WT/TPR/M/390/Add.1  
17 October 2019  
(19-6820) Page: 1/64 
Trade Policy Review Body  
15 and 17 July 2019  Original: English/anglais/inglés  
Spanish/espagnol/espaňol  
 
  
TRADE POLICY REVIEW  
REPUBLIC OF NORTH MACEDONIA  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. M anuel A.J.  Teehankee (the Philippines)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  the Republic of North Macedonia .1 
 
 
Organe d'examen des politiques commerciales  
15 et 17 juillet 2019  
EXAMEN DES POLITIQUE S COMMERCIALES  
RÉPUBLIQUE DE LA MACÉDOINE DU NORD 
COMPTE RENDU DE LA  RÉUNION  
Addendum  
Président : S.E.  M. Manuel A.J.  Teehankee (Philippines)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la République de 
Macédoine du Nord .1 
 
 
Órgano de Examen de las Políticas Comerciales  
15 y 17 de julio de 2019  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
REPÚBLICA DE MACEDONIA  DEL NORTE 
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. M anuel A.J.  Teehankee (Filipi nas) 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  la 
República de Macedonia  del Norte .1 
 
 
 
                                                
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/390/Add.1  
 
- 2 - 
 
Contents  
1  EUROPEAN UNION ................................ ................................ ................................ ........  3 
2  ICELAND  ................................ ................................ ................................ ....................  10 
3  CANADA  ................................ ................................ ................................ .....................  12 
4  JAPAN  ................................ ................................ ................................ ........................  17 
5  CHINA  ................................ ................................ ................................ ........................  18 
6  BRAZIL  ................................ ................................ ................................ .......................  21 
7  UKRAINE  ................................ ................................ ................................ ....................  22 
8  UNITED STATES  ................................ ................................ ................................ .........  34 
9  REPUBLIC OF K OREA  ................................ ................................ ................................ .. 42 
10  MONTENEGRO  ................................ ................................ ................................ ..........  44 
11  ARGENTINA  ................................ ................................ ................................ ..............  46 
12  RUSSIAN FEDERATI ON ................................ ................................ .............................  47 
13  REPUBLIC OF MOLD OVA ................................ ................................ ...........................  49 
14  TURKEY  ................................ ................................ ................................ ....................  58 
15  FOLLOW -UP QUESTI ONS BY THE UNITED ST ATES  ................................ ....................  61 
 
 WT/TPR/M/390/Add.1  
 
- 3 - 
 
1  EUROPEAN UNION  
WT/TPR/S/390 – WTO Secretariat's Report  
 
SUMMARY  
Page 10, paragraph 29:  
The report provides: "The value of public contracts awarded to foreign suppliers decreased in both 
absolute and relative terms between 2013 and 2017."  
 
EU Question 1 : What were the main reasons for this decrease in public contracts awarded to foreign 
suppliers between 2013 and 2017?  
Answer  
There were no amendments and modifi cations to the legal framework in the respective period that 
were aimed at limiting or hindering participation by foreign economic operators to the public 
procurement procedures. Having that into consideration, there is no specific legal reasons for the 
reduction of the value of public contracts awarded to foreign economic operators. Restoring the 
confidence from the political uncertainty, from 2017 it is contributed to the growth of contracts 
awards.  
EU Question 2 : Since the recent adoption of the new Law on Public Procurement, the procurement 
regime does not provide for national preferences. Are there already signs that awards to foreign 
suppliers are on the rise?  
 
Answer  
The new Law on Public Procurement became ef fective as of 1 April 2019. Given that fact, it is too 
early to draw any conclusions regarding the level of participation of foreign companies in 
procurement procedures initiated under the new Law. The EU correctly notes that the legal 
framework provides f or equal treatment of domestic and foreign economic operators and there is no 
national preference clause in the Law.  
 
1. ECONOMIC ENVIRONMENT  
 
1.1 Main features of the economy   
Page 13, paragraph 1.1 and Page 17, paragraph 1.24  
 
Paragraph 1.1 provides: "The informal sector remains relatively important (34% of GDP in 2014 and 
18% of employment in 2016), which has a significant impact on productivity and on the business 
climate"  
Paragraph 1.24 provides: " Recent measures aimed at combating informality include a lowering of 
the threshold for cash payments from EUR 1,000 to EUR 500 (applicable as of June 2018), the 
introduction of a voucher system to pay social contributions, and the establishment of a catalogue 
of all parafiscal cha rges, aimed at streamlining and limiting the number of licences required to do 
business."  
 
EU Question 3 : The large size of the informal economy negatively affects the business environment 
in the country by creating unfair competition. In this regard, what is the initial impact of the recent 
measures to reduce the size of the informal economy? Are you plannin g any further measures?  
 
Answer  
The Economic Reform Program (ERP) 2019 -2021, point 1.1. refer to measures taken to implement 
the targeted policy guidelines.  
Referring to informal economy is sub -measure G 4: Prepare risk assessments focusing on sectors 
and branches most vulnerable to informalities and identify and apply appropriate corrective 
measures. In March 2018, the first medium -term Strategy for Formalization of the Informal Economy 
2018–2022 was adopted. It aims to reduce the number of informally emp loyed (both in informal and 
formal businesses, as well as within households), and to reduce the share of unregistered business 
entities and informal activities within the formal economy. Due to the complexity of the informal 
economy, the Strategy unites al l relevant aspects of many sectorial policies, such as improving 
regulatory and business environment, enhancement of the institutions in the labour market, 
increasing the inspection of informal economy flows and raising the awareness of citizens and 
busine sses about the importance of formalization of informal activities. The Strategy is aimed at:  WT/TPR/M/390/Add.1  
 
- 4 - 
 
• Improving the process of measuring, monitoring and detection of the informal economy;  
• Better business environment for establishment, growth and development of comp anies;  
• Stimulating and supporting the formalization of the informal economic activities; and  
• Strengthening the tax morale and lowering the tolerance towards the informal economy.  
For implementation of the strategy, the Action Plan for Formalization of the  Informal Economy 2018 –
2020 was adopted in August 2018 containing 29 measures. Also, in September 2018, a Coordinative 
Body was established to monitor the implementation of the Action Plan.  
The ERP can be found on the following link: https://www.finance.gov.mk/en/node/7798 . 
 
1.2 Recent economic developments   
1.2.3 Structural issues  
1.2.3.3 Business environment  
 
Page 17, paragraph 1.25 (but also Government report , paragraph 1.6, page 3)  
 
North Macedonia ranks 10th in the Doing Business 2019.  
 
EU Question 4 : By contrast, in the latest Global Competitiveness Report the ranking of North 
Macedonia is more modest, 84th of 140. This is chiefly on account of poor competition in retail trade 
(119th), network services (119th) and professional services (107th). What can be done to improve 
competition in these three services sectors?  
 
Answer  
Global Competitiveness Report from last year has started to implement new concept for evaluation 
of the competitiveness of the countries. With the inclusion of new concepts and extensive new data 
gathering efforts, the GCI 4.0 provides novel and more nuanc ed insights on the factors that will 
grow in significance as the 4IR gathers pace: human capital, innovation, resilience and agility. These 
qualities are captured through a number of new, critically important concepts (e.g. entrepreneurial 
culture, compani es embracing disruptive ideas, multi stakeholder collaboration, critical thinking, 
meritocracy, social trust) complementing more traditional components (e.g. ICT and physical 
infrastructure, macroeconomic stability, property rights, years of schooling).  
Countries from the region are ranked between 65 -90 places. North Macedonia is ranked before 
Bosnia and Herzegovina and behind Serbia, Albania and Montenegro.  
The Government realizes projects for improving the business environment and enhancing 
competitivene ss for company growth that will have positive impact on these areas.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements   
Page 34, paragraph 3.8  
 
The report mentions a recent initiative to align North Macedonia's customs administration with the 
EU acquis - a new Customs Declarations and Excise Documents Processing System (CDEPS), aiming 
at enabling communication with companies via web portal and sys tem-to-system communication by 
using web services and establishing a paperless environment in the customs operation, as well as 
interoperability with the customs systems of the European Union. The authorities expected that the 
CDEPS would become fully oper ational in June 2019.  
 
EU question 5:  Has the new CDEPS system been already fully implemented in practice according 
to the estimated timeframe? Do the authorities face any particular difficulties in its implementation?  
 
Answer  
The new Customs Declarations and Excise Documents Processing System become operational on 
1 June 2019 for Export and for import in some customs offices. The full implementation on the 
Import started on 3 July 2019. Till today, there were not found any diff iculties within the 
implementation of the system.  
 WT/TPR/M/390/Add.1  
 
- 5 - 
 
3.1.3 Tariffs  
Page 44, para 3.38  
A new law on the timing of payment of excise duties, designed to achieve full harmonization with 
EU rules on excise duties, and a new law on excise duties on motor vehicles , were under 
consideration by the legislature and were expected to enter into force in July 2019.  
 
EU question 6:  Can the authorities confirm that this legislative development will be indeed 
completed on schedule, i.e. coming into force in July 2019?  
 
Answer  
The new excise tax law is completed and entered into force in May 2019 and is stipulated to 
implement from July 15, 2019. The draft text of Motor Vehicle Tax Law is finalized and is expected 
to come into force in November 2019. From this aspect, pra ctical implementation of the New Law 
on Excises shall be when the Motor Vehicle Tax Law comes into force, as of November 2019.  
 
3.2 Measures directly affecting exports:  
3.2.4 Export support and promotion   
Pages 46 -48 
 
EU question 7 : Can you confirm that the legal regime for TIDZ and its implementation are in line 
with all the relevant WTO Disciplines? If not, which provisions or practices are at least partially 
incompatible?  
 
Answer  
The legal regime for TIDZ and its implementation is  in line with the relevant WTO disciplines i.e. it 
is compatible with the WTO Agreement on Trade -Related Investment Measures (TRIMs) and the 
WTO Agreement on Subsidies and Countervailing Measures. The legal regime for TIDZ does not 
impose legal requirement  for export orientation of the companies in TIDZ or any other trade 
requirement or restriction. The investment support is not related to trade in goods and it does not 
require purchase or use by an enterprise of products of domestic origin or from any dome stic 
source. According to the Law on TIDZ, the exemption from customs duties applies for import of 
equipment intended for performing activity in the zone and determined in Chapters 84 to 90 of the 
Customs Tariff Code and the spare parts thereof. The invest ment support is not contingent upon 
export performance and is not contingent upon the use of domestic over imported goods.  
 
Page 48, paragraph 3.64:  
On point 3.4.6. A Manufacturing Export Readiness Support Programme is expected to be created in 
2020. It is expected to be funded by a EUR 5 million grant;  
 
EU question 8 : Please provide more details about expected sources of financing.  
 
Answer  
This measure is projected in the Action Plan for implementation of the Industrial Strategy 2018 -
2027. The project i s very important in order to enhance the capacity of companies to export in a 
comprehensive support program and the Ministry of Economy is seeking to secure finances from 
donors. The project can be proposed to EU IPA and WB.  
 
3.3 Measures Affecting Product ion and Trade,  
3.3.2 Incentives   
 
Page 51, paragraph 3.76  
 
It appears to the EU that the Law on Financial Support for Investments, promulgated in May 2018, 
includes measures that are incompatible with the WTO rules, in particular direct export subsides, 
subsidies for local components, higher subsides for export in  countries from the region, etc.  
 
EU question 9 : What does North Macedonia intend to do to eliminate these clear violations of WTO 
rules?  
 
Answer  
The Law on Financial Support for Investments that enables implementation of the measures 
projected in the Plan for Economic Growth – pillar 1 and 2 focusing on stimulation of investments,  WT/TPR/M/390/Add.1  
 
- 6 - 
 
employment, technology transfer, R&D in business, competitiveness and internationalization, does 
not contain provisions mentioned above (direct export subsides, higher subsid es for export in 
countries from the region).  
These kinds of measures  were discussed in the draft version of the Law, that was elaborated in the 
ERP for 2018, that was prepared before adoption of the Law. Due to the fact that these measures 
were not aligne d with WTO rules, in the final version of the Law they were not included. Further 
analyses will be taken into considerations.  
 
3.3.6 State trading, state -owned enterprises, and privatization;   
Page 64, paragraphs 3.136 -3.137 and Table 3.14  
 
The report mentions gradual reduction of the state role in the North Macedonian economy, including 
in the reviewed period. It also mentions several key SOEs. It is estimated that the share of state 
capital represents 10.69% of the GDP.  
 
EU question 10 : Is ther e an intention of the Government to further decrease the share of state 
ownership in these key state -owned entities?  
 
Answer  
The decrease share of state ownership might be considered in the future.  
 
3.3.6 State trading, state -owned enterprises, and privatization  
Page 64, paragraph 3.137:  
 
North Macedonia is not a signatory to the OECD Guidelines on Corporate Governance for SOEs.  
 
EU question 11 : Which provisions in North Macedonian laws do not fulfil the OECD guidelines and 
thus pre vent North Macedonia from adopting the guidelines?  
 
Answer  
In the last Progress Report for North Macedonia prepared by the European Commission recommends 
that a corporate governance code has yet to be established under the Company law.  Now, there are 
on-going activities for establishing the corporate governance code by amending the Company Law, 
and the intension is to be finished by the end of 2020.  
For the company governance, it is important to notice that the Company law does not mak e 
difference between state -owned and privately -owned companies, with the exemption of the specific 
professional requirements needs to be fulfill ed by the members of the Management and Supervisory 
Board. 
 
4 TRADE POLICIES BY SECTOR  
4.3 Manufacturing   
Page 97, paragraph 4.87  
 
The automobile sector is singled out as integrated in the global value chain.  
 
EU question 12 : What are the criteria applied to highlight this industry, whereas the Government 
in its report refers to other industries (cf. Section  3.13.2 of the Government's Report) too, and to 
assess it as a success of integration, implying other industries not being considered as such?  
 
Answer  
Through the reform and investment promotion agenda, North Macedonia aimed to join the ranks of 
countries t hat have an important role in global manufacturing supply chains. The target sectors for 
export -oriented industries are including agribusiness, textile/apparel, and automotive components. 
Some of the country's traditional light industries, such as textiles  and food products, are important 
due to their size, but face challenges to attain substantially higher levels of competitiveness and 
growth.  
North Macedonia's investment promotion strategy has been quite successful in the automotive 
components sector. New investment in automotive, estimated at EUR 235 million from 2010 -2015, 
amounting to about 5.5% of total foreign investment, has brought about  significant changes in the 
country's export structure. Automotive exports have expanded almost six -fold in nominal terms over 
the period, reaching  EUR 1.7 billion in 2015, constituting roughly 20% of GDP. The country has 
clearly emerged as a destination f or FDI in the automotive sector by Tier 1 and Tier 2 suppliers from WT/TPR/M/390/Add.1  
 
- 7 - 
 
OECD  countries, and this has impacted export diversification, job creation, and further linked North 
Macedonia into global and regional value chains.  
North Macedonia is progressively emer ging as a potential hub for automotive components production 
and bus manufacturing within the European Periphery Regional Value Chain (EP RVC). Experts 
acknowledge that this has come about partially as a result of the Government's proactive strategy 
to att ract FDI in the automotive sector since 2006, and also due to the relatively efficient public 
administration and predictable business environment that the country offers to foreign direct 
investors, in comparison to other members of the EP RVC. Most of the  FDI's in the TIDZ are involved 
in the automotive sector contributing significantly on export structure.  
 
EU question 13 : Has the share of automobile plants in the TIDZ in overall export performance 
relative to exports from outside the TIDZs been consider ed in the assessment?  
 
Answer  
The export increase is driven largely by the automotive industry from the TIDZ  as well associated 
sectors such as chemicals, machinery and electronics, plastics and rubber , participating in more than 
a half of the total export . Correlated to those greater exports was a higher degree of technological 
sophistication and content.  They are considered into assessment.  
 
EU question 14:  Which structural measures were undertaken since the last review for the 
manufacturing outside the TIDZ to keep pace with the improvement in the TIDZ performance in 
terms of export and FDI attraction?  
 
Answer  
There are few strategic documents that were adopted as a strategic direction for the development – 
Plan for Economic Growth, Industrial Strategy, SME Strategy, third AP for implementation of 
Innovation Policy, education and skills reform program etc.  
The measures are focusing on strengthening and stimulating investments, technology transfer, 
employment, R&D, internationalization and innovation.  
4.4 Services  
4.4.3 Transport services   
4.4.3.1 Transport infrastructure challenges and policy  
Page 111, para graph 4.156  
 
"Corridor VIII ", highway construction, Kicevo -Ohrid section. Financed by EUR 411 million loan from 
the Chinese EXIM Bank  
 
EU Question 15 : (1) Should this loan and this infrastructure investment be seen in the context of 
the "16+1" cooperation? (2) If so, has North Macedonia's participation in 16+1 resulted in other 
investments or increased trade with China?  
 
Answer  
The loan for "Corridor VIII ", highway construction, Kicevo -Ohrid  section, financed by Chinese EXIM 
Bank, is based upon bilateral agreement for economic and technical cooperation in the field of 
infrastructure, between the Macedonian and Chinese governments.  
 
WT/TPR/G/390 - Report by the Republic of North Macedonia  
 
As of 2015 the country has been submitting annual Economic Reform Programmes (ERPs) to the 
European Commission. The ERPs contain medium -term macroeconomic projections (including for 
GDP growth, inflation, trade balance and capital flows), budgetary plans for the next three years 
and a structural reform agenda. The structural reform agenda includes reforms to boost 
competitiveness and improve conditions for inclusive growth among others in the area of Trade. As 
this is the report prepared and officially accepte d by the government, it should be of strategic use 
to guide policy priorities. However, the Trade report submitted by North Macedonia omits mentioning 
the role of this strategic document.  
EU Question 16:  How do you envisage the strategic role of the Econo mic Reform Programme in 
your policy making and in particular related to trade?  
 WT/TPR/M/390/Add.1  
 
- 8 - 
 
Answer  
The Economic Reform Programme in general presents medium -term macroeconomic and fiscal 
framework, as well as the sectorial structural reforms for promoting both competitiveness and 
growth in the country in line with the EU Strategy for fast, sustainable an d comprehensive economic 
development . Trade related aspects in ERP consider accompanying of public policies that accelerate 
the country's trade integration at the regional, EU and global levels (e.g. quality and safety 
standards, trade agreements, customs reform, etc.) In the last ERP 2019 -2021, measure 15 refers 
to the implementation of the Additional Protocol 5 to the CEFTA Agreement in order to simplify the 
inspections related to all clearance procedures and reduce formalities to the possible maximum 
extent, to exchange data between customs authorities to the extent that each national legislation 
allows and mutually recognise the national Authorised Economic Operators' Programmes in each 
CEFTA Party, provided that both the legislation and implementation o f each national programme is 
fully in line with the relevant EU acquis.  
 
3. TRADE POLICY DEVELOPMENTS  
3.6 Foreign Investments  
Page 7, paragraph 3.17:  
 
The report identifies as one of the priorities the need to develop domestic enterprises' backward 
linkages with foreign companies operating in the country, which has so far been very limited. 
However, it does not specify what concrete measures in order to achieve such a goal will be taken.  
EU Question 17 : What concrete actions are you intending to undertake to increase the spill over 
effects of the FDI to the rest of the economy, in particular to the small and medium enterprises that 
make up the vast major ity of businesses in North Macedonia?  
 
Answer  
The Government has adopted a set of new strategic documents and launches new measures  in order 
to support the competitiveness and growth of the companies, enabling them to become ready to 
innovate, to internati onalize as well to be involved in the supply chain of FDI and part of the GVC.  
The focus of support is on improving the capacities of the companies for growth, investments and 
technology transfer, developing new products and services, innovation and R&D c ollaboration, skills 
development, networking, enhance and support certification. The measures are implementing by 
different institutions and ministries.  
 
3.8 Small and Medium Sized Enterprises   
 
Page 8, para 3.23:  
 
The paragraph lists several types of business support measures the country is providing, budget for 
which increased in 2018. However, reporting on their implementation and evaluation of results 
(output -based indicators linking the measure and its costing w ith the results) remain at an early 
stage. In this way, the effects remain unclear.  
 
EU Question 18 : What concrete actions are you taking to develop output -based indicators to 
measure the result and cost effectiveness of business support measures?  
Answer  
The Ministry of Economy recently developed Rules of procedure for monitoring and evaluation system 
of strategic documents referring to industrial policy and entrepreneurship. With donors'  support, 
activities for capacity building for monitoring and evaluat ion, as well policy impact assessment, are 
launched.  
The Fund for Innovation and Technology Development (hereinafter FITD) has a portfolio of 225 
companies up to June 2019. This number of the beneficiaries will grow, since there is a current 
process of eva luation for a public call for financing under the support instrument "Co -financed grants 
for commercialization of innovation" and other public calls for financing are planned until the end of 
2019.  
In the first quarter of 201 9, FITD began analys is of the c ompanies beneficiaries of the Fund from 
the first four calls (total number of 51 companies), calls that are finished up to 2018 (including). 
These are beneficiaries financed from the World Bank loan programme under the two instruments: 
co-financed grants f or support of newly established companies start -up and spin -off; and co-financed 
grants for commercialization of innovation. These beneficiaries are taken into account due to the WT/TPR/M/390/Add.1  
 
- 9 - 
 
fact that for the need of the analyse FITD took the official financial balanc e sheets of the companies 
up to 2018 for which the legal deadline for submission was up to 15 March 2019. Through this 
analys is, FITD monitor several indicators throughout the years (2015 up to 2018). The indicators 
are: 
• Generated income throughout the years ; 
• Net profit ; 
• Profit tax ; 
• Number of employees ; 
• Profit as % from the generated income ; 
• Average monthly salary ; 
• Social and health contributions paid to the national budget ; 
• Total payments made to the national tax base on profit tax and other contributions (social 
and healt h, etc.) vs. the amount of financial support received from FITD . 
These indicators are analysed for the group of beneficiaries per call.  
In meantime, another analyse is being done by the World Bank SDIS (skills developm ent and 
innovation support) project management unit, and this analyse will monitor the beneficiary of FITD 
also, via following indicators:  
• Revenues ; 
• Costs ; 
• Costs of materials ; 
• Sales; 
• Cash flows ; 
• Productivity indicators ; 
• Turnover per year ; 
• Wage; 
• Number of employees ; 
• Contributions ; 
• Taxes paid to the national budget per year ; 
• "Innovation" practices ; 
• "Management" practices ; 
• The list is not final since the analyses are in starting grounds ;  
• As of next year, FITD plans to expand the analyses to the beneficiaries  from the Plan for 
economic growth (133 companies that have signed contracts by the end of 2018) and the 
new beneficiaries as of 2019, once we receive their financial balance sheets after March 
2020.  
The Innovation Fund disbursed grants to companies.  
EU Question 19:  What are the actions taken to employ the full -time competent staff?  
Answer  
In order to be able to engage full time competent staff , FITD has undertaken the Functional Analysis 
(FA), recently introduced as a necessary first legal step regulated in the Law on Employess in the 
Public Administration.  
The aim of the FA in general is to identify the functions that are undertaken in the inst itution, and 
the ones that need to be introduced in the future organizational structure. FITD has also put its focus 
on specific aims such as identifying bottlenecks, as well as the preconditions to further improve the 
fullfilling of its function.  
Accordin g to the Rulebook for the internal structure from 2015, there are 25 job positions described 
and systematized. FITD has enlarged its operations during the last two years so the internal structure 
needed to be improved  and more sectors and job positions to be introduced since de facto there is 
competent staff that currently works on a contractual basis because of the legal restrictions in the 
current Rulebook.  
The FA is already completed and the next step is preparation of the new Rulebook for the internal 
structure which will implement the findings of the FA and enable FITD to employ the competent staff 
full time and also create new jobs for further experienced staff.  
  WT/TPR/M/390/Add.1  
 
- 10 - 
 
2  ICELAND  
What is the participation of women in the economy of North Macedonia?  
 
Answer:  
In the ownership structure of the economy of North Macedonia, enterprises owned by at least one 
woman with capital fund of more than 50% participate with some 29.39% in the total number of 
active enterprises, but with only 12.9% in the total number  of employees (data on 2017). The 
greatest part of entities owned by women in 2017 belongs to the sector of wholesale and retail trade 
(7489), processing industry (1 ,770) and vocational, scientific and technical activities (1678). In the 
dynamics of regist ration new business ventures, women (in case owner is at least one woman with 
at least 50% ownership) participate with 25% – 28% in the period 2010 -2017*).  
 
