobacco processing (cigarettes) and for alcoholic beverages (up to 2 litre packages
intended for final consumers).
Excise taxpayers are the following:
– Producers or importers of oil derivatives, tobacco processing, alcoholic beverages and
coffee;
– Buyers of passengers’ cars;
– Each participant in the turnover chain for luxury goods, when the excise tax is
calculated on the achieved purchasing price of the goods, but the Sate collects the taxafter the concerned amount of excise tax is subtracted from the excise tax paid for
procurement of the same goods.
For imports, the excise tax is charged by the customs house.Excise tax is paid in uniform amounts and under equal conditions both by domestic
manufacturers and for imported goods.
Share of Tax on Turnover of Goods and Services and
Excise Tax in the 1998 Budget (in 000 Denars)
Expenditure taxes Collected revenues Share in the Budget
1. Tax on Turnover of Goods and Services
- general 25 per cent rate 1.677.544 4.39 per cent
- decreased 5 per cent rate 1.926.205 5.04 per cent
- turnover tax paid on imports 2.522.725 6.61 per cent
- tariff No. 3-10 per cent 122.673 0.32 per cent
- tax on turnover of freight
vehicles156.036 0.40 per cent
2. Tax on Turnover of Services
- general 13 per cent rate 2.399.691 6.28 per cent
3. Excise Tax
- oil derivatives 6.847.448 17.94 per cent
- tobacco processing 1.416.636 3.71 per cent
- beverages 1.089.219 2.85 per centWT/ACC/807/3
Page 6
Expenditure taxes Collected revenues Share in the Budget
- passengers’ cars 704.766 1.84 per cent
- luxury items 12.873 0.03 per cent
- coffee 170.623 0.44 per cent
TOTAL: 19.046.439 49.91 per cent
Note: Source of information: B-2 forms. The 1998 State Budget was 38.158.591 Denars.
Preparations for introduction of VAT
As explained in the Memorandum, the Government of the Republic of Macedonia, being
firmly committed to introduce the value added tax (VAT), on 25 April 1994 adopted a Decision forestablishment of a Commission for Introduction of the Value Added Tax.
In 1993 and in 1994, there was cooperation with the Columbia experts and with the experts of
the USA Treasury, in the form of a technical assistance for VAT introduction, through the USAID.
The Ministry of Finance asked for advice from the International Monetary Fund in connection
with the VAT application policy. Therefore, in November 1996, a mission from the Fiscal Affairs
Department at the IMF visited Macedonia.
As part of the technical cooperation with the Federal Republic of Germany, there are plans for
a support project for introduction of the VAT. The entity to implement the project is the German
Technical Cooperation Association (GTCA).
GTCA in cooperation with the Ministry of Finance organised a seminar on the VAT system in
December 1998, for the employees of the Public Revenue Office.
The final Draft VAT Law is being prepared, i.e., in March this year the draft will be
submitted to the Government of the Republic of Macedonia. It is expected that the Assembly of the
Republic of Macedonia will adopt the Law in May, and that it will be applied as of 1 January 2000.
(c) Foreign exchange and payments system, relations with the International Monetary Fund,
application of foreign exchange controls
(ii) Foreign exchange market
In 1998 there was a total turnover of 1.250 million US$, what represents an 18.8 per cent
increase, as compared to 1997.
In 1998, the National Bank of the Republic of Macedonia intervened at the foreign exchange
market. It the first half year, it bought out surplus foreign currency, at the foreign currency market, in
the amount of 37.15 million US$, and it also intervened by selling 45.38 million US$. In the second
half of the year, the National Bank bought out 53.07 million US$, and sold 16.17 million US$.
(iv) Relations with the IMF and other international financial institutions- IMF support to the balance of payment
The 1994 stabilization policy of the Republic of Macedonia was supported by a
transformation credit arrangement system.
After the successfully implemented stand-by arrangement, and for the purpose of further
long-term maintenance of the achieved macroeconomic stability, by way of enhanced structuralWT/ACC/807/3
Page 7
reforms, a three-year ESAF (enhanced structural adjustment credit) arrangement for the period from
1997 to 1999, in the total amount of 54.56 million SDR (about 75 million US$), was concluded. This
arrangement is allocated each year in two instalme nts. Thus, the first instalment for 1997 was drawn
on 18 April 1997 in the amount of 9.1 million. SDR (about 12.4 million US$), while the second
instalment was drawn on 14 November 1997 in the same amount of 9.1 million SDR. The successful
implementation of the economic policy in 1998, agreed upon with the Fund, resulted in two-year
ESAF loan, on 19 June 1998, in the amount of 18.19 million SDR (about 25 million US$) out of
which the first instalment in the amount of 9.1 SDR was drawn by the end of June 1998.
Thus far, a total amount of 101.7 million SDR (about 139 million US$) have been approved
and envisaged, while 77.4 million SDR (101 million US$) have been used.
- Annual Consultations with the IMF
The Republic of Macedonia inherited from the former SFRY the status of the transitory
arrangement, which the former SFRY had with the Fund, according to Article XIV.
Starting with 19 June 1998, effectively, the Republic of Macedonia accepted the obligations
resulting from Article VIII, part 2, 3 and 4. In order to accept th e status of Article VIII, in accordance
with the remarks made by the IMF mission, which visited the Republic of Macedonia for this purpose,
appropriate legislative amendments were introduced.
In the relations of the Republic of Macedonia with the Fund thus far, in addition to the
financial support there has also been significant technical assistance by the Fund, both in the field of
the foreign currency system and the support to the payment operations system, and in the field of
fiscal policy. The International Monetary Fund regularly organises courses in these fields, as well as
in the field of fiscal policy, in Washington and in Vienna, which are entirely sponsored by the Fund,and are regularly attended by representatives of the Republic of Macedonia.
- World Bank
In September 1996 a loan was arranged with the International Bank for Reconstruction and
Development (IBRD) for development of the privat e sector in the amount of 18.0 million DEM (9.9
million US$), while two credit arrangements were made with the International DevelopmentAssociation, one for the health care sector transi tion project in the amount of 11.8 million SDR (15.7
per cent million US$) and for the project for support of private farmers in the amount of 5.4 million
SDR (7.2 million US$).
The cooperation with the World Bank continued in 1997, when as part of the policy for
structural reform support, in May the SAL arrangement was concluded (Structural Adjustment Loan)
with the IBRD in the amount of 44.4 million DEM (24.5 per cent million US$), as well as an
arrangement in the amount of 20.6 million SDR (27.4 per cent million US$) with the IDA. This year,
there have also been loans for certain projects conclu ded with the IBRD, i.e., as an addition to the first
private sector development project, a second project for private sector development was concluded(PSDL II) in the amount of 45.0 million DEM (24.9 million US$), as well as for the project of the
irrigation system rehabilitation in the amount of 13.5 million DEM (7.5 million US$). There was a
credit concluded with the IDA for the rehabilitation of the education sector in the amount of 3.6
million SDR (4.8 million US$) and for the project for irrigation system rehabilitation in the amount of
3.7 million SDR (4.9 US$).
Within the cooperation with the World Bank, in 1997, there were three credits concluded with
the International Financial Corporation (IFC), in re gard to which it should be underlined that they
were not guaranteed by the Republic of Macedonia, and were disbursed to certain enterprises and
banks in the total amount of 6.1 million US$.WT/ACC/807/3
Page 8
Since 1998 thus far, there has been a credit arranged with the IBRD in the amount of 61.5
million DEM (about 34.0 million US$) for reconstructio n of hydro-electric power plants. A credit in
the amount of 22.35 million SDR (about 30 million US$) has been arranged with the IDA for social
sector adjustment and for pension system reform, and the IFC has approved a credit for MacedonianTelecommunications in the amount of 50.0 million US$, intended for the privatization of this
institution.
- Other International Financial Institutions
In the period thus far, in the relations with the European Bank for Reconstruction and
Development (EBRD), there have been credits concluded in the total amount of 153.5 million US$,out of which 98.1 million US$ have been used. Most of the credits are used for the public sector:
electric power industry, air traffic control and telecommunications, while a smaller amount (about 29
million US$) for development of the private sector (small and medium size enterprises).
In the relations with the European Investment Bank, after the clearing of the inherited
matured due debt towards this institution in 1997 in the amount of about 30 million US$, in July
1998, for the first time, a new credit was concluded in the amount of about 70.0 million ECU, which
is part of the Protocol for Financial Cooperation wi th the EU. For the purposes of the macro-financial
stability of the Republic of Macedonia, two instalments of credit from the European union have been
drawn in the total amount of 40.0 million ECU (about 43 million US$).
(d) Foreign and domestic investments policy
As stated in the Memorandum, economic operators enjoy full freedom in the definition of the
directions for their investment activities. They independently design their business policy in the fieldof future investments. The freedom of market and entrepreneurship and the legal protection of
ownership are guaranteed in the Constitution and may be limited by law only for the purposes of the
defence of the State, preservation of nature and environment, or of the people’s health (Article 55,
paragraph 3 of the Constitution).
With the aim of attracting foreign investments, the project entitled “Development of National
Institutions for Attraction of Foreign Investments in the Republic of Macedonia” is currently beingimplemented, with the technical assistance of the United Nations Development Program (UNDP),
through the United Nations Industrial Developmen t Organization (UNIDO), as the executing agency.
- Future Priorities
The Republic of Macedonia will continue the development of democratic society by
guaranteeing the basic human rights and freedoms, introducing open market economy, legal
protection of ownership, full cooperation with the neighbouring countries and inclusion in the
European integration processes.
The National Strategy for Economic Development of the Republic of Macedonia
2 was
promoted at the beginning of 1998. The Strategy elaborates the institutional, system and other
prerequisites, basic development factors, sector development strategy, infrastructure development, and
envisages possible quantitative development scenarios until year 2002.
The Strategy underlines the vital development goals, then the basic performances, the need
for open economy, maintenance of the attained macro-economic stability, but at a higher level with
                                                     
2 The Macedonian Academy of Arts and Sciences has prepared this Study, in consultations with experts from the
Vienna Institute for Comparative Economic Studies and the UNDP.WT/ACC/807/3
Page 9
increased domestic supply (increased volume, quality and range of products), and it especially stresses
that the development must be based on firm export orientation, increase of employment, and
improvement of the social status of the population.
Starting with the results of the scientific researches, expert conclusions and commitments of
the Government of the Republic of Macedonia, the main long-term development goals are the
following:
– strengthening the democracy and open market processes;
– inclusion of the Republic of Macedonia in the European economic integration processes;
– maintenance of the macro-economic balance and monetary stability at higher level;
– creating conditions and prerequisites for production growth and  for securing sustainable
development;
– production-technological restructuring in the direction of increase of the participation of
fast growing industry and accelerating branches;
– enlargement of the cooperation with foreign partners, especially by foreign direct
investments;
– supporting the qualitative development factors, for the purposes of modernization of the
production facilities;
– rational utilization of the country’s potentials and resources;
– increasing the employment on the basis of enlargement of the industrial and service
sectors;
– development of competitive relations  for the purpose of full integration of the national
markets of goods, services, capital, technology and labour in the world markets;
– strengthening of the export orientation of the production of goods and services on the
basis of the increase of the competitiveness of the goods and services at the world market;
– raising the general development level by cooperation in the field of science, technology,
culture, education, information and communication links with international data bases,
services and networks;
– transformation of the education in an important factor and basis for the economic,
scientific-technological, social and cultural progress.
3. Foreign Trade in Goods and Services
The 1998 foreign trade volume of the Republic of Macedonia was US$3.235 million: there
were exports in the amount of US$1.322.052, and imports in the amount of US$1.913.457. The trade
volume was increased by 10 per cent, as compared to the previous year, i.e., there was 5.35 per cent
exports growth, and 2.96 per cent imports growth. The import/export coverage ratio was 69.1 per
cent, and the trade deficit was US$ –591.423.000.
1995-1998 Goods and Services Imports and Exports (in 1.000 US$)
1995 1996 1997 1998
FOB goods exports 1.204.048 1.147.440 1.201.255 1.322.052
CIF goods imports 1.718.904 1.626.917 1.740103 1.913.457
Trade Balance - 514.856 - 479.477 - 538.848 -591.423
Export-import Coverage ratio 70.0 per
cent70.5 per
cent69.0 per
cent69.1 per cent
Annual rate of changes in goods exports 10.8 per
cent-4.7 per
cent4.7 per
cent10.05 per
cent
Annual rate of changes in goods imports 15.8 per
cent54 per
cent7.0 per
cent9.96 per centWT/ACC/807/3
Page 10
According to the economic grouping of the countries, in 1998, goods exports were mostly
directed to the EU member countries, with 44.2 per cent share in the total exports, while the states-
successors to the former SFRY participated with 26.9 per cent. EU Member States participate in the
goods imports at most with 36.3 per cent, while the State successors to the former SFRY participatewith 24.3 per cent
1998 Export Import Structure
(in percentages ( per cent)
Export Import
Total 100.0 100.0
Developed countries
- EU
- EFTA
- Other developed countries62.2
44.2
3.4
14.648.4
36.3
1.9
10.3
Central and East European countries 8.3 20.9
Developing countries 2.5 6.0
Least developed countries 0.2 0.4
States successors to the former SFRY 26.9 24.3
Other countries 0.0 0.0
Countries with largest trade volume
- Germany
- FR Yugoslavia
- USA
- Italy
- Greece
- Slovenia
- Bulgaria21.4
18.2
13.2
7.3
6.3
3.13.213.3
12.8
5.3
5.7
5.9
7.84.5
According to the economic use of goods, there have been exports mostly of semi-
manufactures - 48. 9 per cent, and general consumption goods -  47.0 per cent. The semi-
manufactures also mostly participate in the imports - 64.9 per cent, and general consumption goodsparticipate with 21.5 per cent.
 1998 Export –Import Structure According to the Economic Use
(in 1000 US$)
EXPORT IMPORT
Value Structure Value Structure
Total 1.322.052 100.0% 1.913.475 100.0%
Semi-Manufactures 645.924 48.9% 1.242.491 64.9%
Capital Equipment 52.926 4.0% 247.319 12.9%
General Consumption Goods 621.694 47.0% 412.136 21.5%
Undistributed 1.507 0.1% 11.529 0.6%
4. Domestic Trade in Services Including Value and Composition of Foreign Direct 
Investment
In accordance with the Statistical Research Programme, in 1998, the Statistical Office of the
Republic of Macedonia conducted an annual research of the foreign direct investments, investmentWT/ACC/807/3
Page 11
operations abroad and of the long-term production cooperation. The value of the foreign direct
investments in the Republic of Macedonia, in 1997, was 30.902.000 US$, in which the EFTA
countries participated with 54.0 per cent, and the EU countries participated with 36.3 per cent. Out of
the total foreign direct investments in 1997, 83.7 per cent were investments in the industry and
mining, 10.8 per cent in trade, 3.0 per cent in transport and 1.5 per cent in the other sectors.
1997 Foreign Direct Investments In-Flow in the Republic of Macedonia
Number
of
contracts per cent Value
in 000
US$ per cent
Developed countries 99 84.6 29.860 96.6
EU
Greece
Austria
Germany
SwedenItaly
France
Denmark
Belgium
United KingdomThe Netherlands80
34
7
23
27
3
1
1
1168.4
29.0
6.0
19.6
1.76.0
2.5
0.9
0.9
0.90.911.232
4.383
4.315
1.910
410141
30
29
6
5336.3
14.2
14.0
6.2
1.30.5
0.1
0.1
0.0
0.00.0
EFTALiechtenstein
Switzerland8
1
76.8
0.9
6.016.687
16.207
48054.0
52.4
1.6
Non-European OECD countries
USATurkey
Australia
Canada11
33
4
19.4
2.52.5
3.4
0.91.941
1.730
109
92
106.3
5.60.4
0.3
0.0
Developing countries 18 15.4 1.042 3.4
States-successors to the formerSFRYFR Yugoslavia
Croatia
Slovenia
Bosnia and Herzegovina14
9
1
3
112.0
7.7
0.9
2.5
0.91.014
474
438
89
133.3
1.5
1.4
0.3
0.0
Other European countriesPoland
Bulgaria4
1
33.4
0.9
2.528
1
270.1
0.0
0.1
Total 117 100.0 30.902 100.0
In-Flow and Structure of the 1997 Foreign Direct Investments in
the Republic of Macedonia According to Economic Sectors
Amount in 1.000 US$ Structure ( per cent)
Industry and Mining 25.870 83.7
Trade 3.346 10.8
Transport and Communications 1.221 4.0
Other 465 1.5WT/ACC/807/3
Page 12
5. Information on Growth in Trade in G oods and Services Over Recent Years and
Forecasts for Years to Come
The raising of the overall volume of the foreign trade is of extraordinary importance for the
Republic of Macedonia for the purpose of realizing future accelerated economic development. The
principles of free flow of goods, services, technology and knowledge should enable the Macedonian
economy to be included in the current integration processes in the world economy. In this context,
building economic relations by respecting the multilateral trading principles, the Republic of
Macedonia endeavours to be integrated in the trends of the world trading system.
As compared to the 1990-1994 period, when the trade had a uneven dynamics because of the
situation in the region, as of 1995 the foreign trade level has been continuously raised.
