WT/REG454/1  
31 August  2023 
(23-5491) Page: 1/41 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
PARTNERSHIP TRADE AND COOPERATION AGREEMENT  BETWEEN THE  
UNITED KINGDOM  AND ALBANIA  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Partnership Trade and Cooperation 
Agreement between the United Kingdom  and Albania , has been drawn up by the WTO 
Secretariat  on its own responsibility and in full consultation with the Parties. The factual  
presentation reproduces as closely as possible the terminology used in the Agreement 
and in the comments provided and does not imply official endorsement or acceptance 
by the Secretariat of such terminology. The report has been drawn up in accordance 
with the rules and procedures contained in the Decision for a Transparency Mechanism 
for Regional Trade Agreements (WT/L/671) and thus does not imply any value 
judgement by the Secretariat regarding the contents of the Agreement.  
Any technical questions arisin g from this report may be addressed to Alena Fiorentino  
(tel:+ 41 22 739 6405). Any statistical questions arising from this report may be 
addressed to  Rowena Cabos  (tel: +41 22 739  5185). 
 
 
  WT/REG454/1  
 
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  Table o f Contents  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ..................  6 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ......................  9 
2.1   Background information  ................................ ................................ ...............................  9 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  11 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 11 
3.1.1   General provisions  ................................ ................................ ................................ ...11 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 11 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 11 
3.1.3.1    United Kingdom  ................................ ................................ ................................ ....11 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....15 
3.2   Rules of origin  ................................ ................................ ................................ ............ 15 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 15 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 16 
3.4.1    Standards  ................................ ................................ ................................ ............... 16 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......16 
3.4.1.2    Technical barriers to trade ................................ ................................ ..................... 16 
3.4.2    Safeguard mechanisms, global safeguards and bilateral safeguards  ............................... 16 
3.4.2.1    Special safeguards  ................................ ................................ ................................ 16 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .16 
3.4.4    Subsidies and state -aid ................................ ................................ ............................ 16 
3.4.5    Customs -related procedures ................................ ................................ ...................... 16 
3.4.6    Other regulations  ................................ ................................ ................................ .....17 
3.4.6.1    Shortage Clause  ................................ ................................ ................................ ...17 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...17 
3.5.1    Iron and Steel  ................................ ................................ ................................ ......... 17 
3.5.2    Wine, spirits and aromatized wines  ................................ ................................ ............ 17 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 17 
4.1   Scope and definitions  ................................ ................................ ................................ ..18 
4.2   Denial of benefits  ................................ ................................ ................................ .......19 
4.3   General provisions on trade in services  ................................ ................................ ......... 19 
4.3.1    Market access  ................................ ................................ ................................ ......... 19 
4.3.2    National and MFN treatment  ................................ ................................ ...................... 19 
4.3.3    Cross -border trade in services  ................................ ................................ ................... 19 
4.3.4    Establishment  ................................ ................................ ................................ ......... 20 
4.3.5    Movement of natural persons  ................................ ................................ .................... 20 
4.4   Liberalization commitments  ................................ ................................ ......................... 22 
4.4.1    United Kingdom  ................................ ................................ ................................ .......22 WT/REG454/1  
 
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  4.4.1.1    MFN and horizontal commitments  ................................ ................................ ........... 22 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 23 
4.4.2    Albania  ................................ ................................ ................................ ................... 28 
4.5   Regulatory provisions  ................................ ................................ ................................ ..29 
4.5.1    Domestic regulation  ................................ ................................ ................................ .29 
4.5.2    Recognition  ................................ ................................ ................................ ............. 30 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 30 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 30 
4.5.5    Other  ................................ ................................ ................................ ..................... 30 
4.5.5.1    Investment  ................................ ................................ ................................ .......... 30 
4.6   Sector specific provisions on trade in services  ................................ ................................ 30 
4.6.1    Financial Services  ................................ ................................ ................................ ....30 
4.6.2    Transport services  ................................ ................................ ................................ ...30 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  31 
5.1   Transparency  ................................ ................................ ................................ ............. 31 
5.2   Current payments and capital movements  ................................ ................................ .....31 
5.3   Exceptions  ................................ ................................ ................................ ................. 32 
5.4   Accession and withdrawal  ................................ ................................ ............................ 32 
5.5   Institutional framework  ................................ ................................ ............................... 32 
5.6   Dispute settlement  ................................ ................................ ................................ .....32 
5.7   Relationship with other agreements concluded by the parties  ................................ ........... 32 
5.8   Government procurement  ................................ ................................ ............................ 34 
5.9   Intellectual property rights  ................................ ................................ .......................... 34 
5.10   Competition  ................................ ................................ ................................ ............. 34 
5.11   Environment  ................................ ................................ ................................ ............ 34 
5.12   Labour  ................................ ................................ ................................ .................... 34 
5.13   Electronic commerce  ................................ ................................ ................................ .34 
5.14   Small and medium -sized enterprises  ................................ ................................ ........... 35 
5.15   Cooperation policies  ................................ ................................ ................................ ..35 
ANNEX 1  ................................ ................................ ................................ ........................  36 
ANNEX 2  ................................ ................................ ................................ ........................  40 
 
  WT/REG454/1  
 
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Key Facts  
 
Parties to the Agreement:  United Kingdom and Albania  
 
Date of Signature:    5 February 2021  
 
Date of Entry into Force:  3 May 2021  
 
Date of Notification:   3 May 2021  
 
Full implementation:    2021  
 
 
This factual presentation describes the Partnership, Trade and Cooperation Agreement 
("the Agreement") between the United Kingdom and Albania. The Agreement entered into force 
on 3 May 2021 and directly incorporates (with some modifications  noted below ) the Stabilisation 
and Association Agreement between the European Union and Albania ("EU -Albania Agreement") , 
which was considered by the Committee on Regional Trade Agreements (CRTA) on 20 May 20081 
(goods , WT/REG226/M /1) and on 4 November 2011  (services , in WT/REG/226/ M/2). 
 
1  TRADE ENVIRONMENT  
1.1.  The Agreement between the United Kingdom and Albania is one of  39 RTAs in force notified to 
the WTO by the United Kingdom and the  5th RTA in force notified to the WTO  by Albania . 
1.1  Merchandise trade  
1.2.  In 2020, the UK's merchandise exports amounted to USD 4 68.2 billion and its merchandise 
imports to USD 6 93.8 billion. In the same year, Albania's merchandise exports amounted to USD 
3.6 billion and its merchandise imports to USD 7.7 billion.   
1.3.  Based on 202 1 trade data, the U K was the 1 0th largest exporter and the 6th largest importer of 
merchandise in the world excluding intra -EU trade (respectively 2. 10% of world total exports 
and 3.1% of world total imports). In comparison, Albania was the  104th largest global exporter and 
the 91st largest global importer of merchandise  excluding intra -EU trade  (respectively 0.02% of 
world total exports and 0.03% of world total imports).  In 202 1, the UK was Albania's  14th largest 
source of imports (0.8% of Albania's total imports) and 15th largest destination for exports (0.2% of 
Albania 's total exports) . Albania was the UK's 113th largest source of imports ( 0.001%) 
and 107th largest export destination (0.006%).2 
1.4.  The UK's trade is do minated by manufactur ed products which in 202 0 made up 68.4% 
and 63.1% of its merchandise exports and imports respectively . Albania's exports  and imports of 
manufactures over the same period were 69.8% and 69.1% of total exports and imports 
respectively . Chart 1.1 summarizes the trends in global merchandise trade of the Parties as well as 
their bilateral trade relations. From 2018 to 2020, both the UK  and Albania  maintained steady global 
goods trade deficit s. At the bilateral level, data show a positive ba lance in favour of the UK for the 
entire period . Albania's exports to the UK decreasing to under USD 12 million, and imports reducing 
to under USD 60 million .  
 