The report of the Secretariat WT/TPR/S/390 mentions that about 35% of the working age population 
aged 15 -64 is inactive, of which two thirds are women. The report mentions actions undertaken to 
increase female particiption in the labour force. Can North Macedonia share information on particular 
programs undertaken and their results, as well as challeng es or best practices that they have 
discovered through these endevours?  
 
Answer:  
The Government of Republic of North Macedonia has developed Operational plan for active programs 
and measures for employment. One of the measures in 2019 is the Program me for self -employment, 
referring to unemployed persons including women from vulnerable categories (social care users, 
victims of domestic violence, victims of human trafficking, long -time unemployed women, single 
moms, socially marginalized women) providing  financial support in form of grant up to EUR 3,000,00 
for purchasing equipment for establishing business or up to  EUR 10,000,00 if in partnership with 
2 or more persons. The grants are supported by mentorship for the potential applicants. In 2018, 
461 women out of total 984 had established businesses under this Program me. 
Have particular barriers that limit women's participation in trade been identified?  
 
Answer:  
According the findings in the Strategy for Women Entrepreneurship Development in the Republic of 
North Macedonia 2019 – 20231* and f rom the situation analysis of the economic activity of women 
in North Macedonia (followed through entrepreneurial activity of women, employment, salaries and 
unemployment, as well as ownership and management representation of women) and the analysis 
of the strategic framework for women entrepreneurship development in the European Union, as 
starting point of identifying public policies in the area of women entrepreneurship for the period 
2016-2020, the followin g key issues are identified:  
o Insufficient representation of women in entrepreneurial activities;  
o Insufficient representation of women in the ownership of enterprises and crafting activity;  
o Insufficient representation of women in the labour market;  
o Lower salaries for women in similar jobs (by 17.9% which is beyond the EU average of 
 16.4%);  
o Insufficient representation of women in management structures;  
o Lack of statistical gender -based monitoring;  
o Insignificant investments in activities on empowermen t of women entrepreneurship;  
o Uncoupling of activities on women entrepreneurship empowerment;  
o General disadvantage is the absence of mechanisms for evaluation of labour output from 
 application of separate activities in support to the women entrepreneursh ip development;  
 
Has North Macedonia implemented any particular measures to encourage women's participation in 
trade and promote women's entrepreneurship, or are such measures being developed?  
 
Answer:  
Ministry of Economy, within the annual Competitiveness, Innovation and Entrepreneurship 
Program me, has developed special measure s for woman entrepreneurship in the recent years, as:  
                                                
1 Viewed at : 
http://www.economy.gov.mk/Upload/Documents/EN_Strategy%20on%20Women%20Entrepreneurship%20of
%20RM%20 -%20draf t-%2018%20Oct%202018(1).pdf . WT/TPR/M/390/Add.1  
 
- 11 - 
 
− financial support for women entrepreneurs.  This measure supports  enterprises owned and 
managed by women through c o-financing of 60 -70% of the costs of procurement of 
equipment, space arrangement, product design and production of visual identity of the 
product/service and introduction of software solutions, but not more than MKD 150,000 per 
applicant . Total budget all ocation for this measure is 2 ,000,000,00 in 2018 and 2 ,500,000,00 
for 2019. More than 120 SME's owned and managed by women have been supported through 
this measure;  
− co-financing of projects for support and development of SMEs and promotion of the 
entrepren eurship of foundations and associations of citizens, among others, projects for 
support and development of women entrepreneurship. This year in the call for proposals, in 
the evaluation criteria, additional score is predicted for projects aimed at gender e quality 
and strengthening of women.  
 
Following the global trends in this manner, the Ministry of Economy has developed an Action Plan 
for implementation of measures in the Strategy for Development of Women Entrepreneurship for 
the period 2019 - 2023. The S trategy aims at economic strengthening of women by creating a 
favorable business climate and providing support for the development of their entrepreneurial 
potential, which will contribute to the development of existing and opening of new enterprises, 
creating new jobs, and thus strengthening the overall economy. Four strategic priorities have been 
identified: 1. creating favorable business environment for development of women's 
entrepreneurship, 2. providing systematic support for development of WE, 3. cre ating infrastructure 
for support and development of WE and 4. promotion, networking and advocacy.  
  WT/TPR/M/390/Add.1  
 
- 12 - 
 
3  CANADA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
2 TRADE POLICY REGIMES: FRAMEWORK AND OBJECTIVES  
 
Page 32 (Para 2.52)  
 
The Report indicates that North Macedonian authorities plan to develop a draft bilateral investment 
treaty model to be used in future negotiations.  
Questions  
1. Is there a timeline for completion of the Model?  
 
Answer  
There is no specific timeline for comple ting of the Model. It is expected the Model to be completed 
by the end of 2021.  There is an ongoing project financed by the World Bank and RCC - Regional 
Cooperation Council for Western Balkan. The project should identify the gaps and develop 
recommendation s for new Model to be in line with the new generation IIAs/EU standards. After 
receiving the recommendations, the new model will be prepared . 
 
2. Does North Macedonia intend to publish the Model online?  
 
Answer  
All bilateral investment agreements signed by Re public of North Macedonia and third countries are 
posted on the websites of the Ministry of Finance and OECD. When a new text of Draft -Model will be 
prepared, could be posted to interested Parties.  
 
3. Is the development of the Model part of the implementation of the National Investment 
Reform Action Plan, or are the two processes expected to proceed separately?  
 
Answer  
In the National Investment reform Action Plan under policy area II. Investment Protection and 
Retention, considering reform topic  3) There is aligning the legal framework for investment, including 
IIAs with new generation IIAs and EU standards (CEFTA, UNCTAD), as should be prepared by the 
end of 2019.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
Page 67 (Para 3.159)  
  
"There are no preferences margins for tenders submitted by small and medium enterprises (SMEs). 
However, under the previous Law, contracting authorities were required to divide pharmaceutical 
contracts into lots, so as to facilitate the participation of SMEs in publi c procurement. Under the new 
LPP, contracting authorities are encouraged to use this practice across the board, and they must 
provide justification if they decide not to divide their contract into lots."  
 
Questions  
4. Can North Macedonia explain what criteria  are used for a contract to be divided into lots, 
under the new LPP?  
 
Answer  
The Law in Article 78 paragraphs (1) and (2) stipulate that the contracting authority may formulate 
the subject -matter of the procurement into more lots, based on objective criter ia per type, 
characteristics, purpose, time or place of execution, and it shall define the subject -matter and the 
size of the separate lots by taking into consideration the possibility of small and medium -sized 
enterprises to participate in the public proc urement procedure. Where the contracting authority has 
not formulated the subject -matter of the procurement into more lots in the open or restricted 
procedure, it shall explain the main reasons for that in the public procurement decision.  
 WT/TPR/M/390/Add.1  
 
- 13 - 
 
5. How does North Macedonia ensure that this process does not create a trade barrier for 
foreign suppliers? Specifically, if contracts that are divided into lots fall below the 
threshold, would this prevent foreign suppliers from bidding on these procurements?  
 
Answer  
The formulation of the subject -matter of contract into separate lots does not create trade barrier for 
foreign economic operators since all lots are bundled into a single procurement procedure. When 
estimating the value, the contracting authority is oblig ed to consider the total estimated value of the 
subject -matter of contract, not the separate lots, and to apply the appropriate procurement method 
as provided under the Law. The Law explicitly prohibits the division of the subject -matter of contract 
into s eparate procedures to the end of avoiding the application of the Law, like mandatory 
international publication or applying the appropriate procurement method. Furthermore, the Law 
provides for equal treatment of all economic operators regardless of the est imated value of contract.  
 
Page 69 (Para 3.161)  
"Table 3.18 shows that the value of the public contracts awarded to foreign suppliers decreased in 
both absolute and relative terms between 2013 and 2017. Except for 2014, the contracts awarded 
to foreign op erators represented less than 10% of the total value of contracts awarded in each year 
covered by this review."  
 
Question  
6. Grateful if North Macedonia could explain why there has been a downward trend in the 
value of public contracts awarded to foreign supp liers between 2013 and 2017?  
 
Answer  
There were no amendments and modifications to the legal framework in the respective period that 
were aimed at limiting or hindering participation by foreign economic operators to the public 
procurement procedures. Havi ng that into consideration, there is no specific legal reasons for the 
reduction of the value of public contracts awarded to foreign economic operators. Restoring the 
confidence from the political uncertainty, from 2017 it is contributed to the growth of c ontracts 
awards.  
 
Page 70 (Para 3.165)  
"In the past few years, assessments of North Macedonia's public procurement system by both 
domestic and international sources identified areas for further improvement, such as the need to: 
strengthen the administrative and oversight capacity of the PPB; increase the cooperation among 
government entities involved in aspects related to public procurement; improve transparency and 
strengthen internal auditing; devise tools to reduce the risk of corrupt practi ces; and reinforce 
investigation of irregularities related to public procurement. Some of these issues were addressed 
in the new LPP."  
 
Questions  
7. The report highlights key improvements that have been made in the area of public 
procurement in North Macedoni a, some of which have been addressed in the new LPP. 
Grateful if North Macedonia could indicate which areas have not been addressed in the new 
LPP? 
 
Answer  
Some of the areas for further improvements are not directly related to the new Law on Public 
Procure ment or require operational actions to follow up on the legal competencies under the Law. It 
is of our intention to undertake additional efforts to further strengthen the administrative and 
oversight capacity of the PPB; increase the cooperation among gove rnment entities involved in 
aspects related to public procurement and reinforce investigation of irregularities related to public 
procurement.  
 
8. What other steps is the government taking to address these areas for improvement?   
 
Answer  
The new Law on Public Procurement incorporates number of measures to increase the efficiency and 
effectives of the public procurement system. It encourages contracting authorities to split contracts 
into lots in order to open the market to smaller economic  operators. It also introduces small -value 
e-market place that will increase efficiency of small value procurements. One of the goals of the new WT/TPR/M/390/Add.1  
 
- 14 - 
 
Law is to boost confidence in the procurement market by promoting transparency through 
publication of procureme nt plans and procurement data of concluded contracts, including copies of 
contracts that are publicly available to all interested parties. It improves and streamlines the appeals 
procedure by facilitating access to documentation to all economic operators t hat participate in the 
procedure through the Electronic System of Public Procurement. The Law also contains provisions 
stipulating administrative control to be performed by the Public Procurement Bureau of higher -value 
procurements, as well as a "red -flag" system for identifying possible risks. There are plans for 
sharing this risk assessment tools with competent authorities in the field of combating corruption.  
 
Page 70 (Para 3.166)  
The Secretariat Report notes that there were two significant additions to North Macedonia's 
intellectual property rights (IPR) legal framework during the review period: the Law on Customs 
Measures for the Enforcement of Protection of IPRs, and the Rulebook on the form and content for 
the request by right -holders for Customs to t ake action and for extending the period of such action.  
 
Question  
9. Notwithstanding the statistics provided in Paragraph 3.180, has North Macedonia seen a 
measurable impact on the enforcement of IPRs following the implementation of the new 
Customs Measures, and the introduction of the Rulebook?  
 
Answer  
Following the entry into force of the Law on Customs Measures for the Enforcement of Protection of 
IPRs and the Rulebook on the Form and the Content of the Request by Customs Holders to take 
action and extend t he period of such action, the number of submitted requests for undertaking 
customs actions for protection of intellectual property rights has increased, and is decrease d the 
number of detained goods violating the intellectual property right continuity (ran dom cases ), Also, 
the communication between the legal representatives of trademarks and organizational units of the 
Customs Administration is improving.  
 
Page 72 (Para 3.169 point 8)  
 
The Secretariat Report notes that North Macedonia has a Coordination Body for Intellectual Property 
that provides a coordinated approach to IP policy and enforcement; organizes inter -agency raids to 
seize counterfeit goods; and, conducts campaigns to raise public awareness on the benefits of 
protecting IPRs.  
 
Question  
10. In which department is the Coordination Body for Intellectual Property situated? Is more 
information available on the activities of the Coordination Body?  
 
Answer  
The Coordination Body for Intellectual Property (CBIP) is a permanent body for estab lishing a 
coordination and enforcement of industrial property rights, copyright and related rights. This body 
provides the necessary cooperation to achieve the effective protection of its rights.  CBIP is 
established by Governmet's Decision, as  inter-minist erial body. All the meetings are held in the 
premises of the State Office of Industrial Property . Coordinator of the CBIP is the Deputy Director of 
the State Office of Industrial Property and members are state bodies that are directly or indirectly 
involved in the enforcement and protection of intellectual property rights, such as: State Office of 
Industrial Property, Ministry of Culture, Ministry of Economy, Ministry of Agriculture, Forestry and 
Water Economy, Ministry of the Interior, Customs Administration, Ministry of Justice, State Market 
Inspectorate, Secretariat for European Affairs and the Publ ic Revenue Office.  
More information about the CBIP and the actions undertaken can be found on the web page of the 
SOIP and the web pages of the other institutions that are part of the CBIP.  
 
Page 72 -73 (Para. 3.171 and 3.173)  
The Secretariat Report notes  that in 2018, the total number of trademark applications was 8,367, 
of which 7,524 were foreign trademarks. In 2018, 2,120 foreign patent applications were received, 
compared to 32 domestic applications.  
 WT/TPR/M/390/Add.1  
 
- 15 - 
 
Question  
11. Is information/statistics available on th e countries of origin of the foreign trademark and 
patent applicants?  
 
Answer  
As to the TM foreign applications for the year 2018, the most are from CN – 476, EU – 472, DE – 
210, US – 173, FR – 137, TR – 132, IT – 119, etc.  
The total number of patent appli cations received at the State Office of Industrial Property  in 2018 is 
1094. Domestic patent applications are 32 and the rest of the applications are foreign patent 
applications, 1062.  
As to the origin of the foreign patent applications, US – 330 applicati ons, DE – 110 applications, GB 
– 68, JP – 64, CN – 58, KR – 55, IT – 48, FR – 45, NL – 27, BE – 27, etc.  
Detailed statistics regarding the TM and patent applications can be found in the Annual Report of 
SOIP, as published on its web page ( www.ippo.gov.mk ). 
 
Page 73 (Para 3.175)  
The Secretariat Report notes that North Macedonia adopted a National Strategy on Industrial 
Property 2016 -2018 with the aim of guaranteeing a level of IPR protection similar to that of the 
European Union, to permanently harmonize it with all international obligations and agreements 
concluded by North Macedonia in this field, and to help develop an efficient IP system as a backbone 
for economic growth.  
 
Questions  
12. Are preliminary results a vailable on the outcomes from the North Macedonia's National 
Strategy on Industrial Property?  
 
Answer  
In relation to the National Strategy on Industrial Property, IPR activities are training of staffs from 
institutions involved in the IPR system, promotional campaigns for raising the awareness of 
importance and benefits of IPR protection and enforcement and campaign on harmfulness of buying 
counterfeited products. As the activities will be accomplished according to the Action plan for 
implementatio n of the Strategy extended till the end of 2019, preliminary results should find the 
first outcomes beyond 2019.  
 
13. What are the next steps for the National Strategy on Industrial Property?  
 
Answer  
After the implementation period of the National Strategy on Industrial Property, State Office of 
Industrial Property plans by the end of the first half of 2020, to prepare a new draft of a long -term 
strategy, for industrial property rights, including copyright and related rights. The new Strategy will 
be a national  Strategy on Intellectual Property for the period 2020 – 2025.  
 
14. Could the Republic of North Macedonia elaborate on the kinds of activities that are underway 
pursuant to its national campaign to raise the awareness of SMEs and the public at large 
regarding the need to protect and enforce IPRs?  
 
Answer  
Bearing in mind the importance of raising the public awareness for the protection of industrial 
property rights, SOIP has undertaken regular activities aimed at strengthening the public awareness 
by: 
• Training for the students from the Faculty of Law from the University Goce Delcev –Stip;  
• Training for the students of the Faculty of Law from the University Ss. Cyril and Methodius 
– Skopje at the premises of SOIP;  
• Celebrating the International Day of Int ellectual Property by: organising the traditional 
manifestation Patent of the year; undertaking of action for public destruction of seized goods 
that infringe intellectual property.  
• Campaign "25 years of SOIP – Month of IP", SOIP organised promotional acti vities in 7 cities: 
Stip, Strumica, Bitola, Ohrid, Struga, Tetovo and Skopje. Along to the campaign in these 
cities seminars with the business community in those cities were held.  
• SOIP organi zed a conference on the Transfer of technology and the intellect ual property 
rights in the Republic of North Macedonia . 
 WT/TPR/M/390/Add.1  
 
- 16 - 
 
Page 117 (Para 4.199)  
"North Macedonia undertook full market access and national treatment GATS commitments on all 
tourism activities, except for tourist guides for which commercial presence remains unbound for both 
market access and national treatment so as to reflect the existing licencing, nationality and residency 
requirements."  
 
Question  
15. North Macedonia's GATS schedule is unbound for mode 1 for hotel and restaurant services 
(CPC 641 -643) and tour ist guides services (CPC 7472). Could North Macedonia indicate 
whether it has implemented any measures which represent market access or national 
treatment limitations for those sectors for mode 1?  
 
Answer  
Catering activity (including hotels and restaurants) according to the Law on catering can be 
performed by trade companies and sole proprietors registered in the trade register within Central 
Registry of the Republic of North Macedonia, and by natural persons registered in the register kept 
by the municipality.  
With regard to provision of tourist guides services following limitations in market access and national 
treatment apply according to the Law on Tourist Activity: requirement for nationality, residency and 
to possess an identity card for tou rist guide issued by the legal entity authorized by the Government.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 11 (Para 3.39)  
"The public procurement system continues to be decentralized ever since LPP 2008. The Republic of 
North Macedonia i s 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."  
 
Question  
16. Canada notes that certain measures of the new LPP will not be in force until 2020. Grateful 
if North Macedonia could identify these measures.  
 
Answer  
The provisions stipulating the creation of a small -procurement electronic market for procurements 
up to EUR 10,000 for goods and services and EUR 20,000 for works will become effectiv e as of 
1 July 2020. The reason for this delayed application is the need to provide necessary financing, as 
well as the period necessary for tendering and developing the system. The provisions relating to the 
reserved contract will become effective as of 1  January 2020. The reason for this delayed application 
is the need for creating the necessary legal framework in the field of social policy, which should take 
place during 2019.  
  WT/TPR/M/390/Add.1  
 
- 17 - 
 
4  JAPAN  
Report by the Secretariat (WT/TPR/S/390)  
 
2. TRADE AND INVESTMENT REGIMES  
2.4 Investment Regime  
 
(Question 1 - Paragraph 2.42, page 30)  
 
According to the report by the Secretariat, foreign ownership is limited to 49% of a firm's capital in 
domestic and international air transport and gambling. It  seems that this restriction on FDI was not 
mentioned in the report at the time of 2013 TPR, is this a new development since 2013? Also, with 
respect to gambling, it seems that this sector (including its mode 3) is covered by specific 
commitments of the Re public of North Macedonia under CPC 964. How does North Macedonia ensure 
consistency with GATS on this limitation in gambling sector?  
 
Answer  
With respect to gambling services, undertaking commitments under the GATS was dependent on 
many factors including the requests and offers of the Parties concerned and the balance of the 
negotiations. Due to specific nature of gambling and betting services Republic of North Macedonia 
has in place regulations that ensure implementation of national policies rel ating to protection of 
public interest and consumer protection. According to the Law on Games of Chance and 
Entertainment Games ("Official Gazette of the Republic of Macedonia" No. 24/11, 51/11, 148/11, 
74/12, 171/12, 27/14, 139/14, 61/15, 154/15, 23/16 an d 178/16), the organization of games of 
chance and entertainment games is a right of the Republic of Northern Macedonia. The Republic of 
North Macedonia may transfer the right to organize games of chance to private companies 
established in Republic of Nort h Macedonia by domestic and/or foreign legal and/or natural persons, 
except for the right to organize a lottery and electronic games of chance. Company to which the 
Republic of North Macedonia is the owner or shareholder of at least 51% has exclusive right  to 
organize lottery and electronic games.  
  WT/TPR/M/390/Add.1  
 
- 18 - 
 
5  CHINA  
Questions based on Report by the Secretariat (WT/TPR/S/390)  
 
Page10, Para 31  
Agriculture remains an important activity for North Macedonia's economy, notwithstanding its 
declining shares in GDP and total employment. In 2018, the sector accounted for 8.4% of GDP and 
15.7% of employment. The value of agricultural production increased during the review period in 
most product categories. North Macedonia exhibits a structural and growing trade deficit for agri -
food products. The main agricultural exports in 2018 were tobacco; preparations of cereals, flour, 
starch or milk; beverages; edible vegetables and certain roots and tubers; and preparations of 
vegetables, fruit, nuts or other parts of plants. The main imp ort products in 2018 were meat; 
miscellaneous edible preparations; dairy products; animal or vegetable fats and oils and their 
products; preparations of cereals, flour, starch or milk; and pastry cooks' products. The main 
markets for agriculture and food p roducts are the European Union and neighboring Western Balkan 
economies.  
 
Question 1: What was the main reason for the structural and growing trade deficit for agri -food 
products in 2018? Was there a trade surplus or trade deficit for cereals and flour?  
 