In 1997 and in 1998 there was a positive trend in the foreign trade, i.e., increase of the export
and import of goods, after the decrease which occurred in 1996, while in the field of services there hasbeen a decrease in the last two years.
1995-1998 Goods and Services Exports
(In million  US$ and in  per cent)
1995 1996 1997 1998
Value Growth
rateValue Growth
rateValue Growth
rateValue Growth
rate
Goods 1.204 10.8 1.147 -4.7 1.201 4.7 1.322 10.1
Services 186 8.1 154 -17.2 128 -16.9 131 2.34
1995-1998 Goods and Services Exports
 (In million  US$ and in  per cent)
1995 1996 1997 1998
Value Growth
rateValue Growth
rateValue Growth
rateValue Growth
rate
Goods 1.719 15.8 1.627 -5.4 1.740 7.0 1.913 9.94
Services 385 17.7 309 -19.9 273 -11.7 303 11
In the period thus far, the Republic of Macedonia has concluded bilateral agreements on trade
and economic cooperation with several countries world-wide: Austria, Albania, Bulgaria, Bosnia and
Herzegovina, Poland, the Czech Republic, Turkey, Switzerland, the Russian Federation, China,
Hungary, Romania, Ukraine, Slovenia, Croatia, FR  Yugoslavia, what has created the conditions for
raising the overall volume of the foreig n trade exchange with these countries.
The implementation of the Cooperation Agreement with the European Union has had a great
positive influence in this regard, which is of key importance for the economy of the Republic of
Macedonia, as related to the support for a larger access to the Union’s market, and thus for the
increase of the volume of the mutual trade.
The activities in the field of trade should co ntribute towards the enlargement of the trade
cooperation with other countries. Thus, it is expected that in the forthcoming period there will begreater dynamics of the foreign trade.WT/ACC/807/3
Page 13
1991-1998 Goods and Services Export-Import Trends
 (In million US$)
III. FRAMEWORK FOR MAKI NG AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND SERVICES
1. Powers of Executive, Legislative and Judicial Branches of Government
The last parliamentarian elections were held at the end of 1998.
The Government of the Republic of Macedonia consists of President of the Government, three
Vice -Presidents and 21 ministers.
2. Government Entities Responsible for Making and Implementing Policies Affecting
Foreign Trade
In December 1999, a change has been made in the organisational structure of the Government
of the Republic of Macedonia, whereas a new Ministry of Trade has been established, as anadministrative organ in charge of performing the economic relations with foreign countries. This task
will be realized with cooperation of the Ministry of Foreign Affairs, Ministry of Finance, Ministry of
Development, Ministry of Agriculture, Forestry  and Water Supply and Ministry of Economy, etc.
Also, the Ministry of trade in cooperation with other authorized ministries is liable for preparation of
laws and by-laws in the realm of foreign trade.
The Ministry of Foreign Affairs has a great allotment in the procedure of creating a complete
approach in establishing a policy, which will affect in regulation of foreign trade operations.
The Ministry of Economy, besides its other authorizations, is responsible for creating the
measures of the economic policy for developing tourism and catering in the country.
The Ministry of Finance, as an administrative organ that is a consociate in the creation of the
foreign trade policy, is also responsible for providing a cooperation with international financing
institutions, establishing and using of the stock reserves and measures of intervention on the market,
creation of credit, bank, foreign exchange and custom policy and regulation of credit relations with
foreign creditors.0200400600800100012001400160018002000
1991 1992 1993 1994 1995 1996 1997 1998Export
ImportWT/ACC/807/3
Page 14
The Ministry of Agriculture, Forestry and Water supply is in charge of creation of the
measures of foreign trade that have an affect on the export and import of agricultural goods.
4. Any Legislative Programmes or Plans to Change the Regulatory Regime
The Government of the Republic of Macedonia, according to the Working Programme for
1999, foresees to submit to the Assembly for adopting the following laws:
– Law on Trade
– Law Against Unfair Competition
– Law Against Limiting of the Competition
– Law on  Foreign Exchange Operation
– Laws for Ratification of:
-      UN Convention for International Selling of Goods
-      UN Convention for the Terms of Expiration in International Selling of Goods
       from 1970 and the Protocol for Amending from 1980
-      UN Convention for International bills of exchange-      Convention applicable on Rights on Representation
– Law on Small Businesses
– Law on Excises
– Law on Value Added Tax
– Law on Accounting
– Law on Consumer Protection
– Law on Pledges over Immovable Property and Rights
– Law on Cooperative Movement
5. Laws and Legal Acts
Positive Legislation
– Law on Trade (“Official Gazette” no. 23/95, 30/95 and 43/95)
– Customs Tariffs Law (“Official Gazette” no.  38/96, 45/97, 54/97, 61/97and 26/98)
– Law on Customs (“Official Gazette” no.20/93 and 63/98)
– Customs Law  (“Official Gazette” no. 21/98, 26/98 and 63/98)
– Copyrights Law (“Official Gazette” no. 47/96 and 3/98)
– Law on Market Inspection (“Official Gazette” no. 35/97)
– Law on Special Duties on Import of Agricultural and Food Products in the Foreign
Trade (“Official Gazette” no. 2/94)
– Law on Quality Control of Agricultural and Feeding Products in the Foreign Trade
(“Official Gazette” no. 5/98)
– Law on Foreign Trade  (“Official Gazett e” no. 31/93, 41/93, 78/93, 56/96, 15/97 and
13/98)
– Law on Foreign Exchange Operations (“Official Gazette” no. 31/93, 15/97)
– Law on Concession (“Official Gazette” no. 42/93)
– Law on Catering and Tourism (“Official Gazette” no. 23/95)
– Law on Temporary Residence (“Official Gazette” no. 19/96)
– Regulation for Temporary Import and Export of Goods (“Official Gazette” no. 20/94,
23/96, 53/96, 65/96 and 57/97)
– Regulation Foreign Persons Agent in Republic of Macedonia in the Field of Foreign
Trade Payments (“Official Gazette” no.  78/93, 40/96 and 53/96)
– Regulation for Conditions for Opening Branch Offices of Foreign Entities in
Republic of Macedonia (“Official Gazette” no. 25/95, 59/97 and 54/98)WT/ACC/807/3
Page 15
– Decision-act for Dividing of the Goods in Forms of Import and Export (and list of
goods)n the Field of Foreign Trade  (“Official Gazette” no. 39/96, 64/96, 66/96,
67/96, 45/97, 54/97, 66/ 97, 20/98 and 26/98)
– Decision-act for Determining Special Taxes on Import of Certain Agriculture or Food
Products (“Official Gazette” no. 66/97)
– Decision-act for Conditions for Reimburseme nt of Custom’s and other Import Duties
for Goods Returned Abroad (“Official Gazette” no. 12/94)
– Bye-Law for the Minimal Technical Conditions for Performing Catering and Tourist
Activities and Conditions for Categorization of the Tourist Facilities (“Official
Gazette” no. 59/95, 19/96, 38/97 and 57/97
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations
(b) Characteristics of national tariff
The national tariffs are defined with the Customs Tariff Act (Official Gazette of the Republic
of Macedonia No. 38/96 from 31 July 1996). The nomenclature of the Customs Tariff is fully
compatible with the Convention on Harmonized System from 1996 of World Customs Union, and
large computability with the EU Combined Nomenclature has been accomplished.
The system of multiple import charges was abandoned and all customs charges are unified
into a single customs tariff paid on importation of goods. The new Customs Tariff Act has made a
significant liberalization of foreign trade operation s. Thus the weighted average customs tariff of
26.21 per cent has been reduced to 16.20 per cent. Generally, customs tariffs vary from zero per cent
to 35 per cent. For certain agricultural products and foodstuff, the customs tariff goes up to 60 percent. Furthermore, for agricultural products, the Customs Tariff Act foresees, in addition to ad
valorem  tariffs, specific tariff.
On the importation of goods a tax of one per cent is being charged and it represents a fee for
customs evidential. On the exportation of goods, no customs duties or exporting fees are being
charged.
The Republic of Macedonia applies the most favourable nation clause for all the countries in
the world.
Customs preferences are applied on the basis of the free trade agreements. Free trade
agreements are concluded with: Slovenia (preferences are applied only on industrial products and onsmall part on agricultural products and food), the Federal Republic of Yugoslavia (preferences are
applied on agricultural products and industrial pr oducts) and Croatia (preferences are applied only on
industrial products and only on small part on agricultural products and food). With Bosnia and
Herzegovina the preferences are applied on all products.
(c) Tariff quotas, tariff exemptions
There is a system of tariff quotas for certain products (agricultural and foodstuff) under
bilateral free trade agreements of the Republic of Macedonia with the Republic of Slovenia, the
Republic of Croatia and the Republic of Yugoslavia. The list of products is given in Annex II.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Quantitative import restrictions were cancelled as from 31 December 1996.WT/ACC/807/3
Page 16
Under the Law on Foreign Trade Operations, certain goods may be imported or exported on
the basis of “L” licence, in accordance with inte rnational agreements, regulation of import of arms
and military equipment, import and export of industrial and artistic works and of certain precious
metals.
The import on the basis of a licence is foreseen for military equipment, historic and artistic
works, certain precious metals, narcotic drugs and alike.
To import certain agricultural products, foodstuff and other products, it is necessary to obtain
approval, permission or certificate of the competent bodies and institutions.
(f) Import licensing procedures
Under the Law on Foreign Trade Operations, companies registered for doing export – import
arrangements have the right to submit a request for achieving licence for importing certain goods. For
receiving a licence the submitter of the request must provide the following data:
– firm, unique customs number, the full title of the user;
– ten-digit level tariff designation;
– stating of the name of goods according to the customs nomenclature;
– the trading name of the goods;
– quantity of the goods for which the request was submitted; stated in unit measure;
– firm and full name of the foreign exporter;
– time-table in which the importing will be conducted;
– statement for the purpose and use of the imported goods;
– other data, prescribed by special regulations.
(h) Customs valuation
The new Customs Law adopted by the Assembly of the Republic of Macedonia will enter into
force from 1 January 2000. It is prepared according to the Customs Law of the European Union. With
this, the regulations for determining the Customs Va luation will be in compliance with the ones used
by the EU.
(j) Pre-shipment inspection
In the Republic of Macedonia, no pre-shipment inspection is applied, so far.
(l) Rules of origin
The Chamber of Commerce of the Republic of Macedonia is still in charge for issuance of the
certificates of Macedonian origin of the goods – “Certificate of Origin”.
The Chamber of Commerce of the Republic of Macedonia is issuing the certificates of
Macedonian origin “Certificate FORM A” according to the General System of Preferences (GSP).
The origin of the goods is, also, checked according to the Protocols for Rules of Origin of the
Goods stipulated in the Free Trade Agreements that the Republic of Macedonia has concluded. It
should be underlined that changes have been made to this segment of the regulation, in sense that thecertificates EUR 1 are certified by the customs authorities.WT/ACC/807/3
Page 17
2. Export Regulation
(c) Quantitative export restrictions, including prohibitions, quotas and licensing systems
Quantitative export restrictions were cancelled as from 31 December 1996.Under the Law on Foreign Trade Operations, certain goods may be imported or exported on
the basis of “L” licence, in accordance with international agreements, regulation of importation of
arms and military equipment, export of industrial and artistic works and of certain precious metals.
In the Republic of Macedonia, licence is necessary for exportation of certain products such as
commercial explosives, ammunition, arms, narcotic drugs, artistic works, and other products inconformity with international conventions.
For exportation of certain agricultural products and foodstuff, seed materials and other
products, it is necessary to obtain approval or permission of the competent bodies. This results from
the need to make up temporary shortage of food, the need to protect the environment and to facilitatedevelopment of strategic industries.
The request for licence must provide the following data:– firm, unique customs number, the full title of the end user;
– ten-digit level tariff designation;
– stating name of the goods  according to the customs nomenclature;
– the trading name of the goods’
– quantity of the goods for which the request was submitted; stated in unit measure;
– firm and full name of the foreign importer;
– time-table in which the importing will be conducted;
– other data, prescribed by special regulations.
3. Internal Policies Affecting Foreign Trade in Goods
(c) Sanitary and phytosanitary measures
Besides the regulation given in the Memorandum it should be underlined that for import or
export of seed materials, besides the phytosanitary-certificate and the additional certificate for seed
potato, the certificate of quality i.e. “Orange” certificate – ISTA is included.
(d) Trade-related investment measures
Article 31 of the Constitution stipulates that a foreign person in the Republic of Macedonia
may acquire property rights under conditions set by law. Furthermore Article 59 of the Constitution
guarantees a foreign investor the right to free transfer of the invested capital and profits and that the
rights acquired on grounds of the invested capital may not be reduced by other law or regulation.
The Law on Trading Companies was adopted by the Assembly of the Republic of Macedonia
on 30 May 1996 (Official Gazette of the Republic of Macedonia No. 28/96). Changes and additions
were published in the Official Gazette of the Republic of Macedonia No. 7/97, 21/98, and 68/98.
Under this Law, a trading company may be established by domestic and foreign natural and legalpersons.
For the purpose of this Law, a foreign person is any legal person that has a company
registered into company’s register abroad or in the register in its country and any natural person that is
foreign person.WT/ACC/807/3
Page 18
A foreign person may establish the same types of companies as a national of the Republic of
Macedonia: (i)  general partnership; (ii)  limited partnership; (iii)  limited liability company;
(iv)  company limited by shares; and (v)  limited partnership with shares. A foreign person may be
individual trader.
The Law stipulates that any foreign natural and legal person may be a partner or shareholder,
that is to say may establish a company or acquire shares in the manner and under conditions
prescribed by law for the nationals of the Republic of Macedonia and for legal persons entered into
the trade register for the territory of the Republic of Macedonia, unless otherwise provided by law.
A company with foreign participation has the same rights and obligations as a company
without such participation, except for the cases prescribed by law. Article 27, paragraph 1 of the Law
on Trading Companies foresees that the approval of the organ in charge of foreign economic relations
shall be necessary for incorporation of a company fully owned by one or a number of foreign persons
or a company in which they have majority participation, for transformation of a company into such
one or for acquisition of majority participation by fo reign persons in a company. If within 60 days as
of the day when the application was filed the decision has not been received, it shall be considered
that the approval was not given. If foreign participation does not reach the level determined in
paragraph 1 of this Article, the approval of the competent organ shall not be necessary for
incorporation of a new or acquisition of participation in the existing company. In this case the
acquired participation in a newly-established company or in an existing company is registered in theregister of foreign investments kept by the Ministry in charge of foreign economic relations.
Article 28 foresees that rights acquired on the basis of investment of capital in a company
may not be reduced by law or another regulation. The Law also stipulates that part of the profits of the
company to which a foreign person is entitled to, that is to say the amount of money a foreign personis entitled to in case of company's dissolution or in case of partial or complete disposal of a share of a
foreign person, may be freely remitted abroad, on request of that foreign person, in currency of
investment if a company has available funds.
The Law on Trading Companies provides for the possibility that a foreign person engages in
trading activities in the Republic of Macedonia without establishing a company or without acquiring
shares or parts in the existing company. Foreig n trading companies and traders may not engage in
business in the Republic of Macedonia until they establish a branch.
A foreign company or a foreign individual trader may establish a branch in the Republic of
Macedonia provided that it was entered in the company's register of the state in which it has its seat at
least two years before that. If a foreign company establishes a number of branches in the Republic ofMacedonia, the application for entry into the trade register must indicate which branch is main. A
foreign individual trader may establish only one branch. Approval of the Ministry responsible for
foreign economic relations is necessary for opening of a branch of a foreign company. A foreign
company or a foreign individual trader reports the es tablishment of its branch for entry into the trade
register to the court competent for that according to  the seat of the branch and to the company's form.
The branch acts on behalf and for the account of a foreign company or of an individual trader;
in doing so the branch shall use the firm and seat of the company and name of the branch. A foreign
company or individual trader shall have full liability in regard to the obligations that have arisen from
the work of its branch.
The Law on Trading Companies provides for the possibility that a foreign company that has
the right to engage in trading activities under the national legislation , may establish a representative
office in the Republic of Macedonia. A representative office is not a legal person and may not pursueWT/ACC/807/3
Page 19
trading activities. A representative office is re gistered in the Ministry responsible for foreign
economic relations.
(f) Free zones
The Free Zone is a part of the customs area of the Republic of Macedonia on which special
customs supervision measures and incentives of the customs procedure are applied.
In the Free Zone conducting of loading, unloading, transfer loading and storage of non-taxed
goods that are to be imported, domestic taxed and non-taxed goods that are to be exported, or are in
transit can be executed. The usual preparation of the goods for markets, meaning sorting, scaling,
marking, packing, assembling, disassembling and making of the samples can be also done.
(g) Free economic zones
A Free Economic Zone is a part of the customs area of the Republic of Macedonia which is
specially framed and marked as a zone in which economic activities are performed under specialconditions.
In the Free Economic Zone goods can be produced, as well as import-export activities,
banking and other financial works, can be performed as well as insurance and reinsurance of
possession and persons and tourist services. Unused free capacities inside this zone, with previousapproval of the customs organ, can be used for storage of domestic goods that are not going to be
exported under condition to be specially evidenced and the placement of this goods not to affect the
control of the working process of the Free Economic Zone.
