RESTRICTED  
  
WT/TPR/G/390  
11 June 2019  
(19-3969) Page: 1/17 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
THE REPUBLIC OF NORTH MACEDONIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by the 
Republic of North Macedonia  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Republic of North Macedonia . WT/TPR/G/390 • The Republic of North Macedonia  
 
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Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC ENVIRON MENT  ................................ ................................ ..........................  4 
2.1   Economic Trends  ................................ ................................ ................................ .........  4 
3   TRADE POLICY DEV ELOPMENTS  ................................ ................................ ..................  5 
3.1   Licences, Export/Import Controls  ................................ ................................ ...................  5 
3.2   Customs Procedures  ................................ ................................ ................................ .... 5 
3.3   Technical Regulation  ................................ ................................ ................................ .... 6 
3.4   Privatization  ................................ ................................ ................................ ................  7 
3.5   International Competitiveness  ................................ ................................ .......................  7 
3.6   Foreign Investments  ................................ ................................ ................................ .... 7 
3.7   Technological Industrial Development Zones (TIDZs)  ................................ .......................  8 
3.8   Small and Medium Sized Enterprises  ................................ ................................ ..............  8 
3.9   Sanitary and Phytosanitary Measures  ................................ ................................ .............  9 
3.10   Intellectual Property  ................................ ................................ ................................ ... 9 
3.11   Competition Policy  ................................ ................................ ................................ ....10 
3.12   Public Procurement  ................................ ................................ ................................ ...11 
3.13   Sectoral Policies  ................................ ................................ ................................ .......11 
 Agriculture  ................................ ................................ ................................ ............ 11 
 Industry  ................................ ................................ ................................ ............... 12 
 Energy  ................................ ................................ ................................ .................. 12 
 Services  ................................ ................................ ................................ ................ 14 
3.13.4.1    Financial  services  ................................ ................................ ................................ 14 
3.13.4.2    Transport  ................................ ................................ ................................ ........... 14 
3.13.4.3    Electronic communications  ................................ ................................ ................... 15 
3.13.4.4    Tourism  ................................ ................................ ................................ ............. 15 
4   TRADE AGREEMENTS  AND ARRANGEMENTS  ................................ ..............................  16 
4.1   WTO ................................ ................................ ................................ ......................... 16 
4.2   Republic of North Macedonia and the EU  ................................ ................................ ........ 16 
 Free trade agreements  ................................ ................................ ............................. 17 
 Regional integration  ................................ ................................ ................................ .17 
 
 
  WT/TPR/G/390 • The Republic of North Macedonia  
 
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1  INTRODUCTION  
1.1.  In accordance with the objectives and the procedures of trade policy review mechanism arising 
from its membership, the Republic of North Macedonia is presenting its second Trade Policy Review. 
This Trade Policy Review is designed to inform WTO Members on important topics tha t are 
contributor s to the economic growth of the Republic of North Macedonia, thus covering all aspects 
related to economic,  trade , business  and investment climate of the country.  
1.2.  The Republic of North Macedonia is a strong supporter of the rules -based mu ltilateral trading 
system embodied in the WTO, which gives greater certainty in trade relations, especially for small 
countries, and contributes to promote open trade, global economic growth and job creation. As a 
landlocked country, the Republic of North Macedonia has a keen interest in full implementation of 
the Trade Facilitation Agreement (TFA), in order to facilitate all trade and customs procedures.   
1.3.  In recognizing the need to keep pace with the developments in the global economy, the 
Republic of Nort h Macedonia co -sponsored the initiatives to continue work on e -commerce and on 
domestic regulation on services, as well as to create an informal Working Group on Micro, Small and 
Medium enterprises (MSMEs) at the WTO. Regarding the topics of the Doha Devel opment Agenda, 
the Republic of North Macedonia has traditionally supported agricultural reform in all three pillars 
(market access, domestic support and export subsidies) and shares the position of the recently 
acceded Members. In the area of  TRIPs, suppor ts the protection of biodiversity and traditional 
knowledge and a higher level of protection for products with geographical indications.  
1.4.  The Republic of North Macedonia has emphasized membership in the European Union (EU) as 
one of its strategic priorities . The 2017 -2020 Government 's Program me maintains EU accession as 
a prime strategic goal, and focuses its reform agenda on the achievement of, inter alia, economic 
development, job creation and higher living -standards of the population, a fairer taxation sy stem, 
enhanced support for domestic enterprises, the rule of law and justice, efficient institutions, high -
quality education, as well as the improvement of the country's international reputation and standing. 
In 2005, the Republic of North Macedonia was gr anted candidate status for EU membership. In 
April 2018, the European Commission recommended that the European Council decide that 
accession negotiations be opened with the Republic of North Macedonia in light of the progress 
achieved and in view of the su stained reform momentum.  
1.5.  The main driving forces for the legal, institutional and economic reforms undertaken so far, 
refers to aligning of the national legislation with EU law ( acquis communautaire ). The reform s are 
entitled almost to all trade -related l egislation s, with notable progress in customs, most aspects of 
trade policy in goods and services, public procurement, agriculture, taxation, technical regulations, 
energy, transport, etc.  
1.6.  The economic policy of the Republic of North Macedonia is permanen tly focused on 
improvement of the business environment, support of innovation and entrepreneurship as main 
promoters of dynamic economic growth. The efforts in improving the general investment climate 
and making it more stable and predictable in order to a ttract higher levels of both domestic and 
foreign investment, the World Bank's "Doing Business has ranked the Republic of North Macedonia 
on 10th place in 2019.  
1.7.  The Republic of North Macedonia is a signatory to total of 40 bilateral agreements for mutual 
protection and promotion of foreign investment, of which 35 are currently in force. Of these, 23 are 
with EU member states and with states that are important investors. Related to taxation, has 
concluded 39  treaties for avoiding double taxation with its mai n economic partners worldwide. During 
the period under review, 3 new agreements in investment and 11 new double taxation treaties were 
signed. Also, is a party to the Convention on the Settlement of Investment Disputes between States 
and Nationals of Other  States (ICSID Convention), the Convention  Establishing the Multilateral 
Investment Guarantee Agency (MIGA) and the New York Convention  on the Recognition and 
enforcement of Foreign Arbitral Awards.  WT/TPR/G/390 • The Republic of North Macedonia  
 