Answer  
The main reason for the growing trade deficit in 2018 is primarily the increased import of meat, i.e. 
meat of bovine animals, fresh or chilled; meat of bovine animals, frozen; meat of swine, fresh, 
chilled or frozen; then the increased import of milk and cream, not concentrated nor con­taining 
added sugar or other sweetening matter; cheese and curd; choco late and other food preparations 
con­taining cocoa; bread, pastry, cakes, biscuits and other bak­ers' wares; food preparations not 
elsewhere specified or included; and some other products.  
It should be mentioned that Republic of North Macedonia is a net i mporter of meat, i.e. meat of 
bovine animals, fresh or chilled; meat of bovine animals, frozen; meat of swine frozen and meat and 
edible offal, of the poultry fresh, chilled or frozen, due to the fact that sufficient quantities of meat 
are not produced in the country, in order to satisfy the needs of the population and the processing 
meat industry.  
An important reason for the increased trade deficit is the reduced tobacco export, which is the most 
important export product of the Republic of North Macedonia . The reason is the reduced production 
of tobacco in the 2017 crop. Also, in 2018 the export of tomatoes and apples was reduced, as a 
result of reduced production, due to the unfavorable climatic conditions.  
In terms of cereals and flour, it should be said  that Republic of North Macedonia is a net importer of 
these products because there are not enough quantities of wheat, maize and other cereals produced 
in the country to satisfy the needs of the population and processing industry. Every year in trade of 
these products there is a trade deficit.  
 
Page 11, Para 32  
The level of tariff protection in agriculture is relatively high. North Macedonia notified the Committee 
on Agriculture that it provided no export subsidies and no export credits to agricultural pro ducts for 
the calendar years 2008 to 2018. The structure of support to agriculture remained relatively stable. 
Direct support to producers represented the largest share (60% in 2015); followed by rural 
development measures (28%); and general support to agr iculture (12%). North Macedonia does not 
apply any minimum prices or any kind of market price support schemes. Its most recent domestic 
support notification to the Committee on Agriculture was for the calendar years 2005, 2006, and 
2007. The National Strat egy for Agriculture and Rural Development for the period 2014 -20 defines 
as its objective the improvement of the competitiveness of North Macedonia's agricultural production 
and food industry, the development of rural areas, and the sustainable management of natural 
resources.  
 
Question 2: What was the main content of the rural development measures and general support to 
agriculture?  
 
Answer  
The rural development policy represents state support intervention scheme aimed to stimulate the 
development of rural  communities through modernization, structural adjustment of agri -food 
businesses and encouragement of new economic activities. The policy is also focused on 
improvement of conditions for living and making business in rural areas by investing in the  WT/TPR/M/390/Add.1  
 
- 19 - 
 
infras tructure and urbanization of rural settlements. At the same time all supported activities shall 
be carried by preserving natural and cultural values of the rural areas.  
Investment support for modernization of agricultural holdings and restructuring the physical 
potential is provided as to improve their overall performance in the production of primary agricultural 
products and  adding value to the production and marketing. The investments in physical assets 
concerning processing and marketing of agricultural and fishery products should sustain better use 
the production factors and introduce of new products, processes and technologies, strengthen the 
supply chain and integrat ion between processors and agriculture producers and improve quality and 
safety of foods.  
Bearing in mind the fact that the improved living conditions and development of economic activities 
are strongly associated with availability of appropriate public i nfrastructure within and outside of 
rural settlements, significant share of overall rural development envelope goes to development of 
physical capital in the rural regions of the country. The investments are primarily directed to: water 
management projects  (accumulations, irrigation and drainage systems), road and communal 
infrastructure for village renewal (including for access to agricultural land and cultural attractions), 
and public marketing and social infrastructure (youth and retirement clubs).  
Identified as the main reason for insufficient competitiveness of the Macedonian agriculture, 
particular priority of rural development measures is given to proactive measures for addressing the 
structural weaknesses of agricultural sector (land fragmentation, rural population ageing, lack of 
horizontal and vertical integration), in particular by consolidation of agricultural land, support to 
commence of agricultural activity by young farmers, and establishment and functioning of 
agricultural cooperatives.  
Rural development policy also incorporates measures for farm diversification and business 
development (for example: provision of services, on -farm processing, rural tourism), co -financing 
the value of bank guarantees and the interest rate for agricultural loans, usage of farm advisory 
services, establishment of demonstrative agricultural holdings and conducting research projects. 
Financial aid is also available for organization of local events and fairs, participation of agriculture 
producers on internation al and domestic fairs, and preparation of local development strategies 
trough public -private partnership forms of "Local Action Groups". Within rural scheme, sustainable 
management and utilization of natural resources is also supported via organic producti on and 
protection of biodiversity.  
The rural development financial assistance is principally delivered in a form of public financing or co -
financing the value of completed investments by the beneficiaries. The eligible investment activities 
have to take p lace after the signature of the contract with the competent authority - the Agency for 
financial support to agriculture and rural development. The payment of the public aid will be made 
on the base of payment claim and justifying documents, which prove the  accomplishing of the 
activities and their eligibility. The aid intensity of non -refundable public financial support is in a range 
between 50% of the value of capital investments to increase the physical volume of private entities, 
up to 100% to increase t he physical volume of public infrastructure or services. Only for limited 
number of measures, such as agri -environmental and market promotion measures the support is 
implemented as transfer to beneficiaries' accounts.  
As the general support to agriculture  concerns, the presented figures relate to expenditures of the 
overall budgetary support to agriculture calculated according to the OECD/PSE classification, and 
include the funds disbursed by public services and activities for food safety and quality contr ol, 
research & development, advisory and expert services including technical support, institution 
building and development of respective information systems.  
 
Page 86, Para 4.28  
An insurance subsidy scheme exists, which provides a subsidy of up to 60% of the cost of the 
insurance premium, up to a maximum subsidy of EUR 3,253 per farm, for crop, livestock, and 
agricultural yield insurance.  
 
Question 3: How much was the subsidy for agricultural insurance in 2017? What was the percentage 
of the subsidy in to tal value of agricultural production?  
 
Answer  
The total amount of the subsidy for agricultural insurance disbursed under the financial program for 
2017 was in amount of MKD 55,510,159.00 (EUR 902,604.00)2. The value of the agricultural  
                                                
2 Based on information provided by the Agency for financial support to agriculture and rural 
development. The average exchange rate for conversion of national currency to euros EUR  1= MKD 61.5 . WT/TPR/M/390/Add.1  
 
- 20 - 
 
production in 2017 is MKD 71.162 million and the percentage of subsidy for agricultural insurance 
in total value of agricultural production is 0.08%.  
 
Questions based on Report by the Government (WT/TPR/G/390)  
 
Page 11, Para 3.44  
The main priorities of ag ricultural 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 agricultural production and the food industry, devel opment of 
rural areas and sustainable management of natural resources".  
 
Question 4: Is there any priority among these three objectives, namely "Increasing the 
competitiveness of the domestic agricultural production and the food industry, development of r ural 
areas and sustainable management of natural resources"? If so, which one is the priority?  
 
Answer  
All elements of the strategic goal are of equal importance, emphasizing the dimensions of economic, 
social and environmental sustainability which are nec essary to be considered in order to generate 
sustainable development. These horizontal supreme objectives should be addressed by each single 
policy intervention of national agricultural policy as much as possible. Rather than having separate 
impact on part icular problems or subsector, the policy instruments are intended to have 
multidimensional character, coping at the same time with improvement of the competitiveness and 
development of livelihood while assuring that actions are taken in a way which protect s the natural 
resources. For example, the direct support polices implemented as direct payments to beneficiaries 
are envisaged as tool, not only as compensation of farmers' lower incomes, but also as support to 
agriculture as main economic activity in the rural areas, which gives to it rural development 
dimension. The most of subsidies are utilized by farmers in productive purposes, for investment in 
maintaining the current agricultural activity, but also for investments in upgrading the business thus 
contributing to improved competitiveness. At the same time, the subsidies are conditioned with 
mandatory respect of standards for good agricultural practice and environmental protection (so 
called cross -compliance). Similarly, rural development type measures, i mplemented as investment 
support to physical assets of businesses, which most directly contribute to improvement of farmers 
and processors' performances in production and marketing (competitiveness dimension), should 
mandatory bring the investment to full alignment with food quality and safety standards, animal 
welfare and nature protection.  
 
Question 5 : Please introduce relative policies and measures taken in order to increase the 
competitiveness of the domestic agricultural production and the food industry.  
 
Answer  
The most direct impact on increase of agri -food sector competitiveness have the rural development 
measures that co -finance private investments with at least 50% of total eligible costs. This support 
brings modernization, introduction of n ew technologies and innovations, achievement of standards 
contributing thus to improvement of overall performance of the business. The companies can also 
benefit from subsidized loans for agricultural production, processing and trade, whiles the recognized  
businesses associations are eligible to apply for compensation of certain costs of their market 
promotional activities.  
The biggest challenge of the policy remains the improvement of competitiveness of small farmers 
who operate with limited physical poten tial and have poor production and market performances 
which make them vulnerable on the market. The structural measures for support to cooperatives 
and land consolidation are envisaged as policies that should produce positive impact on long -term 
to this ta rget category. The improvement of national advisory services to farmers, especially to 
small -scaled, should also contribute to their faster and more efficient transformation toward more 
competitive market operators.  
  WT/TPR/M/390/Add.1  
 
- 21 - 
 
6  BRAZIL  
During the negotiation period of Macedonian accession to the European Union, why Skopje keep 
and do not reduce current barriers, erected voluntarily, against the export of Brazilian pork meat 
and other kinds of meat?  
 
Answer  
As a candidate country for EU accession, R epublic of North Macedonia respecting the obligation that 
rise from the Stabilization and Association Agreement between EU and Republic of Macedonia signed 
in 2001, has an obligation to transpose EU legislation into its national legislation. Commission 
Regulation (EU) No . 206/2010 of 12 March 2010 laying down lists of third countries, territories or 
parts thereof authorized for the introduction into the European Union of certain animals and fresh 
meat and the veterinary certification requirements (Text with EEA relevance) is transposed into the 
Rulebook on the method and procedure for import and transit, the format and the content of the 
veterinary -health certificate or other documents accompanying the consignment with live animals, 
aquaculture, and products of animal origi n, as well as the method and procedure of performing 
control and check during import and transit of consignment with live animals aquaculture and 
products of animal origin. For some commodities, Brazil is not on the list of third countries allowed 
for expo rt into EU, accordingly, the import into North Macedonia is respected.  
  WT/TPR/M/390/Add.1  
 
- 22 - 
 
7  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT ( WT/TPR/S/390)  
2 TRADE AND INVESTMENT REGIMES   
2.1 General Framework   
Page 24 (Para 2.4)  
According to the Report "North Mac edonia`s Program of Government for 2017 -2020 focuses its 
reform agenda on the achievement of, inter alia, economic development, job creation, higher living 
standards of the population, a fairer taxation system, enhanced support for domestic enterprises, 
the rule of law and justice, efficient institutions, high -quality education and health systems, and the 
improvement of the country's international reputation and standing. The Program also establishes 
membership of the European Union as one of North Macedoni a`s strategic priorities."  
 
Question  
1. Could  North Macedonia , please,  elaborate on the policy tools and instruments that are envisaged 
for the achievement of the abovementioned goals?  
 
Answer  
Economic document that in detail prescribes the policy tools and measures to follow the economic 
reforms as achievement to improve the economic environment in the Republic of North Macedonia 
is the Economic Reform Program me (ERP) till 2021. The Programme presents the medium -term 
macroeconomic and fiscal framew ork, as well as the sectoral structural reforms for promoting both 
competitiveness and growth. The programme is prepared in line with the Government Programme 
2017-2020.  
Also, the Revised Fiscal Strategy for the period 2019 -2021, and other national strateg ic documents, 
such as the National Programme for Adoption of the Acquis Communautaire, the Stabili zation and 
Association Agreement between North Macedonia and EU, and the national sectoral strategies: Public 
Finance Management Reform Programme 2018 -2021, I ndustrial strategy for the period 2018 -2027, 
Strategy for formalisation of the informal economy 2018 -2022, Innovation Strategy 2012 -2020, 
Competitiveness Strategy 2016 -2020 etc., are part of the Government Programme.  
In addition, ERP is in line with the E U Strategy for fast, sustainable and comprehensive economic 
development "Europe 2020", as well as the SEE 2020 Strategy of the Council for Regional 
Cooperation, called "Jobs and Prosperity in a European Perspective", which closely follows the vision 
of the  "Europe 2020" Strategy.  
ERP recognizes developing measures for structural reforms in sectors that are most important to 
support North Macedonia economy, as in: energy and transport market reform, agriculture sector 
development, industry sector, services sector, business environment and reduction of the informal 
economy, trade related reforms, education and labour market, etc.  
ERP can be found on the website of the Ministry of Finance ( www.finance.gov.mk ). 
2.4 Investment Regime   
Page 31 (Para 2.4 8)  
The Report notes that "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 (Section 3.2.4). The Law establishing the Agency for Foreign Investments and 
Export Promotion regulates the activities undertaken by Investment Macedonia to attract foreign 
investment and promote exports."  
 
Question  
2. Could North Macedoni a provide more details on the activities undertaken by Investment 
Macedonia to attract foreign investment and promote exports?  
Answer  
The Agency for Foreign Investments and Export Promotion is established in order to provide 
increased inflow of foreign dir ect investments and promotion of exports, thus stimulating the 
economic growth and development in the country. Main activities are: 1) development of the best 
practices for promotion and attracting foreign direct investments and export promotion; 2) effect ive 
development of strategy for investment and export promotion to meet and exceed the expectations WT/TPR/M/390/Add.1  
 
- 23 - 
 
of the foreign investor by providing highly professional services to investors in the process of pre -
investment, investment, reinvestment and export promoti on; 3) development of strategy for 
identification of those sectors that represent the best prospects for maximizing the net economic 
gain; 4) development of innovative and more active promotional events on the target markets; 5) 
establishment of effective public -private partnership for extensive promotion and monitoring 
systems to help identification and insurance of investments; 6) promotion of regions and encourage 
foreign investors to invest in Greenfield for increasing the competitiveness in the investm ent 
location; 7) inform exporters related to foreign trade of export procedures, customs, taxes and legal 
regulations; 8) organization, participation and support for international fair events, seminars and 
business events for companies; 8) conducting marke ting research on access to foreign markets, as 
well as research focused on certain sectors and markets of countries and regions; 9) promotion and 
presentation of export potentials in the country and abroad; 10) presents the possibilities of the 
tourist pot entials in the country and abroad to encourage investment in tourism.  
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
3.1.1.4 Special customs regimes   
Page 36 (Para 3 .20)  
The Report points out that "Under the Customs Code, as amended in 2018, customs duty relief is 
granted under different customs procedures, such as temporary admission, inward processing, 
outward processing, customs warehousing, transit, and processin g under customs control."  
Table 3.1 shortly describes inward processing procedure.  
 
Question  
3. Could North Macedonia kindly provide more information on the inward processing procedure  with 
respect to imported products ? 
 
Answer  
Inward processing allows imported raw materials or semi -finished products to be processed 
(processed, processed, refinished or repaired) for re -export, without paying import duties and VAT 
on goods. According to customs regulations, two inbound import syst ems are possible: Deferred 
payment system and System of return of import duties. Inward  processing  is a customs  procedure  
with economic  impact.  The use of this procedure  enables  the placing  of goods  in a procedure  and its 
submission  to some  of the processi ng operations  and after the processing  has been completed,  the 
obtained  product  is re-exported  from the customs  territory  of the Republic  of North  Macedonia.   
Operations may be: processing - production activities where mechanical, chemical and other 
produc tion activities are performed on the goods, including its assembling, dismantling, assembly 
or installation in other goods; processing of goods; repair of goods; use of auxiliary means of 
production - in the process, auxiliary means of production may be im ported which facilitate or 
facilitate the production of derived products, but do not form an integral part of the compensating 
products.  
 
4. Are agricultural raw materials and semi -finished products subject to inward processing and, if so, 
would North Mace donia, please, indicate the top imported agricultural products, which are further 
exported, and the amount of the refund of duties, taxes or other fees gathered at importation under 
the suspension and the drawback systems during the period under review?  
 
Answer  
Yes, agricultural raw materials and semi -finished products  are subject to inward processing . 
These are the agricultural products in HS Codes by years . 
2016 year  
Hs Code  Value Mkd  Quantity Kg  
2008 13.150.368 89801  
8703 9.106.657 14570  
1904 6.258.759 79560  
0813 4.818.189 22363  WT/TPR/M/390/Add.1  
 
- 24 - 
 
2017 year  
2008  8826288  58978  
1904 5510993  62130  
8703 3185366  3409 
0806 2117651  26500  
2018 year  
2008  14.900.005  95.886  
1904 8547923  94360  
08062030000  4020534  45000  
0813 3236651  18821  
1806 2729509  10180  
3.1.2 Rules of origin   
Page 37 (Para 3. 22)  
Under the Report, North Macedonia is a contracting party to the Regional Convention on Pan -Euro-
Mediterranean (PEM Convention) preferential rules of origin, which it signed in June 2011. The PEM 
cumulation system  and the PEM Convention allow for the application of diagonal cumulation of origin 
among contracting parties, based on their network of FTAs with identical origin protocols. These 
protocols are being replaced by a reference to the PEM Convention. Hence, No rth Macedonia may 
apply diagonal cumulation of origin according to its FTAs with the European Union, the EFTA states, 
the CEFTA parties, and Turkey.  
Footnote 17 to Para 3.22 lists following contracting parties of the PEM Convention: the European 
Union; the  EFTA States; the Faroe Islands; the participants in the Barcelona Process (Algeria, Egypt, 
Israel, Jordan, Lebanon, Morocco, Palestine, Syria, Tunisia, and Turkey); the participants in the 
European Union's Stabilization and Association Process (Albania, B osnia and Herzegovina, North 
Macedonia, Montenegro, Serbia, and Kosovo); and Moldova.  
 
Comment  
Ukraine would appreciate if North Macedonia could refer to the WTO Secretariat for clarification in 
Para 3.22 that Ukraine is also one of the contracting parties  of the PEM Convention (since 1 February 
2018).  
Answer  
Having regard to the bilateral Agreement on Free Trade between the Republic of Macedonia and 
Ukraine, signed in January 2001, both countries decided the Protocol С should therefore be replaced 
so as to make reference to the PEM Convention. In that respect, a bilateral Decision of the Joint 
Committee established by the Agreement on Free Trade replacing Protocol C concerning the 
definition of the concept of "originating products" and methods of administ rative cooperation is 
prepared and is expected to be signed during the Third session of the Joint Committee perhaps by 
the end of 2019.  
 
3.1.5 Import prohibitions, restrictions, and licensing   
Pages 44 - 45 (Para 3.41)  
The Report notes that certain catego ries of products are subject to import licensing. The Decision on 
Classification of Goods into Forms of Export and Import contains nine annexes, listing products the 
import (and/or export) of which requires a (non -automatic) license from different governme nt 
departments.  
 
Question  
5. Could North Macedonia kindly clarify if there are any specific permit or licensing requirements for 
import of school and office furniture and, if so, what?  
 
Answer  
There is no specific permit or licensing requirements for import of school and office furniture.  WT/TPR/M/390/Add.1  
 
- 25 - 
 
3.3 Measures Affecting Production and Trade  
3.3.3 Standards and other technical requirements   
Pages 53 - 54 (paragraphs 3.84 – 3.85)  
Para 3.84 of the Report describes the legal framework for the app lication of technical regulations 
and standards in North Macedonia, which comprises the Law on Standardization, the Law on Product 
Safety, the Law on Market Surveillance etc.  
According to Para 3.85 North Macedonia acknowledges the foreign compliance docume nts and 
markings issued in accordance with the international agreements signed and ratified by it.  
 
Question  
6. Ukraine would appreciate if North Macedonia could specify the procedure of acceptance of foreign 
certification documents.  
 
Answer  
Foreign certif icate documents are part of conformity assessment procedures that are an integral part 
of the quality infrastructure, as regulated in Chapter 1 -free movement of goods. This chapter 
provides full harmonization of the EU acquis and the above -mentioned laws a re harmonized in that 
respect. It is recognized that certificate of conformity which proves the safety of product should 
cover standards from CEN/CENELEX, ISO and ETSI, where to Republic of North Macedonia is a full 
member and those standards are transpose d into national standards by the principle of 
endorsement. Conformity assessment body should issue the Certificate and the body for its 
competencies should be accredited and/or notified resecting the principles defined in European 
Organization of Accredita tion as also Republic of North Macedonia is a full member. Recognizing 
foreign certificates is among signatory parties of MLA, suitable bilateral agreement for mutual 
recognition of documents, agreement on conformity assessment and acceptance of industrial  
products (ACCA) with EU and provisions of notified bodies as defined in the EU acquies.  
 
7. Are there any particular requirements for general safety of school and office furniture and what 
compliance documents are needed for release of such products on N orth Macedonia' s market?  
 
Answer  
No particular requirements ; answer to question 6 should be followed.  
 
Page 54 (Para 3.86)  
The Report notes that the Standardization Institute of the Republic of North Macedonia is currently 
implementing its 2018 -20 strategy for the development of standardization.  
 
Question  
8. Could North Macedonia inform more on implementation of mentioned strategy and provide a web -
link, where its text is available (in English, if possible)?  
 
Answer:  
Regarding the mentioned strategy, Standardization Institute as a full member of CEN/CENELEC 
continuously maintains and improves a recognizable Macedonian standardization system, creating 
and adopting standards in order to meet the needs of the economy and the business community, as 
well as the implementation of Macedonian standards among end -users. ISRM is in the process of 
establishment of ISRM Certification process of management systems. Regular trainings and seminars 
for standards and standardization are organized, establishing  of new technical committees and 
membership in ISRM . 
Here is the link of the Strategy: 
http://www.isrm.gov.mk/mk/images/upload/dokumenti/isrm_strategija1.pdf . 
 
3.3.4 San itary and phytosanitary measures   
 
Page 56 (Para 3.94)  
The Report mentions implementing regulations (rulebooks), which were adopted during the period 
under review in relation to the import and transit of live animals and products of animal origin, 
pursuant  to the Law on Veterinary Health, the Law on Food Safety, the Law on Animal Health and 
Welfare, the Law on Feed Safety, the Law on Animal By -Products, and the Law on Veterinary 
Medicinal Products.  
 WT/TPR/M/390/Add.1  
 
- 26 - 
 
Question  
9. Ukraine would appreciate if North Macedonia could kindly provide a web -link, where 
abovementioned  implementing regulations (rulebooks) are available (in English, if possible).  
 
Answer  
Here is the link to the website of the Food and Veterinary Agency. The implementing regulations 
(rulebooks ) are available only in Macedonian language : 
http://fva.gov.mk/  
http://fva.gov.mk/mk/zakon -za-veterinarno -zdravstvo  
http://fva.gov.mk/mk/zakon -bezbednost -hranata  
http://fva.gov.mk/mk/zakon -bezbednost -hrana -zivotni  
http://fva.gov.mk/mk/zakon -zdravstvena -zastita -blagosostojba -zivotnite  
http://fva.gov.mk/mk/zakon -nus-proizvidi -zivotinsko -poteklo  
http://fva.gov.mk/mk/zakon -veterinarno -medicinski -preparati  
 
Page 56 (Para 3.96)   
The Report mentions the protocol concluded between the Food and Veterinary Agency of the Republic 
of North Macedonia and the General Administration for Quality Supervision, Inspection and 
Quarantine of the People 's Republic of China, in relation to the health requirements for quarantine 
applicable to frozen lamb meat intended for export from North Macedonia to the People 's Republic 
of China, signed 26 November 2015.  
 