(j) Government-mandated counter-trade and barter
Pursuant to the changes to the Law on Foreign Trade Operations, after the submission of the
Memorandum, the Ministry of Economy is authorized for issuing approvals for Barter Trade.
(k) Trade agreements leading to country-specific quotas allocation
The Republic of Macedonia has concluded a number of trade agreements that set out specific
quota allocation.
– Trade in textile products:
– Textile Agreement between the Republic of Macedonia and the EU. The Agreement
stipulates restriction to export of textile products from the Republic of Macedonia tothe EU, in per cent in the total imports of textile products to the Union of the
preceding year, by categories of products which are as follows:
- 1 per cent for categories of products under I group
- 5 per cent for categories of products under II group
- 10 per cent for categories  of product s under III group
– Bilateral Textile Agreement concluded between the Government of the Republic of
Macedonia and the US Government. The Agreement specifies limits on the imports
of textile and textile products made of cotton, wool, artificial fibre, mixture of silk
and non-cotton natural fibres from the Republic of Macedonia into the USA, for
certain categories listed in Annex B to the Agreement.
- Trade in other sectors
Cooperation Agreement between the Republic of Macedonia and the EU (Official Gazette of
the Republic of Macedonia No. 37/97) the aim of which is to promote cooperation between the twoWT/ACC/807/3
Page 20
contracting parties and to contribute, in the sphere of trade, to improvement of conditions for access
of Macedonian goods to the EU markets.
Annexes B,C,D, E and Annex I of the Agreement indicate goods to have preferential
treatment and duty free treatment in the EU, or certain customs quotas, ceilings and referentialquantities for agricultural and industrial products.
- Regional free trade agreements
The Free Trade Agreement between the Republic of Macedonia and the Republic of Croatia
(Official Gazette of the Republic of Macedonia No. 28/97). Annexes 1 and 2 to Protocol 1 of the
Agreement specify the list of customs quotas for e xportation and importation of agricultural and food
products.
Free Trade Agreement between the Republic of Macedonia and the Republic of Slovenia
(Official Gazette of the Republic of Macedonia No. 48/96). Annex 1 to Protocol 1 and Annex 2 to
Protocol 2 of the Agreement specify the list of  customs quotas for agricultural and food products.
Trade Agreement between the Government of the Republic of Macedonia and the Federal
Government of the Federal Republic of Yugoslavia (Official Gazette No. 59/96). On the basis of the
Agreement, certain quantitative restrictions – quotas for export and import of agricultural and
industrial products are specified.
(l) Government procurement practices
The Law on Public Procurements was adopted by the Assembly of the Republic of
Macedonia on 4 June 1998.
This Law regulates the manner and procedure to be applied for public procurements by
beneficiaries of funds from the Budget of the Republic of Macedonia, budgets of local self-
government units, beneficiaries from State and muni cipal non-budgetary funds, as well as by agencies
and other public institutions, organs and organisations set up by the State. This Law also regulates the
manner and procedure for performance of public procurements by public enterprises and State-owned
companies.
The provisions of the Law provide for full transparency and access to procurements, that is to
say full information for the prospective bidders about the intention of the State or other agencies to
make certain procurements. This is a basis for securing equality and identical status of all entities, that
is of all domestic and foreign legal and natural persons in respect of their participation in procurementprocedures, by filing their bids.
According to the Law, public procurements may be conducted provided that the necessary
funds have been previously secured. On the basis of the determined sources of funds, a public
authority may plan its procurement needs and determine the dynamics for their effectuation.
The procurement procedure is carried out by the procurement commission set up by a public
authority, which is composed of a chairman and two members at least.
The procurement may be conducted by:– public tendering procedure
– restricted tendering procedure
– obtaining tenders
– negotiating procedure.WT/ACC/807/3
Page 21
Selection of the most advantageous bidder is performed, after the public authority ordering a
procurement has examined economic and financial standing, as well as technical capabilities of the
bidder and determined that it is in a position to effectuate the proposed offer.  The bidder is obliged to
attach to its offer an appropriate document prov ing its solvency issued by the payment operations
authority; whereas foreign natural and legal persons file a solvency certificate issued by the competent
authority or representation body.
Essential criteria for selection of the most advantageous bidder, depending on the kind of
procurement, may be:
– either the lowest price solely; and
– or when tender is awarded to the most advantageous bid in terms of price, delivery
period, payment mode, operational costs, efficiency, quality aesthetic and functional
characteristics, technical qualities, post-sale services and technical assistance.
Public opening of tenders is attended by all members of the commission of the public
authority ordering procurement and by representative s of bidders. Public opening of tenders begins at
the place and time indicated in the public tender; the minutes of the opening is kept.
Procurement tenders are submitted to the public authority ordering procurement by mail,
directly to its archives or to the commission on the spot, but no later than on the day and time set forpublic opening of tenders.
No later than seven days after completion of the tendering procedure, the public authority is
obliged to inform in writing the bidder that its offer has been selected as most advantageous. All other
tender participants  are informed accordingly.
An unsatisfied bidder may file a complaint with the Procurement complaint commission
within 8 days upon receipt of the notification of award.
The procurement complaint commission is composed of a chairman and 4 members and their
alternates from the ranks of affirmed and renown experts (lawyers, notaries, commercial auditors,
engineers etc.) appointed and dismissed by the Government of the Republic of Macedonia for theperiod of two years with the right to be re-elected for another two year term. The Commission is
autonomous in its proceedings.
The contract is signed within 7 days upon expiration of the complaint period, that is to say
upon final decision in respect of the complaint.
4. Policies Affecting Foreign Trade in Agricultural Products
(i) Farming
In 1998, compared to 1996/97, the planted areas were decreased by about 1.2 per cent for
grain crops, 2.2 per cent for cattle-feed crops and 4.3 per cent for vegetable crops, whereas the areas
planted with industrial plants noted an increase of about 8.4 per cent.WT/ACC/807/3
Page 22
Planted areas according to the types of crops for the period from 1990 to 1997 (in ha.)
CROPS 1990 1991 1992 1993 1994 19951990-
1995 1996 199797/98
%
Wheat 112.750 112.783 111.995 117.807 122.031 130.092 117.909 118.082 116.951 99
Barley 50.687 54.429 55.421 56.424 10.586 54.874 47.070 48.916 51.185 105
Corn 41.181 42.169 43.772 44.693 42.719 42.489 42.837 4.333 40.469 96
Rice 8.880 8.692 8.465 5.143 1.731 1.316 5.704 4.157 5.119 123
Sugar Beet 4.002 2.211 2.381 2.259 1.616 1.901 2.394 2.099 1.690 81
Tobacco 20.818 18.321 22.496 21.609 19.977 15.940 219.860 15.828 19.272 122
Sunflower 27.734 28.571 30.417 27.775 20.833 14.480 24.968 16.553 13.164 80
Tomato 7.607 7.993 7.456 7.207 6.971 7.315 7.424 7.796 7.016 90
Peppers 8.890 9.069 8.633 7.944 7.930 8.028 8.415 8.421 7.932 94
Melons 11.524 11.476 9.809 9.127 8.785 8.856 9.929 9.027 8.125 90
Alfalfa 19.706 18.901 19.375 19.740 19.738 19.608 19.919 19.916 19.438 98
(ii) Viticulture and Wine Production
As regards the grape production, in 1996 it totalled 214.513 tons; the processing of this
quantity yielded 1.010.300 hectolitres of high-quality and protected generic type of wine. In 1997 the
grape production is on the rise and totals 220.868 tons, the processing of which yielded 1.300.000
hectolitres of wine and in 1998 the grape production totals 243.567 tons; the processing of which
yielded 1.227.100 hectolitres of wine. As far as th e wine production is concerned, all quantities are of
the protected generic type of wine, while 80 per cent of the wine is market surplus and is sold on
foreign markets, mainly in Germany, United Kingdom, USA, Canada and on other markets.
(iii) Fruit growing
The movements in the fruit production by types of fruit is given below.
Production by Types of Fruit
TYPE OF FRUIT 1993 1994 1995 1996 1997 1998
Strawberries 2.933 2.249 3.332 3.149 5.503 5.203
Sweet cherries 3.240 3.499 3.343 3.426 2.852 3.535
Sour cherries 6.840 6.057 5.300 4.583 3.067 5.109
Apricots 5.715 5.066 6.061 4.296 1.305 2.349
Apples 71.676 70.060 69.950 65.399 76.602 61.675
Pears 14.116 11.632 9.118 12.730 8.226 9.263
Quince 1.091 780 672 825 932 964
Plums 21.200 25.230 17.221 30.878 17.633 19.760
Peaches 5.293 5.405 4.333 7.343 3.545 6.823
Walnuts 2.969 3.008 2.838 3.829 3.532 2979
Other fruits 4.790 5.003 4.200 4.810 2.540 4.920
TOTAL: 140.003 137.989 126.268 136.398 123.197 122.580
(iv) Livestock breeding
No significant changes can be noticed in the numbers of the livestock, according to the
statistical data for the period 1992-1997. (see table below).WT/ACC/807/3
Page 23
Livestock Numbers
Cattle Sheep Pigs Horses Poultry Bee colonies
1992 284.919 2.351.408 173.006 64.576 4.297.350 71.600
1993 280.324 2.458.648 184.920 61.748 4.392.721 77.951
1994 281.336 2.466.099 171.571 61.797 4.685.021 73.980
1995 283.237 2.319.905 175.063 61.733 4.879.873 72.171
1996 294.613 1.813.895 192.396 66.479 3.360.801 62.578
1997 289.428 1.631.034 184.293 65.896 3.274.570 74.415
*There is no statistic data for the performed livestock production in 1998
The decrease in the number of sheep in 1997, in comparison to the 1995-96 period, is mainly
caused by the EC embargo on importation of livestock from 1993 due to occurrence of foot andmouth disease.
(a) Imports
The adoption of the Customs Tariff Act (Official Gazette of the Republic of Macedonia No.
38/96) and a Decision on Distribution of Goods into Forms of Exportation and Importation (Official
Gazette of the Republic of Macedonia No. 30/96,64/96 and 67/96) provided for larger liberalization of
foreign trade operations. Namely, quantitative export and import restrictions were abolished; all
agricultural and food products are on LB regime, except for certain deficit and sensitive products for
which the applicable regime is based on approvals – import or export approvals. Customs duty (advalorem) and specific import duties play a central role as protection measures.
(c) Export prohibitions and restrictions
With the adoption of the Customs Tariff Act, as well as of the Decision on distribution of
goods into forms of exportation and importation, quantitative exports restriction were abolished,
except for a small number of deficit products subject to LB1 regime, what implies that depending on
the balance situation in the country, the competent sector of the administration issues export approval.
Basically, the export of agricultural food products is not restricted.
- Measures of the Programme for encouragement of the Agriculture Development
Funds of the Programme for Agricultural Development Stimulation
1993 1994 1995 1996 1997 1998
Artificial meadows
and esparcet seedsproduction2.100.000
700 ha.
Artificial
meadows
400 ha.
Esparcet7.651.563
600 ha.
Artificial
meadows
400 ha.
Esparcet10.832.301
1199 ha.
Artificial
meadows
725 ha. Esparcet18.000.000 .
(i)
000 ha.
Artificial
meadows
500 ha. Esparcet21.696.117
1100 ha.
Artificial
meadows
840 ha.
esparcet/
Livestock, fishery
and bee keepingdevelopmentincentives5.597.667 33.422.912 26.699.792 56.000.000 36.037.878 70.000.000
Co-financing of
damp constructionfor small
accumulation lakes
and small hydro-reclamation systemsfor agricultural
development10.876.271 22.962.040 7.132.291 45.500.000 44.996.400 60.000.000WT/ACC/807/3
Page 24
1993 1994 1995 1996 1997 1998
Promotion of
individual farmers'
production1
-Farming-Gardening-Fruit raising
-Grape Growing
-General measure(agriculturaleducation and
propaganda)4.000.000
150.000
150.000
86.000
625.000
2.989.0007.844.680
1.375.300
1.375.200
750.000
770.000
3.574.1807.132.291
1.590.000
1.590.000
1.280.000
175.000
2.497.291280.500.000
2.200.000
2.650.000
1.770.000
5.250.000
268.630.000
2109.563.7932
.
2.200.000
/
650.205
10.748.45095.965.13855.062.000
7.240.000
4.200.0008.810.000
9.000.000
23.820.000
Fund for protectionand utilization of
arable land2.100.000  for
clearing  500
ha.2.667.600  for
clearing  497
ha.2.400.000 for
clearing 320 ha.10.000.000 106.950.578
3
1. 1997 is considered a year of agricultural development
2. 1996 includes funds for insufficiently projected purposes and for the measures commenced the previous 
year.
3. It relates only to measures initiated in 1996 and to insufficiently projected purposes.
For the purpose of intensifying the development of livestock raising, the Programme foresees
measures for accelerated breed improvement, which at the same time means increased milk and meat
production; improvement of sheep breeds; establishment of centres for swine and goat breeding;
increase in the number of healthy bee colonies; as well as and increasing the number of fishes byartificial means in certain areas and fish ponds for production of quality fish progeny.
V. TRADE-RELATED INTELLECTUAL PROPERTY PROTECTION REGIME
1. General
In the period after the submission of the Memorandum, the Republic of Macedonia accepted
the following international conventions and treaties in the field of the intellectual property:
– Universal Copyright Convention (on succession basis)
– Convention Relating to Distribution of Program-Carrying Signals Transmitted by
Satellite (on succession basis)
– Convention for Protection of Phonographic Producers from Illegal Recording &
Reproduction of the Phonograms; (“Official Gazette of the RM No.47/97”)
– International Convention for Protection of Performers, Producers of Phonograms and
Broadcasting Organizations - Rome Convention (Official Gazette No. 50/97) with a
reservation on non-application of criteria for publishing contained in Article 5,Paragraph 1, subparagraph 1(b), in conformity with Article 5 Paragraph 3 of the
Convention and on non-application of provisions of Article 12, in conformity with
Article 16, Paragraph 1 (a) (i) of the Convention.
– Hague Agreement Concerning International Deposit of Industrial Design;
– Patent Cooperation Treaty (PCT), and
– Treaty for Collaboration with the European Patent Organization
The Republic of Macedonia accepts standards of the World Intellectual Property
Organization, e.g. WIPO standard ST.3, where all member countries of WIPO use code MK. Also, in
all other documents where codes are used, for the Republic of Macedonia is used the code MK.
In the meantime, the Government of the Republic of Macedonia passed the Decision on
accession of the Republic of Macedonia to the Permanent Committee for Information referring to the
Industrial property of the World Intellectual Property Organization (Official Gazette of the Republic
of Macedonia No. 17/94), Decision on accession of the Republic of Macedonia to the PermanentWT/ACC/807/3
Page 25
Committee for Development of Collaboration in the Industrial Property of the World Intellectual
Property Organization (Official Gazette of the Republic of Macedonia No. 15/96). In October 1997
the Republic of Macedonia was elected to the Executive Committee of the Paris Union for Protection
of the Industrial Property. This represents recognition for achieved results and obligation for further
activities in the industrial property protection rights and copyrights.
(a) Intellectual property policy
After the submission of the Memorandum, two laws have been enacted with major
significance to the protection of the intellectual property.
On September 12, 1996 the Law on Copyright and Related Rights was enacted  – LCRR
(Official Gazette 47/96, 3/98) which entered into force on September 20, 1996. This Law regulates
rights of authors of literary and artistic deeds over their works, rights of artists - performers, producers
of phonograms and video-grams, film and performance producers, radio and television (broadcasting)
organisations, and the publishers’ rights over their published phonograms, video-grams, scene arts,
radio diffusion programmes and publications. The provisions of this Law are explained in theMemorandum.
The Parliament of the Republic of Macedonia enacted the Law on the Protection of
Topography of Integrated Circuits (Official Gazette No. 5/98) on 22 January 1998.
(b) Responsible agencies for policy formulation and implementation
- For copyright and related rights
The LCRR provides inspection and supervision of the implementation of the Law by a State
organ (Ministry of Culture), that is to say of the operations of natural and legal persons that trade with
originals or copies of copyrighted works or related rights. In November 1996, a Copyright and
Related Rights Inspection Office was established within the Ministry of Culture. It supervises
realization of these rights.
When an authorized person – inspector, while performing his inspection reasonably suspects
that an infringement was made, with a decision he/she temporarily takes away the materials whichwere used, or were to be used, for attempting the infringement, or were made as a product of the
infringement, and in the same time with a proposal for starting an infringement procedure hands them
over to the authorized organ for infringement procedure.
There are no changes in the sphere of the Industrial Property Protection related to the
authorities of the Industrial Property Protection Office.