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2  ECONOMIC ENVIRONMENT  
2.1  Economic Trends  
2.1.  The macro -economic management of the Republic of North Macedonia is being pegged to the 
Euro, thus the exchange rate of the Denar remains stable, which results with low inflation up to 
1.4% in 2017 and 1.5% in 2018. GDP growth averaged 2.7 % on an annual ba sis from 2013 to 2018 
and is projected to 3.2% for 2019. Nominal GDP (EUR billions) reached from 8.1 in 2013 to 10.7 in 
2018. GDP per capita increased from EUR 3,945 in 2013 to EUR 5,169 in 2018.  
2.2.  The Government of the Republic of North Macedonia considers foreign direct investments as 
one of the cornerstones for future growth  and many activities have been focused on wide -ranging 
reforms in order to increase the economic growth as well as higher FDI inflows. Gross capital 
formation of GDP has rea ched to 35.3 % in 2018 compared to 28.8% in 2013. Foreign direct 
investment is 5.8% of GDP in 2018, compared to 3.1% in 2013. The growth of export of goods 
increased by 16.8% in 2018 compared to 2017, and in 2013 the growth was 3.6%. The growth of 
import of goods incre ased by 12.2% in 2018 compared to 2017, and in 2013 the growth declined by 
1.7%.  
2.3.  Republic of North Macedonia's largest export market is by far the EU and the share has 
considerably grown during the period under review (from 72% in 2013 to 82% in 2018). CEF TA 
countries hold a declining distant second position (17.6% in 2013  to 11.1% in 2018). The share of 
other European countries has remained quasi constant (2.6% in 2013, 2.1%  in 2018).  
2.4.  During the period under review, both the shares in GDP of merchandise e xports and imports 
rose, the share of exports increased from 39.6% in 2013 to 54.6.7% in 2018, while that of imports 
rose from 61.0% in 2013 to 71.4% in 2018. The trend was similar for services albeit at a slower 
growth pace, from 14.1% in 2013 to 14.6% in  2018 for services exports and from 9.5% in 2013 to 
11.3 % in 2018 for services imports.  
2.5.  The structure of the exports has significantly evolved during the period under review. While 
base metals and textiles were the largest exports in 2013 with respectivel y 21.5% and 16.3% of the 
total, they were in 2018 the third and fourth largest exports with a share of 11.7% and 8.8% 
respectively. The first two largest exports are now machinery and electrical equipment (26.3% up 
from11.9%) and chemicals (23.2% up from 1 7.8%), as well to include transport equipment 
(vehicles) from 1.4% to 5.5% in 2018. This reveals the progressive decline of textile exports and 
the rise of auto and machinery components, for which the Republic of North Macedonia has 
successfully integrated  European value chains.  
2.6.  According to the expenditure approach of calculating the GDP, gross capital formation increased 
to 35.3% in 2018, compared to 28.8% in 2013, real terms limited the decline of GDP by 6.5%, thus 
creating a solid base for strengthenin g the competitiveness of the economy in the next period. Final 
consumption fell by 4.1% in real terms (89.3% in 2013, 85.2% in 2018), as a result of decrease in 
household consumption by 2.9%, and general government consumption by 1.2%. Export of goods 
and services increased by 21.2%, and the import of goods and services by 16.6%, which influence 
on high growth of gross capital formation. Hence the deficit of the trade balance has narrowed in 
absolute terms during the period under review, from EUR -1,863.9 m illion in 2013 t o 
EUR -1,736.6  million in 2018.  
2.7.  The monetary policy is the remit of the National Bank of Republic of North Macedonia. According 
to the law on the National Bank, the primary mission is to  achieve and maintain price stability, to 
contribute t o a stable, competitive and market -based financial system and to support the general 
economic policies of the Government without jeopardizing the achievement of its primary mission 
and in conformity with the principle of open market economy and free compet ition. The monetary 
policy instruments refers to management of the policy rate, issuance of central banks bills, repos 
auctions, intervention on the foreign exchange, temporary or outright purchasing or selling 
securities, intraday, overnight and seven day s loan facilities, reserve requirements and non -standard 
instruments.  
2.8.  The National Bank also pursues a cautious policy of de -euroization of the national economy 
and a Strategy for de -euroization was adopted in December 2018, according to the Conclusions of  WT/TPR/G/390 • The Republic of North Macedonia  
 
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the economic and financial dialogue with EU. The Strategy is oriented towards further strengthening 
of the confidence in the local currency, which is in favour of the monetary strategy of exchange rate 
targeting.  
2.9.  The public debt in 2018 is EUR 5,202.2 billion or 48.5% of GDP. This partly reflects investment 
in road infrastructure and public construction projects, but is mostly due to recurring primary deficits 
driven by declined tax revenues and rising current spending. According to the IMF and World Bank  
notable risks to fiscal sustainability that have built up over time in terms of high gross financing 
needs and composition of public debt, with limited policy space to counter shocks and address long -
term needs, the Government in 2018 started to implement  measures to achieve a gradual fiscal 
consolidation. In 2019 budget introduces a second personal income tax rate at 18% (from 10%) 
that applies to the top 1% of earners. It also increases the threshold for tax -free allowance and the 
flat tax rate on capita l income from 10 to 15%. Also IMF expects these measures to have a net 
positive impact on the fiscal balance by 0.2% of GDP in 2019. Measures have also been taken to 
limit VAT circumvention, close loopholes related to transfer pricing and introduce pre -filled personal 
income tax forms.  
3  TRADE POLICY DEVELOPMENTS  
3.1.  The Government of the Republic of North Macedonia is committed to strengthening public -
private  dialogue to improve the participation of businesses and other stakeholders in the trade 
legislative and policy -making process. National Committee on Trade Facilitation (NCTF) is 
established in 2017 according to Article 23.2 of WTO TFA.  The National Commit tee is composed of 
22 institutions, as are: 9 ministries, 4 agencies and bureaus, 3 state inspectorates, 3 economic 
chambers and 3 associations. It  is obliged to facilitate the domestic coordination in this area and to 
implement the provisions of the WTO T FA, in cooperation with entities competent for cross -border 
trading. Also, the private sector is involved in Unique National Electronic Register of Regulations 
(ENER), set up as e -portal, part of the Regulatory Impact Assessment process in 2009, and manage d 
by the Ministry of Information Society and Public Administration (MISA), which enables the business 
community and the public at large to engage in the legislative process by having access to all 
proposed legislation and the opportunity to provide their c omments.  
3.2.  Following the WTO accession process, the Republic of Macedonia had integrated the basic WTO 
principles in its trade policy, undertook obligations of the membership and provides participation in 
further creating of the international trade policy. D ue to the principle of liberalization, the market of 
goods and services was opened and liberalized. All laws and regulations governing the right to trade 
in goods, as well as other measures have been complied with Macedonia 's WTO commitments and 
are implem ented in full conformity with these obligations.  
3.3.  The country is dependent on trade, with exports and imports in goods and services representing 
around 133% of GDP in 2018.  North Macedonia's external trade prospects are closely and 
increasingly tied to the  EU's economy, which represented more than 80% of its merchandise exports 
and more than 60% of its imports in 2018.  
3.1  Licences , Export/Import Controls  
3.4.  Republic of North Macedonia has made considerable efforts to liberalise the legislative and 
administrative  regimes according to WTO rules. There is one stop shop system for issuing export 
and import licenses, licenses for transit and tariffs – EXIM fully operational from November 2008. 
EXIM is an electronic system which links 16 institutions with competence in  the field of the foreign 
trade operations. A special internet portal administered by the Customs Administration 
(http://www.exim.gov.mk/ ) enables economic operators to request and obtain licences from the 
relevant g overnment institutions.  
3.2  Customs  Procedures  
3.5.  Many developments are made to facilitate trade, whereas the Customs Code  2018 remains the 
main legislation governing customs procedures and requirements, including the Law on Customs 
Tariff 2015 and the Law on Exc ise Duties . The Customs Administration of the Republic of North 
Macedonia continues to collect revenues, overseen enforcement of the laws and protection of the 
border, as well as being responsible for transparency and accountability in customs operations. New WT/TPR/G/390 • The Republic of North Macedonia  
 