1 On goods, factual presentation WT/REG226/ 1/Rev.1 29 April 2008 . On services, WT/REG226/3 
1 July 2011.  
2 Data for UK from UNSD Comtrade and for Albania from the Trade Data Monitor.  WT/REG454/1  
 
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  Chart 1.1 United Kingdom -Albania:  Merchandise bilate ral trade and with world 
(2018 -2020)  
 
Source:  Based on data provided by the Parties and from UNSD Comtrade database.  
1.5.  The commodity structure of trade between the UK and Albania, as well as of their global trade 
in the period 2018 -2020, is shown in Chart 1.2 on the basis of Harmonized System (HS) sections . 
Of Albania's four main global exports of textiles, footwear, minerals and base metals  which 
accounted for 72% of its exports, minerals accounted for over half of the UK's imports from Albania. 
The UK's three main global exports of machinery, motor vehicles and chemicals which accounted 
for 50% of its exports, accounted for  69% of Albania's imports from the UK.  
Chart 1.2 United Kingdom -Albania:  Product composition of merchandise trade, annual 
average (2018 -2020)  
 
Source:  Based on data provided the Parties and from UNSD Comtrade database . 
020406080100120140160180200
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2018 2019 2020B. Albania 2018 -2020
(USD millions)
Imports from United Kingdom (Right Axis)
Export to United Kingdom (Right Axis)
Total Imports
Total Exports020406080100120140160180200
0100,000200,000300,000400,000500,000600,000700,000800,000
2018 2019 2020A. United Kingdom 2018 -2020 
(USD millions)
Imports from Albania (Right Axis)
Export to Albania (Right Axis)
Total Imports
Total Exports
16
7
5423UK's imports from Albania (%)
5
8
9
5
12
5211222UK's Global Imports (%)
6
17
21
1915618Albania's Global Exports (%)
0
11
19
0
0
222820Albania's imports from UK (%)
4
9
11
9
5
111015720Albania's Global Imports (%)9
14
10
5
211527UK's Global Exports (%)
Total: USD 10.1 million Total: USD 666.9 billion
Total: USD 5.8 billionTotal: USD 453.1 billion
Total:  USD 2.7 billion Total: USD 51.3 million
Other MineralsPrepared foodsVegetables
TextilesPlaticsChemicals
Base metalsPrecious stonesFootwear
VehiclesMachineryWT/REG454/1  
 
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  1.2  Trade in services and investment  
1.6.  In 2019, the UK was ranked the world's second largest expor ter and 5th largest importer of 
commercial services. Albania was ranked 64th largest exporter and 94th largest importer of 
commercial services. The UK's share of commercial services trade was 6.79% of world exports 
(USD411,794 million) and 4.87% of world i mports (279,184 million). Albania 's share of commercial 
services exports amounted to USD 2.4 million (0.05% of world exports) and imports were USD 
1.2 million.  
1.7.  Charts  1.3 and 1.4 show the Parties' global and bilateral  trade in commercial services 
during  2018-20. Globally both the UK and Albania have maintained a trade surplus. The UK's  exports 
are dominated by other business services and financial services, while imports are mainly other 
business services and travel services. The composition of Albania's t rade was broadly stable and 
dominated by exports of travel, manufacturing services and other business services, while imports 
were dominated by travel and transport services. Its exports to the UK were dominated by travel 
and other business services while its main imports from the UK are travel, charges for the use of 
intellectual property and telecommunications, computer and information services.  
Chart 1.3 United Kingdom: Trade in commercial services with world (201 8-2020) 
 
Note:   No trade data on manufacturing, maintenance and repair services; construction, insurance and 
pension services; financial services and personal cultural and recreational services; no import data 
for transport (2018 -2019) and trave l (2019 -2020); for charges for the use of intellectual property, 
no export data (2018) and imports (2018 -20); for telecommunications, no data for exports 
(2018 -20) and imports (2019 -20); and for other business services no data for exports (2018 
and 2020) a nd imports (2018 -20). 
Source:  Based on data provided by the UK authorities . 
050100150200250300350400450500
2018 2019 2020Imports
01020304050607080
2018 2019 2020Exports United Kingdom's trade with the world 
(USD billion)
United Kingdom's trade with Albania 
(USD million)050100150200250300350400450500
2018 2019 2020Exports 
01020304050607080
2018 2019 2020Imports WT/REG454/1  
 
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  Chart 1.4 Albania: Trade in commercial services with world and United Kingdom 
(201 8-2020)
 
Note:  No imports for manufacturing (2018 and 2020) and construction (2018 and 2020).  
Source:  Based on the data provided by the Albania n authorities.  
1.8.  Charts 1.5 and 1.6 below set out the Parties bilateral and global FDI stocks and flows for the 
period 2017 -2019. Both countries received more inward investment than outward flows.  Since 2018 
the UK has seen a substantial decline in global outward investment flows, and a smaller decline in 
inward investment flows.  Data from Albania on bilateral FDI between the Parties shows that Albania 
in a net outward investor in the UK market, with both inward and outward stocks growing slightly 
during the period. In terms of flows there was a sharp decline in investment from the UK , reflecting 
the global trend in UK outward investment.3  
 
3 Full data from the UK on FDI with Albania for 2020 shows an overall balan ce in FDI stocks 
(USD 3.8 million for both inward and outward investment), while inward FDI flows in 2020 were considerably 
higher (USD 3.8 million) than outward flows (USD 1.3 million).  
0.00.51.01.52.02.5
2018 2019 2020Imports
020406080100120140
2018 2019 2020Exports Albania's trade with world 
(USD billion)
Albania's trade with UK 
(USD million)0.00.51.01.52.02.53.03.54.0
2018 2019 2020Exports 
0102030405060708090
2018 2019 2020Imports WT/REG454/1  
 
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  Chart 1.5 United Kingdom: FDI stock and flow with world, 201 8-2020 
 
Note:  FDI statistics are presented on a directional basis ; FDI data for 2020 has been affected by changes  
 in sampling methodology. While this will mean 2020 data are more representative of UK FDI  with 
 overseas partners, some caution should be taken when comparing 2020 data to previous years. 
 Methodology changes have led to an increase in reported FDI, particularly inward FDI, in 2020. The 
 effect of this methodology change will vary between partners, although it is not possible to quantify 
 the specific impact for individual partners.  
Source:  Based on the data provided by the UK  authorities.  
 
Chart 1.6 Albania: FDI stock and flow with world and the United Kingdom, 201 8-2020 
 
Source:  Based on the data provided by the Albania n authorities.  
05001,0001,5002,0002,5003,000
2018 2019 2020United Kingdom's FDI stock with world
2018 -2020 (USD billion ) 
Inward Outward
-80-60-40-20020406080100
2018 2019 2020United Kingdom's  FDI flow with world
2018 -2020 (USD billion) 
Inward Outward
012345678910
2018 2019 2020Albania's FDI stock with world
2018 -2020 (USD billion ) 
Inward Outward012345678910
2018 2019 2020Albania's FDI flow with world
2018 -2020 (USD billion) 
050100150200250300
2018 2019 2020Albania's FDI stock with UK
2018 -2020 (USD million ) 
-50050100150200250300
2018 2019 2020MillionsAlbania's FDI flow with UK
2018 -2020 (USD million) WT/REG454/1  
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 5 February 2021 and ent ered in to force on 3 May 2021. It was 
notified to the WTO on 31 December 2020 under Article XXIV:7(a) of GATT 1994 and Article V:7(a) 
of the GATS (see document WT/REG4 54/N/1 - S/C/N/10 55). The text of the Agreement, together 
with its annexes, is available on the Parties' official websites . 
United Kingdom:  
https://www.gov.uk/government/collections/uk -albania -partnership -trade -and-cooperat ion-
agreement  
Albania: http://www.tregtia.gov.al/images/pdf/5.1 -Marreveshja -Shqiperi --Mbreteri -e-Bashkuar.pdf  
2.2.  The Agreement is based on the EU-Albania Agreement (which entered into force 
on 1 April 2009), to which the UK was previously party .4 It incorporates by reference most of the 
EU-Albania Agreement's provisions with a few modificat ions. It is a short agreement of 12 articles , 
with 3 Annexes.  The Agreement applies to the United Kingdom as well as the territories of Gibraltar, 
the Channel Islands and the Isle of Man for whose international relations the UK is responsible 
(Article  6) and to Albania. Unless otherwise indicated if a time period in the EU -Albania Agreement 
has not ended it shall be incorporated into the Agreement, while if the time period for implementation 
has ended , the relevant provisions are incorporated into the Agre ement (Article 7).  
2.3.   Box 2.1 below summarizes the structure of the Agreement .  
Box 2.1 Structure of the Agreement  
Articles  Titles  
Preamble   
Article 1  Objective s 
Article 2  Definitions and interpretation  
Article 3  Incorporation of the EU -Albania Agreement  
Article 4  References to the European Union law  
Article 5  References to the euro  
Article 6  Territorial application  
Article 7  Continuation of time periods  
Article 8  Tariff Quotas  
Article 9  Further provisions in relation to the Partnership, Trade 
and Cooperation Council  
Article 10  Integral parts of this Agre ement 
Article 11  Amendments  
Article 12  Entry into force and provisional application  
  
Annexes   
Annex I Amendments to the incorporated agreement (See box 2.2 below).  
Annex II  A new Annex IIA Additional preferential arrangements for certain agricultural products  
Annex III Replacement Protocol 4 (Origin)  
Source:  WTO Secretariat based on the Agreement.  
 