(c) Membership of international intellectual property conventions and of regional or bilateral
agreements
Since 16 July 1996 the Republic of Macedonia has ratified:
– Universal Copyright Convention (on succession basis)
– Convention Relating to Distribution of Program-Carrying Signals Transmitted by
Satellite (on succession basis)
– Convention for Protection of Phonographic Producers from Illegal Recording &
Reproduction of the Phonograms; (“Official Gazette of the RM No.47/97”)
– International Convention for Protection of Performers, Producers of Phonograms and
Broadcasting Organizations - Rome Convention (Official Gazette No. 50/97) with a
reservation on non-application of criteria for publishing contained in Article 5,WT/ACC/807/3
Page 26
Paragraph 1, subparagraph 1(b), in conformity with Article 5 Paragraph 3 of the
Convention and on non-application of provisions of Article 12, in conformity with
Article 16, Paragraph 1 (a) (i) of the Convention.
– Hague Agreement Concerning International Deposit of Industrial Design;
– Patent Cooperation Treaty (PCT), and
– Treaty for Collaboration with the European Patent Organization
Also the reservation for applying the Article 8 from the Bern Convention was cancelled.The Republic of Macedonia has neither concluded regional agreements regulating the regime
of copyright and related rights, nor is a member of this type of regional organisations. As regard
bilateral agreements in the sphere of cultural cooperation, the basis is laid for such cooperation with anumber of states, that is to say the reciprocal protection of copyright and related rights has been
provided for (Poland, the Russian Federation, Switzerland and others).
(d) Application of national and MFN treatment to foreign nationals
Besides the already mentioned protection of the copyright  and related rights explained in the
Memorandum, we can also underline that protection is enjoyed by foreign authors and holders of
related rights whose works, performance or objects of related rights are disclosed via satellite in the
Republic of Macedonia, if program signals, in a non-interrupted line, lead to the satellite and back to
the land in the Republic of Macedonia and are under control of the authorized radio and television.Irrespective of the above presented condition, the protection is exercised if there is a receiving-
dispatching station in Macedonia that transmits program signals or if there is radio or television
station that ordered broadcasting via satellite and has a seat in Macedonia.
Authors or holders of related rights that have no citizenship or whose citizenship cannot be
determined - stateless persons enjoy the same rights as nationals of the Republic of Macedonia, if they
have residence or obligatory residence in the Republic of Macedonia. If they do not fulfil the
preceding criteria, they enjoy the same protection as nationals of states where stateless persons have
residence or obligatory residence. Authors or holders of related rights that have a refugee status under
international agreements or regulations of the Republic of Macedonia have the same rights, provided
that they meet the conditions prescribed for stateless persons.
For foreign holders of related rights that enjoy rights under the LCRR, the duration of
protection period is set by this Law, whereas the pr otection periods may not last longer than after the
day of expiration of protection period in the state they are nationals of or where they have a seat.
However, protection period shall not exceed periods prescribed by this Law.
2. Substantive Standards of Protection
(a) Copyright and related rights
Besides the already explained protection in the Memorandum we can stress that by the LCRR
the rights of a stage producer last 20 years from the day of the first public performance of the stage
work.
A legal or natural person that lawfully publishes a copyrighted work in the written form
(publisher) has exclusive material rights in his/her publication, and to allow or forbid his/herpublication to be reproduced by another legal or natural person, in his/her name by way of xeroxing,
copying or any other way of multiplication. In the case of allowed reproduction, the reproduction has
to be named by the name, pseudonym or the mark of the publisher of the used publishing. Protection
period for reproduced publications is 25 years following a lawful publication of the work.WT/ACC/807/3
Page 27
A publisher that issues unpublished work with expired copyright enjoys material and other
copyrights, whereas the protection period lasts 25 years from the day of the first publication.
A publisher that issues an already published critics or scientific work on which the copyright
has expired, and that is essentially different from the other known published issues of the work,enjoys material copyright and other rights, whereas the protection lasts 25 years from the day of the
first legal issue of the work.
(g) Layout designs of integrated circuits
In the Republic of Macedonia the protection of topography of integrated circuits is regulated
by the Law on the Protection of Topography of Integrated Circuits.
A topography shall be protected if it is original.A topography is considered to be original if it is a result of its creator’s own intellectual effort
and was not in use in the semiconductor industry when it was created.Where topography consists of elements that are commonplace in the respective industry, only the
combination of these elements shall be protected, pr ovided that it fulfils the conditions relating to
originality.
The holder of the protected topography shall be granted exclusive rights of commercial
exploitation, including the right to auth orize or prohibit any of the following:
– reproduction of the topography by any means or in any form;
– importation, sale or other form of distribution of the topography or integrated circuit
incorporating the respective topography or products that include integrated circuitincorporating the respective topography.
The exclusive right mentioned above should not extend as to include any concept, process,
system or technique on which the topography is based, other than the topography itself.
The mentioned right cannot be exercised from the moment the protected topography or
integrated circuits are put in use on the market by the right holder or with his approval.
Topography is considered as protected when it is entered into the Register of topographies.
The exclusive rights shall come into effect for the holder of protected topography on:
– the date of filling of application in accordance with Article 12; or
– the date when the respective topography was first commercially exploited anywhere
in the world.
If the topography has not been commercially exploited, the exclusive right shall expire 15
years after its fixation or decoding.
During the protection period, the right holder is entitled to mark the respective integrated
circuit with a capital “T”.
The procedure for registration of the right for protection shall commence with an application
containing a request for recognition of right and entry into the appropriate register (hereinafter:
application).
The application must contain the data about the name of the applicant and the creator;
description of topography accompanied by the data on sequences; an abstract comprising theWT/ACC/807/3
Page 28
characteristics of the electronic function or functions of an integrated circuit, manufactured on the
basis of the protected topography; if the topography has already been commercially exploited, a
statement in writing relating to the date when the respective topography was first commercially
exploited.
A separate application shall be filed for each topography.
The Industrial Property Protection Office shall examine whether the application fulfils the
conditions relating to the entry into the registry of topographies as specified in Article 12 of the Law.
The request shall be rejected if the application does not fulfil the said conditions.
If the application partially fulfils the conditions specified in Article 12 of the Law, the Office
shall invite the applicant to correct the applica tion within the time limit of two months. If the
applicant fails to act accordingly within the foreseen period, the application shall be rejected by a
decision.
If the application fulfils all the conditions of Article 12 of the Law, the right shall be
recognized by a decision and the Office shall enter it into the Registry of Topographies.
The entry into the Registry shall be published in the Official Gazette of the Office.
The provisions relating to representation of foreigners, non-availability of unpublished
applications, receipt of application, entry of data and changes in the registry, invalidation of rights,
time limits for infringement action, transfer of rights , licence, representation as stipulated in the Law
on Industrial Property (Official Gazette of the Republic of Macedonia No. 42/93) shall apply to
topographies of integrated circuits.
(h) Requirements on undisclosed information, including trade secrets and test data
The Republic of Macedonia does not have a special law for the protection of undisclosed
information, including trade secrets and test data. Protection of undisclosed information, including
trade secrets, is regulated by the provisions of the Law on Trading Companies and Law on Trading
(Article 31-37), more precisely by the provisions for unfair competition. The part concerning theknow-how is regulated by the Law on Foreign Trade Operations and is still in force.
Article 281 of the Criminal Code of the Republic of Macedonia foresees a criminal offence
“disclosure and unauthorized acquisition of busines s secret”. This means that the person who will
impart, hand over or in some other manner make available data specified as business secret by law tounauthorized person, as well as the person who acquires this type of data with the intention to transmit
them to unauthorized person, will be punished with one to five year imprisonment.
The person who will impart, hand over or in some other manner make available the data
specified as business secret in a regulation or a decision of the competent management body tounauthorized person, if the disclosure of these data caused or may have caused serious harmful
consequences, as well as the person who acquires this type of data with the purpose to disclose them
to unauthorized person, will be punished with  three months to three year imprisonment.
If the data are of special importance or if the disclosure or acquisition is done for the purpose
of delivering them abroad or if the perpetrator was bribed, such a person will be punished with one to
ten year imprisonment.WT/ACC/807/3
Page 29
4. Enforcement
Copyright and related rights
After the inaction of the LCRR - when an author ized person – inspector, while performing his
inspection reasonably suspects that an infringement was made, with decision he/she  temporarily takes
away the materials which were used, or were to be used, for attempting the violation, or were made as
a product of the violation, and in the same time with a proposition for starting an infringement
procedure hands them over to the authorized organ for infringement procedure.
(a) Civil judicial procedures and remedies
Unauthorized use, handling and imitation constitute infringement of intellectual property
rights. The following is considered infringement of copyright and related rights: unauthorized use,
such as production, importation, possession for commer cial purposes, distribution, rental or any other
use of any devices:
– whose only and predominant purpose is unauthorized elimination or damage of
technical equipment or computer program used for lawful protection against
unauthorized use; and
– which enable or help , with no authorization, reception by the public of coded radio
and television programme signals.
With the claim the holder of an infringed right may require: the defendant to be prohibited to
undertake activities aimed at violation, the violation itself or future violations; the defendant to repair
the situation that occurred through such a violation; unlawful copies  and wrapping or performance
and other protected things to be destroyed or processed; matrices, negatives, records, moulds bywhich the violation was performed to be destroyed or processed; equipment (possessed by the
defendant)  solely or predominantly intended for infringement of rights guaranteed under the LCRR to
be destroyed or processed; and publication of the court decision in the mass media at the expense of
the defendant in the scope and manner to be determined by the court.
It should be added that the LCRR established the so-called civil punishment for actions, done
intentionally or through complete negligence, which infringe material or other copyright and relatedrights. In this case, the right holder may request, in civil proceedings, to be paid the agreed or
customary compensation for that kind of use increased by 200 per cent, irrespective of whether the
right holder suffered material damage thanks to the infringement in question.
The LCRR foresees that the court may provide evidence (search, that is to say inspection of
premises; documentation, inventory, data bases, computer programs and alike; examination and
seizure of documents, witness hearing, findings and statements of experts) without prior notification
and information of the other party, if the right holder reports that his/her exclusive right provided for
under this law is violated and that there is reasonable doubt that the evidence may be destroyed or
may not be provided at a later stage. The procedure for securing evidence is urgent and the provisionsof the trial procedure are applied.
In case of infringement of moral rights without material damage, the court may rule that the
author or performer be paid just indemnity in funds for the damage done to his personality, honour
and reputation, or for non-material damage, if determined that the circumstances of the case,particularly the degree of the damage and its duration so justify.WT/ACC/807/3
Page 30
(b) Provisional measures
The provisional measures are introduced according the Articles 263-276The LCRR also provides a court decision by which a provisional measure is introduced.
Besides the measures stated in the Memorandum, it should be underlined that under the LCRR, the
court may order provisional measures to secure not-monetary claims in particular: copies, devices,
equipment and documents linked with them to be forfeited, withdrawn from sale and preserved;
actions of eventual infringements or their continuation to be prohibited; other similar measures to be
undertaken.
On the procedure for bringing up a provisional measures, the executive procedure is applied.If, on the other hand, the right holder reports that his exclusive right, guaranteed by the
LCRR, has been infringed and that there is a reasonable doubt that the evidence will be destroyed or
may not be provided at a later stage, the court may, on his proposal, provide such evidence without
prior notification and hearing of the other party. Securing of evidence includes: search or inspectionof premises; documentation, inventory, databases, computer programs and alike; examination and
seizure of documents, witness hearing, findings and statements of experts. When the evidence is being
secured, the other party is handed over the decision by which the proposal for securing of evidence
was accepted, along with the proposal. A complaint against the decision does not postpone its
implementation.
The procedure for securing of evidence is urgent.
(d) Any special border measures
Besides the measures indicated in the Memorandum we can underline that the customs
authorities, on the proposal of the right holder with a detailed description of the goods, with the
needed evidence of his exclusive rights and their possible infringement, can take the following
customs measures: The right holder or his representative can check out the reported goods, and the
same to be forfeited, withdrawn from sale and stored in a safe place. On proposal of the customs
authorities, the right holder must deposit caution for the possible damage which can be caused with
these measures. Also the customs authorities are responsible for immediately informing the importerand the end user of the goods. These measures are cancelled in the period of ten days, if the holder of
the right does not file a lawsuit or does not start another procedure for implementation of other
measures.
(e) Criminal procedures
In the meantime the Criminal law was replaced  with the Criminal Code so the criminal
procedures are done according to the  Article 285 and Article 286 of this Code.
5. Laws, Decrees, Regulations and Other Legal Acts Relating to the Above
Since the submission of the Memorandum for approach to the WTO the following
Regulations and Laws were enacted:
- Law on Copyright and Related Rights (Official Gazette 19/78, 24/86,   21/90);
- Law on the Protection of Topography of Integrated Circuits (Official Gazette No.
5/98);
- Law for Ratification of the Hague Agreement Concerning International Deposit of
Industrial Designs (Official Gazette No. 71/96)WT/ACC/807/3
Page 31
- Law for Ratification of the Agreement for Collaboration between the Government of
the Republic of Macedonia and European Patent Organization (Official Gazette No.
49/97);
- Law for Ratification of the European Convention relating to the Formalities Required
for Patent Applications (Official Gazette No. 28/97);
- Law for Ratification of the Convention on Unification of Certain Points of
Substantive Law on Patents for Inventions (Official Gazette No. 34/97);
- Law for Ratification of the Convention for Protection of Phonographic Producers
from Illegal Recording of the Phonog rams (Official Gazette No. 47/97);
- Law for Ratification of the International Convention for Protection of the Artists –
Exhibitors, Phonographic Producers and Broadcasting Organizations (Official
Gazette No. 50/97);
- Law on Culture (Official Gazette No. 31/98);
- Law on Use of the Macedonian Language (Official Gazette No. 5/98);
- The Law on Administrative Fees (and Tariffs) (Official Gazette No. 17/93, 20/96,
7/98);
- Regulations Governing the Procedure for Recognition of Patent (Official Gazette
15/94, 46/97);
- Regulations Governing the Procedure for Recognition of Industrial Design Rights
(Official Gazette 15/94, 16/97);
- Regulations Governing the Representatives Registry Book and the Contents of the
Professional Exam for Representatives in the Procedure of Protection of IndustrialProperty (Official Gazette 15/94, 16/97);
- Regulations Governing the Procedure for Recognition of Origin of Goods and the
Procedure for Recognition of the Right fo r Using the Origin of Goods (Official
Gazette No. 24/98);
- Regulations Governing Compensation for Public Performance and Presentation of
Music Works in the Public (and Tariffs) (Official Gazette 61/92, 3/93, 35/93, 60/93,
17/94);
- Regulations for Appearance of the Official Card of the Copyright and Related Rights
Inspector and the Way of Issuing (Official Gazette No. 21/98);
- Regulations for Appearance of the Official Card of the Inspector in the Culture Area
and the Way of Issuing (Official Gazette No. 6/99);
- Decision on the Authority that Issues Approvals for Using the National Coat of Arms,
Flag or Emblem, Title or Short Title of the name Republic of Macedonia or their
Imitations in Industrial Designs and Trademarks (Official Gazette No. 35/95)
- Decision act for Ratification of the World Convention on Copyrights (Official
Gazette of SFRY – International Agreements no. 54/73), implemented in the legal
system of Republic of Macedonia by succession;
- Decision act for Ratification of the Convention on Signal Distribution for Program
Transmission via satellite (Official Gazette of SFRY – no. 13/77), implemented in the
legal system of Republic of Macedonia by succession.
6. Statistical Data on Applications for and Grants of Intellectual Property Rights, as Well
as Any Statistical Data on Their Enforcement
The number of patent applications, domestic and foreign, filed with the Industrial Property
Protection Office of the Republic of Macedonia for the period 1992-1998 is constantly increasing.
(see tables below)WT/ACC/807/3
Page 32
(i) Patents
Patent Applications by Year
Year Foreign Domestic TOTAL
1992 - 14 14
1993 70 66 136
1994 304 74 387
1995 76 100 176
1996 13 52 65
1997 65 66 131
1998 59 84 143
Recognized Patents by Year
Year Local Foreign TOTAL
1994 8 86 94
1995 33 130 163
1996 19 76 95
1997 31 48 79
1998 38 42 143
TOTAL 129 382 511
As a party to the PCT, the Republic of Macedonia has 9.878 designations in 1996, in 1997 the
Republic has 21.096, and in1998, 29590 designations.
(ii) Trademarks
The number of trademark applications, domestic and foreign, filed with the Industrial
Property Protection Office of the Republic of Macedonia for the period 1992-1998 is constantly
increasing. (see tables below)
Trademark Applications by Year
Year Foreign Domestic Total
1992 20 1 21
1993 562 1.225 1.787
1994 3.379 360 3.739
1995 1.528 332 1.860
1996 718 280 998
1997 740 157 897
1998 687 200 887
Recognized Trademarks by Year
Year Local Foreign Total
1993 6 - 6
1994 80 175 255
1995 491 842 1.333
1996 138 2.948 3.086
1997 258 866 1.124
1998 109 448 557WT/ACC/807/3
Page 33
International Registered Trademarks for the Territory of the Republic of Macedonia
1993 9.580
1994 17.125
1995 2.618
1996 1.975
1997 2.860
1998 3924
TOTAL 38.082
(iii) Industrial Designs
The data on the industrial design applications show significant increase for both domestic and
foreign applications.(see tables below)
Industrial Design Applications by Year
Year Foreign Domestic Total
1992 - 4 4
1993 4 17 21
1994 21 37 58
1995 8 41 49
1996 10 26 36
1997 9 20 29
1998 7 35 42
Recognized Industrial Designs by Year
Year Local Foreign Total
1994 5 - 5
1995 13 13 26
1996 17 30 47
1997 56 30 86
1998 26 10 36
There are 252 applications and registrations of industrial designs through the Hague
Agreement for International Deposit of Industrial De signs, and 421 industrial designs for 1998 for the
territory of the Republic of Macedonia.