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Computerized Transit System (NCTS) as a tool for the management and control of transit operations 
to enhance management efficiency between economic operators and customs offices, which uses 
advanced technologies and electronic data processing became ap plicable in March 2014.  
3.6.  The Republic of North Macedonia became a member of the Convention on a Common Transit 
Procedure and the Convention on the Simplification of the Formalities in Trade in Goods in July 2015 
between EU Member States and EFTA countries.  The Conventions provide for easier and faster 
movement of goods, as transit procedures require only a single transit declaration to be submitted 
in electronic form.  
3.7.  Relevant AEO provisions were amended in 2018, to be in line with the relevant articles fr om 
UCC (Union Customs Code), UCC IA (Union Customs Code Implementing Act) and UCC DA (Union 
Customs Code Delegated Act). Two authorisations are issued under amended legislation, one (AEOS) 
Authorised Economic Operator -Security and Safety in January 2019 an d one (AEOC) Authorised 
Economic Operator -Customs Simplifications in February 2019.  
3.8.  Customs Administration recently applies ITE (Integrated Tariff Environment) named TARIM 
system. Economic operators have benefits for on -line (electronic) posting to the inf ormation which 
previously were only delivered on paper, and are informed for each tariff code for customs duties, 
national excise duty and national non -tariff measures, as well all restrictions on import and export. 
TARIM advises additional information to reduce the use of consultation and laws on paper. TARIM 
has a calculation module - the ability to calculate all duties.  
3.9.  Customs Administration is currently working on developing a new Customs Declarations and 
Excise Documents Processing System (CDEPS). The  Project started in November 2018 and the plan 
is this system to become operational in June 2019. In February 2019 a testing for implementation 
of this system as Pilot Project started, which includes 11 Customs Offices. The CDEPS system will 
establish a pa perless environment in the customs operation, as well as interoperability with the 
customs systems of the European Union (EU). The scope of the CDEPS system is to integrate and 
interconnect with NCTS systems (New Computerized Transit System), EXIM (Single Window System 
for Import, Export and Transit Certificates and Customs Quotas) and ITE (Integrated Tariff 
Environment).  
3.3  Technical Regulation  
3.10.   The Government of the Republic of North Macedonia continues the harmonization process of 
its technical regulations and standards with the relevant EU  Directives in the context of its 
preparation for accession to the EU, as set out in the National Plan for Adoption of the Acquis and 
individual strategic documents for accreditation, standardisation and metrology. Since t he last TPR, 
the Republic of North Macedonia has submitted one notification to the WTO TBT Committee with 
respect to application of TBT measures, as notified in 2015, the proposed introduction of the Draft 
Law on Construction Products harmonized with Regul ation (EU) No.  305/2011 of the European 
Parliament and of the Council of 9 March 2011.  
3.11.   The Republic of North Macedonia acknowledges the foreign compliance documents and 
markings issued in accordance with the international agreements already signed and rati fied. 
Accreditation Institute of the Republic of North Macedonia (IARM) is full member of the European 
Organization for Accreditation (EA) since 2007 and later signatory of EA -MLA, ILAC -MRA and IAF -
MLA of multilateral recognition of EA and international organizations for accreditation ILAC and IAF, 
and the documents of conformity assessment issued by accredited bodies are recognized.  
Standardization Institute the Republic of North Macedonia (ISRM) is a full member of the European 
Committee for Standardiza tion (CEN) and European Committee for Electrotechnical Standardization 
(CENELEC) 2012. ISRM regularly adopts and develops standards and the latest data of total number 
of European and International standards and standardization documents adopted as nationa l 
standards and national annexes, is 28 ,898, based on endorsement method, i.e. "cover page" 
method . ISRM implements 2018 -2020 strategy for development of standardisation, which refers to 
maintenance and improvement of the standardization system in order to  meet the requirements of 
the business community. ISRM is in the process of establishment of ISRM Certification process of 
management systems. The Bureau of Metrology (BM) is a full member of the European Association 
of National Metrology Institutes (EURAM ET) since 2010 and has signed an agreement with the 
General Conference on Weights and Measures , a supreme authority of the International Bureau on WT/TPR/G/390 • The Republic of North Macedonia  
 
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Weights and Measures (associate member of BIPM since 2006), member in OIML since 2004, 
associate in WELMEC si nce 2008, as well signatory of the CIPM MRA since 2007. BM manages 
9 laboratories for calibration: mass, pressure, density, length, temperature and relative humidity, 
volume and flow, AC/DC low frequency, time and frequency and acoustics, and one laborator y for 
testing precious metals alloys, as a part of procedure of hallmarking precious metals articles.  
3.4  Privatization  
3.12.   The Republic of North Macedonia  has notified the WTO that, during the period under review, 
it did not maintain any state trading enterprises  within the definition contained in paragraph 1 of the 
Understanding on the Interpretation of Article XVII of the GATT.   
3.13.   Under the Law on Privatization of State -owned Capital and the Law on Transformation of 
Enterprises with Social Capital a swift wave of privatizations of state -owned enterprises (SOEs) took 
place during the 1990s. The process is now nearly completed, with some remaining SOEs operating 
in sectors such as energy, transportation and water supply. Both domestic and foreign investors are 
allowe d to participate in privatizations through public call  procedures. Capital Management is 
regulated in the Law on Privatization of State -owned Capital, whereas the Ministry of Economy is 
responsible for sale of state capital declared in shares and stakes in  the enterprises and the Ministry 
of Finance for sale of state capital declared in shares in the banks and financial institutions. The 
State Pension and Disability Insurance Fund is responsible for management of shares and stakes of 
capital transferred to the Fund.  
3.14.   The main developments concerning SOEs during the period under review include: the 
formation of a strategic partnership between a state -owned tobacco producer (Tutunski Kombinat 
AD Prilep) and an international tobacco company (2014), through which  the latter acquired a 51% 
stake in the new company; the sale of all shares owned by the Government in Poshtenska Banka 
(33% of total shares), which there upon became 100% private -owned (2014); and the initiation of 
bankruptcy proceedings in two industrial  SOEs (Electronic manufacturer JSC EMO OHRID and 
chemical producer JSC OHIS) in 2016. The sale of assets of bankruptcy estate is conducting by e -
auction published on the website of the Central Register of the Republic of North Macedonia.  
3.5  International Competitiveness  
3.15.   There is a strong rationale of the Government 's new Economic Growth Plan (EGP) with several 
strategic documents for encouraging competitiveness as a backbone of a sustainable economic 
growth. EGP contains measures for boosting the investments  and competitiveness of the North 
Macedonia 's economy, divided in three pillars, for establishing objective frame for private entities to 
have the possibilities for utilizing the government support under prescribed conditions and criteria.  
3.6  Foreign  Investments  
3.16.   The Republic of North Macedonia has established relatively open FDI regimes characterized 
by high standards of treatment. There is no specific law regulating foreign investment; the legal 
framework applicable to foreign investors is provided by  various laws, including the Constitution, the 
Company Law, the Law on Expropriation,  sectoral laws and international treaties. The Constitution 
guarantees equal rights for both national and foreign persons and legal entities when conducting 
economic activ ities in the country, except as otherwise provided by the law. The Company Law 
grants post -establishment national treatment of foreign firms (whether subsidiaries, branches or 
representative offices), unless otherwise stipulated by an international agreeme nt and/or by a law 
regulating foreign companies with a specific scope of operations. The Law on Technological Industrial 
Development Zones (TIDZs) provides for special tax treatment, customs exemptions and other 
incentives to companies that will invest in the designated TIDZs and the Law on establishing Invest 
Macedonia Agency regulates attracting foreign investment and export promotion.  
3.17.   Attracting foreign direct investment remains a key component of the Government's strategic 
objectives of increasing compe titiveness and achieving higher economic growth and development. 
The current Government Programme (2017 -2020) identifies as one of its priorities the development 
of the domestic enterprises' backward linkages with foreign companies operating in the country . The 
foreign direct investments contributed to the acceleration of the economic growth of the Republic of 
North Macedonia by creating new jobs, increasing productivity and competition, industrial WT/TPR/G/390 • The Republic of North Macedonia  
 