4 A smaller pre -conditional interim agreement on trade and trade -related matters ( goods only ) was 
signed on the same date and applied provisionally prior to the entry into force of the EU -Albania Agreement. 
That agreement was the subject of a Factual Presentation (WT/REG226/1/Rev.1).  WT/REG454/1  
 
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  2.4.  The Par ties agree to preserve the preferential conditions on trade between them which resulted 
from the EU -Albania Agreement and to provide a platform for further trade liberalization between 
them (Article 1). Box 2.2 gives an overview of the modifications in Ann ex I made by the Agreement 
to the incorporated EU-Albania Agreement.  
Box 2.2 Overview of the modifications to the EU -Albania Agreement  
Titles of the EU -
Albania 
Agreement and 
other related 
instruments  Description  Modifications by Annex I of the 
Agreement  
Preamble    
Title I  General principles  Article 3 and 6 3rd and final paras not 
incorporated.  
Title II  Political dialogue  Articles 8 .2, 9.1, 10 modified.  
Title III  Regional cooperation  Article 12, Articles 13 -15 not 
incorporated.  
Title IV  Free movement of goods  
Chapter 1 Industrial Products  
Chapter 2 Agriculture and Fisheries  
Chapter 3 Common provisions  Article 17 .2, 27.1, 29, 36 .3, 43.2 
modified . Article 45 not incorporated.  
Title V Movement of workers, establishment, supply of 
services, current payments and movement of 
capital  
Chapter I Movement of workers  
Chapter II Establishment  
Chapter III, Title IV Supply of services  
Chapter IV Current payments and movement of 
capital  
Chapter V General provisions  Article 47 .1, 59.6 and 62 not 
incorporated. Article 48, 50 .4, 50.5.b, 
57(3), 58 .1 and 2, 59 .1-2 modified . New 
Article 69A . 
Title VI Approximation of laws, law enforcement and 
competition rules  
Chapter I Introduction  
Chapter II Cooperation in the area of movement 
of persons  
Chapter III, Title IV Cooperation on combating 
money laundering, terrorism financing, illicit 
drugs and cooperation in counter -terrorism  
Chapter IV C ooperation in criminal matters  Article s 70, 71.2, 73.2, 75.1 , 77 not 
incorporated. Articles 71.4 -8, 74.2, 74.5, 
75.2, 76 modified. New Article 72.  
Title VII Justice, freedom and security  Article 81.4 not incorporated. Article 79, 
81.3, 82.2, 83.2 modified.  
Title VIII Services, establishment and electronic commerc e Articles 87.4, 92.3, 97.2, 99.2, 100.3 -4, 
102.3, 103.1, 104.1, 106.1, 108.2, 109.2, 
110.2 not incorporated. Articles 87.2, 88, 
89, 90, 93, 94.1, 95, 96, 97.1, 98.2, 
104.2, 106.2, 107 modified.  
Title IX Financial cooperation  Articles 113 -115 not incorporated. Article 
112 modified.  
Title X Institutional, general and final provisions  Article 117.5, 128, 131, 133, 134, 137 
not incorporated. Article 117.1, 121, 122, 
129, 132 modified.  
   
Annex V  Intellectual, industrial and co mmercial property 
rights  Paragraph 3 not incorporated. Paragraph 
1 modified.  
Protocol 1  Iron and Steel Products  Article 5.2 not incorporated. Article 5.4 -
5.5 modified.  
Protocol 3  Reciprocal preferential concessions for certain 
wines, the reciprocal recognition, protection and Modifications to Article 2.a.ii, Article 11.2, 
Appendix 1, modified.   WT/REG454/1  
 
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  Titles of the EU -
Albania 
Agreement and 
other related 
instruments  Description  Modifications by Annex I of the 
Agreement  
Preamble    
control of wine, spirit drinks and aromatised wine 
names  
Protocol 5  Land transport  Articles 4 -6, 8-10, 13.2, 14.2, 16.1, 16.4, 
17.3, 18.1, 19, 21.2.c -d not incorporated. 
Articles 11.1, 11.3, 12, 13.3, 13.4, 14.1, 
17.1, 17.4 modified.   
Protocol 6  Mutual administrative assistance in customs 
matters   
 Joint declarations  Definition of Joint Declarations to concern 
Articles 61, 73, 126 and Protocol 5  
   
Annexes and Appendices  
Annex I  Albanian tariff concessions   
Annex II  Tariff schedule of the U K Modifications to paragraphs 4 -7 
Source:  WTO Secretariat based on the EU -Albania  Agreement  and the Agreement . 
 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.  The Agreement incorporates the provisions of the EU -Albania Agreement on import duties and 
charges and quantitative restricti ons. Tariff liberalization under the EU -Albania Agreement was to be 
completed within 10 years of entry into force (by 2016). Quantitative restrictions on imports are 
abolished. For additional information see paragraphs 13 -17 of the Factual Presentation 
WT/REG226/1/Rev.1.  
3.1.1   General provisions  
3.1.2   Liberalization of trade and tariff lines  
3.2.  The Agreement incorporates the relevant provisions of the EU -Albania Agreement on 
liberalization of trade and tariff lines. For further details see paragraphs 19 -21 of the Factual  
Presentation WT/REG226/1/Rev.1.  
3.1.3   Liberalization schedule  
3.1.3.1   United Kingdom  
3.3.  Tables 3.1 and 3.2 show tariff liberalization by the UK under the Agreement. In 2021 47% of 
the UK's tariff was duty free for imports from MFN sources, under which 68.2% of imports from 
Albania entered in 2018 -2020.5 Under the Agreement the UK eliminated tariffs on a further 4,765 
lines (50.2% of the tariff) for imports from Albania; these lines corresponded to around 20% of 
imports from Albania during 2018 -20. Some 2.8% of the tariff (267 lines) will remain subject to 
duties for imports from Albania. During 2018 -20 around 11.8% of imports from Albania entered the 
UK under these lines.  
 