No appellation of origin of goods or protection of topography of integrated circuits was
established in the Republic of Macedonia.WT/ACC/807/3
Page 34
VI. TRADE RELATED SERVICES REGIME
1. General
1. Banking
The banking sector is regulated by the Law on Banks and Savings Institutions (Official
Gazette of the Republic of Macedonia No. 31/93, 78/93, 17/96 and 37/98).
Under the provisions of this Law, banks and savings institutions are defined as legal entities
that operate independently with the purpose of making profit.
Banks are established as companies limited by shares. Their founders may be domestic and
foreign legal and natural persons. Alongside banks, foreign banks may establish their branches and
representative offices.
The minimum nominal capital necessary for establishing a bank or a foreign bank branch is
7.000.000 DM in local currency (Denars). If the bank is to perform external payment operations,
crediting and guarantees, then the minimum nominal capital necessary for its establishment is
21.000.000 DM.
There are no restrictions imposed in regard to the participation of foreign investment in the
total amount of the bank's minimum nominal capital. In establishing a bank, each individual founder's
share may be up to 20 per cent of the bank's minimum nominal capital in cash money. If a foreign
bank appears as a founder, the share of the individual founder may not exceed 65 per cent of the
founding nominal capital.
The National Bank issues a licence for establishment and for operation of the bank and of the
foreign bank branch. The National Bank is also authorized to control their operations. At present,
there are 21 commercial banks in the Republic of Macedonia, of which 13 with participation of
foreign capital. Also, there are two foreign bank branches.
Savings institutions may be established by legal persons that have registered head offices in
the Republic of Macedonia and natural persons-nationals of the Republic of Macedonia. Theminimum nominal capital necessary for establishing a savings institution is 500.000 DM.
The National Bank issues licenses for the establishment and operation of a savings institution.Savings institutions collect savings deposits from natural persons and extend credits to them.
The surplus funds may be used for purchase of short-term securities and for crediting banks, savings
institutions and legal entities, with a bank guarantee.
There are 18 savings institutions in the Republic of Macedonia.
A special type of savings institution is the postal savings institution established by the PTT
Company, with a minimum nominal capital of 1.000.000 DM.
The minimum nominal capital necessary for establishing a foreign bank branch is
7,000,000 DM. The branch has the status of a legal entity, but is not authorized to perform externalpayment operations. The bank performs external payment operations through a bank, authorized to
perform external payment operations, except with regard to payments made to the parent bank or with
regard to receiving foreign currency remittances from  the parent bank on the basis of capital relations,
which activities are performed directly.WT/ACC/807/3
Page 35
A representative office of a foreign bank does not have the status of a legal entity and
therefore cannot perform banking operations. The representative office may perform activities with
regard to representation, giving information and promotion of the foreign bank. An approval of the
National Bank is necessary for establishment of a representative office of a foreign bank.
2. Insurance
The insurance is regulated by the Law on Insurance of Property and Persons (Official Gazette
No. 49/97).
Insurance companies are established as companies limited by shares, whereas exceptionally
the Government of the Republic of Macedonia may establish public insurance companies forinsurance against risks that constitute general thre at to the property of common interest, for insurance
against non-material risks and for obligatory insurance.
The licence for establishment of insurance companies is issued by the Ministry of Finance, on
the basis of legally required documentation. The cofounders may be domestic and foreign legal andnatural persons. Foreign natural and legal persons may acquire at most 25 per cent of shares bearing
the right to vote.
For each type of insurance activity a different amount of minimum nominal capital necessary
for the establishment of the company has been proscribed:
- 3,000,000 DM for performance of life assurance;
- 5,000,000 DM for performance of
- insurance of citizens, industry and against general liability
- automobile insurance and automobile liability insurance- cargo transport insurance, transport in surance and transport liability insurance
- insurance of credits
- insurance of savings deposits
- insurance of values of common interest for the Republic of Macedonia and
  of State property
- insurance against non-material risks
- insurance against the risk of earthquake- insurance against accidents and diseases;
- 1,000,000 DM for performance of:
- insurance of crops and yields
- insurance of domestic and other animals
- insurance of legal protection- insurance of performances against atmospheric falls;
- 5,000,000 DM for performance of reinsurance;
- 100,000  DM for performance of other insurance activities.
These censuses are prescribed by the new Law on Insurance adopted in 1997 and insurance
companies are to comply with new censuse s within two years (until 30 September 1999).
There are seven insurance companies established so far in the Republic of Macedonia, two of
which perform property insurance and reinsurance and life assurance and reassurance, one performs
property insurance and life assurance; one performs property insurance; one performs life assuranceand two companies perform brokerage in insurance activities. All these companies have been
established under the old Law on Insurance of Persons and Property passed in 1993 and are
undergoing adjustment according to the new Law. Only one of the existing companies still has social
capital and is currently in the process of privatization.WT/ACC/807/3
Page 36
A foreign insurance company may establish its representative office, while a licence of the
Ministry of Finance is necessary. The representative office cannot perform insurance on the territory
of the Republic of Macedonia.
The Law on Insurance does not contain prohibitions with regard to the possibility that
nationals of the Republic of Macedonia are insured at foreign insurance companies. However, such
insurance does not have any legal effect in the Republic of Macedonia.
4. TelecommunicationsThe manner and conditions for performance of activities in the sphere of telecommunications,
construction, maintenance and use of telecommunicatio n networks and instruments, relations between
providers and users of telecommunication services, competition in the sphere of telecommunication,
provision of universal services, granting of concessions and performance of telecommunication
services by way of concessions, management, use and control of radio frequencies, production,
imports, sale, use and maintenance of radio stations, terminal equipment and other issues linked with
telecommunications are regulated by the Law on Telecommunications adopted in 1996, which wasamended and supplemented in April 1998.
The need for alteration in the existing legisl ation in the sphere of telecommunications was
imposed by the privatization process on the global level.
The new legal regime provides conditions for non-discriminatory, transparent and objective
process of privatization in the telecommunication sector. It also provides justly treatment of potential
strategic investors, and their investments in the Macedonian telecommunications to be protected.
Basic Data on the Telephone Subscribers and the Telecommunications Services
of the Shareholding Company "Macedonian Telecommunications"
1995 1996 1997 1998
Telephone subscribers 350.000 367.000 408.000 439.000
Telephone density 17.5% 18.3% 20.4% 22%
Total number of telephone
impulses in the domestic and
international traffic4.6 billion
telephone
impulses4.7 billion
telephone
impulses5.3 billion
telephone
impulses6,051 billion
telephone
impulses
Postal sector
Postal domestic and international services in the Republic of Macedonia are provided by a
public enterprise for postal services "Macedonian Post Office".
A new law on postal services is being drafted.
The Republic of Macedonia is a member of the Universal Postal Union (UPU), Conference of
European Posts and Telecommunications (CEPT).
Radio Communications
The organ in charge of the legislation in the area of radio-communications is the Ministry for
Transport and Communications. This area is regulated with the Law on Telecommunications (Official
Gazette No.20/98), the Law on Radio-broadcasting  (Official Gazette No.20/98) and other bye-laws.
On the 4th of May 1993, the Republic of Macedonia became a full-fledged member of the
International Telecommunication Union (ITU).WT/ACC/807/3
Page 37
In the radio-communications, there is a strict respect of the international regulations. They
mainly proscribe that the work of the radio-stations is regulated with special licenses and that a
permanent monitoring of the radio-frequencies has to be carried out. The Republic of Macedonia is
committed to the Decisions and Recommendations of the Conference of the European Posts andTelecommunications (CEPT) and is applying the standards of the European Telecommunication
Standardization Institute (ETSI). The granting of the radio-frequencies is made on the basis of the
National Plan for the width of the Radio-frequencies, in accordance with the international regulations.
The width of the radio-frequencies is limited by its nature and because of the spreading of the
radio-waves is subject to international agreements on equal basis for all countries. Therefore, the
Ministry for Transport and Telecommunications, more specifically the Sector for Radio-communications, besides planning, monitoring a nd management of the spectrum, also performs
international coordination of the radio-frequencies and has intense cooperation with the international
organisations in the field of radio-comm unications (ITU, CEPT/ERC, ICAO, INTELSAT,
EUTELSAT, INMARSAT, IARU etc.).
Radio broadcasting
During the last years, there have been a lot of changes in the legislation on performing of a
radio-broadcasting activities. The legal framewor k has been completed in 1997, with the enactment of
the Law on Telecommunications, the Law on Radi o-broadcasting and with the founding of the
Counsel for Radio-diffusion. The Council for Radio-broadcasting is an autonomous body that
represents the interests of the citizens of the Republic of Macedonia in performing radio-broadcasting
activities.
The processes of democratization in the Republic of Macedonia and the enactment of the
Constitution have contributed for significant increased interest for opening private radio-broadcasting
stations.
With the establishment of the Council for Radio-broadcasting, founded by the Assembly of
Republic of Macedonia, the formal changes have also begun, i.e., conditions were met for public
announcement for granting concessions for radio-broadcasting activities.
On the announcements, that have been carried out in 1998 by the Council for Radio-
broadcasting, 140 concessions were granted, two for national television network coverage, one for
FM radio network, and for local coverage 57 concessions for television and 80 for radio. In the
meantime from the total (140), 128 concessionaires signed agreements for concession and 12 have
given up.
5. Air TrafficThe Republic of Macedonia become a contracting country of the ICAO on 9 January 1993,
and a Member State of the ECAS on 3 July 1997.
Operators to/from Macedonia
State Transporter Characteristic mark
Albania Ada Air ADE
Austria Austrian Airlines AUA
Bulgaria Balkan LAZ
Bulgaria Hemus Air HMS
Croatia Croatia Airlines CTNWT/ACC/807/3
Page 38
State Transporter Characteristic mark
Macedonia Interimpex-Avioimpex AXX
Macedonia Macedonian Airtransport MAK
Russia Aeroflot AFL
Slovenia Adria Airways ADR
Switzerland Swissair SWR
Yugoslavia Yugoslav Airlines JAT
The Republic of Macedonia has concluded bilateral agreements on regular air traffic. Those
are as follows:
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Turkey;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Croatia;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Swiss Confederation;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Italy;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Austria;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Holland;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Federative Republic of Yugoslavia;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Albania;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Belgium; and
– Agreement between the Government of the Republic of Macedonia and the
Government of Ukraine.
The Republic of Macedonia has prepared draft bilateral agreements on regular air traffic.
Those are as follows:
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Slovenia;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Sweden;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Denmark;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Gr eat Britain and Northern Ireland;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Norway;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Bulgaria;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of  Spain;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Russian Federation;
– Agreement between the Government of the Republic of Macedonia and the
Government of the Federative Republic of Germany;WT/ACC/807/3
Page 39
– Agreement between the Government of the Republic of Macedonia and the
Government of the State Israel.
Movement of Aircraft
Airport 1994 1995 1996 1997
Skopje 10,843 11,892 8,608 8,995
Ohrid 481 869 2,318 968
Total 11,324 12,561 10,926 9,963
Transported Passengers
Airport 1994 1995 1996 1997
Skopje 603,447 590,173 427,135 431,112
Ohrid 18,235 34,397 10,191 38,875
Total 621,682 624,570 528,326 469,987
Report on the Macedonian Air Companies
1995 1996 1997 Year
AXX MAT AXX MAT AXX MAT
Departures of aircraft 3,424 768 3,099 988 3,674 1,266
Passengers 207,563 42,663 183,728 57,638 230,285 65,512
Cargo 2647,000 236,400 769,159 80,000 788,767 70,000
6. Road transport sector
The Ministry of Transport and Communications is a government organ responsible for
regulation in the sphere of road transport.
The Law on Road Transport has been adopted in this sphere. This Law regulates manners and
conditions for road transport of passengers and goods in domestic and international road transport.Furthermore, the Law on Safety of Road Transport stipulates in detail the rules for road transport.
Railway transport, construction, reconstruction, repair, maintenance and protection of railroad
infrastructure, safety and funding, are regulated by the Law on Macedonian Railways. These activities
of public interest are carried out by the public enterprise "Macedonian Railways".
The Republic of Macedonia has concluded bilateral agreements on international road
transport. Those are as follows:
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Croatia, signed on 6 July 1994, ratified on
15 March 1995.
– Agreement between the Government of the Republic of Macedonia and the
Government of Republic of Bulgaria, signed on 22 February 1999.
– Agreement between the Government of the Republic of Macedonia and the
Government of Republic of Turkey, signed on 27 April 1995 ratified on
20 September 1995.WT/ACC/807/3
Page 40
– Agreement between the Government of the Republic of Macedonia and the
Government of Republic of Slovenia, signed on 17 January 1996, ratified on
7 May 1996.
– Agreement between the Government of the Republic of Macedonia and the
Government of Republic of Hungar y, signed on 29 May 1996, ratified on
26 September 1996.
– Agreement between the Macedonian Government and the United Kingdom
Government, signed on 18 June 1996, ratified on 16 October 1996.
– Agreement between the Government of the Republic of Macedonia and the Federal
Government of the Federal Republic of Yugoslavia, signed on 4 September 1996,
ratified on 18 December 1996.
– Agreement between the Government of the Republic of Macedonia and the
Government of the FR Germany, signed on 8 October 1996, ratified on
19 February 1997.
– Agreement between the Government of the Republic of Macedonia and the
Government of Republic of Belarus, signed on 9 April 1997, ratified on 9 July 1997.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of the Netherlands, signed on 15 April 1997, ratified on
9 July1997.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Austria, signed on 21 April 1997, ratified on
9 July 1997.
– Agreement between the Government of the Republic of Macedonia and the Swiss
Federal Council signed on 22 April 1997, ratified on 9 July 1997.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Kingdom of Denmark, signed on 9 September 1997, ratified on
12 November 1997.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Russian Federation, signed on 21 October 1997, ratified on
3 February 1998.
– Agreement between the Government of th e Republic of Macedonia and the Albanian
Government signed on 15 January 1998, ratified on 19 March 1998.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of Poland, signed on 5 February 1998, ratified on25 March 1998.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Republic of France , signed on 29 January 1998, ratified on
28 April 1998.
– Agreement between the Government of the Republic of Macedonia and the
Government of the Islamic Republic of Iran, signed on 18 April 1998, ratified on
9 June 1998.
– Agreement between the Government of the Republic of Macedonia and the
Government of Kingdom Belgium, signed on 10 September 1998.
– Protocol between the Government of the Republic of Macedonia and the Government
of the Republic of Greece, 20 October 1995
Some Draft agreements for international road transport are also negotiated. Those are as
follows:
– Draft agreement for international district road transport of passengers with the
Republic of Austria.
– Draft agreement for international non-regular road transport of passengers and goods
with the Republic of Austria.WT/ACC/807/3
Page 41
– Draft agreement for international road transport of passengers and goods with the
Republic of Estonia.
– Draft agreement for international road transport of passengers and goods with the
Republic of Latvia.
– Draft agreement for international road transport of passengers and goods with the
Kingdom of Spain.
– Draft agreement for international road transport of passengers and goods with the
Principality of Luxembourg.
– Draft agreement for international road transport of passengers and goods with the
Republic of Italy.
– Draft agreement for international road transport of passengers and goods with the
Republic of Ukraine.