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specialization, the transfer of sophisticated technology, f aster access to the global market, transfer 
of management skills, introduction of innovations, as well as higher integration of the country in the 
international trade.  All investors bring new technology and know -how, which inevitably reflect the 
local econ omy and the relevant industry. Equally important, is that many of these companies 
produce highly sophisticated products with high added value, which is already leading to structural 
changes in the industry and exports in the country.  
3.18.   During the period unde r review, Western Balkans have developed Multi -annual Action Plan as 
a "proposal for a joint approach to furthering economic cooperation in the Western Balkans " in the 
context of further trade integration, introducing a dynamic regional investment space, f acilitating 
regional mobility, and creating a digital integration agenda. The objective of the MAP REA investment 
agenda is to prioritise and implement reforms in investment  related policies in the WB6 to harmonise 
them with the EU standards and internatio nal best practices, and to promote the region as a sound 
investment destination to the global business community.  
3.19.   FDI inflows have been increasing during the period and have reached EUR 338 million in 2016 
although they declined in 2017 to EUR 182 million  before achieving a record high amount of 
EUR 624 million in 2018. GDP growth has also rebounded from 0.2% in 2017 to 2.7% in 2018 and 
IMF expects this trend to continue. Greenfield investments have been particularly significant in 
manufacturing,  including  in export -oriented sectors such as the automotive components and food 
industries. The concentration of FDI in manufacturing reflects the country's industrial skills, as well 
as other advantages: low labour costs and taxes, geographical proximity to assemb ly plants; duty 
free access to the EU market and other markets in the region under its network of FTAs, and a 
favourable investment environment.  
3.7  Technological Industrial Development Zones (TIDZs)  
3.20.   The Directorate for Technological Industrial Development Zones (DTIDZ) is a public institution 
responsible for the development of TIDZs throughout the country, and currently is supervising eight 
active zones in various stages of development. TIDZs are indu strial parks equipped with 
infrastructure suitable for manufacturing activities, based on "normal " rules and regulations, a set 
of specific regulations for the zones providing favourable investment climate and efficient 
administrative support. The employ i n all active zones is 13 ,196 workers (25 companies) and 
participate with 42% in the total export for 2018.   
3.21.   DTIDZ creates a competitive environment and generates linkage (as matchmaking activities) 
of foreign investors with domestic firms, attracting manuf acturing companies which produce goods 
with higher added value. According to a recent study by the OECD, the manufacturing sector is the 
leading sector for FDIs in the Republic of North Macedonia (36% of FDI stock). Numerous investors 
from EU countries hav e located export -oriented activities in the country to serve their home markets 
while benefitting from lower production costs.   
3.8  Small and Medium Sized Enterprises  
3.22.   The Republic of Macedonia provides substantial progress in continuity in harmonizing its Smal l 
and medium -sized enterprises (SMEs) policy with the SBA principles, that arises from the new 
National Strategy for SME (2018 -2023), Craft strategy (2012 -2020), Woman Entrepreneurship 
Strategy (2018 -2023) and National  Strategy on Innovation.  
3.23.   The Ministry  of economy implement measures that arise from these strategies, through 
annual Program for competitiveness, innovations and entrepreneurship. Program for 2019 is already 
notified in WTO. The Third Pillar of the Economic Growth Plan is implemented through the Fund for 
Innovations and Technology Development (FITD) and their Midterm Program.  The FITD has 
developed four types of instrument for financial support: (i) Co -financed grants for newly established 
enterprises (start -ups and spin -offs). This instrument  supports projects that are in the phase of 
proof-of-concept, up to the close -to market phase by financing support of up to 85% from the total 
project budget; (ii) Co -financed grants and conditional loans for the commercialization of 
innovations, to suppor t projects with a clear commercialization objective, which are in the phase of 
prototype (or appropriate phase depending on the type of innovation) up to close -to-market phase 
by financing support of up to 70% from the total project budget; (iii) Co -financ ed grants for 
technology extension,  to enhance the adoption and adaptation of innovative, advanced technologies, WT/TPR/G/390 • The Republic of North Macedonia  
 
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know -how and technology processes in SMEs; (iv) Co -financed grants for the establishment, 
operations and Investments of Business and Technology Accelerators.  
3.9  Sanitary  and Phytosanitary Measures  
3.24.   The Republic of North Macedonia has adopted several laws, reg ulations, decisions and 
monitoring  programs in the veterinary, food safety and plant protection. The Food and Veterinary 
Agency (FVA) is a central competent authority for food and feed safety, veterinary policy, quality of 
food, animal by product and veter inary medicinal products, related to control of food and feed safety, 
surveillance and monitoring of the veterinary activities in the field of animal health and welfare, 
veterinary public health, as well control on national reference laboratories and autho rized 
laboratories supporting the needs of the FVA.  
3.25.   National  Phytosanitary System is composed by the following Competent Authorities (CAs): 
1) Phytosanitary Directorate (PD); 2 ) State Phytosanitary Laboratory (SPL); 3 ) State Agriculture 
Inspectorate (SAI) and 4 ) Directorate for Seed and Seedling Materials (DSSM). Phytosanitary 
Directorate (NPPO) is the competent body for performing activities regarding plants health and plant 
protection products, responsible for coordination and exchange of information amon g state authority 
organs and bodies, implementation of international conventions, agreements and contracts in the 
area of plant health, which the Republic of North Macedonia has ratified. It is also responsible for 
issuing phyto -sanitary certificates for i mport and export of plants, plant products and the State 
agriculture Inspectorate (SAI) is a competent authority for issuing phyto -sanitary certificates for 
export and re -export of plants, plant products and plant protection products.  
3.10  Intellectual  Property  
3.26.   The main policy document on IPR is the National Strategy on Industrial Property 2016 -2018. 
Its overall aim is to guarantee a level of IPR protection which is similar to that of the EU, and to 
permanently harmonize it with all international obligations and  agreements concluded by the 
Republic of North Macedonia in this field; as well as to help develop an efficient IP system as a 
backbone for economic growth. The Strategy's specific objectives are: to improve the industrial 
property legislative framework; t o strengthen IPR enforcement; to develop rights holders' capacity 
to protect IPR; and to increase public awareness of the benefits from IPR protection.  
3.27.   The Republic of North Macedonia's legal framework on intellectual property rights (IPR) is 
quite compre hensive. It includes, principally, the Law on Industrial Property (covering patents, 
trademarks, industrial designs, appellations of origin, and geographical indications); the Law on 
Protection of Topographies of Integrated Circuits; the Law on Copyright a nd Related Rights; the Law 
on Customs Measures for the Enforcement of Protection of IPRs; and the Law on the Breeder's 
Rights.  
3.28.   Trademark protection requires formal registration with the Registry of Trademarks managed 
by the SOIP. Domestic and foreign indi viduals and legal entities may register rights, but foreigners 
must be represented by an authorized representative registered with the SOIP. Registration of 
foreign trademarks is done either through filling a domestic application with SOIP or an internatio nal 
application through WIPO's Madrid Agreement. According to trademark statistics, there is figures of 
applications for period 2013 -2018:  
Year  Domestic  Foreign applications  
Total by 
Madrid 
Agreement/
Protocol  Total 
foreign  Total  Granted  
To 
SOIPa By Madrid 
Agreement/Protocol  
New Subsequent  
Designations  Cont.  
of 
effect  
 1 2 3 4 5 6=3+4+5  7=6+2  8=7+1  9 
2013  739 514 2797 560 [0] 3357 3871 5234 840 
2014  851 587 2364 666 [0] 3030 3727 4468 840 
2015  815 539 2757 431 [0] 3188 4542 5357 614 
2016  782 487 2853 468 4028 [7349]  [7836]  [8323]  1112 
2017  780 488 2619 432 3923 [6974]  7406 [8186]  1777 
2018  843 474 2570 438 4052 7050 7524 8367 1511 WT/TPR/G/390 • The Republic of North Macedonia  
 