5 The UK's MFN tariff in 2021 contained  9,494 lines at the eight -digit level. Of these, 8,613 lines (90.72) 
were subject to ad valorem  rates of duty; 647 lines were subject to specific rates of duty and 230 compound 
rates.  WT/REG454/1  
 
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  Table 3.1 United Kingdom: Tariff elimination  commitments under the Agreement and 
corresponding average trade  
Duty phase -out period  Tariff lines in UK's tariff schedule  UK's imports from Albania  
(2018 -20)a 
Number  % Value (USD 
million)b % 
2021 (MFN)  4,462  47.0 6.6 68.2 
2021 4,765  50.2 1.9 20.0 
Remain dutiable  267 2.8 1.2 11.8 
Total 9,494  100.0  9.7 100.0  
a Import coverage is for HS chapters 1 -97.  
b The import values were reported in GBP and converted into USD using the exchange rates of 
0.749531540259847(2018), 0.783445110011929 (2019) and 0.779999576697153 (2020).   
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by UK.  
3.4.  The tariff lines remaining dutiable for imports from Albania are found in Sections I and IV  
(Table  3.2), corresponding to HS Chapters 1 -3, 16, 17 and 22 (Chart 3.1). With the exception of 
HS Chapters 3 and 16, where preferential tariffs are lower than MFN duties, there are  no further 
concessions for imports from Albania  in the other Chapters.  
Table 3.2 United Kingdom: Tariff elimination under the Agreement, by HS Section  
HS Section  MFN 2021  Duty Free Lines  
under  
the Agreement 
(2021)  Remain 
Dutiable  Avg. Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty free 
lines  
I 8.9 956 109 778 69 7.2 
II 4.4 554 213 341   
III 4.8 129 30 99   
IV 12.9 869 119 552 198 12.1 
V 0.4 231 202 29   
VI 2.7 1,226  550 676   
VII 3.7 301 86 215   
VIII 1.4 130 73 57   
IX 1.1 235 189 46   
X 0.0 195 195    
XI 7.0 1,149  243 906   
XII 7.3 106 17 89   
XIII 2.0 234 162 72   
XIV 0.5 58 47 11   
XV 0.6 955 804 151   
XVI 0.7 1,338  981 357   
XVII 3.7 286 121 165   
XVIII 0.6 299 218 81   
XIX 1.4 22 7 15   
XX 1.4 214 89 125   
XXI 0.0 7 7    
Total  3.8 9,494  4,462  4,765  267 9.3 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rate for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff rates 
are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  WT/REG454/1  
 
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  Chart 3.1 United Kingdom: Average of dutiable rates, by HS Chapter  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and  the ad valorem  part of alternate rates are included.  
Source:  WTO estimates based on data provided by the UK.  
 
3.5.  Tables 3.3 and 3.4 show tariff liberalization by Albania under the Agreement. In 2021 50.4% 
of Albania's tariff was duty free for imports from MF N sources, under which 71.7% of imports from 
the UK entered in 2018 -2020.6 Under the Agreement Albania eliminated tariffs on a further 4,010 
lines (42.2% of the tariff) for imports from the UK; these lines corresponded to around 26.9% of 
imports from the UK during 2018 -20. Some 7.3% of the tariff (695 lines) will remain subject to 
duties for imports from the UK. During 2018 -20 around 1.5% of imports from the UK entered Albania 
under these lines.  
Table 3.3 Albania: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in 
Albania's 
tariff schedule  Value of Albania's 
imports from the UK  
(2018 -2020)a 
USD million  % of Albania's total 
imports from  
the UK  
(2018 -2020)  
MFN 2021  4,790  50.4 36.5 71.7 
Duty-free under the 
Agreement  4,010  42.2 13.7 26.9 
Remain dutiable  695 7.3 1.0 1.5 
Total 9,495  100.0  51.1 100.0  
a Import coverage is from HS chapters 1 -97. 
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Albania authorities and the WTO -IDB. 
 
3.6.  The tariff lines remaining dutiable for imports from Albania are found in Sections I -IV 
(Table  3.4), corresponding to agricultural products ( most HS Chapters from 1-24) (Chart 3.2). With 
the exception of HS Chapters 1,6,12,16 and 20, where preferential tariffs are lower than MFN duties, 
there are no further concessions for imports from the UK in the other Chapters.  
 
6 Albania's MFN tariff in 2021 contained 9,495 lines at the eight -digit level all of which had ad valorem  
rates of duty.  
0%5%10%15%20%25%30%35%
01 02 03 16 17 22
HS ChapterPreferential MFNAverage Duty RateWT/REG454/1  
 
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  Table 3.4 Albania: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN Average  
% Number of 
lines  Duty -free 
lines under 
MFN 2021  Number of duty -free 
lines under the 
Agreement  Remaining 
dutiable 
lines  Avg. Final 
Tariff  
(Dutiable)  2021  
I 4.7 956 469 179 308 10.1 
II 8.0 556 36 458 62 9.5 
III 2.4 129 91 34 4 10.0 
IV 10.1 869 155 393 321 14.4 
V 4.2 231 36 195   
VI 1.3 1,225  665 560   
VII 4.4 301 81 220   
VIII 7.2 130 27 103   
IX 1.2 235 200 35   
X 0.0 195 195    
XI 2.9 1,149  680 469   
XII 11.7 106 8 98   
XIII 9.7 234 5 229   
XIV 5.4 58  58   
XV 3.3 955 664 291   
XVI 1.2 1,338  1,098  240   
XVII 2.9 286 132 154   
XVIII 3.6 299 155 144   
XIX 15.0 22  22   
XX 8.3 214 86 128  - 
XXI 0.0 7 7    
Total  4.1 9,495  4,790  4,010  695 12.0 
Note:  For the calculation of averages, specific rates are excluded.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Albanian authorities.  
 
Chart 3.2 Albania:  Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 2017 nomenclature . 
 Tariff lines subject to in -quota rates are excluded in the computation . 
Source:  WTO estimates based on data provided by Albania.  
0246810121416
1 2 4 6 7 8 9 10 11 12 15 16 19 20 21 22 23 24Average Duty Rate
HS Chapters Preferential MFNWT/REG454/1  
 
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  3.1.4   Tariff rate quotas  
3.7.  The EU and Albania's TRQ regime was described in the Factual Presentation on the EU -Albania 
Agreement, in document WT/REG226/ 1/Rev.1 paragraphs 2 2 to 27. 
3.8.  Article 8 .1 of the Agreement refers to Article 27(2) Annex II(c), Annex III, Annex II(d)  to 
Protocol 2 , and Annex I to Protocol 3. It provides that changes to  tariff quota or increases shall be 
resized to 13.62% of the corresponding quota volume referred to in the EU -Albania Agreement when 
it ceases to apply to the UK. The administ ration period for quotas is 1 January to 31 December. 
Annex 2 below shows TRQs applied by the Parties. In -quota rates are  either  zero or partially reduced , 
while out of quota rates are either the applied MFN rate or lower, depending on the product.  
3.2  Rules o f origin  
3.9.  Annex III of the Agreement incorporates a new Protocol 4 on rules of origin. The Annex contains 
8 Titles  and 3 Annexes.  
3.10.   The provisions on rules of origin mostly duplicate the EU -Albania Agreement, as described in 
the Factual Presentation on the g oods aspects of that Agreement, in document WT/REG226/1/Rev.1, 
paragraphs 28 -35. Origin is granted for products wholly obtained in the United Kingdom or Albania 
within the meaning of Article 5 of the Protocol, or on products obtained in the United Kingdom or 
Albania incorporating materials which have not been wholly obtained there, providing  sufficient 
working or processing  is carried out on such non-originating materials within  the meaning of Article  6 
of the Protocol . The Agreement also has tolerance rule s of 10% of the ex -works price of the product 
for non -originating materials used  or based on weight  for textiles and clothing ; and an absorption 
rule for materials incorporated in a product . Outward processing and duty drawback are not 
authorized.  
3.11.   The Part ies have agreed changes to the origin regime with a new Protocol 4  in replacement 
for the Protocol contained in the EU Albania Agreement.  Apart from self -evident changes (replacing 
EU with United Kingdom) t he Protocol adds a new Article 1(n), setting out a cross reference to 
Appendix  I to the Regional Convention on pan -Euro-Mediter ranean preferential rules of origin, 
incorporated through A rticle 40 of the new Protocol . Article 3 of the Agreement on cumulation in the 
UK permits products to be co nsidered originating in the United Kingdom, incorporati ng materials 
originating in Switzerland (including Liechtenstein), Iceland, Norway, Turkey , the European Union , 
Albania  or any country referred to in Annex A to th e Protocol , providing the working or p rocessing 
carried out in the United Kingdom goes beyond the operations referred to in Article 7 . It also provides 
for cumulation of work or processing carried out  in Iceland, Norway or the European Union  subject 
to the listed conditions.  A similar cumulati on of materials provision concerns Albania (Article 4).  
3.12.   In Title V concerning proofs of origin, a new Article 16(3) has been added permitting use of 
either EUR.1 or origin declarations in the case of cumulation involving the UK, EU, Switzerland 
(including  Liechtenstein ), Iceland , Norway, the Faroe Islands, Turkey, Albania, Bosnia and 
Herzegovina , the Republic of North Macedonia, Montenegro, the Republic of Ser bia, or the Republic 
of Kosovo.  The Agreement also revises  Article 16.4 (on EUR.1 movement certificates) , 16.5 and 1 6.6 
(EUR-MED movement certificates)  for the bilateral context .  
3.3  Export duties and charges, and quantitative restrictions  
3.13.   The Agreement incorporates the provisions of Chapter I, Title IV of the EU -Albania Agreeme nt 
on export duties and charges and quantitative restrictions under the EU -Albania Agreement . For 
further details see paragraph 36 of the Factual Presentation WT/REG226/1/Rev.1. Article 21 of the 
Agreement provides that the Parties would abolish any custom s duties on exports and charges 
having equivalent effect and any quantitative restrictions and measures having equivalent effect 
upon the date of entry into force of the Agreement.  The Parties confirm that export duties, chargest 
and quantitative restricti ons on exports have been abolished.  WT/REG454/1  
 