– Draft agreement for international road transport of passengers and goods with the
Republic of Moldova.WT/ACC/807/3
Page 42
ANNEX I
Table 1:  Gross Domestic Product by Economic Activity (in  per cent)
1990 1991 1992 1993 1994 * 1995 1996 1997 1
Manufacturing and Mining 31.5 24.4 29.4 25.1 19.9 19.6 19.5 19.8
Agriculture 6.7 10.8 14.4 9.8 10.5 10.6 10.7 11.0
Forestry 0.8 0.6 0.8 0.8 0.7 0.5 0.5 0.5
Water management 0.7 0.3 0.5 0.5 0.5 0.4 0.4 0.4
Construction 7.1 5.0 5.0 5.6 5.2 5.3 5.1 5.3
Transport and
communications6.4 6.4 7.1 7.2 6.0 6.1 5.9 6.0
Trade 6.2 2.5 1.7 8.0 10.6 11.1 11.2 12.0
Catering services 1.8 1.8 1.7 1.7 1.7 1.6 1.8 1.8
Crafts and personal services 2.5 2.5 2.0 2.3 2.4 2.0 2.1 2.2
Utilities and services 1.7 1.7 1.1 1.5 1.6 2.1 2.2 2.2
Financial and business
services2.8 7.5 2.2 15.5 21.0 5.8 5.5 5.4
Education, science and culture 6.4 7.3 5.6 6.7 6.2 6.1 6.1 5.8
Health and social welfare 6.0 7.3 5.8 6.1 5.5 5.3 5.0 4.9
General administration 5.5 7.2 6.7 6.3 5.9 6.7 6.7 6.5
Imputed rents 3.9 4.6 6.6 5.6 4.4 4.3 4.2 4.2
Total 90.2 90.0 90.6 102.8 102.0 87.5 87.0 88.2
Less: FISIM 1.8 6.4 1.3 13.6 18.2 3.0 2.3 2.4
 Plus import duties 3.1 3.0 3.1 3.5 4.0 4.0 3.8 3.0
Plus indirect taxes 10.0 15.9 10.2 10.5 13.2 12.2 12.0 11.3
Less: Subsidies 1.5 2.5 2.7 3.2 1.0 0.7 0.5 0.1
GDP 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1) Preliminary data
*  Technical error correction, published in the Statistical Yearbook 1998 and brief report number 162
Source: Statistical Office of MacedoniaWT/ACC/807/3
Page 43
Table 2:  GDP at Constant Prices Expressed in 1990 Denars by Economic Activity (in  per cent)
1990 1991 1992 1993 1994 1995 1996
Manufacturing & Mining 31.5 28.8 26.3 24.8 23.5 21.9 22.7
Agriculture and fisheries 6.7 8.7 9.4 8.2 9.1 9.6 9.3
Forestry 0.8 0.9 0.9 1.1 1.0 1.0 1.0
Water Management 0.7 0.8 0.8 0.8 0.8 0.8 0.9
Construction 7.1 6.4 6.7 6.5 5.6 5.5 5.6
Transport & communication 6.4 5.7 5.7 6.0 5.7 5.6 5.6
Trade 6.2 6.9 5.4 6.1 7.0 7.3 7.4
Tourism and catering 1.8 2.1 2.1 2.2 2.0 2.1 2.2
 Personal services and crafts 2.5 2.4 1.8 2.3 2.0 2.1 2.2
Utilities and public services,
landscaping and maintenance 1.7 1.8 2.0 1.9 1.7 1.8 1.8
Financial, technical, business
and insurance services 2.8 4.1 4.6 4.8 5.2 5.1 4.5
Education, science, culture and
information6.4 6.8 7.2 7.8 8.1 8.5 8.5
Health care and social security 6.0 6.4 7.1 7.8 7.8 7.8 7.7
State and local administration,
bodies, political parties, public
organisations and associations 5.5 5.2 5.1 5.6 5.8 5.9 5.6
Imputed rents 3.9 4.3 4.7 5.2 5.4 5.5 5.5
Total 90.6 91.6 90.3 91.7 91.4 90.9 91.0
Minus: imputed banking
services1.8 2.8 3.1 3.5 3.8 3.8 3.3
Plus: import duties 3.1 3.1 3.2 3.2 3.2 3.2 3.1
Plus: Indirect taxes not
included
in basic prices 10.0 10.1 10.2 10.2 10.3 10.3 10.1
Less: Subsidies 1.5 1.5 1.6 1.6 1.6 1.6 1.5
GDP 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: Statistical Office of MacedoniaWT/ACC/807/3
Page 44
Table 3:  Imports by Main Commodity Group 1994 – 1998 (in 000 US$)
SITC category / year 1994 1995 1996 1997 19981)
Food products 282272 280729 218170 243143 255589
Beverages and tobacco 24456 17370 17417 19749 25864
Raw materials except fuel 75217 78777 78447 69176 67188
Fuel and lubricants 160952 198963 148484 197044 162537
Oils and fats 1556 3998 20117 15472 25578
Chemical products 196894 205015 171169 192152 203081
Products classif. by materials 204059 269205 306958 343767 277386
Machines and trans. equipment 292138 334637 363047 302044 365190
Misc.ready-made prod. 144196 154217 173371 213773 93736
Other 102352 175993 129737 182195 437326
TOTAL 1484092 1718904 1626917 1778515 1913475
1) Preliminary data
Table 4:  Imports Structure by Main Commodity Group 1990 - 1998
SITC CATEGORY / YEAR 1994 1995 1996 1997 19981)
Food products 19.0% 16.3% 13.4% 13.7% 13.4%
Beverages and tobacco 1.6% 1.0% 1.1% 1.1% 1.4%
Raw materials except fuel 5.1% 4.6% 4.8% 3.9% 3.5%
Fuel and lubricants 10.8% 11.6% 9.1% 11.1% 8.5%
Oils and fats 0.1% 0.2% 1.2% 0.9% 1.3%
Chemical products 13.3% 11.9% 10.5% 10.8% 10.6%
Products classif. by materials 13.7% 15.7% 18.9% 19.3% 14.5%
Machines and trans. equipment 19.7% 19.5% 22.3% 17.0% 19.1%
Miscelan. Ready-made prod. 9.7% 9.0% 10.7% 12.0% 4.9%
Other 6.9% 10.2% 8.0% 10.2% 22.9%
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0%
1) Preliminary dataWT/ACC/807/3
Page 45
Table 5:   Exports by Geographical Region, Economic Classification of Countries
and Country of Destination 1994 – 1998 (in 000 US$)
COUNTRY / YEAR 1994 1995 1996 1997 19981)
TOTAL 1086343 1204048 1147440 1236808 1322052
DEVELOPED COUNTRIES 478772 523282 616502 695131 822079
EU 343253 407784 490232 461958 584483
France 23649 23487 6041 5791 17682
Italy 125867 118405 51417 43660 96825
Netherlands 14630 29741 47934 42060 43718
Germany 145964 153075 214613 199009 283023
Greece 12724 14177 102409 98982 83338
United Kingdom 9258 21086 30636 31942 23382
Other 11161 47813 37182 40514 36515
EFTA 55491 37102 33245 86810 45256
Switzerland 33398 36739 33112 70732 40275
Other 762 363 133 16078 4981
OTHER DEVELOPED COUNTRIES 80028 78396 93025 146363 192340
Japan 1201 1122 2365 1319 2124
USA 39507 35560 70716 117045 175105
EAST EUROPEAN COUNTRIES 405276 446179 134933 122954 109477
Bulgaria 239693 256034 38230 35270 42578
Russian Federation 76404 87233 38606 26569 26097
Other 89179 102912 58097 61115 40802
DEVELOPING COUNTRIES 59420 43976 13523 24050 32762
LDC 974 591 1022 1259 2371
SUCCESSOR STATES OF THE FORMER
SFRY141901 190020 380118 392756 355133
Slovenia 71440 72424 82120 58933 41336
SR Yugoslavia 39942 84785 245837 273552 240163
Croatia 29927 32125 34040 39292 54050
OTHER COUNTRIES        -        - 1342 658 230
1) Preliminary dataWT/ACC/807/3
Page 46
Table 6:  Exports Structure by Geographical Region, Economic Classification
of Countries and Country of Destination 1994 – 1998
COUNTRY / YEAR 1994 1995 1996 1997 19981)
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0%
DEVELOPED COUNTRIES 44.1% 43.5% 53.7% 56.2% 62.2%
EU 31.6% 33.9% 42.7% 37.4% 44.2%
France 2.2% 2.0% 0.5% 0.5% 1.3%
Italy 11.6% 9.8% 4.5% 3.5% 7.3%
Netherlands 1.3% 2.5% 4.2% 3.4% 3.3%
Germany 13.4% 12.7% 18.7% 16.1% 21.4%
Greece 1.0% 1.1% 7.7% 7.5% 6.3%
United Kingdom 0.9% 1.8% 2.7% 2.6% 1.8%
Other 2.2% 5.1% 12.2% 3.3% 2.8%
EFTA 5.1% 3.1% 2.9% 7.0% 3.4%
Switzerland 3.1% 3.1% 2.9% 5.7% 3.0%
Other 0.1% 0.0% 0.0% 1.3% 0.4%
OTHER DEVELOPED COUNTRIES 7.4% 6.5% 8.1% 11.8% 14.5%
Japan 0.1% 0.1% 0.2% 0.1% 0.2%
USA 3.6% 3.0% 6.2% 9.5% 13.2%
 EAST EUROPEAN COUNTRIES 37.3% 37.1% 11.8% 9.9% 8.3%
Bulgaria 22.1% 21.3% 3.3% 2.9% 3.2%
Russian Federation 7.0% 7.2% 3.4% 2.1% 2.0%
Other 8.2% 8.5% 5.1% 4.9% 3.1%
DEVELOPING COUNTRIES 5.5% 3.7% 1.2% 1.9% 2.5%
LDC 0.1% 0.0% 0.1% 0.1% 0.2%
SUCCESSOR STATES OF THE FORMER
SFRY 13.1% 15.8% 33.1% 31.8% 26.9%
Slovenia 6.6% 6.0% 7.2% 4.8% 3.1%
SR Yugoslavia 3.0% 6.4% 18.6% 20.7% 18.2%
Croatia 2.8% 2.7% 3.0% 3.2% 4.1%
OTHER COUNTRIES        -        - 0.1% 0.1% 0.0%
1) Preliminary dataWT/ACC/807/3
Page 47
Table 7:  Imports by Geographical Region, Economic Classification of Countries
and Country of Destination 1994 – 1998 (in 000 US$)
COUNTRY / YEAR 1994 1995 1996 1997 19981)
TOTAL 1484092 1718904 1626917 1778515 1913475
DEVELOPED COUNTRIES 717679 860822 806184 863507 927035
EU 511506 689572 629778 658525 693891
France 35153 36101 48649 36708 36575
Italy 109939 179300 109840 96030 109089
Netherlands 39956 43375 39833 40378 42246
Germany 254376 282968 239939 239024 254986
Greece 23504 28893 77429 130055 113314
United Kingdom 18546 20208 22504 23151 30302
Other 30032 98727 91584 93179 107379
EFTA 79995 20044 24886 29291 35686
Switzerland 24028 19127 23222 24022 27727
Other 1154 917 1664 5269 7959
OTHER DEVELOPED COUNTRIES 126178 151206 151520 175691 197458
Japan 12724 14561 15500 12540 16592
USA 49528 57800 67842 83425 101569
EAST EUROPEAN COUNTRIES 378133 434722 343998 360197 400086
Bulgaria 241651 255945 107454 99018 86168
Russian Federation 46424 62847 122330 69208 91025
Other 90058 115930 114214 191971 222893
   DEVELOPING COUNTRIES 63459 85897 96923 112946 114020
LDC 839 2859 5452 2655 6867
SUCCESSOR STATES OF THE FORMER
SFRY 323982 334604 342046 420212 465455
Slovenia 162188 116488 124282 137560 148805
SR Yugoslavia 101447 161072 165596 206023 244626
Croatia 59462 56279 48898 69450 64445
OTHER COUNTRIES        -        - 32314 18998 12
1) Preliminary dataWT/ACC/807/3
Page 48
Table 8:  Imports Structure by Geographical Region, Economic Classification
of Countries and Country of Destination 1994 – 1998
COUNTRY / YEAR 1994 1995 1996 1997 19981)
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0%
DEVELOPED COUNTRIES 48.4% 50.1% 49.6% 48.6% 48.4%
EU 34.5% 40.1% 38.7% 37.0% 36.3%
France 2.4% 2.1% 3.0% 2.1% 1.9%
Italy 7.4% 10.4% 6.8% 5.4% 5.7%
Netherlands 2.7% 2.5% 2.4% 2.3% 2.2%
Germany 17.1% 16.5% 14.7% 13.4% 13.3%
Greece 1.3% 1.6% 4.4% 7.3% 5.9%
United Kingdom 1.2% 1.2% 1.4% 1.3% 1.6%
Other 3.6% 7.4% 10.4% 5.2% 5.6%
EFTA 5.4% 1.2% 1.5% 1.6% 1.9%
Switzerland 1.6% 1.1% 1.4% 1.4% 1.4%
Other 0.1% 0.1% 0.1% 0.3% 0.4%
OTHER DEVELOPED COUNTRIES 8.5% 8.8% 9.3% 9.9% 10.3%
Japan 0.9% 0.8% 1.0% 0.7% 0.9%
USA 3.3% 3.4% 4.2% 4.7% 5.3%
EAST EUROPEAN COUNTRIES 25.5% 25.3% 21.1% 20.3% 20.9%
Bulgaria 16.3% 14.9% 6.6% 5.6% 4.5%
Russian Federation 3.1% 3.7% 7.5% 3.9% 4.8%
Other 6.1% 6.7% 7.0% 10.8% 11.6%
DEVELOPING COUNTRIES 4.3% 5.0% 6.0% 6.4% 6.0%
LDC 0.1% 0.2% 0.3% 0.1% 0.4%
SUCCESSOR STATES OF THE FORMER
SFRY21.8% 19.5% 21.0% 23.6% 24.3%
Slovenia 10.9% 6.8% 7.6% 7.7% 7.8%
SR Yugoslavia 5.3% 8.4% 8.7% 10.8% 12.8%
Croatia 4.0% 3.3% 3.0% 3.9% 3.4%
OTHER COUNTRIES        -        - 2.0% 1.1% 0.0%
1) Preliminary dataWT/ACC/807/3
Page 49Table 9:  Exports by Geographical Region, Economic Classification of Countries, Country of Destination and Categories of Goods as
 Defined by SITC in 1998 (preliminary data)
TOTAL Food
productsBeverages
and tobaccoRaw
materials
except fuelFuel and
lubricantsOils and fats Chemical
productsProducts
classif. by
mater.Machines and
trans.
equipmentMisc. ready
made
productsOther
TOTAL 1322052 66232 143830 56358 10459 244 65439 448495 98408 430272 2315
DEVELOPED COUNTRIES 822078 20171 54384 22719 3970 109 5684 286222 23670 403221 1928
EU 584483 17607 34943 17057 3854 109 4712 203665 20153 280933 1448
France 17682 1312 479 810 8 0 0 11592 2010 1384 88
Italy 96825 6864 2462 5361 8 0 1433 62433 1504 16309 452
Netherlands 43718 1228 1088 78 6 0 91 6319 183 34657 67
Germany 283026 2680 17700 5154 9 69 616 68683 9564 178029 521
Greece 83338 4217 9335 3849 3628 13 2313 29334 1961 28560 128
United Kingdom 23382 308 1145 21 11 0 34 10416 1310 10086 51
Other 36512 1000 2735 1783 183 27 226 14888 3621 11908 141
E F T A 45256 759 930 1612 49 0 21 39379 51 2452 2
Switzerland 40275 749 930 1612 49 0 21 35937 51 924 2
Other 4980 9 0 0 1 0 0 3442 0 1528 0
OTHER DEVELOPED COUNTRIES 192340 1805 18511 4050 67 0 951 43177 3465 119836 478
Japan 2124 0 1976 141 0 0 0 0 0 6 0
USA 175105 247 15397 7 45 0 144 39972 646 118325 322
EAST EUROPEAN COUNTRIES 109477 9607 22302 16089 329 52 10189 21550 20457 8729 174
CIS 33337 893 5077 1326 237 0 5719 2612 10955 6468 50
Other 76140 8714 17225 14762 92 52 4470 18938 9502 2261 124
DEVELOPING COUNTRIES 32762 2007 5857 795 222 0 146 18818 4609 297 10
LDC 2372 0 0 0 0 0 0 233 2119 20 0
SUCCESSOR STATES OF THE FORMER
SFRY355133 34446 61227 16692 5938 83 49418 121637 47508 17980 204
Croatia 54050 3332 3526 580 14 40 6096 28102 8583 3696 81
SR Yugoslavia 240163 21844 48610 13191 5642 8 38490 78452 24183 9638 106
Slovenia 41336 4610 6733 1694 252 0 2077 9423 12797 3743 7
OTHER COUNTRIES 230 0 60 63 0 0 1 35 46 24 0WT/ACC/807/3
Page 50Table 10:  Exports Structure by Geographical Region, Economic  Classification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1998 (preliminary data)
TOTAL Food
productsBeverages
and tobaccoRaw
materials
except fuelFuel and
lubricantsOils and fats Chemical
productsProducts
classif. by
mater.Machines and
trans.