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3.29.   SOIP is engaged in technical cooperation activities notably with the European Patent Office 
(EPO) and WIPO and several activities were carried out such as search and examination of European 
patent applications, the implementation of a new domestic patent regis ter, and development of on -
line filing of patent applications, which should become operational by mid -2020.  
3.30.   Copyright in the Republic of North Macedonia is mainly protected by the Law on Copyright 
and Related Rights, which regulates the rights of authors, artists, performers, phonogram producers, 
video/film producers, broadcasting organizations, publishers and database developers, as well the 
functioning of collective management of rights and fees distribution. Computer programmes are 
protected as a copyrig ht works. Equal protection is granted for domestic and foreign holders of 
copyright and related rights. The breach of a copyright is subject to administrative, civil and criminal 
remedies.  
3.31.   The Law on Customs Measures for the Enforcement of Protection of IP R 2015, allows Right -
holders, national or foreign, to be entitled to request the Customs authority to take action against 
goods suspected of IPR infringement. In the last TPR report, methodology for collecting and 
processing data and establishing a data sy stem for measuring IPR infringements was developed . 
The Ministry of Justice is amending the Methodology, as develops a module for collection and 
publication of the already collected data from institutions that are part of the IPR system.  
3.11  Competition Polic y 
3.32.   Competition policy in the Republic of North Macedonia is based on the Law on Protection of 
Competition (LPC) and the Law on Control of State Aid, both published in 2010.  In 2012, several by -
laws were adopted as part of efforts to harmonize national legis lation with the EU acquis . A number 
of guidelines for the assessment of concentrations, the preparation of notifications, the identification 
of bid rigging, leniency procedures and other matters were published during the period under review. 
An important l egislative change was the 2014 amendment of the Criminal Code in order to align it 
with the LPC, thereby allowing for the application of leniency procedures. According to the European 
Commission, the Republic of North Macedonia is moderately prepared for E U membership in the area 
of competition policy, as its laws are broadly aligned with EU competition rules and the SAA 
(Article  69). 
3.33.   The Commission for the Protection of Competition (CPC), an independent state authority with 
legal status, is responsible for  implementing competition rules. The CPC has exclusive jurisdiction to 
investigate breaches of the competition law, make final decisions, and approve or prohibit 
concentrations of undertakings (mergers, joint ventures, acquisition of control).  
3.34.   During the period 2013 -2017, CPC has adopted a total of 202 decisions concerning 
concentrations, cartels and abuse of dominant position. Total numbers of decisions for concentration 
is 171; decisions related to cartels (forbidden agreements) are 18; and decisions rel ated to abuse 
of dominant positions are 13.  
3.35.   CPC in accordance with the Law on State Aid Control in 2014 has further transposed relevant 
EU rules in this area. These include: the Regulation on the manner and procedure of notification of 
state aid, as well as the procedure for monitoring existing state aid; the Regulation on conditions 
and procedure for granting horizontal aid; the Regulation on establishing conditions and procedure 
for granting regional state aid; the Regulation on conditions and procedures  for granting aid of minor 
importance (de minimis); and the Regulation on establishing conditions and procedure for granting 
aid for rescue and restructuring of firms in difficulty.  
3.36.   The Law on State Aid applies to any form of aid granted by state aid-providers in any economic 
sector, except agriculture and fisheries. Providers of state aid must notify to the CPC their plans to 
grant new state aid or alter existing state aid, for assessment of law compliance. In 2015, the CPC 
adopted 25  positive dec isions on state aid, most of them supporting foreign investors operating in 
the special economic zones. The number of decisions in 2016 is 13, and 6 decisions in 2017.  
3.37.   The CPC has signed MoUs with competition agencies of Serbia, Croatia, Bulgaria, Bosnia a nd 
Herzegovina, Turkey, Kosovo and Russia. Domestically, the CPC has signed MoUs with the Ministry  
of the Interior and several sectoral regulatory agencies (i.e. audio visual and media services; 
electronic communications; railways; energy and postal servic es) WT/TPR/G/390 • The Republic of North Macedonia  
 
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3.12  Public  Procurement  
3.38.   The Public Procurement Bureau (PPB), under the Ministry of Finance, is responsible for 
monitoring the implementation of the Law on Public Procurement (LPP) and for developing the public 
procurement system. Its responsibilities includ e normative issues, development of e -procurement 
technologies, international cooperation and EU integration matters. The Ministry of Economy is the 
competent authority regarding concessions and public -private partnerships (PPPs).  
3.39.   The public procurement sys tem continues to be decentralized ever since LPP 2008. The 
Republic of North Macedonia is committed to follow EU acquis on public procurement and in that 
sense, adopted a new LPP in 2019 (Official Gazette No. 24/19) that became applicable on 1 April 
2019.  
3.40.   The PPB manages the Electronic System for Public Procurement (ESPP), available online to 
procuring entities and economic operators. Most activities related to the procurement process are 
performed through the ESPP, including the publication of contract not ices and tender documentation, 
submission of tenders, public opening and evaluation, decision making, contract award notices, e -
auctions, and cancellation of procedures. According to data collected by the Public Procurement 
Bureau, the number of public con tracts awarded increased from 20,645 in 2013 to 27,031 in 2017, 
having reach a peak of 30,168 in 2016.  
3.41.   In February 2017, the Republic of North Macedonia submitted its application for accession to 
the WTO Agreement on Government Procurement (GPA), together with its replies to the Checklist 
of issues for provision of information relating to accession to the GPA. In February 2018, has 
submitted its initial market access offer to accede to the revised GPA to the Committee on Public 
Procurement and the negotiati ons on its accession to the GPA are on -going.  
3.13  Sectoral Polic ies 
Agriculture  
3.42.   Agriculture remains an important activity for the Republic of North Macedonia's economy. 
While the share of agriculture (including forestry and fisheries) in total employment has s lightly 
declined in recent years, its share in GDP has remained overall largely and accounted for 11.4% of 
GDP in 2013 and 18.7% of employment, to GVA share of 10.7% and 9.5% of GDP and employment 
of 16.6% and 16.2% in 2016 and 2017.  
3.43.   Agriculture's contrib ution to the economy is even higher when combined with the food 
processing industry which accounts for an additional 3 % of GDP (includes: production of food 
products; production of beverages and production of tobacco products) and 2  to 3% of employment 
depending of the year.  
3.44.   The main priorities of agricultural policy are defined by the National Strategy for Agriculture 
and Rural Development for the period 2014 -2020 (NSARD 2014 -2020), which objective is 
"Increasing the competitiveness of the domestic agric ultural production and the food industry, 
development of rural areas and sustainable management of natural resources". This objective is 
planned to be achieved through the realization of the following priority areas: a) improving 
technological and market i nfrastructure in order to increase the range of products with added value, 
productivity, quality and safety and meeting EU standards; b) strengthening the horizontal and 
vertical integration of the agro -food sector and development of market contractual rel ations in the 
agricultural value -chains; c) access to production factors, agricultural land and its consolidation, 
access to capital and quality production inputs, and improvement of human potential; d) improving 
rural infrastructure for sustainability of rural communities and economic activities in rural areas. 
Ministry of Agriculture for the implementation of NSARD foresees EUR 150 million of annual 
budgetary transfers for the period 2014 -2020, which increased to EUR 160 million for the period 
2017-2020.  
3.45.   In due course 2013 -2018 several amendments were made to the main legal framework in the 
agricultural policy, as are: 1) Law on Agriculture and Rural Development, which regulates the 
programming, implementation, financing and M&E of the agricultural and rur al development policy; 
2) Law on Establishment of Agency for Financial Support of Agriculture and Rural Development, as  WT/TPR/G/390 • The Republic of North Macedonia  
 