Question  
10. Could North Macedonia provide a web -link to the text of this protocol (in English, if possible)?  
 
Answer  
The mentioned Protocol is not published in Official Journal or on the website.  
 
3.3.4.2 Veterinary regulations   
 
Page 58 (Para 3.105)  
Under the Report, "Food of animal origin may be imported into North Macedonia if:  
(a) it originates from an EU member State or part thereof, or a third country or part thereof which 
appears on the list of thir d countries from which the import into the European Union is approved, 
and the concerned list is prepared and updated by the European Commission;  
(b) it originates from a third country or part thereof which appears on the list prepared and updated 
by the FVA. The third country is put on the list if it was subject to control by the European Union or 
the FVA and, during the control, it was confirmed that the suitable guarantees were met. The third 
country is put on the list without being subject to control i f the FVA, based on an analysis of the 
documentation, establishes that those suitable guarantees are met;  
(c) the establishment from which the product was dispatched and the establishment in which the 
product was obtained, prepared or stored, are present on the list of establishments of the EU 
member States, the list of establishments of third countries from whic h the import into the European 
Union is approved, and which is prepared and updated by the European Commission, and on the list 
of approved establishments of third countries prepared by the FVA." . 
 
Question  
11. Would North Macedonia kindly inform more on t he list of approved establishments of third 
countries prepared by the FVA, mentioned in the section (c) of Para 3.105? Please, provide a weblink 
to this list.  
 
Answer  
As a candidate country for EU accession Republic of North Macedonia has an obligation to transpose 
EU legislation into its national legislation. Commission Regulation (EU) No . 206/2010 of 
12 March  2010 laying down lists of third countries, territories or parts thereof authorized for the 
introduction into the European Union of certain animals a nd fresh meat and the veterinary 
certification requirements (Text with EEA relevance) is transposed into the Rulebook on the method 
and procedure for import and transit, the format and the content of the veterinary -health certificate 
or other documents acc ompanying the consignment with live animals, aquaculture, and products of 
animal origin, as well as the method and procedure of performing control and check during import 
and transit of consignment with live animals aquaculture and products of animal origi n.  WT/TPR/M/390/Add.1  
 
- 27 - 
 
Link to the Rulebook (available only in Macedonian):  
https://drive.google.com/file/d/1OJgeDUIM -TyDRpYz5qnacbbhFKynQXJq/view . 
 
3.3.8 Intellectual property rights   
Pages 71 -72 (Para 3.169)  
The Report describes several institutions, which are involved in the implementation and enforcement 
of IP legislation in North Macedonia, including inter alia  Coordination Body for Intellectual Property. 
It provides a coor dinated approach to IP policy and enforcement; organizes inter -agency raids to 
seize counterfeit goods; and conducts campaigns to raise public awareness on the benefits of 
protecting IPRs.  
 
Question  
12. As there are several institutions involved in the imp lementation and enforcement of the 
intellectual property rights in the country, could North Macedonia expand on the mechanism that 
ensures the smooth coordination among them?  
 
Answer  
The mechanism for mutual cooperation between institution s that are part of the system for the 
protection and the enforcement of the intellectual property rights, is the establishment of 
Coordination Body for Intellectual Property (CBIP). CBIP has developed Rules of procedure for its 
mutual work and cooperation an d coordinated actions to take. Each institutions involved in the 
implementation and enforcement of the intellectual property rights has its own representativ e, which 
ensures the smooth coordination among them .  
 
13. In this regard, could North Macedonia al so kindly provide additional information on the role of 
the Coordination Body for Intellectual Property?  
 
Answer  
The Coordination Body for Intellectual Property (CBIP) is a permanent body for establishing a 
coordination and enforcement of industrial proper ty rights, copyright and related rights. The basic 
role of the Coordination Body for Intellectual Property is coordinated approach to IP policy and 
enforcement for involved institutions such as SOIP; Customs Administration ; Ministry of Internal 
Affairs ; Public Revenue Office ; State Market Inspectorate ; State Office of Industrial Property, 
Ministry of Culture ;, Ministry of Economy ; Ministry of Justice ; Secretariat for European Affairs ; 
Ministry for Information Society .  
The Coordination Body for Intellectual Property, parallel to the basic role has a role in exchange of 
information between the institutions and the members of the coordinating body in relation to specific 
cases for the protection of IPR rights, targeting vulnerabilities in the chain  of decisions related to the 
IPR rights, giving recommendations for the actions of certain institutions in certain cases. Also, takes 
care of the exchange of information retrieved to strengthen the legislative capacity of the institutions 
and to harmonize with international obligations and concluded contracts.  
The Coordinative Body undertakes activities in raising the awareness for IPR rights through public 
presentations and performances, contacts of certain institutions with the public and exchange of 
information related to the protection of rights, presenting counterfeit goods and describing the 
manner of their identification. CBIP is established by Governmet's Decision . Coordinator of the CBIP 
is the Deputy Director of the State Office of Industrial Prope rty. More information about the CBIP 
and the actions undertaken can be found on the website of SOIP and the other institutions that are 
part of the CBIP.  
 
Page 73 (Para 3.175)   
The Report mentions the National Strategy on Industrial Property 2016 -2018, ado pted by the 
Government during the period under review. Its overall aims are to guarantee a level of IPR 
protection similar to that of the European Union, to permanently harmonize it with all international 
obligations and agreements concluded by North Maced onia in this field, and 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; to strengthen IPR enforcement; to develop 
right-holders' cap acity to protect IPR; and to increase public awareness of the benefits of IPR 
protection. Given that the Strategy was only adopted in October 2017, the period of implementation 
of the Strategy's Action Plan was extended until end -2019. The activities carri ed out so far include 
staff training, an analysis of the services offered by the SOIP, and a national campaign to raise the 
awareness of SMEs and the public at large of the need to protect and enforce IPRs.  WT/TPR/M/390/Add.1  
 
- 28 - 
 
Question  
14. Would North Macedonia kindly share m ore information on measures, included in the Strategy's 
Action Plan, and inform on main preliminary achievements of its implementation, considering the 
Strategy`s specific objectives?  
 
Answer  
Many activities were taken, as are: 1. quarterly training for students from both Faculties of Law at 
the premises of SOIP; 2. celebrating the International Day of Intellectual Property by: organizing 
the traditional manifestation Patent of the year; undert aking of action for public destruction of seized 
goods that infringe intellectual property; 3. Providing campaign "25 years of SOIP – Month of IP"; 
4. organized promotional activities in 7 cities: Stip ; Strumica ; Bitola ; Ohrid, Struga ; Tetovo and 
Skopje; 5 . seminars with the business community; 6. conference on the Transfer of technology and 
the intellectual property rights in the Republic of North Macedonia , etc. 
 
Page 74 (Para 3.181)   
Under the Report, "Although North Macedonia has a sound legal framework  for the protection of 
IPRs, the enforcement of these rights through the court system remains a challenge, since there are 
no specialized courts to handle IPR cases, and prosecutors and judges lack adequate experience. 
Another challenge is the absence of r eliable statistics, which makes it difficult to measure the extent 
of IPR infringements."  
 
Question  
15. What measures is the Government of North Macedonia going to take to address these 
challenges?  
 
Answer  
Since there isn't specialized court dealing with the IPR cases and in order to highly improve the 
experience of judges and public prosecutors, Academy for judges and public prosecutors, in 
cooperation with the State Office of Industrial Property, continuou sly organize trainings for judges 
and public prosecutors. Training courses in 2018 were organized in the following topics: Enforcement 
of industrial property rights, Civil -legal protection of Copyright and Related Rights, Administrative 
court protection of  Industrial Property Rights and Misdemeanor -legal protection of Intellectual 
Property Rights. Also, 37 listeners from the VI -the generation of initial training were allocated to the 
practical teaching in the courts and public prosecutor's offices, within w hich they work on specific 
cases of intellectual property.  
Each year, the Academy organizes at least 8 training for judges and public prosecutors on the topics 
that are related to the IP Rights.  
Also, the State Office of Industrial Property in cooperation with the European Patent Office gives the 
opportunity to the judges and public prosecutors to participate in different seminars and study visits 
that are foreseen within the training program me of EPO.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.2 Policy objectives and administration  
Page 80 (Para 4.13)  
The Report refers to the main priorities of agricultural policy, which are defined by the National 
Strategy for Agriculture and Rural Development for the period 2014 -20 (NSARD 2014 -20). Its 
strategic objective is to increase the competitiveness of the North Macedonian agricultural production 
and the food industry, the development of rural areas and the sustainable management of natural 
resources. To achieve  this objective, the strategy defines the following priority areas:  
• improving technological and market infrastructure, in order to increase the range of products 
with added value, productivity, quality and safety, and meeting EU standards;  
• strengthening the horizontal and vertical integration of the agri -food sector and developing 
market contractual relations in the agricultural value -chains that should enable better 
exchange of market information and planning of production and purchase, as well as 
improv ing the marketing of agricultural products and their promotion in foreign markets;  
• providing access to production factors, agricultural land and its consolidation, capital and 
quality production inputs, and improving human potential in the sector; and  
•  improving rural infrastructure for the sustainability of rural communities and economic 
activities in rural areas.  WT/TPR/M/390/Add.1  
 
- 29 - 
 
Question  
16. Could North Macedonia elaborate on the economic incentives and policy tools that are foreseen 
for the achievement of the abovement ioned objectives?  
 
Answer  
The most important policy for improvement of market competitiveness is the rural development 
policy. It represents state support intervention scheme aimed to stimulate the development of rural 
communities through modernization and  structural adjustment of the agri -food businesses, 
investments in infrastructure and public spaces urbanization, and for encouragement of new rural 
economic activities, at the same time by preserving natural and cultural values of the rural areas.  
Bearing in mind the fact that the improved living conditions and development of economic activities 
are strongly associated with availability of appropriate public infrastructure within and outside of 
rural settlements, significant share of overall rural d evelopment envelope goes to development of 
physical capital in the rural regions of the country. The investments are primarily directed to: water 
management projects (accumulations, irrigation and drainage systems), road and communal 
infrastructure for vil lage renewal (including for access to agricultural land and cultural attractions), 
and public marketing and social infrastructure (youth and retirement clubs).  
Strengthening the horizontal and vertical integration of the agri -food sector and developing mar ket 
contractual relations in the agricultural value -chains is intended to be reached by support provided 
to establishment and functioning of agricultural cooperatives, implementation of integrated supply -
chain projects that enhance the competitiveness of l ocal agri -food system, as well as with 
enforcement of legal provisions for obligatory contractual relation in purchasing of agricultural 
products. In addition, the immense structural weaknesses of the agricultural sector in terms of land 
fragmentation and rural population ageing, are treated by proactive state policy measures for land 
consolidation and support granted for commencing agricultural business by young farmers.  
The rural development financial assistance is principally delivered in a form of publ ic financing or co -
financing the value of completed investments by the beneficiaries. The eligible investment activities 
have to take place after the signature of the contract with the competent authority - the Agency for 
financial support to agriculture a nd rural development. The payment of the public aid will be made 
on the base of payment claim and justifying documents, which prove the accomplishing of the 
activities and their eligibility. The aid intensity of non -refundable public financial support is i n a range 
between 50% of the value of capital investments to increase the physical volume of private entities, 
up to 100% to increase the physical volume of public infrastructure or services. Only for limited 
number of measures, such as agri -environmental and market promotion measures the support is 
implemented as transfer to beneficiaries' accounts.  
In addition to the rural development investment measures, the farmers' income provided from their 
market activities are supplemented with regular annual direc t payments based on cultivated area, 
breaded heads of the animals of quantity of traded products . 
 
4.1.3 Policy instruments  
4.1.3.1 Border measures  
4.1.3.1.1 Measures affecting imports  
Page 8 1 (paragraphs 4.16 – 4.17)  
According to the Report "The extent  of tariff protection in the agricultural sector is relatively high. 
The simple average applied MFN tariff for agricultural products is 17.6% in 2019, which is more than 
triple that of non -agricultural products (5.8%). The range of tariff rates on agricult ural products is 
between 0% and 75%. The share of non -ad valorem tariffs for agricultural products (13.5%) is 
considerably higher than that for non -agricultural products (0.2%), while the share of duty -free lines 
is much lower for agricultural products (24 .8%) than for non -agricultural products (44.5%). The 
simple average MFN final bound rate of agricultural products is 18.2%, compared with 6.3% for non -
agricultural products.  
While there is full duty -free treatment within the CEFTA, including for agricultu ral products, the 
simple average of preferential duties for agricultural products under the various FTAs is either equal 
to that of applied MFN duties (FTAs with Ukraine and Turkey: 17.6%) or only slightly lower (16.7% 
for the FTA with the EFTA, 12.8% for the agreement with the European Union). This situation reflects 
the exclusion of numerous tariffs lines, notably preparations of vegetables, fruit, meat and dairy 
products from preferential treatment."  WT/TPR/M/390/Add.1  
 
- 30 - 
 
Question  
17. Ukraine would appreciate if North Macedonia could kindly inform on its plans to liberalize current 
tariff regime in the agricultural sector.  
 
Answer  
The country has passed through process of significant multilateral trade liberalization carried out in 
the last two decades, mainly as a result of accession to the WTO in 2003, signing of the Stabilization 
and Association Agreement with the EU in 2001 as w ell as the CEFTA Agreement in 2006. As a result, 
gradual liberalization of the MFN customs rates for the most of agricultural products have been 
carried out  in transitional phases latest by 2008, and in addition with the EU by 2011. Full duty -free 
trade wi th traditional trade partners in the region has been already achieved as a result of the CEFTA 
negotiations. In addition, the country has signed bilateral free trade agreements with Turkey, EFTA 
and Ukraine.  
The intention of the country is further to libe ralize the current tariff arrangements in the agricultural 
sector with the countries with which already have FTAs.  
In particular, recently is initiated further FTA liberalization process with Ukraine in agricultural sector, 
the negotiations rounds have be en resulted in agreed version of liberalization proposal by product 
lines prepared by the task force group, which currently is in a final phase of confirmation at the 
technical level.  
 
4.1.3.2 Internal measures  
4.1.3.2.1 Support measures  
Pages 83 -84 (Par a 4.24)  
The Report mentions some support measures, which relate to improving production efficiency, for 
example the payments for: cereal seeds; vegetable, vine, fruit and flower propagation material; drip 
irrigation; and production under controlled conditi ons.  
Table 4.10 sets out general amounts of payment for vegetables, granted for production in the open 
air and plastic tunnels in 2010 -2017.  
 
Question  
18. Could North Macedonia clarify amounts of payment for specific varieties of vegetables for the 
last three years available?  
 
Answer  
The subsidies for vegetables are consist of basic and additional payments.  
The basic payments are related to the following vegetable products: tomatoes ; pepper ; watermelon, 
melon ; beans ; green beans ; peas; potatoes ; cucumbers ; roots; cabbage ; kale; onions ; garlic, leeks ; 
zucchini ; lettuce ; broccoli ; spinach ; eggplant ; carrots ; celery ; beets ; parsnips ; asparagus ; and 
radishes. The minimum eligibility criteria is 0.2 ha sown area for each vegetable crop separately.  
The amount of the subsidy for all mentioned products is MKD 30 ,000 per hectare (EUR 487), except 
for beans and spinach for which the subsidy is MKD 20,000 per ha (EUR 325) and for watermelon, 
melon and pumpkins MKD 6 ,000,00 per hectare (EUR 97).  
In addition , the following direct payments are toped up to the above basic payments:  
1. Payments for tomatoes, peppers and cucumbers vegetable production grown under controlled 
conditions with an amount of MKD 99,000 ,00 per hectare (EUR 1,609/ha). The products shall be 
produced and marketed in the period from 1 January to 15 May in the current year and to be in 
quantities above the defined minimum threshold;  
2. Payments for the quantities of vegetable sold out to processing facilities directly or through one 
registere d buyer in the period from March to 25 December in the current year (including the 
produced quantities for the needs of its own processing capacity) with an amount of MKD 3 ,00/kg 
(EUR 0 ,05/kg);  
3. Subsidy of 20% of basic payments for eligible farms with to tal arable area between 1 -5 ha 
(considered as farms with higher developing potential); and  
4. Subsidy of 30% of basic payments for the farms that has converted their production from cereals 
into vegetable. The payments will be implemented in a period of 5  years from the year of conversion.  
The above vegetables subsidies scheme is for the year 2019 and the details varies insignificantly 
over the period of the last three years.  
 WT/TPR/M/390/Add.1  
 
- 31 - 
 
4.4 Services  
4.4.2 Financial services   
Pages 102 - 105 
The Report describes legal and institutional framework for financial services activities in North 
Macedonia together with the regulatory developments that have occurred during the period under 
review.  
 
Question  
19. Would North Macedonia, please, describe the procedur e for assessment of the ownership 
structure, business reputation and financial condition of a bank: requirements to transfer of 
significant ownership/control in the regulated entities and indicators of non -transparency of the 
ownership structure?  
 
Answer  
The required license/approval should be issued if National Bank determines : 1) the identity of the 
persons/entities that intend to establish a bank or acquire shares in a bank ; the persons connected 
thereto and their legal form ; 2) their reputation ; 3) adeq uacy of their financial standing with 
reference to the shares they intend to acquire ; 4) assessment of their ability to support the planned 
growth of the bank's own funds and 5) the origin and legitimacy of the sources of funds. The 
transparency of the own ership structure is achieved through the requirement for submitting data 
that will enable the National Bank to determine the beneficial owner of the legal entities that have 
filed for license/approval. The National Bank may require any additional documents , data and 
information during the licensing process.  
Persons/entities who intend to acquire shares in cumulative amount of at least 33% of the total 
number of shares are requested to also submit a business plan which should contain the expected 
objectives , course of actions and bank's outlooks, as well as possible proposals for growth of bank's 
operation and a statement given under full criminal and material accountability, signed by the entity 
or by a competent body of the entity (in the event of a legal entity) that it will continue to support 
the bank's operation and will invest capital in the bank, if required.  
The Governor adopts a decision on issuing bank license i.e. on issuing approval to acquire qualified 
holding in a bank or rejects the applicatio n within the deadlines prescribed in the Banking Law.  
The business reputation and the financial condition of a bank is assessed through the Supervisory 
Review and Evaluation process (SREP) under Pillar II of the Basel Capital Accord. Through the SREP 
proce ss, the National bank evaluates if the risk management, strategies and processes in the bank, 
its capital and liquidity ensure adequate coverage of the risks, to which the bank is or might be 
exposed to. Key elements of the SREP process include: monitoring  of the most important financial 
ratios, assessment of the banks' business model, assessment of the corporate governance of the 
bank as well as assessment of the risks to the liquidity and capital position in the bank.  
 
20. What are the conditions for auth orization of non -banking financial institutions in North 
Macedonia: types of activities, key requirements to applicants, approval procedure, verifying sources 
of funds for the formation of capital?  
 
Answer  
Financial companies  
Establishment, operation and supervision of financial companies are performed in accordance with 
the Law on Financial Companies. Financial company can perform the following financial activities: 
approving loans, credit cards, factoring and issuance of guar antees. Financial company can be 
founded with core capital not less than  MKD 6,000,000 (EUR 100 ,000). Founder of the financial 
company can be a domestic and foreign legal entity or natural person. The key requirement for the 
founder is that no security mea sure prohibition on practicing profession, performing an activity or 
duty is imposed against him. If the founder is a legal entity, the economic -financial status of the 
founder is of great importance . Legal entities over which a bankruptcy or liquidation p rocedure has 
been initiated can not be founders . Member of a governing body could not be person who has been 
a responsible person in a trade company under bankruptcy procedure or against whom a security 
measure has been imposed. The Ministry of Finance sha ll decide on the request within a period of 
60 days as of the day of submission of the request.  
 
Leasing companies  
Leasing companies  are established and operate under the Law on Leasing. The key requirements for 
founders as well as approval procedure are the same as for financial companies . WT/TPR/M/390/Add.1  
 
- 32 - 
 
Management companies of investment funds  
Establishment and operation of management companies of investment funds and the investment 
funds are regulated by Law on Investment Funds.  
The management company can be established by domestic and/or foreign natural persons and/or 
legal entities with initial capital of at least 125,000. The qualified stakehol ders and members of the 
management board need to fulfill the fit and proper criteria. The founders of the management 
company must provide proof for the origin of the funds paid as initial capital.  
Securities and Exchange Commission  (SEC) will decide on the request within 90 days.  
 
Investment  funds  
Investment funds are established and managed by Management company established in Republic of 
North Macedonia. Capital requirement for establishing investment fund is minimum EUR 300,000 as 
should be constantly maintained.  
 
Brokerage houses (Investment firms)  
Establishment and organization of a brokerage house is regulated with the Law on Securities.  
A brokerage house shall be founded as a joint stock company with its head office in t he Republic of 
North Macedonia, with a previous operational license obtained from the Securities and Exchange 
Commission. The brokerage house can be established either by domestic or foreign legal or natural 
persons.  
Required  amount of  initial capital for  establishing a brokerage house  is EUR 75,000, 150 ,000 or 
500,000, depending on which services and activities is providing.  
The founders of the brokerage house must provide proof for the origin of the funds paid as initial 
capital. They also should submit  business plan, proof for work capacity  for providing the services, 
information about the founders, etc.  
Securities and Exchange Commission  (SEC) will decide on the request within 90 days.  
 
Insurance companies  
Establishment, operation and supervision of insurance companies are regulated with the Law on 
Insurance supervision. The insurance company carries out insurance activities in one or several 
classes of insurance, within the framework of non - life insurance  and life insurance. The share 
capital of the insurance company should be at least in the amount of the guarantee fund that cannot 
be lower than: EUR 2,000,000 for activities in certain classes of non - life insurance; EUR 3,000,000 
for activities in all t he classes of non – life insurance; EUR 3,000,000 Euros for life insurance and 
EUR 4,500,000 for reinsurance activities. The founders of the insurance company must provide proof 
for fund sources for payment of the capital. Stockholder s with qualified parti cipating interest in 
insurance company, members of the management and supervisory body need to fulfill the fit and 
proper criteria. The Insurance Supervision Agency will decide on the request within six months of 
the receipt of the request for obtaining a license.  
 
21. What are specific features of regulation and supervision of fintech companies?  
 
Answer  
Fintech companies will be regulated by the Law on Payment Services and Payment Systems that is 
under preparation , in line with the EU acquis for payment services.  
 
22. Are there any differences in prudential regulation (requirements to corporate governance ) of 
publicly and privately -owned banks?  
 
Answer  
There is only one state -owned bank "Macedonian Bank for Development and Promotion "of the 
Republic of North Macedonia. There are no differences in corporate governance of private and state -
owned banks.  
 WT/TPR/M/390/Add.1  
 
- 33 - 
 
PART II: QUESTIONS REGARDING THE REPORT  BY THE REPUBLIC OF NORT H MACEDONIA 
(WT/TPR/G/390)  
4 TRADE AGREEMENTS AND ARRANGEMENTS  
4.1 WTO   
Page 16 (Para 4.2)  
The Report mentions participation of the Republic of North Macedonia in a number of the WTO 
initiatives to continue work on e -commerce and on domestic regulation on services.  
 