equipmentMisc. ready
made
productsOther
TOTAL 100.0% 5.0% 10.9% 4.3% 0.8% 0.0% 4.9% 33.9% 7.4% 32.5% 0.2%
DEVELOPED COUNTRIES 62.2% 1.5% 4.1% 1. 7% 0.3% 0.0% 0.4% 21.6% 1.8% 30.5% 0.1%
EU 44.2% 1.3% 2.6% 1.3% 0.3% 0. 0% 0.4% 15.4% 1.5% 21.2% 0.1%
France 1.3% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.9% 0.2% 0.1% 0.0%
Italy 7.3% 0.5% 0.2% 0.4% 0.0% 0 .0% 0.1% 4.7% 0.1% 1.2% 0.0%
Netherlands 3.3% 0.1% 0.1% 0.0% 0 .0% 0.0% 0.0% 0.5% 0.0% 2.6% 0.0%
Germany 21.4% 0.2% 1.3% 0.4% 0. 0% 0.0% 0.0% 5.2% 0.7% 13.5% 0.0%
Greece 6.3% 0.3% 0.7% 0.3% 0.3% 0.0% 0.2% 2.2% 0.1% 2.2% 0.0%
United Kingdom 1.8% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.8% 0.1% 0.8% 0.0%
Other 2.8% 0.1% 0.2% 0.1% 0.0% 0 .0% 0.0% 1.1% 0.3% 0.9% 0.0%
E F T A 3.4% 0.1% 0.1% 0.1% 0.0 % 0.0% 0.0% 3.0% 0.0% 0.2% 0.0%
Switzerland 3.0% 0.1% 0.1% 0.1% 0. 0% 0.0% 0.0% 2.7% 0.0% 0.1% 0.0%
Other 0.4% 0.0% 0.0% 0.0% 0.0% 0 .0% 0.0% 0.3% 0.0% 0.1% 0.0%
OTHER DEVELOPED COUNTRIES 14.5% 0.1% 1.4% 0.3% 0.0% 0.0% 0.1% 3.3% 0.3% 9.1% 0.0%
Japan 0.2% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
USA 13.2% 0.0% 1.2% 0.0% 0.0% 0.0% 0.0% 3.0% 0.0% 9.0% 0.0%
EAST EUROPEAN COUNTRIES 8.3% 0.7% 1.7 % 1.2% 0.0% 0.0% 0.8% 1.6% 1.5% 0.7% 0.0%
CIS 2.5% 0.1% 0.4% 0.1% 0.0% 0.0% 0.4% 0.2% 0.8% 0.5% 0.0%
Other 5.8% 0.7% 1.3% 1.1% 0.0% 0 .0% 0.3% 1.4% 0.7% 0.2% 0.0%
DEVELOPING COUNTRIES 2.5% 0.2% 0.4% 0. 1% 0.0% 0.0% 0.0% 1.4% 0.3% 0.0% 0.0%
LDC 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.0%
SUCCESSOR STATES OF THE
FORMER SFRY26.9% 2.6% 4.6% 1.3% 0.4% 0. 0% 3.7% 9.2% 3.6% 1.4% 0.0%
Croatia 4.1% 0.3% 0.3% 0.0% 0.0% 0.0% 0.5% 2.1% 0.6% 0.3% 0.0%
SR Yugoslavia 18.2% 1.7% 3.7% 1.0% 0.4% 0.0% 2.9% 5.9% 1.8% 0.7% 0.0%
Slovenia 3.1% 0.3% 0.5% 0.1% 0. 0% 0.0% 0.2% 0.7% 1.0% 0.3% 0.0%
OTHER COUNTRIES 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%WT/ACC/807/3
Page 51Table 11:  Exports by Geographical Region, Economic Cl assification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1997 (in 000 US$)
TOTAL Food
productsBeverages
and tobaccoRaw
materials
except fuelFuel and
lubricantsOils and fats Chemical
productsProducts
classif. by
mater.Machines and
trans.
equipmentMisc. ready
made
productsOther
TOTAL 1236808 70870 177125 68979 5559 280 72691 422705 95910 321313 1376
DEVELOPED COUNTRIES 695131 10632 69291 30599 243 53 11789 255038 24496 292697 293
EU 461958 9518 45464 13963 159 53 6202 156318 20550 209651 80
France 5791 812 321 559 1 0 1 1276 1980 838 3
Italy 43660 2199 2866 4864 2 0 897 25448 2137 5247 0
Netherlands 42060 678 3553 121 0 0 632 8565 243 28256 12
Germany 199009 3320 22116 2753 2 46 528 31183 10844 128181 36
Greece 98982 2115 10525 4886 5 0 3753 51903 1828 23950 19
United Kingdom 31942 0 1921 41 0 0 36 22647 1353 5940 4
Other 40514 394 4162 739 149 7 355 15296 2165 17239 6
E F T A 86810 377 3377 1939 6 0 20 79507 316 1257 11
Switzerland 70732 377 3365 1939 6 0 20 64188 290 536 11
Other 16078 0 12 0 0 0 0 15319 26 721 0
OTHER DEVELOPED COUNTRIES 146363 737 20450 14697 78 0 5567 19213 3630 81789 202
Japan 1319 0 963 331 0 0 0 0 0 25 0
USA 117045 19 19317 8 77 0 4547 11805 427 80788 57
EAST EUROPEAN COUNTRIES 122954 14034 24609 11978 311 188 11965 25587 23035 10648 599
CIS 34911 2904 946 1943 125 0 6245 5528 9907 7193 120
Other 88043 11130 23663 10035 186 188 5720 20059 13128 3455 479
DEVELOPING COUNTRIES 24050 2223 3649 2322 1115 0 61 10674 3537 455 14
LDC 1259 8 0 6 1 0 0 19 1162 63 0
SUCCESSOR STATES OF THE FORMER
SFRY392756 43960 79431 24066 3889 39 48862 130993 43611 17435 470
Croatia 39292 3856 6302 1027 12 1 5501 15268 5214 2111 0
SR Yugoslavia 262396 28974 54777 21462 3664 3 38599 83725 21962 8753 478
Slovenia 58933 3743 10565 1756 159 0 2130 22679 12842 5053 6
OTHER COUNTRIES 658 13 145 8 0 0 14 394 69 15 0WT/ACC/807/3
Page 52Table 12:  Exports Structure by Geographical Region, Economic  Classification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1997
TOTAL Food
productsBeverages
and tobaccoRaw
materials
except fuelFuel and
lubricantsOils and fats Chemical
productsProducts
classif. by
mater.Machines and
trans. equip-
mentMisc. ready
made
productsOther
TOTAL 100.0% 5.7% 14.3% 5.6% 0.4% 0.0% 5.9% 34.2% 7.8% 26.0% 0.1%
DEVELOPED COUNTRIES 56.2% 0.9% 5.6% 2.5% 0.0% 0.0% 1.0% 20.6% 2.0% 23.7% 0.0%
EU 37.4% 0.8% 3.7% 1.1% 0.0% 0. 0% 0.5% 12.6% 1.7% 17.0% 0.0%
France 0.5% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.2% 0.1% 0.0%
Italy 3.5% 0.2% 0.2% 0.4% 0.0% 0 .0% 0.1% 2.1% 0.2% 0.4% 0.0%
Netherlands 3.4% 0.1% 0.3% 0.0% 0. 0% 0.0% 0.1% 0.7% 0.0% 2.3% 0.0%
Germany 16.1% 0.3% 1.8% 0.2% 0. 0% 0.0% 0.0% 2.5% 0.9% 10.4% 0.0%
Greece 8.0% 0.2% 0.9% 0.4% 0.0% 0.0% 0.3% 4.2% 0.1% 1.9% 0.0%
United Kingdom 2.6% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 1.8% 0.1% 0.5% 0.0%
Other 3.3% 0.0% 0.3% 0.1% 0.0% 0.0% 0.0% 1.2% 0.2% 1.4% 0.0%
E F T A 7.0% 0.0% 0.3% 0.2% 0.0 % 0.0% 0.0% 6.4% 0.0% 0.1% 0.0%
Switzerland 5.7% 0.0% 0.3% 0.2% 0. 0% 0.0% 0.0% 5.2% 0.0% 0.0% 0.0%
Other 1.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.2% 0.0% 0.1% 0.0%
OTHER DEVELOPED COUNTRIES 11.8% 0.1% 1.7% 1.2% 0.0% 0.0% 0.5% 1.6% 0.3% 6.6% 0.0%
Japan 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
USA 9.5% 0.0% 1.6% 0.0% 0.0% 0.0% 0.4% 1.0% 0.0% 6.5% 0.0%
EAST EUROPEAN COUNTRIES 9.9% 1.1% 2.0% 1.0% 0.0% 0.0% 1.0% 2.1% 1.9% 0.9% 0.0%
CIS 2.8% 0.2% 0.1% 0.2% 0.0% 0 .0% 0.5% 0.4% 0.8% 0.6% 0.0%
Other 7.1% 0.9% 1.9% 0.8% 0.0% 0.0% 0.5% 1.6% 1.1% 0.3% 0.0%
DEVELOPING COUNTRIES 1.9% 0.2% 0.3% 0.2% 0.1% 0.0% 0.0% 0.9% 0.3% 0.0% 0.0%
LDC 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0%
SUCCESSOR STATES OF THE FORMER
SFRY31.8% 3.6% 6.4% 1.9% 0.3% 0. 0% 4.0% 10.6% 3.5% 1.4% 0.0%
Croatia 4.8% 0.3% 0.5% 0.1% 0.0% 0.0% 0.4% 1.2% 0.4% 0.2% 0.0%
SR Yugoslavia 21.2% 2.3% 4.4% 1.7% 0.3% 0.0% 3.1% 6.8% 1.8% 0.7% 0.0%
Slovenia 3.2% 0.3% 0.9% 0.1% 0. 0% 0.0% 0.2% 1.8% 1.0% 0.4% 0.0%
OTHER COUNTRIES 0.1% 0.0% 0.0% 0.0 % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%WT/ACC/807/3
Page 53Table 13:  Imports by Geographical Region, Economic Clas sification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1998 (preliminary data, in 000 US$)
TOTAL Food
productsBeverages
and tobaccoRaw
materials
except fuelFuel and
lubricantsOils and fats Chemical
productsProducts
classif. by
mater.Machines and
trans.
equipmentMisc. ready
made
productsOther
TOTAL 1913475 255588 25864 67188 162537 25578 203081 277386 365190 93736 437325
DEVELOPED COUNTRIES 1088808 93598 7057 31225 21288 12071 93807 93926 251611 49922 272531
EU 693891 65175 4633 15775 12749 10938 76133 76083 172567 35348 224490
France 36575 2626 280 180 166 75 10505 1893 18152 1549 1150
Italy 109089 4557 585 1264 599 133 12221 16116 32455 10203 30957
Netherlands 42246 5015 110 2240 1056 243 2708 2059 3542 909 24364
Germany 254986 9525 535 3502 1053 449 20663 16523 68666 8526 125543
Greece 113314 22343 1306 7103 7873 8865 7291 17848 9251 5079 26354
United Kingdom 30302 381 957 396 522 7 5255 2603 9497 2140 8545
Other 107378 20727 862 1089 1480 1166 17490 19041 31004 6942 7577
E F T A 197458 1905 1074 433 8368 38 9577 1954 5464 2056 4817
Switzerland 27727 1588 1074 395 4318 5 9498 1819 5325 1719 1986
Other 7959 317 0 39 4050 33 79 136 138 337 2831
OTHER DEVELOPED COUNTRIES 197458 26518 1351 15017 170 1094 8097 15889 73580 12518 43224
Japan 16592 80 0 412 0 0 382 652 13255 1729 81
USA 101569 16919 1011 2959 55 0 1579 1434 43334 3906 30371
EAST EUROPEAN COUNTRIES 400086 24891 1098 12171 107263 6692 38496 61006 26400 3250 118820
CIS 228191 1101 6 2224 91695 412 7120 11034 8902 135 105562
Other 171896 23790 1092 9947 15568 6280 31376 49973 17498 3115 13258
DEVELOPING COUNTRIES 114020 50653 527 6198 9404 116 2323 3417 13771 4617 22994
LDC 6866 1357 270 1549 54 0 0 240 6 1 3389
SUCCESSOR STATES OF THE FORMER
SFRY465455 85089 16912 16034 24528 6699 68456 118797 73403 35946 19591
Croatia 64445 13962 3920 397 14969 1 10985 9096 6445 3543 1126
SR Yugoslavia 244626 45711 11514 9966 9000 6119 26355 70888 35788 17457 11828
Slovenia 148805 23521 505 4257 558 372 30758 37785 30028 14500 6521
OTHER COUNTRIES 12 0 0 12 0 0 0 0 0 0 0WT/ACC/807/3
Page 54Table 14:  Imports Structure by Geographical Region, Economic  Classification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1998 (preliminary data)
TOTAL Food
productsBeverages
and
tobaccoRaw
materials
except fuelFuel and
lubricantsOils and
fatsChemical
productsProducts
classif. by
mater.Machines
and trans.
equipmentMisc.
ready
made
productsOther
TOTAL 100.0% 13.4% 1.4% 3.5% 8.5% 1.3% 10.6% 14.5% 19.1% 4.9% 22.9%
DEVELOPED COUNTRIES 56.9% 4.9% 0.4% 1. 6% 1.1% 0.6% 4.9% 4.9% 13.1% 2.6% 14.2%
EU 36.3% 3.4% 0.2% 0.8% 0.7% 0. 6% 4.0% 4.0% 9.0% 1.8% 11.7%
France 1.9% 0.1% 0.0% 0.0% 0.0% 0.0% 0.5% 0.1% 0.9% 0.1% 0.1%
Italy 5.7% 0.2% 0.0% 0.1% 0.0% 0 .0% 0.6% 0.8% 1.7% 0.5% 1.6%
Netherlands 2.2% 0.3% 0.0% 0.1% 0 .1% 0.0% 0.1% 0.1% 0.2% 0.0% 1.3%
Germany 13.3% 0.5% 0.0% 0.2% 0. 1% 0.0% 1.1% 0.9% 3.6% 0.4% 6.6%
Greece 5.9% 1.2% 0.1% 0.4% 0.4% 0.5% 0.4% 0.9% 0.5% 0.3% 1.4%
United Kingdom 1.6% 0.0% 0.1% 0.0% 0.0% 0.0% 0.3% 0.1% 0.5% 0.1% 0.4%
Other 5.6% 1.1% 0.0% 0.1% 0.1% 0 .1% 0.9% 1.0% 1.6% 0.4% 0.4%
E F T A 10.3% 0.1% 0.1% 0.0% 0. 4% 0.0% 0.5% 0.1% 0.3% 0.1% 0.3%
Switzerland 1.4% 0.1% 0.1% 0.0% 0. 2% 0.0% 0.5% 0.1% 0.3% 0.1% 0.1%
Other 0.4% 0.0% 0.0% 0.0% 0.2% 0 .0% 0.0% 0.0% 0.0% 0.0% 0.1%
OTHER DEVELOPED COUNTRIES 10.3% 1.4% 0.1% 0.8% 0.0% 0.1% 0.4% 0.8% 3.8% 0.7% 2.3%
Japan 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.7% 0.1% 0.0%
USA 5.3% 0.9% 0.1% 0.2% 0.0% 0.0% 0.1% 0.1% 2.3% 0.2% 1.6%
EAST EUROPEAN COUNTRIES 20.9% 1.3% 0. 1% 0.6% 5.6% 0.3% 2.0% 3.2% 1.4% 0.2% 6.2%
CIS 11.9% 0.1% 0.0% 0.1% 4.8% 0.0% 0.4% 0.6% 0.5% 0.0% 5.5%
Other 9.0% 1.2% 0.1% 0.5% 0.8% 0 .3% 1.6% 2.6% 0.9% 0.2% 0.7%
DEVELOPING COUNTRIES 6.0% 2.6% 0.0% 0. 3% 0.5% 0.0% 0.1% 0.2% 0.7% 0.2% 1.2%
LDC 0.4% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2%
SUCCESSOR STATES OF THE
FORMER SFRY24.3% 4.4% 0.9% 0.8% 1.3% 0. 4% 3.6% 6.2% 3.8% 1.9% 1.0%
Croatia 3.4% 0.7% 0.2% 0.0% 0.8% 0.0% 0.6% 0.5% 0.3% 0.2% 0.1%
SR Yugoslavia 12.8% 2.4% 0.6% 0.5% 0.5% 0.3% 1.4% 3.7% 1.9% 0.9% 0.6%
Slovenia 7.8% 1.2% 0.0% 0.2% 0. 0% 0.0% 1.6% 2.0% 1.6% 0.8% 0.3%
OTHER COUNTRIES 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%WT/ACC/807/3
Page 55Table 15:  Imports by Geographical Region, Economic Clas sification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1997 (in 000 US$)
TOTAL Food
productsBeverages
and
tobaccoRaw
materials
except fuelFuel and
lubricantsOils and
fatsChemical
productsProducts
classif. by
mater.Machines
and trans.
equipmentMisc.
ready
made
productsOther
TOTAL 1778515 243143 19749 69176 197044 15472 192152 343767 302044 213773 182195
DEVELOPED COUNTRIES 863507 87670 4522 34892 53921 4390 88075 104940 202690 167860 114547
EU 658525 60670 3228 13493 45518 4061 71433 81318 156491 124700 97613
France 36708 3142 495 53 206 10 10937 1823 16750 2704 588
Italy 96030 3398 40 1450 538 79 11488 15065 27053 34870 2049
Netherlands 40378 3116 77 2001 959 340 3116 1544 2887 8926 17412
Germany 239024 11286 1528 2128 958 114 18489 19752 74087 48100 62582
Greece 130055 24637 646 5971 35237 3051 6374 25684 6232 13124 9100
United Kingdom 23151 1227 18 198 727 17 4999 1764 6357 5071 2773
Other 93179 13864 424 1692 6893 450 16030 15686 23125 11905 3109
E F T A 29291 1249 814 121 5710 151 9561 3675 5500 2270 240
Switzerland 24022 1068 814 117 1982 130 9326 3505 5351 1489 240
Other 5269 181 0 4 3728 21 235 170 149 781 0
OTHER DEVELOPED COUNTRIES 175691 25751 480 21278 2693 178 7081 19947 40699 40890 16694
Japan 12540 10 0 4 0 0 364 813 8241 3107 1
USA 83425 18749 467 3848 2317 4 1999 5609 16493 27457 6482
EAST EUROPEAN COUNTRIES 360197 23601 2120 11883 94738 6171 38147 113260 22539 5706 42032
CIS 186522 2197 0 2435 78584 680 4837 61889 4734 1329 29837
Other 173675 21404 2120 9448 16154 5491 33310 51371 17805 4377 12195
DEVELOPING COUNTRIES 112946 49791 128 4765 11458 81 947 17950 13473 4977 9376
LDC 2655 368 0 1775 20 0 11 457 18 6 0
SUCCESSOR STATES OF THE
FORMER SFRY420212 80690 10895 15696 36212 4819 64323 96390 62074 33677 15436
Croatia 69450 12834 3396 379 26266 0 10759 8270 5287 2208 51
SR Yugoslavia 204494 41037 4737 10007 9489 4563 23774 56522 28064 13473 12828
Slovenia 137560 25524 1115 3871 120 161 28854 30262 27387 17709 2557
OTHER COUNTRIES 18998 1023 2084 165 695 11 649 10770 1250 1547 804WT/ACC/807/3
Page 56Table 16:  Imports Structure by Geographical Region, Economic  Classification of Countries, Country of Destination and
Categories of Goods as Defined by SITC in 1997
TOTAL Food
productsBeverages
and
tobaccoRaw
materials
except fuelFuel and
lubricantsOils and
fatsChemical
productsProducts
classif. by
mater.Machines
and trans.