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operational body for  implementing  the system of state support to agriculture and rural development; 
3) Law on Quality of Agricultural Pr oducts, which regulates the markets for agricultural products in 
a way that defines the minimum quality standards, products ' classification, quality labelling and 
information system, the protection of the quality of agricultural and food products with a 
geographical name and a designation for a guaranteed traditional specialty of cereals and rice, 
animal feed, fresh fruits and vegetables, eggs and poultry meat, beef, pork, sheep and goat meat, 
milk and dairy products and bee products;  4) Law on organic agri cultural production, which regulates 
the production, preparation, processing, refinement, storage, transportation, distribution, 
advertising, sales, marking, and control of products produced by using organic methods of 
production; and, 5) Law on Wine, refe rs to protect the interests of winemakers and wine producers 
and wine consumers, to improve the quality of wine and other wine products in the internal and 
external markets, production potential of wine grapes, and marketing of wine.  
3.46.   Total agricultural ex port EUR million (499.5 in 2013 to 541.2 in 2018) and the total agricultural 
import reached from EUR million (636.9 in 2013 to 768.3 in 2018). The main agricultural exports 
from the Republic of North Macedonia in 2017 at the HS two digits level were tobacc o (26.1% mostly 
unmanufactured), preparations of cereals, flour, starch or milk (12.4% of which bread, pastry, 
cakes, biscuits and other bakers' wares 11.1%), edible vegetables and certain roots and tubers 
(11.2%) beverages (11.1%) and preparations of vege tables, fruit, nuts or other parts of plants 
(8.9%). The relative shares of these products in total agricultural exports have all increased as 
compared to 2010, except for edible vegetables. The main import products in 2017 were meat 14.5% 
(of which poultr y 6.5% and swine 3.6%), miscellaneous edible preparations (9.1%), animal or 
vegetable fats and oils and their cleavage products (6.8%), and preparations of cereals, flour, starch 
or milk; pastry cooks' products (6.4%).  
Industry  
3.47.   The manufacturing sector's contribution to GDP has been increasing over the past years from 
the previous reviewed period, reaching almost 15% by 2017. The manufacturing industry is the 
most significant industry in terms of employment. The greatest number of workers in the 
manufactur ing industry is employed in: Wearing apparel, Food and beverages, Motor vehicles, 
trailers and semi -trailers and others.  The most progress in employment from the last trade policy 
review is in the following sectors: a) food and beverages sector (16.6% in 2 013 to 19.1% in 2017); 
b) the motor vehicles, trailers and semi -trailers (3.82% in 2013 to 11.8% in 2017) and c) furniture 
(3.5% in 2013 to 5.1% in 2017). The largest portion of the manufacturing industry's exports is 
realized by the following groups of pr oducts: machinery and transport equipment (29.5%), 
chemicals (24%), clothing (9.3) and  iron and steel (8.7%) in 2017.  
3.48.   The increase of total manufacturing within GDP is, therefore, mainly due to the third largest 
manufacturing sector, that of motor vehicle s, trailers and semi -trailers, whose share of total 
manufacturing value added has grown more than six -fold between 2013 (1.3%) and 2016 (7.1%). 
To foster private -sector growth and job creation, the government developed an investment -
promotion concept to at tract FDI in higher -value -added manufacturing. It was particularly successful 
in the automotive sector, thus the export was driven largely by the automotive and associated 
industries, such as chemicals, machinery and electronics, plastics, and rubber. FDI in the motor 
vehicles and electric machinery industries boosted total exports to 55 percent of GDP in 2017.  
Energy  
3.49.   The basic goal of the energy policy of the Republic of North Macedonia is contained in the 
"Strategy for Energy Development until 2030 " and the major strategic objectives are long -term 
development of individual energy activities to ensure security in the supply of various types of 
energy;  connection of the energy systems of the Republic of North Macedonia to the energy systems 
of other co untries; inclusion of the domestic energy markets in the regional and international energy 
markets; determination and use of energy resources and facilities of strategic importance for the 
state; providing the necessary quantities of energy; long -term fore casting of investment needs in 
production, transmission and distribution capacities of energy needs; potential of renewable energy 
sources and its utilization in order to increase the share of energy produced from renewable sources 
in the gross final energ y consumption; incentive measures for increasing the energy efficiency; 
measures to reduce the use of fossil fuels for energy production; conditions for ensuring 
environmental protection and mitigation of climate change; encouraging the competitiveness of 
energy markets according to the principles of objectivity, transparency and non -discrimination; WT/TPR/G/390 • The Republic of North Macedonia  
 
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obligations undertaken to ratifying international agreements including an integrated strategy on 
energy and climate change.  
3.50.   The Republic of North Macedonia is a  party to: the Energy Charter Treaty; the Energy 
Community; the Agreement of the United Nations Framework Convention on Climate Change, 
including the Kyoto Protocol, and the Paris Agreement. In addition, the energy policy is geared at 
transposing the EU en ergy acquis in terms not only of liberalization but also of energy security, 
energy efficiency and environmental objectives.  
3.51.   New Energy Law was adopted in May 2018 (Official Gazette No. 96/18), in which obligations 
and requirements from the Third Package o f energy directives/regulations of the European Union, 
as signatory state to the Treaty Establishing the Energy Community, are transposed. Energy 
Regulatory Commission established in 2002 continues to operate as an Energy Regulatory 
Commission and Water Se rvices of the Republic of North Macedonia within this law.  
3.52.   In line with the Directive 2009/28/EC on the promotion of the use of energy from renewable 
sources, which requires the setting of targets as percentage of the gross final energy consumption 
and ind icates that strong energy efficiency measures, the Republic of North Macedonia has adopted 
the following legal documents: a) Decision on the national mandatory targets for the participation 
of energy produced from renewable sources in the gross final energ y consumption, b) Decision on 
total installed power of preferential electricity producers which stipulates the total installed power of 
power plants, for which feed in tariffs for produced and purchased electricity are granted feed in 
tariffs remain and it  will be applied to a preferential producer for production of electricity from the 
following types of technologies of power plants: - wind power plant, - thermal power plant on 
biomass, and - thermal power plant on biogas, while the feed in premiums will be granted for 
photovoltaic power plants for produced and sold electricity and c) Decree on the measures for 
supporting the production of electricity from renewable energy sources, which stipulates that besides 
other types of technologies, feed in tariffs for  produced and purchased electricity will be applied also 
for preferential producers from hydroelectric power plants, with no limits in the total installed power. 
(all documents are published in Official Gazette No. 29/2019).  
3.53.   Further, to fully complete the  legislation in line with Directive 2009/28/EC related to 
promotion of biofuels, a new Law on biofuels is under preparing, including methodology for 
determining the biofuels, the obligatory percentage of biofuels, such as establishment of system for 
verify ing biofuels, the price of mixed biofuels and the possibilities for subsidizing production and use.  
3.54.   The energy efficiency policy is more specifically defined in the "Strategy for Improvement of 
the Energy Efficiency until 2020. In the process of transposit ion of the Energy Efficiency Directive 
2012/27/EU, the Energy Performance of Buildings Directive 2010/31/EC, and the Regulation 
2017/1369 for establishing a framework for indicating energy consumption, a new Law on Energy 
Efficiency is under preparing by t he end of 2019. The Law shall introduce goals and support of the 
energy efficiency policies, obligation to reconstruct at least 1% of the total area of the buildings, 
determination of energy saving targets till 2030, and shall envisage an establishment of Energy 
Efficiency Fund as independent legal entity. A long -term strategy for reconstruction of residential, 
public and commercial buildings is planned to be developed by 2030, in order to ensure efficient, 
economically justified reduction of energy consump tion by applying energy efficiency measures and 
at the same time reducing environmental pollution. Energy Agency is responsible to manage, 
maintain and to ensure efficient Monitoring and Verification Platform (MVP) available online, for 
implementation of t he EE measures.  
3.55.   In terms of reliable and quality supply, pursuant the strategic documents regarding 
development of transmission net, Republic of North Macedonia gives emphasis on the 
interconnection lines in the electricity sector with the neighbouring co untries. Republic of North 
Macedonia has interconnection lines with Bulgaria, Greece and Serbia. Procedure for establishing 
interconnection line with Albania is ongoing and interconnection line with Kosovo is planned in the 
near future.  WT/TPR/G/390 • The Republic of North Macedonia  
 