Question  
23. Being co -sponsor of the joint statements on e -commerce and on dome stic regulation on services, 
could North Macedonia provide more details on its vision with regards to further activities under 
these initiatives?  
 
Answer  
Republic of North Macedonia is a co -sponsor of the Joint statement on electronic commerce adopted 
in January 2019 in Davos by the large group of member states. We acknowledge the benefits of e -
commerce for businesses, consumers and the global economy. We also keep track of the 
development in this area and are ready to participate in the relevant discussion s toward future WTO 
negotiations on trade -related aspects of electronic commerce. In the meantime, an inter-ministerial 
working group is established in the Republic of North Macedonia to work on respective items under 
discussion in the initiated Program me on e-commerce.  
 
Republic of North Macedonia as a co -sponsor of the Joint statement on services domestic regulation 
adopted at the XI Ministerial Conference, gives high importance to good regulatory practice in 
facilitating trade in services. We acknowledge  the progress made in discussions for disciplines on 
domestic regulation developed pursuant to the mandate contained in Article VI:4 of the GATS and 
are ready to participate in further discussions in this area.  
  WT/TPR/M/390/Add.1  
 
- 34 - 
 
8  UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/390)  
 
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
 
Page 7, paragraph 9:  Recent reforms of business regulations resulted in a significant improvement 
in certain aspects of th e climate for doing business, both for domestic and foreign investors. At the 
same time, structural economic and social challenges remain, including with respect to labor market 
weaknesses, the large size of the informal sector (estimated at 34% of GDP in 2014 and 18% of 
employment in 2018), and the quality of public institutions.  
 
1. What are some  of the recent reforms that improved the business climate, and 
how was improvement measured?  
2. What sources are used to measure the size of the informal sector?  
Answer  
In the Economic Reform Program (ERP) 2019 -2021, under point 1.1 are measures taken to 
implement the targeted policy guidelines. ERP can be found on the following link: 
https://www.finance.gov.mk/en/node/7798 . 
At the moment, in the process of developing is a National E -Service Portal, measure 12 in ERP, for 
improving the business environment. The National e -services Portal is expected to reduce 
administrative and financial burden on citizens and businesses and i ncrease the efficiency of 
businesses. Reducing the time and fees for obtaining the services, entails a reduction in costs for 
businesses and leading to their increased competitiveness.  
 
Referring to informal economy is sub -measure G4: prepare risk assessme nts focusing on sectors 
and branches most vulnerable to informalities and identify and apply appropriate corrective 
measures. In March 2018, the first medium -term Strategy for Formalization of the Informal Economy 
2018–2022 was adopted. It aims to reduce t he number of informally employed (both in informal and 
formal businesses, as well as within households), and to reduce the share of unregistered business 
entities and informal activities within the formal economy. Due to the complexity of the informal 
economy, the Strategy unites all relevant aspects of many sectoral policies, such as improving 
regulatory and business environment, enhancement of the institutions in the labour market, 
increasing the inspection of informal economy flows and raising the awaren ess of citizens and 
businesses about the importance of formalization of informal activities. The Strategy is aimed at:  
• Improving the process of measuring, monitoring and detection of the informal economy;  
• Better business environment for establishment, grow th and development of companies;  
• Stimulating and supporting the formalization of the informal economic activities; and  
• Strengthening the tax morale and lowering the tolerance towards the informal economy.  
For implementation of the strategy, the Action Pla n for Formalization of the Informal Economy 2018 –
2020 was adopted in August 2018 containing 29 measures. Also, in September 2018, a Coordinative 
Body was established to monitor the implementation of the Action Plan.  
 
Page 25, paragraph 2.10: The Secretari at notes that "some courts have been established with 
extended jurisdiction to decide upcoming trade -related disputes and cases of copyright and industrial 
property rights."  
 
3. Is there any anecdotal news or statistics on how these particular courts are 
operating with respect to copyright and industrial property rights?  
Answer  
The basic courts with expanded competence, in addition to the competence defined in Article 30 of 
this Law for the Territories for which they are established, shall have jurisdiction to decide on civil 
disputes. On the Judicial Portal of the Republic of No rth Macedonia are information and statistics: 
www.sud.mk . WT/TPR/M/390/Add.1  
 
- 35 - 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.2 WTO bindings  
 
Page 42, paragraph 3.33 : In paragraph 3.33 and table 3.5 it is noted that North Macedonia applies 
MFN rates in excess of bound rates for 13 tariffs.  
 
4. When will North Macedonia lower its applied rates to equal to or less than its 
bound rates?  
5. Does North Macedonia intend to undert ake a compensation process under GATT 
Article XXVIII?  
Answer  
Customs Administration analysed the differences in the MFN applied rates and WTO bound rates due 
to the several HS Amendments in 2007, 2012 and 2017 and found that in 5 tariff lines there is 
inconsistencies. For others it is in line with the WTO commitments. These adjustments shall be done 
with the next Amendments of the National Customs Tariff, to be applied from 1 January 2020.  
 
3.3 Measures Affecting Production and Trade  
3.3.4 Sanitary and phytosanitary measures    
3.3.4.3 Phytosanitary regulations  
 
Page 56, paragraph 3.95:  The 2019 Secretariat Report states that "Most changes made since the 
previous Review to the regulatory and institutional framework for the application of [SPS] measures 
were aimed at harmonization with international norms. In view of the accession process to the 
European Union, the Government is focusing on streamlining practices and implementing various 
measures related to the EU acquis ."  
 
6. With the vast amount of EU legis lation that would need to reviewed and 
approximated, can North Macedonia please explain how they are meeting 
transparency obligations under Article 7 and Annex B of the SPS Agreement?  
Answer  
Regarding the transparency obligations under Article 7 and Annex B of the SPS Agreement, the 
Phytosanitary Directorate (PD) as a Central Competent Authority (CA) within the Ministry of 
Agriculture, Forestry and Water Economy (MAFWE) is responsible for preparation of the legislation 
and creation of phytosanitary policy a nd as NPPO. Therefore, PD regularly publishes new and 
amended legislation and adopted measures on the Ministry web page. Additionally, these changes, 
including copies of the relevant documents, are reported regularly through IPPC portal by the 
National Con tact point which is the Director of PD, as well as it has been circulated an e -mail to all 
EPPO Member Countries.  
In order to improve transparency, PD is in phase of designing and developing a Phyto -sanitary 
Information System - PIS for plant health and pla nt protection products. PIS will contribute to better 
communication, coordination, transparency and more efficient functioning of CAs and all 
stakeholders involved in the phytosanitary sector. PIS will start with register of operators for plant, 
plant prod ucts and other objects from the List VA and List VB. According to the working plan PIS will 
be installed and fully operational by the end of 2019. PIS will include also public portal with website, 
where drafted and published national phytosanitary measures  will be published.  
Together with MAFWE National WTO Notification Contact Point, are going to implement the SPS 
Notification Submission System for informing third countries on draft phyto -sanitary measures, as 
well as the TBT Notification Submission Syste m for informing third countries on draft plant protection 
products measures and can notify all updated legislation and regulations that have been updated 
before 201 9.  
 
Page 60, paragraph 3.114 : The Secretariat stated that "With respect to certain issues raised in 
the 2018 European Commission report on enlargement, the authorities indicated that several steps 
were recently taken to strengthen the capacity of the Phytosanitary Inspectorate to collect and 
analyse data, to develop a phytosanitary infor mation and communication system, to enhance the 
effectiveness of phytosanitary inspection, and to meet international standards regarding the 
determination of pest status ."  WT/TPR/M/390/Add.1  
 
- 36 - 
 
North Macedonia has noted the results of the needs assessment conducted by the EC on the country's 
ability to analyse data.  
 
7. Can North Macedonia  please explain how the government is currently conducting 
SPS risk assessments, and how it is determining the appropriate level of 
protection, as the country approximates SPS legislation to the EU?  
Answer  
SPS risk assessments in the phytosanitary sector is in early phase of implementation. The national 
legislation is approximated without re -assessment of risks. For risk assessments of new species of 
harmful organisms (PRA), which are important for Macedonia n agriculture and forestry, the 
international standard ISPM 11 has been adopted by "Rulebook on Pest Risk analysis for quarantine 
pests" (Official Gazette of the Republic of North Macedonia 35/14).  
The international trade i.e. import of agricultural commo dities presents a potential risk of 
introduction of new pests that requires PRA and permanent monitoring and control activities and 
alignment of national legislation on plant health with EU acquis. With IPA 2015 project, national 
experts from university, i nstitutes and State Phytosanitary Laboratory will be trained in using 
quantitative PRA, in comparison to quantitative PRA in CAPRA scheme of EPPO. An expert working 
group will be established, which will perform pest categorization as the first phase of PRA  in order 
to determine whether the pest fulfils the criteria of a quarantine pest or those of a RNQP for the 
area. The expert working group will:  
− Review existing phytosanitary policies and priorities,  
− Identify and assess selected pest risks to agricultural  crops, forestry and the environment 
from plant pests,  
− Create lists of pest subject to PRA,  
− Prepare lists of regulated plants and plant products,  
− Assist in identifying appropriate management options accompanied with specific 
phytosanitary measures.  
Since p revious TPR, the Phytosanitary Directorate (NPPO) has been preparing an Annual Monitoring 
Program me (MP) which includes visual inspection and sampling for testing for all strategic 
agricultural crops (seed and ware potatoes, grape and fruit, vegetables, to bacco). The main objective 
of this program is interception and early detection of quarantine pests in the place of production, 
place of storage as well as place of import. The MP is implemented by the Phytosanitary inspectors, 
and the State Phytosanitary L aboratory (SPL), which performs laboratory analysis. The pest risk 
assessment includes relevant national expertise, as well as preparation of phytosanitary measures 
and strategy for to be taken against certain pest.  
At the moment, the World Bank supports t he work of the border phytosanitary inspection in order 
to be harmonized with the obligations arising from Regulation 625/2017, categorization of shipments 
with low, medium and high level of risk, providing rational and efficient work of the border 
phytosa nitary inspection, the flow of goods at the border crossings. Additionally, standard operating 
procedures for the work of the border phytosanitary inspection and trainings for border phytosanitary 
inspectors are planned to be realized. In addition, the str ategic framework for performing inspection 
controls based on risk analysis is under preparation.  
 
3.3.7 Government procurement   
Page 64, paragraph 138 : The value of government procurement in North Macedonia amounted to 
MKD 38,2 billion, or 6% of GDP, in 2017. This was a significant decrease from 2016, when the value 
of public contracts awarded was MKD 58.8 billion (10% of GDP).   
 
8. Are more recent statistics  available from 2018?  
Answer  
The value of government procurement for 2018 , gathered from the ESPP dat abase, amounted to  
MKD 46.4 billion or  7% of GDP.  
 
3.3.8 Intellectual property rights   
Page 70, paragraph  3.166 : The Secretariat notes that North Macedonia's legal framework on IPR 
"has progressively been aligned with EU legislation."  
 
9. Now that the EU has joined the Marrakesh Treaty to Facilitate Access to 
Published Works for Persons Who Are Blind, Visually Impaired , or Otherwise Print WT/TPR/M/390/Add.1  
 
- 37 - 
 
Disabled, does North Macedonia have any plans to amend its domestic legislation 
to address Marrakesh Treaty obligations?  
Answer  
Ministry of Culture is analysing  the obligations in the Marrakesh Treaty prior to make certain 
amendments in the relevant IPR legislation.  The Law on Copyright and Related Rights contains 
provisions for use of a copyright work without authorization only in certain special cases, provided 
that the use does not conflict with the normal exploitation of the work a nd does not unreasonably 
prejudice the legitimate interests of the author. Those provisions shall not apply to computer 
programs.  
The use of a copyright work without remuneration shall apply to cases when the use is for the benefit 
of persons with special  needs (disabilities) in a way which is directly related to the special need 
(disability), to the extent required by the need and for a non -commercial purpose.  
 
10. What laws and regulations currently govern the misappropriation of trade 
secrets? Does North M acedonia intend to align its legal framework with the 
European Union Directive on Trade Secrets?  
Answer  
SOIP is at initial stage regarding the alignment of the Law on Industrial Property with the European 
Union Directive on Trade Secrets. The directive is already translated in the domestic language and 
a working group to work on its transposition is already established. A first draft is expected to be 
prepared in due course till the end of 2019.  
 
11. What laws and regulations currently govern copyright piracy in the digital 
environment? Does North Macedonia intend to align its legal framework with the 
European U nion Directive on Copyright?  
Answer  
The Law on Copyright and Related Rights is harmonized with the Information Directive and contains 
provisions which  are applicable to analogue and digital use and to some extend refer to regulate 
copyright piracy in the d igital environment, as follows:  
− The use of copyright works without remuneration shall apply to the cases which arise from 
the relevant provisions in the Information Directive, particularly:  
(1) The use of a database or of a copy thereof by the lawful user shall be without 
remuneration, if it is necessary for access and normal use of its components.  
(2) Communication to the public of a title of an article, piece and other similar work about 
current economic, political, religious and other similar topics, in  an electronic publication 
taken over from another electronic publication or another source for the purpose of 
informing the public shall be free of charge, unless it has been explicitly forbidden by the 
author, or the holder of the right, under the condit ion that the source has been named, as 
well as the name of the author if that has been enabled  
− Protection of technological measures  
(1) Technological measures shall mean any technology, computer program, device or their 
components, which in their normal c ourse of operation are designed to prevent or restrict 
acts of infringement of the rights , which are not authorized by the right holder. These 
measures shall be deemed effective if the right holder implements them by applying access 
control or protection p rocess, such as encryption, scrambling or other transformation of 
the work, as well as by mechanisms for copy control.  
(2) an entity infringes an exclusive right provided by this Law, in the knowledge or with 
reasonable grounds to know, that it undertakes  any activities of circumvention of the 
effective technological measures for the right protection.  
(3) It shall be considered as infringement of the exclusive rights provided by this Law 
when a person manufactures, imports for the purpose of distribution, distributes, sells, 
rents, advertises for sale or rental, or possesses for commercial purposes a technology, 
computer program me, device or their components, or provides services without 
authorization, of any effective technological  measures, which:  
1. Are promoted, advertised or marketed for the purpose of circumvention of 
technological measures;  
2. Have only limited commercial purpose or use, other than to circumvent;  WT/TPR/M/390/Add.1  
 
- 38 - 
 
3. Are primarily designed, produced, adapted or performed for the purpos e of enabling 
or facilitating the circumvention of technological measures.  
Further alignment of the Directive on Copyright in the Digital Single Market is expected 
in due course.  
 
Page 74:  paragraph  3.180: Regarding the Secretariat's summary of customs enforcement 
measures against IPR infringing merchandise we note that all of these actions were for trademark 
infringement/counterfeiting.  
 
12. Does North Macedonian Customs have legal authority to suspend release of 
pirated copyright goods? If so, are any statistics available? If not, why is 
copyright infringement excluded from border enforcement efforts?  
Answer  
North Macedonian Customs have legal authority to suspend release of pirated copyright goods  
according to the Law for customs measures for imple mentation of protection of intellectual property 
rights , harmonized with EU regulation 608/2013. At the Customs Administration of the Republic of 
North Macedonia by the right holders or legal representatives are submitted 11 requests for 
protection of copy rights that were accepted. From the period 2013 to 2019, the Customs 
Administration has 125 cases, which held about 505 ,507 pieces of various goods based on copyright 
infringement.  
 
Page 74, paragraph  3.181: The Secretariat notes that enforcement of IPRs t hrough the court 
system remains a challenge for North Macedonia.   
13. Can you share any information with respect to the number of prosecutions and 
convictions in recent years for IP crimes?   
Answer  
In the past two years, the Customs Administration forwarded to  the judicial authorities 26 criminal 
charges for infringement of intellectual property rights.  
The judicial authorities' reject 11 of them, 10 are accepted and the rest are in procedure.  
 
14. Similarly, does North Macedonia have any plans to address this know ledge deficit 
within its law enforcement bodies? If so, how.  
Answer  
Knowledge deficit within its law enforcement bodies in the customs administration is carried out by 
continuously raising the knowledge through the holding of presentations, seminars and workshops 
in cooperation with the legal representatives of the trademarks.  
 
Questions based on the Government Report (WT/TPR/G/390)  
 
4 TRADE AGREEMENTS AND ARRANGEMENTS  
4.1 WTO  
 
Page 16 paragraph 4.1 : The Government of North Macedonia stated that "North Macedonia has 
consistently pursued to have an open and transparent trade regime fully compatible with WTO rules 
and disciplines."  
 
15. The United States notes that North Macedonia has only notified five SPS 
measures WTO to date. When does No rth Macedonia plan to notify its remaining 
measures?  
Answer  
North Macedonia  can notify all updated legislation and regulations that have been updated in order 
to align with the EU acquis before 201 9. All Members are aware that they have a chance to give 
comments when EU submits notification, therefore all comments of Members are incorporated in the 
EU text and taken into consideration before measures become final in the EU and after that they 
become part of the legislation of North Macedonia . 
 
North Macedonia will notify new laws and regulations to the WTO SPS Committee according to the 
SPS Agreement.  
 WT/TPR/M/390/Add.1  
 
- 39 - 
 
3 TRADE POLICY DEVELOPMENTS  
3.1 Licenses, Export/Import Controls  
Page 5, paragraph 3.4:  The Customs Administration says the country has made considerable 
efforts to liberalize 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.  
16. What are the Customs Administration and other relevant agencies and 
institutions in the country  doing to pursue further refinements and simplification 
of the procedures involved?  
Answer  
Customs Administration within the Framework of the National Trade Facilitation Committee (NTFC), 
plan to improve the existing EXIM system to be fully complied with the WTO TFA Single Window. 
National Single Window (NSW ) also is supported by the  World Bank Loan for Western Balkans Trade 
and Transport Facilitation Project. This project will be implemented in its first phase in Albania, North 
Macedonia and Serbia. National Single Window will lead to Design and Installation of a National 
Single Window and the d eployment of the governance dimension of the National Single Window.  
 
3.2 Customs Procedures   
Page 6, paragraph 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.  
17. Has the system becom e operational?  If not, when is it expected to come online?  
Answer  
The new Customs Declarations and Excise Documents Processing System become operational on 
1 June 2019 for Export and for import in some customs offices. The full implementation on the 
Impor t started on 3  July 2019. Till today, there were not found any difficulties within the 
implementation of the system.  
 
3.6 Foreign Investments   
Page 7, paragraph 3.17:  Attracting foreign direct investment remains a key component of the 
Government's strategi c objectives of increasing competitiveness and achieving higher economic 
growth and development.  The current Government Program (2017 -2020) identifies as one of its 
priorities the development of the domestic enterprises' backward linkages with foreign comp anies 
operating in the country.  
18. What steps is North Macedonia taking  to ensure foreign investors have a 
predictable and transparent business climate in which existing agreements and 
contracts are respected and access to reliable dispute resolution is assur ed? 
Answer  
The Government ha s established good communication links with the business community including 
FDI. The final objective is to set a dynamic and sustainable economic system. The Foreign 
Investment Council as an association of foreign investors in the country, on regular basis  submit 
White Bible as a document that offers a set of priorities in economic policy, as seen by the foreign 
investors, but additionally reveals suggestions for ease of doing business in specific business areas, 
in order to stimulate more dynamic investmen t of foreign capital in the country.  
The White Book also contain proposals and measures to tackle the detected challenges but also 
attract new foreign investors and improve the business climate for the existing ones.  
The five working groups ( human resource s; tax and finance; property regulations; administration 
and legal regulations; health, safety and environment) within the FIC will carry out review and 
assessment of the current business climate and legal regulations that affect the doing business in 
the country.  
Furthermore, they will work out on new set of measures and recommendations towards obtaining 
sustainable business environment: http://www.fic.mk/default.aspx?mId=3&evid=35768   
 WT/TPR/M/390/Add.1  
 
- 40 - 
 
In the  bilateral agreements on promotion and protection of investments there are clauses for 
treatment and protection of investments and dispute resolutions.  
 
3.7 Technological Industrial Development Zones (TIDZs)  
Page 8, paragraph 3.20:  TIDZs are industrial parks equipped with infrastructure suitable for 
manufacturing activities, based on "normal" rules and regulations, a set of specific regulations for 
the zones providing favorable investment climate and efficient administrative support . 
19. Can North Macedonia  explain in more detail how it defines "normal" rules and 
regulations in this context?  
Answer  
All national rules and regulations also apply in the TIDZs. In addition, specific legislation for the 
zones applies. The Law on the Technolog ical Industrial Development Zones contains provisions 
including the scope of support for investing in the zones and the administrative procedure of the 
establishment, development and operation of the zones, leasing of construction land in the zone, 
issuanc e of a construction approval, issuance of approval for use of a facility, and becoming a user 
of the zone, as a domestic or foreign natural person or legal entity.  
 
3.10 Intellectual Property   
Page 9, paragraph 3.26.; [The National Strategy on Industrial Property 2016 -2018's] 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, and;  
Page 9, paragraph 3.27:  The Republic of North Macedonia's legal framework on intellectual 
property rights (IPR) is quite comprehe nsive.  
20. With these  two passages in mind, what specific actions is North Macedonia taking 
to provide for the protection of well -known marks?  
Answer  
Well-known marks do not need to be registered in the Republic of North Macedonia in order to be 
protected. In case of an opposition or cancelation when the applicant thinks that its trade mark is a 
well-known for territory of the North Macedonia, the applicant should prove the same. It should 
consider: commercials, surveys, invoices of the sale samples etc. Based on it, SOIS refuses the 
opposition or cancelling  the decision to register the trade mark.  
 
3.12 Public Procurement   
Page 11, paragraph 3.39 : The public procurement system 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.  
21. Following media reports and analyses that one in three public procurement 
tenders end with a single bid and calls for procurements to be re -tendered, what 
measures is North Macedonia taking to make the public procurement system 
more efficient and effective?  
Answer  
The new Law on Public Procurement incorporates number of measures to  increase the efficiency and 
effectives of the public procurement system. It encourages contracting authorities to split contracts 
into lots in order to open the market to smaller economic operators. It also introduces small -value 
e-market place that will increase efficiency of small value procurements. One of the goals of the new 
law is to boost confidence in the procurement market by promoting transparency through publication 
of procurement plans and procurement data of concluded contracts, including copi es of contracts 
that are publicly available to all interested parties. It improves and streamlines the appeals 
procedure by facilitating access to documentation to all economic operators that participate in the 
procedure through the Electronic System of Pu blic Procurement. The law also contains provisions  
stipulating administrative control to be performed by the Public Procurement Bureau of higher -value WT/TPR/M/390/Add.1  
 
- 41 - 
 
procurements, as well as a "red -flag" system for identifying possible risks. There are plans for 
sharing this risk assessment tools with competent authorities in the field of combating corruption.  
 
  WT/TPR/M/390/Add.1  
 
- 42 - 
 
9  REPUBLIC OF KOREA  
PART II: Questions Regarding the Government Report (WT/TPR/G/390)   
Page 13 (Para 3.52)  
 
b) Decision on total installed power of preferential el ectricity 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 
electric ity 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 electricit y 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 preferent ial producers from hydroelectric power plants, with no 
limits in the total installed power.  
 