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  3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.14.   There are no provisions on Sanitary and Phytosanitary measures in the Agreement.  
3.4.1.2   Technical barriers to trade  
3.15.   The Agreement incorporat es the p rovisions o f the EU -Albania Agreement o n technical barriers 
to trade in the Agreement.  Article 757 provides that the Parties shall provide assistance to fostering 
the development of quality infrastructure: standardisation, metrology, accreditation  and conformity 
assessment  and promote the participation of Albania in the work of organisations related to 
standards, conformity assessment, metrology and similar functions (in particular CEN, Cenelec, 
ETSI, EA, Welmec, Euromet) .  
3.4.2   Safeguard mechanisms , global safeguards and bilateral safeguards  
3.16.   The Agreement incorporates the provisions of Chapter III, Title IV of the EU -Albania 
Agreement on global and bilateral safeguards ( Article 38 ) which states that the  provisions of 
Article  XIX of the GAT T 1994 and the WTO Agreement on Safeguards  apply between the Parties.  
Bilateral safeguards are permitted provided they do not exceed what is necessary to remedy the 
difficulties which have arisen and should normally consist of the suspension of the further  reduction 
of duties provided for by the Agreement or an increase in the rate of duty for that product up to a 
maximum corresponding to the MFN rate applicable to the same product. They shall not exceed one 
year and may be extended up to three years in exc eptional cases. For further details see 
paragraphs  39-42 of the Factual Presentation WT/REG226/1/Rev.1.  
3.4.2.1   Special safeguards  
3.17.   The Agreement contains no provisions on special safeguards.  
3.4.3   Anti-dumping and countervailing measures  
3.18.   The Agreement incorporates the provisions of Chapter III, Title IV of the EU -Albania 
Agreement on anti -dumping and countervailing measures, which reaffirm the rights of the Parties 
under the respective WTO Agreements and their own internal legislation. For  further details see 
paragraph 45 -46 of the Factual Presentation WT/REG226/1/Rev.1.  
3.4.4   Subsidies and state -aid 
3.19.   The Agreement incorporates the provisions of Chapter V, Title VI of the EU -Albania Agreement 
on subsidies  and on State-aid. Any State aid which distorts or threatens to distort competition by 
favouring certain undertakings or certain products shall be incompatible with the proper functioning 
of the Agreement  (incorporated Article 71, paragraph 1(iii)) . Furthermore, paragraph 5 of the Article 
requires each Party to ensure transparency in State aid, including through  regular annual report s, or 
equivalent and upon request, information on  particular individual  cases of public aid.  Albania shall ensure 
that an operationally independent authority is esta blished and e ntrusted with the powers necessary 
for the full application of paragraph 1(iii) within four years from the date of entry into force of th e 
Agreement. Paragraph 6 of the Article requires Albania to establish a comprehensive inventory of 
aid sch emes instituted before the establishments of an operationally independent authority.  
3.4.5   Customs -related procedures  
3.20.   The Agreement incorporates the provisions of Chapter III, Title IV of the EU -Albania 
Agreement on customs related procedures. For further detai ls see paragraphs 47 and 48 of the 
Factual Presentation WT/REG226/1/Rev.1.  
 
7 Excepting Article 75.1 and the first three words and first and second indents of Article 75.2.  WT/REG454/1  
 
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  3.4.6   Other regulations  
3.4.6.1   Shortage Clause  
3.21.   The Agreement has a shortage clause (Article 39 of the EU -Albania Agreement) which allows 
the use of measures if compliance with the Free Movement of Goods Title leads to either a critical 
shortage or threat thereof of foodstuffs or other products essential to the exporting Party; or 
re-export to a third country against which the exporting Party maintains quantitative export 
restrictions, export duti es or measures or charging having equivalent effect. Priority should be taken 
to use measures that least disturb the functioning of the Agreement. They should not be applied in 
a manner which would constitute a means of arbitrary or unjustifiable discrimin ation where the same 
conditions prevail, or a disguised restriction on trade. They shall be eliminated when the conditions 
no longer require their maintenance.  
3.5  Sector -specific provisions on trade in goods  
3.5.1    Iron and Steel  
3.22.   The Agreement incorporates the prov isions of Protocol 1 of the EU -Albania Agreement on Iron 
and Steel. Article 5(2)  which refers to the assessment of practices that are contrary to the disciplines 
in the Article on the basis of State aid disciplines of the EU,  is not incorporated into the Agreement.8 
Under the EU -Albania Agreement  Albania was required, within three years from the date of entry 
into force of the Agreement, to establish the necessary restructuring and conversion programme for 
its iron and steel industry to achieve viability under normal market conditions . The Parties indicate 
that there have been no further developments on this requirement. For further details on Protocol 1 
of the Agreement see paragraphs 62 -64 of the Factual Presentation WT/REG2 26/1/Rev.1.  
3.5.2   Wine, spirits and aromatized wines  
3.23.   The Agreement incorporates Protocol 3 of the EU -Albania Agreement on Wines, spirits and 
aromatized wines  which sets out rules on reciprocal recognition, protection and control of wines 
under HS Heading 22.04, spirits under Heading 22.08 and aromatized wines under Heading 22.05 . 
The Agreement amends the EU -Albania Agreement to add protection for Scotch Whisky, Irish 
Whisky, Uisce Beatha Eireannach, Irish Whiskey and Irish Cream produced in the Republic of Irelan d 
and Northern Ireland . For further details see p aragraphs 65 -76 of the Factual 
Presentation  WT/REG226/1/Rev.1.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  The Agreement incorporates , with modifications , Title V of the EU-Albania Agreement9, which 
is divided into fiv e Chapters : disciplines on movement of workers; establishment; supply of services; 
current payments and movement of capital; and general provisions. Such provisions are made part 
of the Agreement and apply, mutatis  mutandis10, subject to modifications in A nnex I to the 
Agreement, which are summarised  in Box 4.1 below.   
 
8 Article 5(2) of the EU -Albania Agreement provides that "2. Further to the disciplines stipulated by 
Article  71 of the Agreement, any practices contrary to this Article shall be assessed on the basis of specific 
criteria arising from the application of the State aid disciplines of the Community, including secondary 
legislation, and including any specific rules o n State aid control applicable to the iron and steel sector after the 
expiry of the Treaty establishing the European Coal and Steel Community."  
9 For more details, please refer to document WT/REG226/3.  
10 Article 2 of the Agreement clarifies that "mutatis m utandis " means with the technical changes 
necessary to apply the EU -Albania Agreement as if it had been concluded between the United Kingdom and 
Albania, taking into account the object and purpose of this Agreement.  WT/REG454/1  
 
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  Box 4.1 Overview of modifications to Title V of the EU - Albania Agreement  
Chapters of the EU -Albania Agreement  Modifi cations to  the EU -Albania 
Agreement through  
Annex I to the Agreement  
Chapter I:  Movement of workers  Art. 4 7(1) Not incorporated.  
  Art. 4 8 Modified.  
Chapter II:  Establishment  Art. 50 Modified.  
  Art. 52  Modified.  
Chapter III:  Supply of services  Art. 5 7(3) Not incorporated.  
  Art. 58  Modified.  
  Art. 5 9 Modified.  
Chapter IV:  Current payments and movement of capital   Art. 62 Not incorporated.  
Chapter V:  General provisions  Art. 6 9A New.  
Source:  WTO Secretariat based on the Agreement.  
 