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Services  
3.13.4.1   Financial  services  
3.56.   The structure in the financial sector is constantly growing and presents 15 banks and 2 saving 
houses or 17 deposit taking institutions thus the banking assets raised to MKD 472.8 billion, then 
16 insurance companies, with total assets of EUR 326  million of which life insurance: 30.14% and 
non-life: 69.86%; 1 issuance of corporate bonds on the securities market to 3 investment funds, 
and 4 pension funds.  
3.57.   From aspect of legislative alignment, further strengthening of the stability in the banking 
sector refers to last amendment of the Banking Law in 2016 (Official Gazette No.190/16), in 
compliance with the capital framework Basel 3 and the Basel Core Principles for Effective Banking 
Supervision and Basel Core Principles for Good Corporate Governance,  which mainly refer to 
introduction of the capital buffers, capacity of banks to adequately managing the risks, and 
absorption of losses arising in operational business. Several by -laws on methodology for determining 
capital adequacy; systematically import ant banks; developing recovery plan for systematically 
important banks; rate of countercyclical capital buffet for exposures; minimum distributable amount 
of earnings; credit risk management and good corporate governance rules of banks, were adopted 
in due  course 2016 -2019.    
3.58.   During the period under review, an implementation of regime on anti -money laundering was 
completed by adopting a new Law on Prevention of Money Laundering and Financing of Terrorism 
(Official Gazette No. 120/18), as harmonized to the A ML regime with the EU Directive 2015/849.  
Also, new Decision "On the Methodology on Managing the Money Laundering and Financing of 
Terrorism Risk" (Official Gazette No. 78/18) defining categories, criteria and elements of risk which 
should enable clear ass essment of the level of risk by client/business relation/product or transaction, 
became applicable as of 1 January 2019.  
3.59.   The foundation and operation of the investment funds, issuance and sale of shares and stocks, 
redeem of stocks, promotion of investmen t funds and operation of a depository bank are regulated 
by the Law on Investment Funds 2009, several times amended to 2016. Further amendment of the 
Law on investment funds is preparing by the 2019, due to transposition of UCITS IV package.  
3.13.4.2   Transport  
3.60.   The economic development of the Republic of North Macedonia depends to a large extent on 
a well -developed transport network. The Government is focused on the development of transport 
infrastructure, with aim to better connect with the EU markets and access to the nearby sea ports 
in Greece and Bulgaria. The most important multimodal transport corridors in the Republic of North 
Macedonia are the Pan -European Corridor X, extending from north to south across the country (from 
the border with Serbia to the border w ith Greece) and the Pan -European Corridor VIII, extending 
from east to west and connecting the port of Durres in Albania with the ports of Burgas and Varna 
on the Black Sea in Bulgaria. With the construction of Demir Kapija -Smokvica section that ended in 
April 2018, a highway now runs the entire Corridor X, which is 172 km long. Regarding railways, 
Corridor X is expected to be fully completed by the end of 2019. Only 37% of corridor VIII has been 
so far upgraded to highway level and works continue westwards . The rail connection with the 
Bulgarian network rail Corridor VIII (length 89 km) is expected to be completed and become fully 
operational by the end of 2030.  
3.61.   Long-term transport policy of the Republic of North Macedonia is defined in the National 
Transpo rt Strategy 2018 -2030, adopted in December 2018. The Strategy aims mainly to improve 
the economic efficiency, safety and accessibility of transport, to handle its environmental impact 
management, and to ensure the integration of transport with other sector al policies. Its specific 
objectives are to address the weaknesses of the transport sector at regional and national levels.  
3.62.   The Treaty establishing the Transport Community (TCT) is ratified in December 2017. The 
contracting parties are: the EU from one si de and Western Balkan countries on the other side. The 
aim of this Treaty is to create a Transport Community in the field of road, rail, inland waterway and 
maritime transport as well to develop transport network. The Transport Community shall be based 
on the progressive integration of transport markets on the basis of the relevant acquis, including the  WT/TPR/G/390 • The Republic of North Macedonia  
 
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areas of technical standards, interoperability, safety, security, traffic management, social policy, 
public procurement and environment, for all modes of tr ansport excluding air transport. The 
Secretariat of the Transport Community is expected to be fully operational by the end of 2019.  
3.63.   The main regulations governing the sector are Law on Road Transport, Law on Contracts for 
transport 2013, in which sets of EU directives and regulations are transposed, then Law on railway 
system, as implementing Regulation 1370/2007, Law on Contractual and Real Right Relations in 
respect of Aviation Transport whereas to allow the interplay of the MFN exemption covering the EU  
CRS legislation, transposed Regulation No.  2299/89.  
3.64.   The Republic of North Macedonia has concluded 33 bilateral agreements on international road 
transport of passengers and goods with the following countries: Albania, Austria, Bulgaria, Belgium, 
Belarus, Bosnia and Herzegovina, Croatia, Czech Republic, Denmark, Estonia, France, Germany, 
Greece, Hungary,  Iran, Italy, Latvia, Luxemburg, Moldova, Montenegro, Netherlands, Norway, 
Poland, Russian Federation, Serbia, Slovenia, Turkey, Ukraine, Romania, Switzerla nd, Spain, Slovak 
Republic and the United Kingdom.  
3.13.4.3   Electronic communications  
3.65.   The telecommunication policy of the Republic of North Macedonia is geared at the 
transposition of the EU acquis stipulated in 2009 EU's regulatory framework for communications. 
The acquis was transposed in the Law on electronic communication (Official Gazette Nos. 39/2014, 
188/2014, 44/2015, 193/2015, 11/2018 and 21/2018). GATS commitments undertaken for 
telecommunications by the Republic of North Macedonia during its accession pro cess to the WTO 
reflect largely to that of the European Union.  
3.66.   The Agency for Electronic Communications (AEC) was established in 2005 and continues to 
be an independent national regulatory body in the electronic communications markets. As a 
Regulator issue d a regulation for access to public electronic mobile networks (Official Gazette No. 
94/2016), by setting the conditions of operations of Mobile Virtual Network Operators (MVNOs) in 
the country. The National Plan for frequency allocations from 2016 provide s all frequencies are 
technology and service neutral, so every standardised technology by ETSI can be used. AEC is in 
process of assignment through the auction of one license for 2x15MHz in the 2100 frequency band.  
3.67.   Two main operators have started in 2013/ 2014 to deploy 4G/LTE networks. National 
Broadband Operational Plan is already prepared by the Ministry of Information Society and 
Administration and now is on public consultation. One chapter of this Plan is dealing with 5G. 
According to that Plan, freque ncies in the band 700 MHz will be available after 30 June 2020. 
Frequencies in 3,4 -3,8 GHz are already available.  
3.68.   The telecommunications sector in the Republic of North Macedonia is largely liberalized and 
offers a dynamic competitive landscape although pr ices remain relatively high by international 
standards. In that respect, regarding roaming fees, a multilateral agreement among Western 
Balkans countries: Republic of North Macedonia, Albania, Serbia, Montenegro, Bosnia and 
Herzegovina and Kosovo on full a bolishing roaming fees was signed in April 2019.  
3.13.4.4   Tourism  
3.69.   The Republic of North Macedonia is a small country,  but it abounds in natural beauties and 
rarities. Attractive lakes, mountains and spas are the distinctive features of the country. The main 
tourist  resorts are located around the three lakes, which are the best tourist attractions. Natural and 
spiritual beauties can be found in the most popular touristic destination Ohrid (city of UNESCO), 
situated on the shore of the lake, as a town -museum and a cul tural treasury -often referred to as 
the "Balkan Jerusalem ". The three national parks offer good conditions for pleasant recreation; the 
cultural heritage is testified by valuable archaeological sites.  
3.70.   Main economic indicators in tourism sector in period 20 13-2018, accounts to:  WT/TPR/G/390 • The Republic of North Macedonia  
 