equipmentMisclen.
ready
made
productsOther
TOTAL 100.0% 13.7% 1.1% 3.9% 11.1% 0.9% 10.8% 19.3% 17.0% 12.0% 10.2%
DEVELOPED COUNTRIES 48.6% 4.9% 0.3% 2.0% 3.0% 0.2% 5.0% 5.9% 11.4% 9.4% 6.4%
EU 37.0% 3.4% 0.2% 0.8% 2.6% 0. 2% 4.0% 4.6% 8.8% 7.0% 5.5%
France 2.1% 0.2% 0.0% 0.0% 0.0% 0.0% 0.6% 0.1% 0.9% 0.2% 0.0%
Italy 5.4% 0.2% 0.0% 0.1% 0.0% 0 .0% 0.6% 0.8% 1.5% 2.0% 0.1%
Netherlands 2.3% 0.2% 0.0% 0.1% 0 .1% 0.0% 0.2% 0.1% 0.2% 0.5% 1.0%
Germany 13.4% 0.6% 0.1% 0.1% 0. 1% 0.0% 1.0% 1.1% 4.2% 2.7% 3.5%
Greece 7.3% 1.4% 0.0% 0.3% 2.0% 0.2% 0.4% 1.4% 0.4% 0.7% 0.5%
United Kingdom 1.3% 0.1% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 0.4% 0.3% 0.2%
Other 5.2% 0.8% 0.0% 0.1% 0.4% 0 .0% 0.9% 0.9% 1.3% 0.7% 0.2%
E F T A 1.6% 0.1% 0.0% 0.0% 0.3 % 0.0% 0.5% 0.2% 0.3% 0.1% 0.0%
Switzerland 1.4% 0.1% 0.0% 0.0% 0. 1% 0.0% 0.5% 0.2% 0.3% 0.1% 0.0%
Other 0.3% 0.0% 0.0% 0.0% 0.2% 0 .0% 0.0% 0.0% 0.0% 0.0% 0.0%
OTHER DEVELOPED COUNTRIES 9.9% 1.4% 0.0% 1.2% 0.2% 0.0% 0.4% 1.1% 2.3% 2.3% 0.9%
Japan 0.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.2% 0.0%
USA 4.7% 1.1% 0.0% 0.2% 0.1% 0.0% 0.1% 0.3% 0.9% 1.5% 0.4%
EAST EUROPEAN COUNTRIES 20.3% 1.3% 0. 1% 0.7% 5.3% 0.3% 2.1% 6.4% 1.3% 0.3% 2.4%
CIS 10.5% 0.1% 0.0% 0.1% 4.4% 0.0% 0.3% 3.5% 0.3% 0.1% 1.7%
Other 9.8% 1.2% 0.1% 0.5% 0.9% 0 .3% 1.9% 2.9% 1.0% 0.2% 0.7%
DEVELOPING COUNTRIES 6.4% 2.8% 0.0% 0.3% 0.6% 0.0% 0.1% 1.0% 0.8% 0.3% 0.5%
LDC 0.1% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
SUCCESSOR STATES OF THE
FORMER SFRY23.6% 4.5% 0.6% 0.9% 2.0% 0. 3% 3.6% 5.4% 3.5% 1.9% 0.9%
Croatia 3.9% 0.7% 0.2% 0.0% 1.5% 0.0% 0.6% 0.5% 0.3% 0.1% 0.0%
SR Yugoslavia 11.5% 2.3% 0.3% 0.6% 0.5% 0.3% 1.3% 3.2% 1.6% 0.8% 0.7%
Slovenia 7.7% 1.4% 0.1% 0.2% 0. 0% 0.0% 1.6% 1.7% 1.5% 1.0% 0.1%
OTHER COUNTRIES 1.1% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.6% 0.1% 0.1% 0.0%WT/ACC/807/3
Page 57
Table 17:  Retail Prices
Monthly movements 1992 1993 1994 1995 1996 1997 1998
January 28.4 15.6 22.0 3.2 0.3 3.9 0.7
February 46.0 32.5 6.8 0.2 0.0 -0.4 0.4
March 37.6 8.5 2.4 1.6 0.0 -0.4 -0.4
April 86.1 3.4 2.4 0.6 -0.7 -2.1 -1.5
May 72.4 8.0 1.6 -0.9 -1.1 -0.4 0.4
June 17.0 -1.6 2.3 -1.7 -0.4 0.0 -1.7
July 8.3 7.7 -0.6 0.0 -0.6 0.3 -0.7
August 6.6 9.5 0.6 0.2 -0.7 0.7 -0.4
September 16.0 6.5 1.8 0.7 0.3 0.1 -0.1
October 21.0 12.1 2.0 3.0 2.6 2.4 2.3
November 10.0 21.1 2.2 1.6 0.7 0.9 0.1
December 17.5 13.5 2.9 0.5 -0.1 -0.4 -0.1
I Quarter 158.0 66.2 33.4 5.1 0.3 3.0 0.8
II Quarter 275.4 10.7 6.4 -2.1 -2.2 -2.4 -2.7
III Quarter 33.9 25.6 1.8 0.9 -1.1 1.0 -1.3
IV Quarter 56.4 42.6 7.3 5.2 3.3 3.0 2.3
New annual increase 1925.2 229.6 55.4 9.2 0.2 4.5 -1.0
Average monthly
increase28.5 10.0 2.2 0.5 0.0 0.1 -0.2
Table 18:  Total Investments in Fixed Assets by Technical Nature (in Million Denars)
Year Total Construction
workEquipment,
including installationOther
1990 91.0 62.6 26.0 2.4
1991 178.9 111.9 60.0 7.0
1992 2285.7 1483.8 720.0 81.9
1993 9878.3 6337.8 3147.2 393.3
1994 19636.9 12158.3 7057.1 421.6
1995 24704.2 16892.7 7217.8 593.7
1996 26484.8 17536.4 7882.9 1065.4
19971 27810.8 18018.1 9121.7 671
1 Preliminary dataWT/ACC/807/3
Page 58
Table 19:  Balance of Payments (in US$)
1993 1994 1995 1996 1997
Exports of goods and services 1139 1258 1390 1301 1329
Imports of goods and services 1250 1598 1810 1773 1862
Balance of goods and services -111 -340 -420 -472 -533
Other income (net) -57 -47 -29 -30 -34
Balance on goods, services and income -168 -387 -449 -502 -567
Private transfers (net) 155 185 206 161 283
Official transfers (net) 28 44 27 52 7
Current balance 15 -158 -216 -289 -277
C a p i t a l  t r a n s a c t i o n s  ( n e t ) 0 3 0200
Financial transactions (net) -112 26 205 270 306
Direct investments (net) 0 24 9 11 16
P o r t f o l i o  i n v e s t m e n t s  ( n e t ) 00302
Other investments (net) -53 43 294 250 323
Official reserves -59 -41 -101 8 -35
Net errors and omissions 97 102 10 19 -30
Table 20
Exports and Imports of Goods by Intended Use of Product (in Million US$)
1994 1995 1996 1997 19981)
1. EXPORT TOTAL 1086 1204 1147 1237 1322
 - Production materials 548 653 568 650 646
 - Capital goods 56 50 38 42 53
 - Consumer goods 440 446 540 543 622
 - Unknown 42 55 1 1 1
2. IMPORT TOTAL 1484 1719 1627 1778 1913
 - Production materials 812 990 905 1088 1242
 - Capital goods 195 185 218 188 247
469 527 493 492 412  - Consumer goods
 - Unknown 81 71 11 11 2
3. EXPORT/IMPORT 73.2% 70.0% 70.1% 69.6% 69.1%
1) Preliminary dataWT/ACC/807/3
Page 59
ANNEX II
Appendix I:  List of Customs Quotas  of Goods that are Imported in the
Republic of Macedonia from the Republic of Croatia for 1999
Tariff number Name of the goodsCustoms
quotas for the
first term of
1999 in tons
12 3
0207 12 00 00 Home hen’s meat, uncut, frozen 350
0207 14 00 00 Home hen’s meat, parts, frozen 250
0210 Meat and meat eatable products and other
slaughterhouses products, salted, in brine, dried or
smoked100
0302 69 00 10
0301 93 00 00Sweet water fish, fresh or cooled 150
0401 20 00 10 Milk and cream, with fat content over 1 per cent to 6 per
cent on mass300
0401 30 00 10 Cream, with fat content over 6 per cent on mass 50
0402 21 Milk in powder, without added sugar or other sugars for
sweetening5
0403 10 91 00 Yoghurt, aromatized or with added fruits, nut fruits or
cocoa, other75
0403 90 Liquid sour milk, sour milk, cream, kefir and other
fermented or sobered milk, cream and other150
0405 10 Butter 25
0406 30 00 00 Cheese melted 75
0406 90 00 90 Other cheese, other 75
0701 90 Potato, fresh or cooled -
1601 Sausages and similar meat products, from other eatable
slaughterhouse products or from blood,200
1602 Other prepared or caned meat products, from other
slaughterhouses products or from blood,500
1604 Prepared or caned fish, except tar.no.160430 00 00-
kaviar750
1704 90 Products from sugar, without cocoa, other 80
1806 Chocolate and other food products that contain cocoa 200
1901 10 00 00 Products for feeding of children, in packing for small
sale60
1901 90 Other, malt extract 80
1905 30 00 00 Sweat biscuits, waffles and wafers 250
1905 90 00 00 Other baking products 50
2007 99 00 00 Gems, fruit jellies, marmalades, fruit purees, and fruit
pastes produced by cooking, other50
2009 19 00 00 Orange juice other 100
2009 30 00 00 Juice from other citrus fruits 50
2009 90 00 00 Mixture of juices 150
2102 10 31 00 Yeast for mixing, other 5
2103 30 00 90 Prepared mustard 20WT/ACC/807/3
Page 60
Tariff number Name of the goodsCustoms
quotas for the
first term of
1999 in tons
12 3
2103 90 00 90 Other, mixed spices, and mixed spicing products, other 75
2104 10 00 00 Soups and thick soups and articles for those products 200
2105 00 00 00 Ice cream, and other eatable ice, with or without addition
of cocoa200
2106 Feeding products that are not mentioned or in listed
elsewhere (feeding for breast feeding babies, dietetic
products)250
2202 90 00 00 Other non alcoholic drinks, other 150
2208 20 00 00 Alcohol drinks, produced with distillation of wine, pulps
or husks, from grapes (cognac, armagnac, brandy)400
2209 Vinegar and substitute for vinegar produced from
vinegar acid250
2401 10 Tobacco, with root hair 1.250WT/ACC/807/3
Page 61
Appendix 2:  List of Customs Quotas  of Goods that are imported in the
Republic of Macedonia from the Republic of Slovenia for 1999
First term Second term
12 3 4
Home hen’s meat, frozen 2,000 1,000 1,000
Home hen’s meat, cut, frozen 1,500 750 750
Turkeys 200 100 100
Chicken liver, frozen 150 75 75
Other (pork) 100 50 50
Milk, with fat content over 1 per
cent to 6 per cent on mass3,000 1,500 1,500
Milk in powder 50 25 25
Butter 100 50 50
Different types of cheese (Gauda,
ajdamer, trappist)50 25 25
Potato (seeds) 200 200
Beef fat for industrial purposes 300 150 150
Sausages (long lasting or semi
lasting) and other products1,500 750 750
Other prepared or caned product 500 250 250
Sardines, sardelles, papallines 400 200 200
Candies 100 40 60
Chocolate and other food products
that contain cocoa300 120 180
Sweat biscuits, waffles and wafers 200 80 120
Other (salted biscuits) 150 75 75
Juice from other fruits and
vegetables600 300 300
Mustard 200 100 100
Products for feeding of fish
progeny500 250 250
Cigarettes that contain tobacco,
with root hair200 100 100WT/ACC/807/3
Page 62
Appendix 3a:  Export of Goods from the Republic of Macedonia in
Federal Republic of Yugoslavia that are on Quantitative Restrictions in 1999
Tariff number or
signName of the goods Quantitative restriction for
1999
Agricultural Products
1001 90 00 301001 90 00 50
1001 90 00 90Wheat and barley 0
0
0
1101 00 00 00 Flour from wheat or barley 0
1701 12 00 00
1701 99 10 00Sugar from sugar beet 0
0
1512 11 00 001512 19 00 00Sunflower oil 0
0
2309 90 00 11
2309 90 00 19
2309 90 00 202309 90 00 90Livestock food 0
0
00
Industrial Products
2710 00 00 10to2710 00 00 49Fuels 0
2)
4403 91 00 00 Walnut blocks 0
Appendix 3b:  Import of Goods from the Federal Republic of Yugoslavia to the Republic of
Macedonia that are on Quantitative Restrictions in 1999
Tariff
number or
signName of the goodsQuantitative
restriction for
1999 in tons1st term 2nd term II
Agricultural products
0203 Pork meat 2,000 800 1,200
0210 Meat dried or smoked 300 120 180
0401 Milk and cream 1,500 600 900
0406 Cheese and soft cheese 300 120 180
1001 90 00 30
1001 90 00 50
1001 90 00 90Wheat and barley 50,000(120,000 30,000
1101 00 00 00 Flour from wheat or
barley5,000 2,000 3,000
1512 19 00 00 Refined sunflower oil 6,000(12,500 3,500
1601 Meat delicatessen 1,500 600 900
1701 99 10 00 Refined sugar from sugar
beet0(1
2402 20 00 00 Cigarettes 250 100 150WT/ACC/807/3
Page 63
Tariff
number or
signName of the goodsQuantitative
restriction for
1999 in tons1st term 2nd term II
Industrial Products
2710 00 00 11
do
2710 00 00 49Motor fuels 0(2
2711 12 00 10
2711 13 00 10Mixture of propane and
butane0(2
0(2
4012 10 90 00 Protective auto tires
gumi0
4012 20 90 00 Used auto tires 0
7208 36 00 00
7208 37
7208 38
7208 39HRT, σ>600mm, δ>10m
m
HRT, σ>600mm,
4.75< δ<10mm
HRT, σ>600mm
3<δ<4.75mm
HRT, σ>600mm, δ<3mm60,000 30,000 30,000
7211 14
7211 19HRT,
σ>600mm, δ>4.75mm
HRT,
σ>600mm, δ>4.75mm0
7208 51
7208 52
7208 537208 54HRS, δ>10
HRS, 4,75< δ<10
HRS, 3< δ<4,75
HRS, δ<30
7209 15 00 00
7209 16 00 00
7209 17 00 00
7209 18 00 00CRT, σ>600mm,
δ>3mm
CRT,
σ>600mm,1< δ<3mm
CRT, σ>600mm,0.5< δ<
mm CRT, σ>600mm,
δ<0.5mm0
400
400
0160
160240
240
7209 25 00 007209 26 00 00
7209 27 00 007209 28 00 00CRS, σ>600mm, δ<3mm
CRS, σ>600mm,
1<δ<3mm
CRS, σ>600mm,
,0.5< δ<1mm
CRS, σ>600mm,
δ<0.5mm0
400
400
0160
160240
240
7210 41
7210 49Zinc sheets corrugated,
Zinc sheets noncorrugated0
400 160 240
7211 29 00 00
7211 23 00 00CRT i CRS , σ<600mm
CRT i CRS , σ<600mm i
do 0.25 per cent S0
0WT/ACC/807/3
Page 64
Tariff
number or
signName of the goodsQuantitative
restriction for
1999 in tons1st term 2nd term II
7212 40 Plastic coated 0
7305 Welded pipes 2,100 800 1,300
7306 Welded pipes and
profiles2,100 800 1,300
Abbreviations: " σ" - width, " δ"-thickness, hot rolled track (HRT), ho t rolled sheets (HRS), cold rolled
track (CRT), cold rolled sheets (CRS)
1) with possibility for increasing of the quantitie s of goods, during the year in both countries,
depending of the balance opportunities;
2)  re-evaluation  of the quantities of goods coming from both countries, in the frames of the
balance opportunities.
__________