4.1  Scope and definitions  
4.2.  The Agreement incorporates the provisions of Title V ( movement of workers, establishment, 
supply of services, current payments and capital), which do not apply to activities that in the territory 
of either Party are connected, even occasionally, with the exercise of official authority (incorporated 
Article 6 3.2). In addition, the Parties remain free to apply their laws and regulations regarding entry 
and stay, employment, working conditions, establishment of natural p ersons and supply of services, 
provided that, in so doing, they do not apply them in such a manner as to nullify or impair the 
benefits accruing to any Party under the terms of the Agreement (incorporated Article 6 4). 
4.3.  The Agreement incorporates , without mo difications , Article 6 5 that states that companies which 
are controlled and exclusively owned jointly by the Parties' companies or nationals are covered by 
the provisions of Title V. Further to incorporated Article 4 9, a "company" must be set up in 
accorda nce with the laws of the respective Party and has its registered office or central 
administration or principal place of business in the territory of that Party.   
4.4.  The Agreement also incorporates the structure of the EU -Albania  Agreement, which follows 
neither a typical "positive", "negative" or "hybrid" list approach. There are no schedules of 
commitments or lists of reservations for existing or future non -conforming measures, thus 
liberalization under the incorporated Agreement covers all sectors and all mo des of supply and is 
based on the principle of the approximation of legislation of Albania  to that of the EU .11  
4.5.  Notwithstanding that the Agreement does not commit Albania  to approximate its legislation to 
that of the UK, recognising the alignment of the ir legislation as a result of the EU -Albania  Agreement  
in the relevant sectors , the Parties agree to continue align ing their legislation to secure operation of 
the following  incorporated provisions: Article 46 (Chapter I, movement of workers); Articles 50, 
51(1) and 55 (Chapter II, establishment); and Articles 57, 58(1) and 59 (Chapter III, supply of 
services)  (Article 69A).12 If a Party considers that the necessary level of alignment is no t reached, it 
has the right to request consultations. In case the raised issue is not resolved, a Party may suspend 
the operation of the provisions mentioned above and instead offer the services and services 
providers of the other P arty treatment no less favourable than that accorded to like services and 
service suppliers of any other country. Preferential treatment granted by either Party to the service 
suppliers of a third party,  consistent with the GATS , is excluded.  
 
11 For more details, please refer to Section III.A, document WT/REG 226/3 . 
12 Articles 50, 57, 58 and 59 of the EU -Albania Agreement have been incorporated with modifications 
that are described further in respective parts of this factual presentation . WT/REG454/1  
 
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  4.2  Denial of be nefits  
4.6.  The Agreement does not include a denial of benefits provision per se  but incorporates 
Article  49(a) of the EU -Albania  Agreement under which  a Party may deny the benefits under 
incorporated Title V to a company having only its registered office in a Party's territory, unless its 
operations possess "a real and continuous link" with the econom y of that Party. 
4.3  General provisions on trade in services  
4.7.  The Agreement incorporates , mutatis  mutandis , the general provisions13 on trade in services 
and establishm ent of the EU -Albania Agreement that are summarized below but which should be 
also read in conjunction with modifications  in Annex I to the Agreement.  
4.3.1   Market access  
4.8.  Incorporated Title V does not contain any explicit market access obligations, per se , comparable 
to the provisions in Article XVI of the GATS. However, as regards establishment, services may be 
provided by companies from the UK and Albania from the entry into force of the Agreement, except 
for the supply of air transport, inland waterways t ransport and maritime cabotage services 
(incorporated Articles 50, 51 and 52). For the supply of services (covering modes 1, 2, and to a 
certain extent 4), the right to provide services is granted progressively in accordance with the 
provisions of the inco rporated Chapter III of Title V.   
4.3.2   National and MFN  treatment  
4.9.  Further to  Article 50, incorporated  with modifications,14 the Parties agree to grant MFN and 
national treatment for establishment of companies from the Parties, and the operation of their 
subsidi aries and branches , as of the entry into force of the Agreement . As reported by the Parties, 
no modalities have been established as of yet for extending to subsidiaries and branches of UK 
companies the rights to acquire and enjoy ownership rights over real  property and as regards public 
goods/goods of common interest, where such rights are necessary for the conduct of economic 
activities for which they are established, including natural resources, agricultural land, forests and 
forestry land . 
4.10.   Under the inco rporated Agreement, there is no corresponding provision to grant MFN and 
national treatment for the supply of services.  
4.3.3   Cross -border trade in services  
4.11.   The Agreement incorporates with modifications Chapter III of the EU -Albania  Agreement, 
which applies to t he supply of services . Under its provisions, the Parties agree to take the necessary 
steps to allow progressively the supply of services by a company from the UK or from Albania  or 
their nationals who are established in a Party other than that of the perso n for whom the services 
are intended ( Article 57 incorporated  with modifications15). The supply of services therefore covers 
modes 1, 2, and 4 . The Parties  note that  while the commitments in the  Agreement are liberal and 
ambitious, they should not be classified as fully open. For example, the Parties have agreed that the 
operation of key provisions governing establishment (mode 3) and supply of services (modes 1, 2 
and to an extent 4) will depend on the continued alignment of Albania's legislation in r elevant 
sectors.  
4.12.   The incorporated Agreement also contains a standstill clause in which the Parties commit not 
to take any measure s or action s which would render the conditions for the supply of services by 
their nationals or by companies established in a P arty other than that of the person for whom the 
services are intended, significantly more restrictive compared to the situation on 3 1 March  2009.16 
 
13 For mo re details, please refer to Section III.C, document WT/REG 226/3. 
14 Article 50 of the EU -Albania Agreement was incorporated with modifications: in paragraphs 4 and 5, 
references to timeframes after the entry into force of the Agreement were not incorporated . 
15 In Article 57 of the EU -Albania Agreement, the final sentence was not incorporated into the 
Agreement.  
16 In the incorpor ated Article 58, t he date has been specified further to modifications in paragraphs 6(f)  
and (g)  of Annex I to the Agreement.  WT/REG454/1  
 
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  If one Party believes that the other has introduced such restrictive measures it may request 
consultations w ith the other Party (incorporated with modifications Article 5 8). 
4.13.   The Agreement also incorporates, with modifications, s pecial provisions that cover the supply 
of transport services, in particular air transport, inland transport and international maritime 
transport, as described in section 4.6.2  below.  
4.3.4   Establishment  
4.14.   The Agreement incorporates with modifications Chapter II of Title V on establishment . For 
companies from either Part y, establishment means the right t o take up economic activities by setting 
up subsidiaries and branches in the other Party (incorporated Article 4 9.d.ii). For nationals from 
either Part y, establishment means the right to take up economic activit y as self -employed persons, 
and to set up undertakings, in particular companies, which they effectively control  (incorporated 
Article 4 9.d.i). Self-employment and business undertakings by nationals shall not extend to seeking 
or taking up employment in the labour market or confer a right of access to the labour market of 
another Party . The provisions on establishment do not apply to those who are not exclusively 
self-employed . The incorporated Agreement's provisions on establishment go beyond the GATS 
defini tion of mode 3, as they also cover the establishment of companies producing goods.  
4.15.   Further to incorporated Article 50.4 with modifications17, the Parties agree to establish 
modalities for extending the commitments on  establishment to nationals of both Part ies to take up  
economic activit y as self -employed persons . The Parties  indicate that  such modalities have not yet 
been established.  
4.16.   The Agreement incorporates a standstill clause  not to adopt any new regulations or measures 
which discriminat es against the  establishment of  UK or Albanian companies in their territor ies or 
their operation once established, in comparison with their own companies (incorporated 
Article  50.2). 
4.17.   The Agreement incorporates the provisions of Article 5 3, which clarifies that notwithstanding 
the commitments on establishment, a Party may apply particular rules concerning the establishment 
and operation in its territor y of branches of companies of the other  Party not incorporated in the 
territory of the first Party, if such rules  are justified by legal or technical differences between such 
branches and branches of companies incorporated in its territory, or, as regards financial services, 
for prudential reasons . The difference in treatment shall however not go beyond what is stric tly 
necessary as a result of such legal or technical differences.  
4.18.   The provisions of incorporated Chapter II of Title V ( establishment) do  not apply to air 
transport, inland waterways transport a nd maritime cabotage services ( Article 52 incorporated with 
modifications18). 
4.3.5   Movement of natural persons  
4.19.   The Agreement incorporates , with modifications , Chapter I of Title V that regulates the 
movement of workers.  
4.20.   The incorporated provisions ensure  non-discrimination based on nationality for nationals  of a 
Party who  are legally employed in the other Party, as regards working conditions, remuneration or 
dismissal . They also provide for access to labour markets for a legally resident spouse and children 
of a worker legally employed in the other Party, except seasonal w orkers  and workers under bilateral 
agreements from Albania  (incorporated Article 4 6). The Parties agree to examine the granting of 
 