Question 1  
According to the EU Commission's 2014 Environmental and Energy state Aid Guidelines (EEAG), EU 
member states are recommended to abolish feed -in tariff system and to introduce market -based 
feed-in-premium and Auction Tender systems. In line with the recommendation, does the 
government of the Republic of North Macedonia have any plan to change the current supporting 
systems in the renewable energy s ectors?  
 
Answer  
The Government of the Republic of North Macedonia already changes the current supporting systems 
in the renewable energy sector with adoption of the Decree on the measures for supporting the 
production of electricity from renewable energy s ources. The feed -in tariff as a calculated amount 
allocated for the purchased electricity by the market operator, which has been applied as a support 
measure, will continue to be applied to certain technologies, that is, the energy produced by the 
hydroele ctric power station, the wind power plant, the thermal power plant on biogas and biomass 
thermal power plants. The feed -in tariffs granted for photovoltaic power plants for produced and 
sold electricity is already abolished due to already reserved quota, a ccording to the sub law.  
Due to the harmonization with the Guide to the European Commission for the allocation of state aid 
in the environment and energy, the maximum installed capacity of thermal power plants of biogas 
and biomass thermal power plants fo r which a feed -in tariff will be granted, after the expiration of 
the transitional period, concluding 1 July 2020, will be reduced from the current 3 MW to 1 MW, 
while the current total installed capacity for feed -in tariffs is 10 MW. The total installed c apacity for 
wind for which feed -in tariff is applied is 85 MW. The additional tariffs, except for the energy 
produced by hydroelectric power plants, will continue to be awarded on the basis of the "first come -
first served" principle in a procedure before t he Regulatory Commission for Energy and Water 
Services. The amounts and the period of use of the feed -in tariffs established by this Regulation 
shall be the same as the applicable Regulation. While, feed in tariffs for produced and purchased 
electricity fo r preferential producers from hydroelectric power plants, will be granted in transparent 
and non -discriminatory procedures.  
 
In accordance with the guidelines of the European Commission and the Energy Community, the main 
support measure should be the premi um as an additional amount of the price paid by the beneficial 
producer to the sale of the produced electricity. As such, the premium is a novelty in our national 
legislation. The premiums will be granted for energy produced from wind power plants and 
photovoltaic power plants for which according to the analyses made there is the greatest interest 
among the investors.  
Unlike the feed -in tariff, the premiums will be awarded through a tender procedure with an auction, 
with the maximum installed capacity being  50 MW for wind power plants and 30 MW for photovoltaic 
power plants. The period for the use of electricity premiums produced by a wind power plant is 
20 years, while for the photovoltaic power plant 15 years . 
 
Question 2  
How does the Government of the Rep ublic of North Macedonia secure fairness and transparency in 
the process of selecting main operator in governmental tender?  
 WT/TPR/M/390/Add.1  
 
- 43 - 
 
Answer  
The Decree on the measures for support of electricity generation from renewable energy sources 
initiates a tender procedure with an auction for awarding premiums, contain s: 
 
1) the subject and purpose of the tender procedure ; 
2) the types of power plant technologies for which premiums are to be awarded ; 
3) the total installed capacity by technology, for which the premiums are awarded ; 
4) the location, or the land on which the power plant for which the premium is granted is to be 
built, if it is a construction land owned by the Republic of North Macedonia ; 
5) the maximum amount and the source of the funds allocated for premiums ; 
6) the m aximum reference amount of the fixed premium for each technology for which a premium 
is granted ; 
7) the type of tender procedure and the manner of implementation ; 
8) appointment of the president and members of the commission for implementation of the tender 
procedure, their deputies, as well as engaging external experts, if necessary, and  
9) the deadline for preparation and submission of approval for the tender documentation.  
 
The public call for conducting tender procedure with an auction for awarding premiums shall 
contain data on:  
1) the types of power plant technologies for which premiums are awarded ; 
2) the total installed capacity per technology for which the premiums are awarded ; 
3) the land on which the power plant for which the premium is granted should be built, including 
data on the existing infrastructure, if it is to be built on a construction land owned by the Republic 
of North Macedonia ; 
4) the maximum reference amount of the fixed premium for each technology for which a premium 
is granted ; 
5) the type of tender procedure and the manner of implementation ; 
6) the conditions for participation (eligibility criteria) of the bidders and the documents verifying 
that the conditions are met ; 
7) the mandatory elements of the bid ; 
8) value of the bid guarantee (bid bo nd) in a form of a bank guarantee, as well as the value of the 
bank guarantee for timely and quality performance of the contract for the right to use the 
premium (performance guarantee) , whose amounts are determined based on the planned 
installed capacity of the power plant ;  
9) the criterion for selection, i.e. awarding premiums ; 
10) date, time and manner of submission of bids ; 
11) the manner of conducting the auction ; 
12) the deadline for the construction of the power plant ; 
13) the manner of obtaining the tender documentat ion and  
14) the manner of communication between the Ministry and the bidders during the implementation 
of the tender procedure.  
 
In order to secure fairness and transparency in the process of selecting main economic operator,  
the tender procedure for awarding premiums shall be implemented as a restricted or open procedure 
in accordance with this Decree and the Law on Public Procurement.  
The Ministry shall publish the public call referred to in Article 15 of this Decree on its web site, in the 
"Official  Gazette of the Republic of North Macedonia" as well as at the Energy Community Secretariat 
web site. If the tender procedure for awarding premiums is implemented as an open procedure, the 
deadline for submission of bids cannot be shorter than 60 days .  
 
  WT/TPR/M/390/Add.1  
 
- 44 - 
 
10  MONTENEGRO  
We refer to the Report by the Secretariat and ask questions relating to the labour market  
1.2.3.2  
 
(Paragraph 1.23) Which measures does North Macedonia plan to undertake in the upcoming period 
in order to reduce the unemployment rate?  
 
Answer:  
In the operational plan for active program mes and measures for employment , targeted measures 
are referring to: long -term unemployed; improving skills  for self -employment and starting a 
business; subsidized employment program mes; training for a know n employer and for demanding 
occupations, municipal works, pilot measures, as well employment services for both employers and 
job seekers.  
The profiling of unemployed and the individual employment plans serve to direct measures towards 
the most vulnerable  unemployed. Thus, young, long -term unemployed, low -skilled and unemployed 
over the age of 50, a focus will also be placed on people who are inactive for more than 5 years on 
the labour market. Activities for development of social entrepreneurship will be included, as well as 
measures for early prevention of the loss of knowledge and skills of young people after completing 
their education until their inclusion in the labour market (youth guarantee).  
Youth Guarantee Measure means that each young person unde r the age of 29 will be given an 
adequate job offer, an opportunity to continue education or be included in some of the internship or 
training measures for preparation for employment. This will be provided within four months after 
completion of education o r registration as an unemployed person in EARM. In 2018, 1 ,979 young 
persons were included in the Youth guarantee Program me out of which 586 successfully employed, 
705 involved in some training or practice and 688 included in the service for intermediation  in 
employment.  
 
(Paragraph 1.23) How is it trying to bridge the gap in mismatches between the labour market and 
skills?  
Answer  
National Qualification Framework (NQF) for lifelong learning was developed as a tool for reforms in 
the education and training system and as tools for communicating a quick response to the needs of 
the employers. NQF will be supported by the Skills Observatory, which will be used to analyse the 
adequacy of the skills students have in correlation with the labour market needs in ord er to 
continuously improve the curriculum in accordance with the requirements of the employers. The 
Skills Observatory will also support key national stakeholders, including universities, secondary 
schools, training providers etc. The objective of the Skil ls Observatory is to support the development 
of evidence -based policymaking for development of vocational and professional education, by 
providing adequate analytical and informational capacity.  
VET reforms have already started and according to the labour market analysis, 79 new qualifications 
for formal education and 5 standards of qualifications for non -formal education have been prepared. 
Thirty -four special program mes were developed within adult education, as a possibility to acquire 
qualifications, pre -qualification or additional qualification, in accordance with the labour market 
needs. The cooperation with the employers has strengthened though practical learning with 
employers, who prepare the students for future work processes during their education and through 
the preparation of the curricula and syllabi.  
Since September 2018, with German support, Republic of North Macedonia has introduced dual 
education system, which will enable students from vocational schools to acquire practical skills in 
within companies. Students from second year will spend two days i n school, three  days in company. 
In 2019, seven classes for dual education in five regions are expected to be adapted for dual 
education. The goal is to provide qualified and skilled workers according to the needs of the industry.  
 
(Paragraph 1.23) Which solutions they propose for the problem of migration of skilled workers?  
Answer  
To provide qualified and skilled workers according to the needs of the industry, support youth i.e. 
young generation to establish their own business and creation of higher paid jobs are considerable 
solution for the problem of migration of skilled workers.  The minimum wage has been increased and 
the plan is to be increased even more in 2019, to create spiral of raise of wages in the overall 
economy. These solutions are intended in the Plan for Economic Growth.  WT/TPR/M/390/Add.1  
 
- 45 - 
 
 (Paragraph 1.24) How do the voucher systems f or combating the grey economy work, which have 
been applicable from June 2018?  
Answer  
Additional information of voucher system will be provided once the process is fully established.  
  WT/TPR/M/390/Add.1  
 
- 46 - 
 
11  ARGENTINA  
Informe WT/TPR/S/390  
 
En el párrafo 2.8 se menciona la puesta  en funcionamiento en marzo de 2018 del Comité Nacional 
de Facilitación del Comercio. ¿Cómo evalúa Macedonia del Norte su experiencia con dicho Comité y, 
en particular, con el sector privado?  
Para 2.8 mentions the launch of the National Trade Facilitation Committee in March 2018. How North 
Macedonia assesses its experience with this Committee, and especially with the private sector?  
 
Answer  
The National Committee on Trade Facilitation (NCTF) is the only Government body that deals with 
trade matters due to trade facilitation. Main partners from the private sectors that play very active 
role here, are: the Economic Chamber of Macedonia, Macedon ian Chambers of Commerce, Chamber 
of Northwestern Macedonia, Macedonian International Freight Forwarders and Logistic Operators 
Association – MIFA, Association of Independent Unions of Transporters – MAKAMTRANS and 
Association of Enterprises for Internatio nal Road Transport Makedonija Soobrakjaj – AMERIT .  
NTCF for its work has developed Rules of procedure and till now held 3 sessions. The main activities 
in those sessions are: 1. discussion of the  national, regional and global priorities in the process of 
creating and implementing trade facilitation reforms;  2. defining mechanism for an effective inter -
institutional coordination of the activities for the implementation of the WTO Agreement on Trade  
Facilitation and other reforms aimed at simplifying and speeding up the cross -border trade 
procedures;  3.consultations between stakeholders in the public and private sectors for all measures 
and reforms to facilitate trade;  4. defining technical and finan cial assistance for implementation of 
the trade facilitation reforms;  5. increasing public awareness of measures, reforms and trade 
facilitation standards.  
 
En el párrafo 3.75 se menciona el Plan de Crecimiento Económico (EGP), cuyo pilar 2 consiste en 
medidas para mejorar la competitividad y la internacionalización. Al respecto, ¿Cómo evalúa 
Macedonia del Norte su experiencia en dicho pilar en lo relativo a la internacionalización de las 
microempresas y las pequeñas y medianas empresas (MIPYMES) en particu lar?  
 
Answer  
Increasing competitiveness and internationalization of companies is one of the key prerequisites for 
economic growth of the country, addressed by different strategies and programs.  
Having in mind that the Republic of North Macedonia is a small country and  following latest statistics 
showing that only 6,5% of the companies are exporting, this becomes very important topic for 
enabling economic growth. On the export side, micro enterprises dominated the structure of external 
trade by number of enterprises (51 .6%), accounting for 34.9% of the value of external trade in the 
Trade sector. Large enterprises, despite their insignificant participation in the structure by number 
of enterprises (2.9%), generated 78.7% of the value of external trade in the industry sec tor. 
Pillar 2. launches measures for supporting companies in competitiveness and internationalization. 
This is new Program me, introduced in mid -2018, and after the first year of implementation, the 
highest interest was shown for support of capital investme nts, and only few are interested in 
competitiveness support.   
The measure should contribute to the development of the economy by increasing competitiveness 
driven by stable companies with solid balance sheets and positive results. The intention is to 
stimu late investment in technological development and reinvestment of companies' profits into 
business development, which will have an effect on the productivity, profitability and 
competitiveness of companies, both on the domestic and foreign markets.   
  WT/TPR/M/390/Add.1  
 
- 47 - 
 
12  RUSSIAN FEDERATION  
QUESTIONS ON THE TRADE POLICY REVIEW - REPORT BY THE SECRETARIAT 
(WT/TPR/S/390)  
 
2 TRADE AND INVESTMENTS REGIMES  
2.4 Investment regime  
 
Page 30, para 2.44  
The Constitution guarantees equal rights for both national and foreign persons an d legal entities 
when conducting economic activities in the country, except as otherwise provided for by the law. 
Foreign investors may acquire property rights for buildings and other immovable assets used for 
their business activities, as well as full own ership rights over construction land, through a locally -
registered company.  
 
Question  
Access to which economic activities is limited for foreign investments?  
 
Answer  
The country d oes not have establish ed foreign investment negative list for economic activities where 
foreign investments are prohibited or conditioned.  
 
Question  
Does North Macedonia have a state mechanism for screening FDI to safeguard essential security 
interests, and if so, which sectors of the economy does it apply to?  
 
Answ er 
The government institutions in charge of attracting foreign investments conduct screening of the 
proposals and business plans for incoming foreign direct investment projects. The screening 
mechanism includes evaluation of project documentation submitted  to one of the relevant state 
institutions in charge for attracting FDI that consists of letter of intent and detailed business plan. 
The main purpose of the screening mechanism is to ensure economic benefit for the country and 
national security. In this r egard, the Technological Industrial Development Zones (TIDZs), prescribes 
business activities that cannot be conducted in the zone by the users of the zone (any domestic or 
foreign natural person or legal entity registered for performing a business activit y in accordance with 
the Law on Trade Companies):  
1) trade of decayed, spoiled goods with an expired date or infected goods, waste materials that 
pollute the living environment or that are not for human and animal consumption; 2) radio -active 
materials, ex cept those that are needed for the industrial, medicinal, scientific and research purposes 
approved by the competent bodies of the Republic of North Macedonia; 3) drugs, chemical and 
organic materials, chemical and biochemical derivatives with the exceptio n of those that are used in 
industrial, processing, medicinal and pharmaceutical purposes, in accordance with certificates issued 
by the Ministry of Health; 4) weapons, ammunition and explosives, except for commercial 
explosives; 5) production and services  that originate from countries or companies that are subject 
to embargoes and blockades imposed by national and international bodies and authorities; 6) 
production and services that endanger the public moral, public safety and defen ce, and 7) production 
and services that are not in accordance with the laws of the Republic of North Macedonia and 
international agreements ratified in the Republic of North Macedonia relating to the protection of 
intellectual and industrial property.  
 
3 TRADE POLICIES AND PRACT ICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Sanitary and Phytosanitary Requirements   
 
Page 60, para. 3.114  
With respect to certain issues raised in the 2018 European Commission report on enlargement, the 
authorities indicated that several steps were recently taken to strengthen the capacity of the 
Phytosanitary Inspectorate to collect and analyse  data, to devel op a phytosanitary information and 
communication system, to enhance the effectiveness of phytosanitary inspection, and to meet 
international standards regarding the determination of pest status.  
 WT/TPR/M/390/Add.1  
 
- 48 - 
 
Question  
According to the Secretariat Report, the Republic o f North Macedonia took several steps to 
strengthen the capacity of its Phytosanitary Inspectorate. Could the Republic of North Macedonia 
provide more information on this issue?  
 
Answer  
Ministry of Agriculture, Forestry and Water Economy (MAFWE) in December  last year has established 
working group for Phyto -sanitary policy aiming to improve communication and coordination among 
the CAs involved in the phyto -sanitary sector.  
In 2018, Phyto -sanitary Directorate prepared the first version of phyto -sanitary status  in which 
determines presence/absence or prevalence of harmful organisms.  
In January 2019, IPA 2015 project started for Improved implementation of animal health, food safety 
and phyto -sanitary legislation and corresponding information systems". Two compone nts in this 
project are relevant for the phyto -sanitary sector, as to: 1. Design, development and implementation 
of the Phyto -sanitary Information System (PIS) covers. It refers to developing PIS for plant health 
and plant protection products, in accordanc e with user needs, international and national 
requirements, standards and legislation. It is expected to be installed and fully operational, 
document record management system by the end of 2019; 2.  Further development and 
strengthening of capacities of the  CAs in the phyto -sanitary sector for Plant Health Status Pest Risk 
Assessment and undertaking measures for prevention of spreading of pests, establishment outbreak 
management and contingency plans for 2 pests prepared (for instance Xylella fastidious and 
Flavescence dorée).  
FAO initiated Regional Project for Support and enhancement of national plant pest surveillance and 
phyto -sanitary certification systems that will contribute to create an enabling environment to ensure 
the efficient work of NPPOs require d for sustainable and climate resilient systems to address threats 
caused by plant pests to food systems and facilitate market and trade of agricultural products.  
In 2018, in the Phyto -sanitary Directorate were reallocated employees from MAFWE. Also, in the 
State Phyto -sanitary Laboratory (SPL) in the Department for seed and seedlings testing and variety 
purity were reallocated employees from MAFWE. Department for P hyto-sanitary Inspection was 
increased for 8 employees as phyto -sanitary inspectors, through reallocation of staff from other 
departments in MAFWE.  
With EU funds (IPA/2015/EA/138804/DH/SUP/MK) new ICP/MS equipment and microwave for 
sample preparation for analysis of macro and micro elements as well as traces in fertilizers and in 
wine has been purchased. Also, equipment with new automatic Keldahl system for analysis of total 
nitrogen and ammonium in artificial fertilizers was installed in SPL. Additionally , SPL has been 
additionally equipped with: new Real -Time PCR for diagnostics of plant diseases and harmful 
organisms, two microscopes with cameras for the needs of nematology and entomology laboratories, 
electrophoresis with camera and scale for the molecu lar diagnostics laboratory and vortex mixer for 
mycology laboratory.  
In 2018, State Agricultural Inspectorate (SAI) continued with currant activities according to the 
legislation in the area of plant health, plant protection products as well as seed and se edling material. 
15 vehicles were purchased, as well as 33 lap top computers for the needs of phyto -sanitary 
inspection, which significantly improved technical conditions of phyto -sanitary inspection. Also, in 
the same year, the construction of border insp ection post Blace 2 was finalized.  
In the framework of EU -supported Integrated Border Management Project, it is planned to build an 
IT system that will enable electronic linkage and data exchange between all competent authorities 
that have competencies in  border management, including SAI. This activity has been started and it 
is planned to be finalized in February 2020 and will be integrated with PIS.  
At the moment, the World Bank supports the work of the border phyto -sanitary inspection in order 
to be har monized with the obligations arising from Regulation 625/2017, categorization of shipments 
with low, medium and high level of risk, providing rational and efficient work of the border phyto -
sanitary inspection, the flow of goods at the border crossings. Ad ditionally, standard operating 
procedures for the work of the border phyto -sanitary inspection and trainings for border phyto -
sanitary inspectors are planned to be realized. In addition, the strategic framework for performing 
inspection controls based on r isk analysis is under preparation.  
  WT/TPR/M/390/Add.1  
 
- 49 - 
 
13  REPUBLIC OF MOLDOVA  
(WT/TPWS/390 from 11 June 2019)  
 
2.32. During the review period, further progress on CEFTA implementation was made in the following 
areas: application of full cumulation and removal of the prohibition of duty drawback among CEFTA 
countries; ongoing negotiations for the gradual liberalization of trade in services (a draft protocol 
was finalized); the conclusion of an additional Protocol on Trade Facilitation in 2016, which entered 
into force in 2018 for all CEFTA parties (except Kosovo); the identification of issues to be addressed 
for the potential development of regional agreements on investment; and the enhancement of 
capacity building and transparency. Ratification of the Pan -Euro Mediterr anean (PEM) Convention 
was also a key outcome for CEFTA countries.  
 
Question 1 : The Republic of Moldova would like to commend the active engagement of the Republic 
of North Macedonia within regional integration processes. Could the Republic of North Macedo nia 
please provide examples of the issues identified to be addressed for the potential development of 
regional agreements on investment?  
 
Answer  
Within the Project implemented by the RCC - Regional Cooperation Council, each WB country is 
committed to prepa re IRAP - Investment Reform Action Plan. The purpose of preparing Action Plans 
is to improve the attractiveness of the region for foreign and interregional investors. Each country’s 
IRAP should contribute to the implementation of the Regional Investment Re form Agenda - RIRA.  
In order to improve the attractiveness of the region for foreign and interregional investments, among 
other measures, Western Balkan countries also need to modernize the draft models of the Bilateral 
Investment Treaties. With respect to  this measure, according to its IRAP, by the end of September 
2019, Republic of North Macedonia plans to identify the gaps and to develop recommendations for 
alignment of its IIAs with the standards in new generation of IIAs. This will be carried out withi n the 
Project financed by the RCC.  
After receiving the recommendations from the Project consultants regarding alignment of the 
existing Draft Agreement with the new generation of IIAs, Republic of North Macedonia will start 
preparing the new Draft Model fo r the IIAs.  
 
Question 2 : Are there any preliminary assessments or any drafts of potential agreements on 
investment within CEFTA parties? If that is the case, could the North Macedonia offer some details 
in this sense?  
 
Answer  
Republic of North Macedonia i nforms that preliminary assessments are not made yet or any draft 
text of potential Investment Agreement within CEFTA parties.  
 
2.36. The FTA between North Macedonia and Ukraine was concluded in 2001 and entered into force 
in the same year.28 Under the Agr eement, both parties committed to eliminate tariffs on each 
other's products in a gradual manner. Free trade in the industrial sector was established in 2009, 
after a five -year transition period for sensitive products and seven years for the most sensitive  
industrial goods. Under a Decision signed on 30 May 2009, agricultural products subject to tariff 
quotas within the FTA were to be fully liberalized, while the remaining agricultural products were to 
be subject to regular customs duties. The Decision has not yet come into effect. In May 2018, the 
two countries agreed to reopen negotiations in this respect, with the aim of achieving full 
liberalization of trade in agricultural and processed food products. The negotiations are ongoing . 
 
Question 1:  Could the  Republic of North Macedonia kindly inform at what stage are the above -
mentioned negotiations? Will the parties notify the additional renegotiated commitments to the WTO 
Members, accordingly?  
 
Answer  
The negotiations with Ukraine for further liberalization of trade in agricultural and processed food 
products has been resulted in agreed version of liberalization proposal by product lines prepared by 
the task force group, which currently is in a final ph ase of confirmation at the technical level. The 
agreed liberalization should be approved at the Joint Committee session within the bilateral FTA, 
perhaps by the end of 2019. After its ratification by both countries, it will be notified to the WTO 
Committee  on RTAs.  WT/TPR/M/390/Add.1  
 
- 50 - 
 
Question 2 : Please provide what are the current FTAs, which consider trade facilitation dimension, 
if any?  
 