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 2013  2014  2015  2016  2017  2018  
Share of tourism in GDP  1.4%  1.3%  1.3%  1.5%  1.5%  1.6% 
Number of tourists,  
of which  
- international  
- domestic  701,794  
 
399,680  
302,114  735,650  
 
424,314  
310,336  816,067  
 
485,530  
330,537  856,843  
 
510,484  
346,359  998,841  
 
630,594  
368,247  1,126935  
 
 707,345 
 419,590 
Gross foreign exchanges 
inflow (million USD)  266.6  294.7  266.8  284.7  331 352 
Net foreign exchanges 
revenues (million USD)  136 145 107.46  104.8  119.75  112.80  
3.71.   The Ministry of Economy, through its Tourism Department, is in charge of defining policies in 
the tourism sector . It is assisted by the Agency for Promotion and Support of Tourism for attracting 
tourists to the country, mostly through the policy of marketi ng and promotion and making new 
tourism product. In that respect, a new National Tourism Development Strategy 2018 -2023 is 
adopted at the end of 2018, which envisages at developing tourism beyond the two main destinations 
of Skopje and Lake Ohrid, in parti cular mountain resorts in the western part of the country, hot 
waters springs/health tourism, and wine growing areas.  The government provides incentive 
programmes to encourage tourism development through subsidizing tour operators and travel 
agencies offer ing complete tourism packages of recognizable European and others destination for 
tourism, based on the cultural and natural heritage as products and services sensible for the 
environment and sustainable with high quality that are on level of the best inte rnational experiences.  
The Program me for Promotion of Tourism for 2019 is mainly focused on campaigns of eco action to 
the tourism centres, touristic signalization for cultural sites and localities, studies for wine and spa 
tourism as touristic attraction,  support of rural households for tourism purposes, projects for 
innovation and digitalization in tourism, mobile application,  Visit Macedonia, etc.  
4  TRADE AGREEMENTS AND ARRANGEMENTS  
4.1  WTO  
4.1.  Republic of North Macedonia has consistently pursued to have an open a nd transparent trade 
regime fully compatible with WTO rules and disciplines. The country grants at least MFN treatment 
to all its trading partners. The trade policies of the Republic of North Macedonia have been reviewed 
once in 2013. Concerning notificati on requirements, the Republic of North Macedonia has regularly 
notified the WTO of the trade measures it has adopted since its previous review in 2013.  
4.2.  The Republic of North Macedonia has ratified the Protocol concerning the Trade Facilitation 
Agreement i n October  2015 and is a signatory to the Agreement on Trade in Civil Aircraft. Also, has 
been involved in DDA negotiations, particularly in agricultural, NAMA and services negotiations. At 
the Eleventh WTO Ministerial Conference in Buenos Aires (December 2 017), co -sponsored the 
initiatives to continue work on e -commerce and on domestic regulation on services, as well as to 
create an informal Working Group on Micro, Small and Medium enterprises (MSMEs) at the WTO. In 
2018 has lunched negotiation for the acce ssion to GPA.  
4.3.  Regarding Trade Facilitation Agreement (TFA), was committed to notify almost all the TFA 
provisions in due course 2015 -2018 to Category A and B.  
4.4.  Since its accession to the WTO, the Republic of North Macedonia has not been involved in any 
proceedings under the WTO dispute settlement mechanism.  
4.2  Republic of North Macedonia and the EU  
4.5.  The Stabilization and Association Agreement (SAA) signed between the Republic of North 
Macedonia and the EU is in force from April 2004 and remains the main framewor k for the bilateral 
relationship. The SAA aims to create a close, long term association between the EU and the Republic 
of North Macedonia, and constitutes the legal instrument for the country's alignment to the EU acquis 
and its progressive integration in to the EU market. The process of legal harmonization takes place 
through a national working programme for the adoption of the acquis communautaire, (Article 68) 
in SAA, and the EU Commission progress reports.  WT/TPR/G/390 • The Republic of North Macedonia  
 
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4.6.  The SAA provided two -way trade between the EU and the Republic of North Macedonia, thus 
the trade liberalization was completed over a maximum period of ten years.  The pace of liberalization 
was asymmetric, with the EU liberalizing at a faster rate. All EU imports of industrial and agricultural 
products (except for baby beef, fish and wine) originating in the Republic of North Macedonia were 
liberalized from the outs et. Imports into the Republic of North Macedonia of industrial products 
originating in the EU were liberalized over a ten -year period, whereas agricultural goods, processed 
agricultural products and fishery products were subject to combined modules of furt her liberalization. 
Some goods are subject to tariff -rate quotas (TRQs), some are subject to reduction of custom duty 
to certain level without quotas determined and some are reduction of custom duties only to the 
quoted products. The Republic of North Mace donia excluded some tariff lines from tariff concessions 
(such as some fruits and vegetables and some processed agricultural products), and the EU excluded 
wine, which is the object of a separate agreement, as part of SAA taking into account  further EU 
enlargements (2004, 2007 and 2013).  
4.7.  The most important trading partner of the Republic of North Macedonia is the EU, participating 
with 82.0% in the total exports and 62.3% in the total import from EU in 2018.  
Free trade agreements  
4.8.  The Republic of North Macedonia is a party to five free trade agreements (FTAs). It has 
concluded agreements with the member states of the EU, the European Free Trade Association 
(EFTA) and the Central European Free Trade Agreement (CEFTA),  and two bilateral agreements with 
Turkey and Ukraine, in line with Article XXIV of GATT. These agreements provide the overall 
framework for liberalization of trading with goods, regional cooperation and deeper integration into 
European economic a nd political processes. All  agreements have bee n notified to the WTO.  
4.9.  The foreign trade of the Republic of North Macedonia is mostly carried out within FTAs. 
According to the trade figures for 2018, North Macedonian 's export reaches to 95.2% and 77% of 
its imports under the above -mentioned FTAs. These agreements allow the Republic of North 
Macedonia to be included in the mechanism of diagonal cumulation of origin. In that respect, 
Protocols for rules of origins as annexes to the Free Trade Agreements of the Republic of North 
Macedonia with EU, CEFTA Par ties and the Republic of Turkey are harmonized in due course 2016 -
2018, in line with the rules of the Regional Convention on pan -Euro-Mediterranean preferential rules 
of origin. This Regional Convention is ratified by the Republic of North Macedonia in 201 2. 
Regional integration  
4.10.   Republic of North Macedonia is very committed to the regional cooperation, especially with 
CEFTA Parties within concluded CEFTA 2006 Agreement. The Republic of North Macedonia 
established free trade area by applying free trade in in dustrial and agricultural products to all CEFTA 
Parties, as fully liberalized since 2015.  
4.11.   Further progress on CEFTA implementation has been made in  the conclusion of an  additional 
Protocol on Trade Facilitation in force in 2018 and an additional Protocol f or the gradual liberalization 
of trade in services, which should be adopted by the CEFTA Parties in June 2019. Bot h protocols are 
integral part to  the CEFTA 2006 Agreement.  
 
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