17 Under the Agreement, in incorporated Article 50.4, "Five years after the date of entry into force of 
this Agreement, " us not incorporated (para. 6(c), Annex I to the Agreement).  
18 Under the Agreement, in incorporated Article 52.1, "the Multilateral Agreement on the Establishment 
of a European Common Aviation Area (ECAA) " is replaced by "any Agreement between the Parties on air 
services or aviation " (Annex I to the Agreement).  WT/REG454/1  
 
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  other improvements, including facilities for access to professional training (incorporated Article 4 7 
with modifications19). 
4.21.   The Agreement incorporates with modifications Article 4 8, to coordinat e social security 
systems for workers from Albania  and their family members . Modifications concern provisions for 
adding together all periods of insurance, employment o r residence completed in the UK and EU 
Member States20 for old age pensions and annuities, invalidity and death and for medical care for 
workers and family members . Under the Agreement the  provision  above shall not apply unless and 
until the Partnership, T rade and Cooperation Council (i) determines that appropriate data sharing 
arrangements are in place, and (ii) decides to apply the provision, with or without modifications, or 
to replace it . After entry into force of the Agreement, the  Council shall examin e any developments 
in data sharing arrangements between the UK and the EU and consider whether these are 
appropriate to enable implementation of the provision  above .21 As reported by the Parties, there is 
no update on the above as of yet. Pensions and annu ities, with the exception of non -contributory 
benefits, are to be freely transferable.  
4.22.   The Agreement incorporates the following provisions  in Chapters II (establishment) and III 
(supply of services)22: 
i. the right of companies from one Party established in the territory of the other Party to 
employ, or have employed by one of its subsidiaries or branches, in accordance with 
the legislation in force in the host country of establishment, employees who are 
nationals from  either Party  (incorporated Article 5 5); and 
ii. the temporary movement of natural persons providing the service or who are employed 
by the service provider as key personnel and who seek temporary entry to negotiat e 
the sale of services or enter into agreements to sell services but are not engaged in 
direct sales  to the general public  or in supplying services themselves  (incorporated 
Article 5 7.2). 
4.23.   The UK has  horizontal commitments under the GATS for intra -corporate transfers (ICTs), 
business visitors (BV) and contractual service suppliers (CSS) subject t o specific conditions . For 
ICTs, the natural person must work within a juridical person, other than a non -profit making 
organization, established in the territory of a WTO Member and have been employed by or been a 
partner in it for at least the year immed iately preceding the date of admission . The natural person 
is temporarily transferred to an establishment ( subsidiar y, branch, office) of that juridical person to 
provide like services in the territory of the UK . The duration of temporary stay for ICTs is defined by 
UK laws and regulations regarding entry, stay and work . BVs include  (i) service sellers seeking 
temporary entry to negotiate the sale of services and (ii) those in a senior position, within a juridical 
person, responsible for setting up commerci al presence of a service provider (but not engaged in 
direct sales or supplying services) . The duration of temporary stay of BVs is defined by UK laws and 
regulations regarding entry, stay and work . Regarding  CSS, access is subject to the following 
conditi ons: natural persons are engaged in the supply of a service on a temporary basis as 
employees of a juridical person, who has no commercial presence in the UK . Temporary entry and 
stay are for a period of three months in any 12 -month period . The services co ntract is restricted to  
a predefined list of activities .23 
 
19 Under the Agreement, the first paragraph of incorporated Article 4 7, which concerns existing facilities 
for access to employment for workers from Albania  accorded by the EU Member States under bilateral 
agreements (ratchet clause), and possible conclusion of s uch bilateral agreements by other EU Member States, 
has not been incorporated (para. 6(a), Annex I to the Agreement).  
20 Paragraph 6( b)(i), Annex I to the Agreement.  
21 Paragraph 6(b)(ii), Annex I to the Agreement.  
22 For further details, see paragraphs 3 0 to 32 in document WT/REG 226/3 . 
23 These are: legal services; accounting services; taxation advisory services; architectural services, 
urban planning and landscape architectural services; engineering services, integrated engineering services; 
advertising; mana gement consulting services; services related to management consulting; technical testing 
and analysis services; translation services; construction services, site investigation work (document 
S/C/W/380).  WT/REG454/1  
 
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  4.24.   In the GATS, Albania has scheduled horizontal commitments on the entry and temporary 
presence of (i) intra -corporate transferees24 who may enter and stay in Albania for a period of 5 
years; (ii) services sellers25, whos e duration of temporary stay is limited to 6 months in 
any 12 month period, and is renewable; and (iii) persons responsible for the setting up commercial 
presence26, who c an enter and stay in Albania up to 3 months, and is renewable.  
4.4  Liberalization commitments  
4.25.   The Parties incorporate, mutatis  mutandis , liberalization commitments on trade in services 
and establishment in the EU -Albania  Agreement .27 Modifications to the inco rporated Agreement are 
described in the respective parts of th is factual presentation.  
4.26.   As mentioned in section 4.1 above , there are no s chedules of commitments or lists of 
reservations for existing or future non -conforming measures . 
4.27.   Except for financial an d certain types of transport services28, there are no national treatment 
restrictions for mode 3 ("establishment" under the incorporated Agreement) . Under the incorporated 
Agreement, the Parties may take measures for prudential reasons, including for the p rotection of 
investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial 
service supplier, or to ensure the integrity and stability of the financial system (incorporated 
Article  51.2). Further, the provision of trade in  services through other modes of supply is bound at 
the existing level of restrictiveness and will be progressively liberalized.  
4.28.   The sections below compare the Parties' liberalization commitments under the Agreement and 
the GATS . Tables 4.1 and 4.2 summarize, sometimes in a rather broad manner, specific 
commitments under the Agreement, by sector and sub -sector and compare them with GATS 
commitments . Improvements over existing GATS commitments include a reduction in market access 
and/or national treat ment limitations, a relaxation of the form of establishment under mode  3, 
and/or additional commitments and/or improved sectoral coverage . Horizontal limitations in the 
GATS Schedule of Specific Commitments and reservations covering all sectors are not inc luded in 
the tables but are addressed separately . Mode 4 commitments and limitations are, to a large extent, 
also excluded from the tables . The following sections are to be read in conjunction with the provisions 
of the incorporated Agreement and respectiv e modifications introduced by the Agreement.  
4.4.1   United Kingdom  
4.29.   The United Kingdom incorporates, mutatis  mutandis , the EU's liberalization commitments in 
the incorporated Agreement with modifications described  in respective sections of this factual 
presentatio n. 
4.4.1.1   MFN and horizontal  commitments  
4.30.   In its GATS commitments the UK has a broad reservation for services considered public 
utilities at the national or local level, and for types of establishment . Other horizontal restrictions 
apply to mode 4 . Under the incor porated Agreement "activities that in the territory of either Party 
are connected, even occasionally, with the exercise of official authority" are excluded from its scope 
(incorporated Article 6 3.2).  
 