Answer  
The current FTA which consider trade facilitation dimension is the CEFTA agreement. In the frame 
work of CEFTA was signed Additional Protocol 5 on Trade Facilitation to the CEFTA Agreement. 
Additional Protocol 5 provides trade facilitation that will be ach ieved through the establishment of 
transparent means and the simplification of customs and trade procedures to eliminate possible 
export risks and unimpeded access to markets in the region, i.e. establishing a rational market 
infrastructure. In that direct ion, data exchange and simplification of inspection controls from several 
competencies of the relevant authorities in each country are envisaged, as well as in their mutual 
synchronization, i.e. the necessary procedures of the customs administrations and i nspection 
services will be harmonized in the import and export of goods.  
It is envisaged mutual recognition of the programs of the national authorized economic operators of 
each CEFTA Party provided that the legislation and the application of each nationa l program are fully 
in line with the relevant European Union law.  
The technical annexes to the Additional Protocol specify the documents and data to be exchanged 
between the competent institutions of the CEFTA Parties, using the methodology to be used in t he 
data exchange procedure.  
 
3.100. The FVA carries out regular official controls on imports of food of non -animal origin, including 
food contact materials, pursuant to Article 88 of the Law on Food Safety. The controls are carried 
out at an appropriate pl ace; including the inspection post of entry of the products, the point of 
release for free circulation, warehouses, the premises of the importing business operator, or other 
points in the food chain. Currently, 11 Border Inspection Points of Entry are in o peration on the 
borders with Serbia, Bulgaria, Greece, Albania, and Kosovo. Official controls applied to imports of 
food of non -animal origin include at least a systematic documentary check, a random identity check 
and, where appropriate, a physical check.  
 
Question : Could the North Macedonia explain how often the regular official controls are organized 
and according to which requirements the FVA select the imports of food of non -animal origin that 
need to be controlled, are these based on a risk assessment  or any other selective procedures?  
 
Answer  
The official controls are carried out regularly, on basis of risk analysis and with appropriate 
frequency.  
All of the consignments of non -animal origin are subject of at least a documentary check at BIP.  
Whether the consignment is going to be subject of an identity check or physical check is based on 
risk assessment taking into consideration the following:  
− Information obtained from the notifications through the Rapid Alert System (RASFF);  
− Notifications and informa tion received from third countries;  
− Publicly available information which are exchanged between the European Commission and 
EU member states and EFSA . 
In addition, methodology for assessing and categorizing the risk at import is used, taking into 
considerat ion: 
− Previous experience and result of the import controls of the imported consignments ; 
− Quantity of the consignment ; 
− Suspicion . 
 
Also, the Food and Veterinary Agency adopts a programme for monitoring of food safety in the 
Republic of North Macedonia, on a nnual bases. In accordance to the programme, samples are taken 
from various foods for verification of the compliance with microbiological criteria, food contaminants, 
pesticide residues, heavy metals migration in food contact materials, nitrates in food, m ycotoxins in 
food, GMO, monitoring of food treated with ionizing radiation, as well as for determination of the 
quality of agricultural products with monitoring of the organic products.  
 
3.113. Imports of agricultural and forest plants, plant products, and seeds and plant propagating 
materials may be conducted only at the border crossing points specially assigned to perform 
phytosanitary checks in accordance with annual monitoring programm es. Importers are initially 
required to submit an Inspection Control Application, followed by quarantine pest sampling. Certified 
seeds and propagating material undergo phytosanitary inspection during vegetation periods by 
institutions appointed by the Min ister of Agriculture, Forestry and Water Management, as well as by WT/TPR/M/390/Add.1  
 
- 51 - 
 
laboratories carrying out the analyses. In general, for imports of plants, plant products, and seeds 
and plant propagating materials plants, a Phytosanitary Certificate issued by the Minist ry of 
Agriculture is required; there are no exceptions to this requirement. North Macedonia does not 
require additional certificates or sanitary registrations for products confirmed to be safe by 
recognized international authorities.  
 
Question 1 : Please pr ovide how many border -crossing points are specially assigned to perform 
phytosanitary checks?  
 
Answer  
Border Inspections Posts (BIPs) are defined according to the Decision for designated entry points for 
phyto -sanitary inspection (Official Journal of the R epublic of North Macedonia 59/10), and in total 
25 State phyto -sanitary inspectors perform phyto -sanitary inspection control on these BIP 's. The 
inspectors are responsible for import controls on plants, plant products and objects of plant origin 
at the border posts according to the Law on Plant Health.  
Designated points of phytosanitary inspection  
BIP Border  Type  
Blace  Kosovo  Road 
Tabanovce  Serbia  Road, Railway  
Deve Bair  Bulgaria  Road 
Delchevo  Bulgaria  Road 
Novo Selo  Bulgaria  Road 
Bogorodica  Greece  Road 
Blato Albania  Road 
Gevgelija  Greece  Railway  
Medzitlija  Greece  Road, Railway  
Kjafasan  Albania  Road 
Skopje  
  Airport  
Post, Telephone, Telegraph  
Railway  
Ohrid   Airport  
 
Question 2 : Could the Republic of North Macedonia offer more details related to the 
procedures/stages of issuing the Phytosanitary Certificate in terms of necessary days for issuing a 
certificate, costs, etc.? Is there any possibility to apply for such a Certificate online?  
 
Answer  
For consignme nts exporting from the Republic of North Macedonia requires a phyto -sanitary 
certificate, the phyto -sanitary inspector performs phyto -sanitary inspection of the consignment prior 
to issuing a phyto -sanitary certificate. The issuing of phyto -sanitary certif icate is on BIPs and in land. 
The model of national phyto -sanitary certificates is harmonized with the Annex of the IPPC. Phyto -
sanitary Certificate is issued according to the legal document prescribing the Form and Content of 
the Phyto -sanitary Certificat e or Phyto -sanitary Certificate for re -export and the form and content 
of the application for issuing of Phyto -sanitary Certificate (Official Journal 113/10, 8/11, 123/15, 
214/16 and 57/19)  
1.1 Submission of an electronic application and request (24 hours in advance)  
The procedure for issuing a phytosanitary certificate for export begins with the submission of an 
electronic application and a request from the State Agriculture Inspectorate ( www.diz.gov.mk ) by 
the applicant or the authorized freight forwarder.  
1.2 Documentary check  
The application and the request for issuing of phyto -sanitary certificate in paper form, accompanied 
by the accompanying documents shall be submitted to the state phyto -sanitary inspector  within a 
time limit of 24 hours from the planned export. It is necessary for the submitted application to be 
accurately and correctly filled in with all necessary data for issuing phyto -sanitary certificate for 
export.  
 
To the state phytosanitary inspecto r, the exporter or the authorized freight forwarder should submit 
the following documents:  
1. Application for phyto -sanitary inspection of consignments;  
2. Request for issuing phyto -sanitary certificate for export;  
3. Invoice;  
4. A document of authenticity for the ori gin of the goods and  WT/TPR/M/390/Add.1  
 
- 52 - 
 
5. Evidence for payment for performed phyto -sanitary inspection / issued phyto -sanitary certificate  
6. Decision on registration of the exporter in the Register of producers, processors, importers and 
distributors of plants, plant products an d other objects that are kept in the Phyto -sanitary 
Directorate, for consignments intended for export to the Russian Federation.  
 
In the process of issuing of phytosanitary certificate for export, the state phyto -sanitary inspector 
checks the submitted doc umentation with special attention to the reliability of the proof of origin of 
the goods.  
1.3 Conduct a health check of the consignment  
By carrying out a health check of the consignment - control is carried out by performing of visual 
inspections of plants  or plant products, including packaging, wood packaging material, vehicle and 
soil for the detection of harmful organisms.  
If necessary, the state phyto -sanitary inspector may take samples for laboratory examination, in 
order to determine the phyto -sanitary status of the consignment.  
1.4. Issuing of phyto -sanitary certificate  
The level of costs for issuing of phyto -sanitary certificate is prescribed in th e Decision for the level 
and way of payment of certain fee (Official Journal 141/11, 161/11, 131/17).  
 
Question : What are the current trends for implementing e -commerce initiatives under national law 
of the Republic of North Macedonia? If there are some ne w or ongoing initiatives, could the Republic 
of North Macedonia please briefly provide a summary?  
 
Answer  
In the Economic Reform Program (ERP) 2019 -2021 ( https://www.finance.gov.mk/en/node/7798 ) 
under  point 4.3.4 are envisaged measures regarding digital economy: New draft Law on Electronic 
documents, Electronic Identification and Trust Services harmonized with the Regulation no. 
910/2014 on electronic identification and trust services for electronic tr ansactions on the internal 
market (eIDAS) ; 
- New draft Law on Electronic Management and Electronic Services (replacing the Law on 
Electronic Management) defines the legal foundation for Interoperability platform, Service 
Catalogue, National Population Regist er, National Portal for e -Services and all future 
government -owned information systems ; 
- National Cyber Security Strategy 2018 -2022 and Action plan 
(http://www.mio.gov.mk/sites/default/files/pbl_files/documents/strategies/cyber_security_str
ategy_macedonia_2018 -2022_ -_eng.pdf ) addresses the challenges in cyberspace and fosters 
the development of safe, secure, reliable and resilient digital environment, supported by high -
quality capacities, based on cooperation and trust in the field of cyber security ; 
- National Operational Broadband Plan 2019 -2023  
(http://www.mio.gov.mk/sites/default/files/pbl_files/documents/reports/north_macedonia_nat
ional_operational_ broadband_plan_final_en.pdf ) to address specific measures and activities to 
improve the national broadband outlook, along with the development of 5G mobile technology. 
Among other elements, the Plan envisions the establishment of a National Broadband 
Compe tency Office, which will secure that all citizens will have equal access to broadband, 
enabling them to utilize the digital entrepreneurship opportunities ; 
- Developing digital skills for citizens, digital skills in the educational system and digital skills for 
public administration workforce. In order to strengthen the digital skills of citizens on a national 
level, current initiatives include organizing campaigns to inform and educate the citizens for the 
use of e -Services (National Portal for e -Services) a nd public awareness raising activities in the 
field of cyber security (National Cyber Security Strategy).  
 
3.33 A full comparison between MFN applied and bound rates was not possible; some 12% of tariff 
lines could not be compared, mainly due to changes in  the HS nomenclature and in the structure of 
the tariff schedule. For those lines for which a comparison was possible, applied MFN rates exceed 
the corresponding bound rates for 13 tariff lines (Table 3.5).  
 
Question:  Could the Republic of North Macedonia adjust the currently MFN applied rates under the 
bound rates and make these consistent with its WTO commitments? Please elaborate on the 
timeframe when the adjustments will be made.  
 WT/TPR/M/390/Add.1  
 
- 53 - 
 
Answer  
Customs Administration analysed the differences in the MFN applied  rates and WTO bound rates due 
to the several HS Amendments in 2007, 2012 and 2017 and found that in 5 tariff lines there is 
inconsistencies. For others it is in line with the WTO commitments. These adjustments shall be done 
with the next Amendments of the  National Customs Tariff, to be applied from 1 January 2020.  
 
3.41. Certain categories of products are subject to import licensing. The Decision on Classification 
of Goods into Forms of Export and Import contains nine annexes, listing products the import ( and/or 
export) of which requires a (non -automatic) licence from different government departments. The 
product coverage of the import licensing regime provided for in this Decision did not change in recent 
years. The import licensing provided for in this De cision applies to goods from all countries, is not 
intended to restrict the quantity or value of imports and is applied pursuant to the general exceptions 
in Articles XX and XXI of the GATT 1994.  
 
Question 1:  Please provide the exhaustive list of products subject to import licensing? Please 
provide a web link where this list could be found?  
 
Answer  
The list of products subject to import licensing could be found on the web page of the Ministry of 
economy under the section regulations/decrees and authorizations.  
http://www.economy.gov.mk  
 
Question 2 : Please describe what are the criteria for including/excluding a product from the list of 
products requiring import licensing?  
 
Answer  
The products are included/excluded in the list of products requiring import licensing according the 
separate national laws, International Protocols and Conventions, as:  
- The Endangered and protected wild animals, plants and fungi are listed according the La w on 
Nature protection, Convention on International trade in endangered wild flora and fauna (CITES) 
and CITES Convention Appendices I, II and III ; 
- Ozone depleting substances and Mixtures containing ozone depleting substances are listed 
according to the Law on Environment, Vienna Convention for the Protection of the Ozone Layer 
and according the Montreal Protocol on Substances that Deplete the Ozone L ayer; 
- Molybdenum ores and concentrates, Endangers materials, Cooling devices are listed according 
to the Law on Environment ; 
- Medicines, pharmaceuticals and medical devices are listed according to the Law on medicines 
and medical devices ; 
- Retreated or used pneumatic tyres of rubber and Technical products with cooling devices are 
listed according to the Law on Environment ; 
- Waste is listed according to the  Law on Waste management and Law on Environment ; 
- Chemicals are listed according to the Law on chemicals an d Chemical Weapons Convention ; 
- Narcotics drugs, psychotropic substances and precursors are listed according to the  Law on 
Precursors, Law on control of Narcotic drugs and psychotropic substances, Schedule 1 of the 
Single Convention on Narcotic Drugs 1961 a nd Convention on Psychotropic Substances 1971 
and the Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances 1988 ); 
- Armaments, explosives, pyrotechnic products, weapons and ammunition are listed according to 
the Law on Arms and Law on explosives ; 
- Arms and Weapons of mass destruction are listed according to the Law on armaments and 
Military equipment and the Common Military list ; 
- Ionizing radiation sources, nuclear materials, uran and thorium ores and concentrates, ex ray 
units ar e listed according to the Law on radiation security ; 
- Forest seedlings and Forest seeds are listed according to the Law on Reproductive Material of 
Forest Species ; 
 
Question 3 : What is the principle for allocation of the import licenses for these goods?  
 
Answer  
Each legal entity  or natural persons who fulfil the necessary  criteria  are granted  with license  thru 
the EXIM system . 
 WT/TPR/M/390/Add.1  
 
- 54 - 
 
Question 4 : Moldova commends the active engagement of the Republic of North Macedonia in 
submitting the notifications on Import Licensing Procedures. Will the Republic of North Macedonia 
revise its future format of notifications under Article 7.3 of the Agreement on Import Licensing 
Procedures and present a more detailed "product by product" notification on questionnaire on import 
licensing procedure, based on WTO Members and Secretariat recommendations?  
 
Answer  
Republic of North Macedonia intends to revise its future format of notifications under Article 7.3 of 
the Agreement on Import Licensing Procedures and present a more detailed "product by product" 
notification on questionnaire on import licensing procedure, based on WTO Members and Secretariat 
recommendations.  
 
3.43. Import licenses must be issued within a maximum of 15 days from the submission of the 
application. Ther e are no limitations as to the period of the year during which applications for licences 
may be made. When applying for an import license, an importer must approach only one 
administrative organ in connection with the application. If the application meets the criteria, a licence 
is granted. Failure to meet the ordinary criteria is the only circumstance in which a licence application 
may be refused. In the event of refusal to issue a licence, the applicant has the right to appeal, in 
accordance with the Law on General Administrative Procedure. A licence is valid for three or six 
months from the date of issue. There is no penalty for the non -utilization of a licence or a portion 
thereof. Licences are not transferable between importers. No other conditions are attached to the 
issuance of a licence. There is a licensing administrative charge of MKD 600 for administrative 
expenses pursuant to the Law on Administrative Fees; no deposit or advance payment is required 
for licensing. Applications for import licences c an be submitted electronically through the EXIM Single 
Window System.  
 
Question : Please describe what are the ordinary criteria necessary to be met for granting the 
license? Please provide details about the parameters according to which the validity term o f a license 
is set.  
 
Answer  
The criteria necessary to be met for granting a license are defined in the separate Laws for different 
licenses.  
The ordinary criteria necessary to be met for granting a license is applicant to give evidence that 
has: adequate s pace and equipment for the storage and sale of the product and appropriate staff 
and technical possibilities for servicing depending on the type of product.  
 
The criteria necessary to be met for granting a specific import license are:  
 
Type of Goods  Criter ia 
For medicines and medical 
devices  − To have adequate premises, equipment and personnel for 
wholesale, transport, distribution and storage in accordance 
with the quantity and the assortment of medicinal products for 
wholesale trade,  
− To employ an adequate number of professionals with higher 
education in the field of pharmacy and other relevant fields,  
− To have employed person responsible for receiving, storing, 
distributing, transporting and delivering medications, as well as 
for monitoring the docu mentation that ensures the traceability 
of medicinal products, and should have higher education in the 
field of pharmacy and is constantly available,   
− Keep proper documentation in a manner that allows traceability 
of medicinal products and immediate withdr awal from the 
supply, as well as monitoring of complaints,  
− To meet the requirements for performing a trade activity in 
accordance with the regulations in the field of trade,  
− To have introduced a quality system and organized work 
processes in accordance wit h the principles of good distribution 
practice and fulfil the obligations of public service, that is, to 
guarantee a consistent and appropriate range and quantity of 
drugs that meet the needs of the territory of the Republic of 
North Macedonia and in a sho rt period of time to deliver the 
necessary medicines to end users,  
− To have an employed person or in any other manner engaged 
person with higher education in the field of pharmacy and WT/TPR/M/390/Add.1  
 
- 55 - 
 
Type of Goods  Criter ia 
specialization in the field of examinations and control of 
medicinal prod ucts that constantly is available and ensures that 
each batch of imported medicinal products is subject to quality 
control in accordance with this Law and with the conditions of 
the marketing authorization or the import authorization.  
For asbestos, (Tariff No. 2524), 
asbestos cement products, 
cellulose cement products (Tariff 
No. 6811), processed asbestos 
fibres, asbestos -based mixtures 
asbestos -carbonate base, 
products of those mixtures 
based on asbestos (filaments, 
weavers, clothing, headgear, 
footwear, dips), reinforced or 
not reinforced ( Heading 6812), 
except for products of Tariff 
No. 6813,  − A statement for the purpose of the use of a lot of materials, as 
well as for the use of materials,  
− Evidence ( proof) that it is not po ssible or justified substitution 
of asbestos with unsafe materials,  
− Data for the end -user and use of the device (application), if the 
same is used for the further sale, 
− Assessment of the annual needs of the goods being imported, 
and 
− Data on measures and ru les that are being taken or planned for 
the gradual shutdown of asbestos from use.  
For halogenated derivatives and 
hydrocarbons ( Heading 2903) 
and other products of the 
chemical industry, mixtures 
containing two or more different 
halogens ( Tariff Nos. 
3824710000 and 3824799999)  − Characteristics  of the raw material if it is used in a certain 
technological process and analysis of possible environmental 
and nature pollution as well as solutions for protection,  
− The numbering of the number of codes for each component, in 
the case of the gadget, consists of several different components  
(e.g. refrigerators, display cabinets,  fridges),  
− Chemical formulas with the characteristics of the item,  
− Safety data sheet for each of the imported chemicals,  
− Origin of the good, full name of the producer  of imported 
goods;  
− Data for the end user with explanation for the product 
application and end use statement on the chemical application,  
− Evidence that he has adequate space and equipment for the 
storage and sale of the product,  
− Evidence that he has appr opriate staff and technical possibilities 
for servicing,  
− An overview of quarterly needs and a report on the status of 
pre-imported goods,  
− Measures for handling unusable goods and waste material  as 
well as the manner of its disposal / disposal / recycling.  
For nuclear reactors (Euroatom), 
machines and apparatus for 
separation of isotopes and their 
parts (Euratom), fuel elements 
(cartridges), non -irradiated 
(Euroatom), parts of nuclear 
reactors (Euratom), 
refrigerators, freezers and other 
cooling or freezing devices and 
equipment  − Evidence that he has adequate space and equipment for the 
storage and sale of the product,  
− Evidence that he has appropriate staff and technical possibilities 
for servicing,  
− An overview of quarterly needs and a report on the  status of 
pre-imported goods,  
− Measures for handling unusable goods and waste material  as 
well as the manner of its disposal / disposal / recycling,  
− The numbering of codes for each component, in the case of the 
gadget, consists of several different compone nts  
For protected and used external 
pneumatic with airborne 
chambers, variable protectors 
and guards of rubber ( Heading 
401221090000, 4012209000, 
401290000)  − Statement  on the purpose of the import: for further sale, 
processing, for new final rubber products or for other 
technological needs for further processing,  
− Statement of the applicant when importing tires for further 
processing, in terms of what kind of completion will be 
performed, reparation, manner of protection, protection,  
− Elaborate on technological procedure for import of tires that will 
be used for new final rubber products or other technological 
procedure  (granulation),  
- Evidence (proof) that there is a techn ological line with an 
annual capacity of the technological process for protection with 
environmental technology - a project approved by the Ministry 
of Environment and Physical Planning in which the technological 
process, the annual capacity of the techn ological line, quantity 
and characteristics of the raw material, quantity and quality of 
the finished product, as well as the manner of treatment with 
the waste material, i.e. its recycling – disposal,  
− A contract with the legal entity or natural person for  further sale 
that meets the requirement specified in line 4.  WT/TPR/M/390/Add.1  
 
- 56 - 
 
Type of Goods  Criter ia 
For Waste materials  - An overview of the technological process with characteristic of 
the material, if the goods are used as raw materials, as well as 
to display the finished product, analysis of the possible sources 
of pollution with measures for protection of the environment 
from possible pollution, manner of disposal/removal/ recycling 
of the waste material,  
- A statement from the end user for the ultimate purpose of the 
goods,  
- A certificate of radiological safety from the authorized 
institution of the country of the exporter,  
- Agreement with the end user of the goods.  
For dangerous waste  - Data shall be provided in accordance with the forms of the 
Annexes of the Basel Convention  
For endangered and protected 
wild animals, plants and fungi  Statement of origin of the species of wildlife, plants and fungi  
For ionizing radiation sources, 
nuclear materials, uran  and 
thorium ores and concentrates, 
ex ray units  - License for performing the activity with ionizing radiation of the 
end-user  
- Statement of the applicant's consent,  
- End use statement from the end user,  
- statement by the carrier that he agrees to perform the  carriage  
- Certificate of container approval,  
- Certificate of Conformity,  
- Technical specification,  
- Agreement for return of spent sources  
For armaments, explosives, 
pyrotechnic products, weapons 
and ammunition  - License for performing the activity trade with weapons and 
ammunition, explosives and pyrotechnic products  
- Evidence that he has adequate space and equipment for 
security storage and sale of the product,  
- Evidence that he has appropriate staff and technical possibilities 
for performing the activity , 
- Certificate for passed weapons examination,  
- License for handling explosives.  
For forest seedlings and forest 
seeds (HS 0602904100)  - To be registered in a Register of producers and traders of 
reproductive material of forest tree species.  
 
A validity of licence is defined by the Law. Almost for all types of licenses the period of validity is 
determined for of six months. Only for two types of licences (Licence for transport of weapons and 
ammunition at import and License for transport of explo sive substances at import) the period of 
validity is determined for period of three months.  
 
4.106. Regarding roaming fees, there are ongoing consultations, under Regional Cooperation Council 
(RCC) supervision, among six Western Balkans countries, to aboli sh roaming fees between them.  
 
Question:  Please offer details related to the legal base for the abolishment of roaming fees between 
Western Balkan countries and their possible link to WTO rules? Will the Republic of North Macedonia 
specify if it plans to extend this type of agreement with other WTO Members? What conditions and 
stages are foreseen for its realization? What is the potential expected impact on international trade 
in services?  
 
Answer  
In the Consolidated Multi -annual Action Plan for a Regional Economic Area in the Western Balkans 
(WB), adopted by WB Prime minister’s and supported by EU, at Trieste Summit in 2017, there is 
Objective IV. 1.3 - Coordinate roaming policies towards a roaming free economic area, to what 
extend WB countries signed the Agreement in 1 April 2019.   
 
The multila teral agreement among Western Balkans countries on abolishing roaming fees which 
became applicable as of 1 July 2019 does not contain limitations on market access or national 
treatment to foreign services suppliers in telecommunications in North Macedonia.  The agreement 
does not affect the undertaken commitments under the GATS in telecommunications and the level 
of openness of this service sector to foreign services suppliers.  
 
Table A2. 1 Selected Notifications under WTO Agreements, 31 March 2019  
 
Question : Referring to the transparency principle promoted within the Agreement on Agriculture, 
it's worth mentioning that the latest notifications under Art. 18.2 (DS:1), G/AG/N/MKD/10 was WT/TPR/M/390/Add.1  
 
- 57 - 
 
submitted to the WTO Members in 2011. In this context, will the Re public of North Macedonia insure 
the submission of its annual notifications under its domestic support commitments in conformity 
with Article 18.2 (DS:1) of the Agreement on Agriculture?  
 
Answer  
Pending notifications are in process of preparing.  
  WT/TPR/M/390/Add.1  
 
- 58 - 
 
14  TURKEY  
GOVERNMENT REPORT  
 
3. Trade Policy Developments, 3.11 Competition Policy, pg.10, 3.37  
3.13 Sectoral Policies, 3.13.4 Services, 3.13.4.2 Transport & 3.13.4.3 Electronic 
Communications, Pg. 14 -15, 3.64 & 3.68  
 
It is stated in the Government Report that "The CPC has signed MoUs with competition agencies of 
Serbia, Croatia, Bulgaria, Bosnia and Herzegovina, Turkey, Kosovo and Russia. Domestically, the 
CPC has signed MoUs with the Ministry of the Interior and sever al sectoral regulatory agencies (i.e. 
audio visual and media services; electronic communications; railways; energy and postal services)."  
 
"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, No rway, 
Poland, Russian Federation, Serbia, Slovenia, Turkey, Ukraine, Romania, Switzerland, Spain, Slovak 
Republic and the United Kingdom."  
 
"The telecommunications sector in the Republic of North Macedonia is largely liberalized and offers 
a dynamic compe titive landscape although prices 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 Herz egovina and Kosovo on 
full abolishing roaming fees was signed in April 2019."  
 
Question  
Could North Macedonia explain if these agreements on transport, competition and 
telecommunications are compatible with the Article II of the GATS (Most -Favoured Nation 
Treatment)?  
 
Answer  
Memorandums signed in respect of competition refer to cooperation in the area of policies for the 
protection of competition. Last signed Memorandum is in April 2018 between the Commission of 
Protection of Competition of Republic of Nort h Macedonia and the Turkish Competition Authority.  
 
Under the GATS, North Macedonia listed road transport services according to the Article II of GATS 
in the List of MFN exemptions which includes measures applied under existing or future agreements 
on road  transport offering favorable treatment in this service sector for countries with which North 
Macedonia has agreements on road transport.  
 
The multilateral agreement among Western Balkans countries on abolishing roaming fees which 
became applicable on 1 July 2019 does not contain limitations on market access or national 
treatment to foreign services suppliers in telecommunications in North Macedonia. The agreement 
does not affect the undertaken commitments under the GATS in telecommunicati ons and the level 
of openness of this service sector to foreign suppliers.  
 
2. Economic Environment, 2.1 Economic Trends, pg. 4 -5, 2.8  
 
It is stated in the Government Report that  "The National Bank also pursues a cautious policy of de -
euroization of the na tional economy and a Strategy for de -euroization was adopted in December 
2018, according to the Conclusions of  the economic and financial dialogue with EU. The Strategy is 
oriented towards further strengthening of the confidence in the local currency, whic h is in favour of 
the monetary strategy of exchange rate targeting."  
 
Question  
Could North Macedonia provide detailed information about this Strategy?  
 
Answer  
The Strategy introduces two groups of measures so far to support denarization. The first group of 
measures aimed at supporting the process of denarization of the national economy includes the 
measures of the monetary and fiscal policy aimed at strengthenin g the microeconomic environment  WT/TPR/M/390/Add.1  
 
- 59 - 
 
and maintaining the stability of the financial sector. Conducting prudential and responsible 
microeconomic policies has been characteristics of the national economy for a longer period of time, 
which is confirmed by the main tenance of a stable microeconomic environment with low and stable 
inflation, stable external position and sustainable level of public debt. Financial stability is also 
successfully maintained by promoting a sound, stable and competitive banking sector. The  second 
group includes the specific targeted measures as classified in four sub -groups: 1) macro -prudential 
and regulatory measures; 2) structural/institutional policies; 3) transparency in the National Bank's 
operation and 4) financial education.  
English  version of the strategy is published on the website of the National Bank of the Republic of 
North Macedonia and could be found on this link: http://nbrm .mk/content/Strategy -for-
denarization -of-the-Republic -of-Macedonia -2018.pdf   
 
3. Trade Policy Developments, 3.7. Technological Industrial Development Zones (TIDZs), 
pg. 8, 3.20  
 
It is stated in the Government Report that  "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 
industrial 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. "  
 
Question  
Is there any quantitative analysis that calculates the impact of Technological Industrial Development 
Zones (TIDZs)  especially on foreign  trade? If yes,  could North Macedonia kindly provide further 
information about these analyses?   
 
Answer  
A study from 2017 by the National Bank of the Republic of North Macedonia (titled "Analysis of the 
Effects of New Export -Oriented Companies on the Domes tic Economy"), estimates the economic 
effects of a sample of companies (mainly consisted of FDIs in TIDZs) in the period 2013 -2016. The 
study concludes on continued growth of added value of these companies, representing 3% of the 
total VA in 2016 and havin g contribution of 2.3 percentage points in the growth rate of VA (16.9%) 
for the period 2014 -2016. The analyzed companies supplied goods and services from domestic 
suppliers in total value of EUR 45 million both in 2014 and in 2015 (NBRM, 2017). Contrasting these 
benefits to the actual cost and opportunity fiscal cost, in "an attempt of a cost -benefit analysis" the 
study concludes on net positive effect of the operation of the FDIs in the period 20 13-2016, both in 
and outside the Technological Industrial Development Zones. The positive net -effect is estimated at 
average annual size of 2.1% of country GDP. In addition, "with respect to the Balance of Payments, 
the aggregate effect of the current and financial transactions of the companies indicates on creation 
of net foreign currency inflow in the domestic economy of 8.6% of GDP in the period 2008 -2016, 
where 4.8% of GDP result from positive effect on the current transactions, while 3.8% of GDP result  
from the financial net -inflows created by these companies." (NBRM, 2017).  
 
SECRETARIAT REPORT  
 
3. Trade Policies and Practices by Measure, 3.3. Measures Affecting Production and Trade, 
3.3.6. State trading, state -owned enterprises, and privatization, pg. 63, 3.131  
 
It is mentioned in the report that  "North Macedonia 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 o n the Interpretation of Article XVII of the GATT."  
 
Question  
Could North Macedonia provide further information about its state -owned enterprises and 
privatization process?  
 
Answer  
Republic of North Macedonia is not dealing with state trading enterprises (referred to as "STEs") 
prior to became and ever since is WTO member. Notification to WTO refers to that manner.  WT/TPR/M/390/Add.1  
 
- 60 - 
 
Further information cannot be provided for privatization process due  to the fact that there isn't 
current plan.  
 
OTHERS  
 
Data Policies  
 
Question  
Could North Macedonia provide information about its data policies especially in the services fields of 
finance, telecommunication and health? Are there any requirements in force  that are imposed on 
service suppliers to keep data of North Macedonian citizens in the country territories? In addition,  
could North Macedonia provide information about its existing bilateral arrangements on data 
protection with other countries?  
 
Answer  
The Law on Personal Data Protection applies to all services, including the fields of finance, 
telecommunication and health . It is in line with Directive 95/46 of the European Parliament and of 
the Council.   
Main priority to the Directorate for Personal Dat a Protection for 2019, in charge to promote and 
protect personal data, is adopting a new Law on Personal Data Protection in line with General Data 
Protection Regulation of the European Parliament and of the Council (EU) 2016/67.  
 
  WT/TPR/M/390/Add.1  
 
- 61 - 
 
15  FOLLOW -UP QUESTIONS BY T HE UNITED STATES  
Questions based on the Secretariat Report (WT/TPR/S/390)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
 
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs  
3.1.3.2 WTO bindings  
 
Page 42, paragraph 3.33:  In paragraph 3.33 and table 3.5 it is noted that North Macedonia applies 
MFN rates in excess of bound rates for 13 tariffs.  
 
15. When will North Macedonia lower its applied rates to equal to or less than its bound rates?  
16. Does North Macedonia intend to undert ake a compensation process under GATT Article XXVIII?  
 
Answer  
Customs Administration analysed the differences in the MFN applied rates and WTO bound rates due 
to the several HS Amendments in 2007, 2012 and 2017 and found that in 5 tariff lines there is 
inconsistencies. For others it is in line with the WTO commitments. These adjustments shall be done 
with the next Amendments of the National Customs Tariff, to be applied from 01.01.2020.  
U.S. Follow -up Question:   Please identify which of the 13 tariffs noted will be lowered and which 
tariffs are already in conformity.  
 
Follow -up Answer : After thorough assessment and revision, Customs Administration shall lower the 
tariff rate for the tariff line  
 
1001 91 90 00  Seed; other  15+0.1 
EUR/kg 
max.75  
(AVE= 
50.52%)  0 The tariff line 1001 90 99 00 according to the correlation table 
2007/2012 when the new HS 2012 amendments entered into 
force has been divided into 1001 91 90 00 and 1009 99 00 00 
(page 13). The tariff rate shall be brought to bound on 
1  January 2020.  
http://www.wcoomd.org/ -
/media/wco/public/global/pdf/to pics/nomenclature/instruments -
and-tools/hs -nomenclature -2012/correlations -2007-
2012/i_trp1207rev3eng.pdf?la=en  
 
For all others please see the explanation  
 
2852 10 00 00  Chemically defined  5 2.7 With the HS Amendments 2012, the tariff code   2852 00 00 00 
has been modified into tariff line 2852 10 00 00 with the proper 
transposition of the customs tariff rate of 5%. (page 16)  
http://www.wcoomd .org/-
/media /wco/public /global /pdf/topics /nomenclature /instrument
s-and-tools/hs-nomenclature -2012/ correlations -2007-
2012/ i_trp1207rev3eng.pdf?la=en 
3824 74 00 00  Containing hydro 
chlorofluorocarbons 
(HCFCs), whether or 
not containing per 
fluorocarbons (PFCs) 
or hydro 
fluorocarbons (HFCs), 
but not containing 
chlorofluorocarbons 
(CFCs)  6 0 With the HS Amendments in 2007 as provided in the correlation 
tables 2012/2007 the tariff line 3824 90 99 00 has been 
amended into tariff line 3824 74 00 00 where the tariff rate of 
6% was correctly transposed. (Page 12)  
 
http://www.wcoomd.org /-
/media /wco/public /global /pdf/topics /nomenclature /instru ment
s-and-tools/hs-nomenclature -older-edition /2007/ correlations -
2002-2007/ hs_correlation 2007_ table_i_e_rev5.pdf?la=en WT/TPR/M/390/Add.1  
 
- 62 - 
 
3824 78 10 00  Containing per 
fluorocarbons (PFCs) 
or hydro 
fluorocarbons (HFCs), 
but not containing 
chlorofluorocarbons 
(CFCs) or hydro 
chlorofluorocarbons 
(HCFCs)  6 0 With the HS Amendments 2007 the tariff line 3824 79 00 00 
with the customs tariff rate 6% has been transformed in tariff 
line 3824 78 00 00 with the tariff rate of 6%. In 2016 this tariff 
line with the EU CN Amendments has been modified into 3824 
78 10 00, 3824 78 20 00, 3824 78 30 00, 3824 78 40 00, 3824 
78 80 00, 3824 78 90 00 with the customs tariff rate of 6%. 
(page 12)  
3824 78 20 00  6 0  
3824 78 30 00  6 0 http://www.wcoomd.org/ -
/media/wco/public/globa l/pdf/topics/nomenclature/instrument
s-and-tools/hs -nomenclature -older-edition/2007/correlations -
2002-2007/hs_correlation2007_table_i_e_rev5.pdf?la=en  
3824 78 40 00  6 0  
3824 78 80 00  6 0  
3824 78 90 00  6 0  
8486 90 00 10  -Parts and 
accessories  3 0 With the HS Amendments 2007 the tariff line 8486 90 10 00 
with the tariff rate 3%, has been modified in tariff line 8486 90 
00 10 at national level with the same tariff rate of 3%.(page 30)  
 
http://www.wcoomd.org/ -
/media/wco/public/globa l/pdf/topics/nomenclature/instrument
s-and-tools/hs -nomenclature -older-edition/2007/correlations -
2002-2007/hs_correlation2007_table_i_e_rev5.pdf?la=en  
8512 30 10 00  Sound signalling 
equipment: Burglar 
alarms of a kind used 
for motor vehicles  1
5 8 With the HS Amendments in 2007, tariff line 8531 10 20 00 with 
customs tariff rate of 15% has been modified in tariff line 8512 
30 10 00 with appropriate tariff rate of 15%.  
8517 70 00 15  Telephone sets, 
including telephones 
for cellular networks 
or for other wireless 
networks; Parts  5 0 With the HS Amendments in 2007 the tariff lines 8529 10 20 
00, 8529 10 75 00, 8529 10 85 00 and 8529 10 99 00 with the 
customs tariff rate of 5%, has been amended in tariff lines 8517 
70 00 15 and   8517 70 00 19 with the tariff  rate of 5%.(page 
32) 
 
http://www.wcoomd .org/-
/media /wco/public /global /pdf/topics /nomenclature /instrument
s-and-tools/hs-nomenclature -older-edition /2007/ correlations -
2002-2007/ hs_correlation 2007_ table_i_e_rev5.pdf?la=en 
 
3.3.8 Intellectual property rights   
Page 70, paragraph  3.166: The Secretariat notes that North Macedonia 's legal framework on IPR 
"has progressively been aligned with EU legislation."  
 
9. Now that the EU has joined the Marrakesh Treaty to Facilitate Access to Published Works for 
Persons Who Are Blind, Visually Impaired, or Otherwise Print Disabled, does North Macedonia 
have any plans to amend its domestic legislation to address Marrakesh Treaty obligations?  
Answer  
Ministry of Culture is analysing the obligations in the Marrakesh Treaty prior to make certain 
amendments in the relevant IPR legislation. The Law on Copyright and Related Rights contains 
provisions for use of a copyright work without authorization only in certain special cases, provided 
that the use does not conflict with the normal exploitation of th e work and does not unreasonably 
prejudice the legitimate interests of the author. Those provisions shall not apply to computer 
programs.  
The use of a copyright work without remuneration shall apply to cases when the use is for the benefit 
of persons with  special needs (disabilities) in a way which is directly related to the special need  
(disability), to the extent required by the need and for a non -commercial purpose.  
U.S. Follow -up Question : How does the law define the person with special needs (disabili ty)? Is it 
limited to those who are blind, visually impaired, or print disabled or with a physical disability that 
prevents them from holding and manipulating a book, or does it extend to other types of special 
needs?  
 
Follow -up Answer:  The Law on Copyright and Related Rights provides that the use of a copyright 
work without remuneration shall apply to the use of copyright works for the benefit of persons with 
special needs (disabilities) in a way which is directly related to the special  need (disability), to the 
extent required by the need and for a non -commercial purpose.  
The Law provides that the determination of the amount of the remunerations, shall consider, among 
other, the interests of young persons and persons with special needs . WT/TPR/M/390/Add.1  
 
- 63 - 
 
The law does not strictly define the person with special needs (disability), however, does not limit 
such use to those who are blind, visually impaired, or print disabled or with a physical disability that 
prevents them from holding and manipulating a bo ok, which means that the provision includes also 
other types of special needs . 
 
11. What laws and regulations currently govern copyright piracy in the digital environment? Does 
North Macedonia intend to align its legal framework with the European Union Directi ve on 
Copyright?  
Answer  
The Law on Copyright and Related Rights is harmonized with the Information Directive and contains 
provisions which are applicable to analogue and digital use and to some extend refer to regulate 
copyright piracy in the digital envir onment, as follows:  
- -The use of copyright works without remuneration shall apply to the cases which arise from 
the relevant provisions in the Information Directive, particularly:  
(1) The use of a database or of a copy thereof by the lawful user shall be wi thout 
remuneration, if it is necessary for access and normal use of its components.  
(2) Communication to the public of a title of an article, piece and other similar work about 
current economic, political, religious and other similar topics, in an electro nic publication 
taken over from another electronic publication or another source for the purpose of 
informing the public shall be free of charge, unless it has been explicitly forbidden by the 
author, or the holder of the right, under the condition that th e source has been named, as 
well as the name of the author if that has been enabled  
- -Protection of technological measures  
(1) Technological measures shall mean any technology, computer program, device or their 
components, which in their normal course of o peration are designed to prevent or restrict 
acts of infringement of the rights which are not authorized by the right holder. These 
measures shall be deemed effective if the right holder implements them by applying access 
control or protection process, suc h as encryption, scrambling or other transformation of 
the work, as well as by mechanisms for copy control.  
(2) an entity infringes an exclusive right provided by this Law, in the knowledge or with 
reasonable grounds to know, that it undertakes any activities of circumvention of the 
effective technological measures for the right protection.  
(3) It shall be cons idered as infringement of the exclusive rights provided by this Law when 
a person manufactures, imports for the purpose of distribution, distributes, sells, rents, 
advertises for sale or rental, or possesses for commercial purposes a technology, computer 
program, device or their components, or provides services without authorization, of any 
effective technological measures, which:  
1. Are promoted, advertised or marketed for the purpose of circumvention of 
technological measures;  
2. Have only limited comme rcial purpose or use, other than to circumvent;  
3. Are primarily designed, produced, adapted or performed for the purpose of enabling 
or facilitating the circumvention of technological measures.  
Further alignment of the Directive on Copyright in the Digi tal Single Market is expected in due course  
U.S. Follow -up Question:  Do the Technological Measures provide for separate protections and 
remedies against for 1) unauthorized access  to the copyright protected work, on the one hand, and 
against the unauthorized use, on the other?   Are preparatory acts of circumvention also 
protected?  Does the copyright law also provide for electronic rights management information (RMI)? 
Does North Macedonia intend to align its legal framework with the new 2019 European Union 
Directive on Copyright in the Digital Single Market?  
 
Follow -up Answe r: Technological measures mean any technology, computer program, device or 
their components, which in their normal course of operation are designed to prevent or restrict acts 
of infringement of the rights which are not authorized by the right holder . Thes e measures shall be 
deemed effective if the right holder implements them by applying access control  or protection 
process , such as encryption, scrambling or other transformation of the work, as well as by 
mechanisms for copy control. (2) It shall be consid ered that an entity infringes an exclusive right 
provided by this Law, in the knowledge or with  reasonable  grounds to know, that it undertakes any 
activities of circumvention  of the effective technological measures for the right protection. It means 
that b oth the unauthorized access and the unauthorized use are deemed to be separately regulated.  WT/TPR/M/390/Add.1  
 
- 64 - 
 
It shall be considered as infringement of the exclusive rights provided by this Law when a person 
manufactures, imports for the purpose of distribution, distributes , sells, rents, advertises for sale or 
rental, or possesses for commercial purposes a technology, computer program, device or their 
components, or provides services without authorization, of any effective technological measures, 
which: are promoted, advert ised or marketed for the purpose of circumvention of technological 
measures; have only limited commercial purpose or use, other than to circumvent;  are primarily 
designed, produced, adapted or performed for the purpose of enabling or facilitating  the 
circumvention of technological measures. (preparatory acts for circumvention) . 
The provisions of the Law concerning the Technological measures accordingly apply to any 
technology, computer program, device or their components used for removal or altera tion of 
electronic rights management information.  
Ministry of Culture prepares amendments to the Law on Copyright and Related Rights, in line with 
harmonization of the Directive 2014/26/EC on the collective management of copyright and related 
rights and mu lti-territorial licensing of musical works for use on the Internet; the Directive 
2011/77/EC amending the 2006/116/EC Directive amending Directive 2006/116/EC on the term of 
protection of copyright and certain related rights in respect of the protection of  co-authors of music 
text works as well as the term of protection of performers and phonogram producers of recorded 
musical performances and phonograms from 50 to 70 years; and the  appropriate provisions of 
Directive 2012/28/EC on permitted use of orphans works.  
In the National Strategy for the Development of Culture in the Republic of North Macedonia for the 
period 2018 -2022, has been determined that for the purpose of efficient protection and effective 
management of copyright and related rights, a support  to foster the potential of cultural activities 
and industries based on the use of copyright and related works and respect for the material and 
other rights arising from their use, is necessary, as well as the sensibility of the public for appropriate 
treatment of copyright and related rights and in the legal circulation, as one of the main priorities is 
exactly copyright and related rights.  
Therefore, further alignment of the Directive on Copyright in the Digital Single Market is expected 
in due course.  
 
Page 74, paragraph  3.181 : The Secretariat notes that enforcement of IPRs through the court 
system remains a challenge for North Macedonia.  
 
13. Can you share any information with respect to the number of prosecutions and convictions in 
recent years for IP crime s? 
Answer  
In the past two years, the Customs Administration forwarded to the judicial authorities 26 criminal 
charges for infringement of intellectual property rights.  
The judicial authorities' reject 11 of them, 10 are accepted and the rest are in procedu re. 
U.S. Follow -up Question:  What was the cause of judicial authorities rejecting the 11 cases 
mentioned above? Are there further steps that could increase the number of cases the judicial 
authorities accept (e.g. evidence rules, special IP courts, etc.)?  
 
Follow -up Answer:  Following the criminal charges filed for the criminal act "Violation of industrial 
property rights and unauthorized use of a foreign company" punishable by Article 285 of the Criminal 
Code, the Public Prosecutor's Offices adopted DECISIONS FOR THE DISCLAI MER OF THE CRIMINAL 
APPLICATION because the alleged offense is not a criminal act which is prosecuted ex officio.  
 
The explanation of the Public Prosecutor's Office for such decisions for rejection of the criminal 
charges is that in the actions of the appl icants the legal elements of the criminal act "Violation of 
industrial property rights and unauthorized use of a foreign firm" are not contained because they do 
not have intention for fraud of the customer, which is an indispensable element for the fulfilm ent of 
the being of the alleged crime.  
 
__________