24 Defined as e ssential persons (executives and senior  managers, specialists) who are employees of a 
business or company providing services in Albania through a branch, subsidiary or affiliate established in 
Albania.  
25 Defined as persons employed or mandated by an enterprise and who stay temporarily in Albania in 
order to conclude the contract for the sale of a service on behalf of  the enterprise which employs them or 
mandated them ; or persons who are employees of an enterprise that has no commercial presence in  Albania, 
which has conclude d a service contract with an enterprise engaged in substantive business in Albania.   
26 Defined as p ersons who are employees of an enterprise not having commercial presence in Albania 
and who stay temporarily in Albania for the purpose of setting up a comme rcial presence of that enterprise in 
Albania.  
27 For further details, see Section III.D in document WT/REG 226/3 . 
28 As mentioned above, the provisions of the incorporated Chapter II of Title V ( establishment) do not 
apply to air transport services, inland wa terways transport services a nd maritime cabotage services 
(incorporated Articles 5 2). WT/REG454/1  
 
- 23 - 
 
  4.31.   Under the GATS, the UK lists a number of MFN exemptions in areas such as audio -visual 
services ; a variety of transport services ; and financial services . A number of MFN exemptions are 
also registered for all sectors and with respect to, inter alia , existing and future bilateral agreements 
with third -parties .29 Such reservations have not been scheduled under the incorporated Agreement.  
4.4.1.2   Sector specific commitments  
4.32.   The UK GATS commitments cover 11 out of 12 services sectors30 with no commitments in 
postal and courier servi ces; audio-visual services ; other human health services ; libraries, archives, 
museums and other cultural services ; and maritime, inland waterways, space and pipeline transport 
services.  
4.33.   All services are covered under the Agreement except for air transport services, inland 
waterways and maritime cabotage services to which Chapter II of Title V on establishment does not 
apply (incorporated Article 5 2). As there are no schedules of commitments or lists of reservations 
for existing or future non -conforming meas ures, liberalization under the Agreement is conditional on 
the alignment of Albania's legislation to that of the UK.  
4.34.   Table 4.1 follows the WTO Services Sectoral Classification31 and provides a comparison  of the 
UK's GATS specific commitments in modes 1 -3 with those taken under the Agreement . There is, as 
yet, no certified UK Schedule of Specific Commitments ; the proposed draft has been circulated in 
series S/C/W/380 .  
Table 4.1 United Kingdom: Comparison between the GATS and Agreement specific 
commitments.  
Sectors / Sub -sectors  GATS  FTA sector -specific liberalizatio na 
Compared 
to GATSb Sector coverage  Commit - 
ments  Trade in 
services  Establish -
ment  
1. Business services     
  
A. Professional  Services  Partial  Full Full Conditional  Improved  
B. Computer  and Related  Services  Full Full Full Conditional  Same  
C. Research  and Development  Services  Partial  Full Full Conditional  Improved  
D. Real Estate  Services  Full Full Full Conditional  Same  
E. Rental/Leasing  Services  without  Operators  Partial  Full Full Conditional  Improved  
F. Other Business  Services  Partial  Full Full Conditional  Improved  
2. Communication services   
    
A. Postal services  --- Full Full Conditional  New 
B. Courier  services  --- Full Full Conditional  New 
C. Telecommunication  services  Partial  Full Full Conditional  Improved  
D. Audiovisual services  --- Full Full Conditional  New 
E. Other --- Full Full Conditional  New 
3. Construction and related engineering 
services   
    
A. General  construction  work for buildings  Partial  Full Full Conditional  Improved  
B. General  construction  work for civil engineering  Partial  Full Full Conditional  Improved  
C. Installation  and assembly  work  Partial  Full Full Conditional  Improved  
D. Building  completion  and finishing  work  Partial  Full Full Conditional  Improved  
E. Other Partial  Full Full Conditional  Improved  
4. Distribution services   
    
A. Commission  agents'  services  Partial  Full Full Conditional  Improved  
B. Wholesale  trade services  Partial  Full Full Conditional  Improved  
C. Retailing  services  Partial  Full Full Conditional  Improved  
D. Franchising  Partial  Full Full Conditional  Improved  
E. Other --- Full Full Conditional  New 
5. Education al services   
    
A. Primary education services  Partial  Full Full Conditional  Improved  
B. Secondary education services  Partial  Full Full Conditional  Improved  
C. Higher education services  Partial  Full Full Conditional  Improved  
D. Adult education  Partial  Full Full Conditional  Improved  
E. Other education services  --- Full Full Conditional  New 
6. Environmental services   
    
A. Sewage services  Partial  Full Full Conditional  Improved  
B. Refuse disposal services  Partial  Full Full Conditional  Improved  
 
29 Document S/C/W/381.  
30 Based on the WTO Services Sectoral Classification (WTO document MTN.GNS/W/120).  
31 Document MTN.GNS/W/120 as of 10 July 1991.  WT/REG454/1  
 
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  Sectors / Sub -sectors  GATS  FTA sector -specific liberalizatio na 
Compared 
to GATSb Sector coverage  Commit - 
ments  Trade in 
services  Establish -
ment  
C. Sanitation and similar services  Partial  Full Full Conditional  Improved  
D. Other Partial  Full Full Conditional  Improved  
7. Financial services   
    
A. All insurance  and insurance -related  services  Partial  Full Partial  Conditional  Improved  
B. Banking  and other financial  services  Partial  Full Partial  Conditional  Improved  
C. Other --- Full Partial  Conditional  New 
8. Health related and social services   
    
A. Hospital services  Partial  Full Full Conditional  Improved  
B. Other Human Health Services  --- Full Full Conditional  New 
C. Social Services  Partial  Full Full Conditional  Improved  
D. Other --- Full Full Conditional  New 
9. Tourism and travel related services   
    
A. Hotels and restaurants (including catering)  Partial  Full Full Conditional  Improved  
B. Travel agencies  and tour operators  services  Full Full Full Conditional  Same  
C. Tourist  guides  services  Full Full Full Conditional  Same  
D. Other --- Full Full Conditional  New 
10. Recreational and cultural and sporting 
services   
    
A. Entertainment  services  Partial  Full Full Conditional  Improved  
B. News agency services  Full Full Full Conditional  Same  
C. Libraries, archives, museums and other cultural 
services  --- Full Full Conditional  New 
D. Sporting and other recreational services  Partial  Full Full Conditional  Improved  
E. Other --- Full Full Conditional  New 
11. Transport services   
    
A. Maritime Transport Services  --- Partial  Partial  Conditional  New 
B. Internal Waterways Transport  --- Partial  Excluded  Conditional  Similar  
C. Air Transport  Services  Partial  Partial  Excluded  Conditional  Narrower  
D. Space Transport  --- Partial  Full Conditional  New 
E. Rail Transport  Services  Partial  Partial  Full Conditional  Similar  
F. Road Transport  Services  Partial  Partial  Full Conditional  Similar  
G. Pipeline  Transport  --- Partial  Full Conditional  New 
H. Services  auxiliary  to all modes  of transport  Partial  Partial  Full Conditional  Similar  
I. Other Transport  Services  Partial  Partial  Full Conditional  Similar  
12. Other services not included elsewhere  --- Full Full Conditional  New 
General Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . As there 
are no schedules of commitments or lists of reservations for existing or future non -conforming 
measures, liberalization under the Agreement is b ased on the principle of the alignment of the 
legislation of Albania  with that of the UK.  
a Progressive liberalization depends on the continued alignment of the legislation of Albania  to that 
of the UK (Article 6 9A). 
b Based on the sectoral coverage and pr ogressive liberalization set out in the Agreement 
(incorporated Article 7). 
Full:  Specific commitments not subject to market access or national treatment limitation(s) under any 
of the three modes.  
Partial:  Specific commitments subject to some  market access or national treatment  limitation(s), under 
any of the three modes.  
---:  No specific commitment (under GATS), or no specific reservation (under the Agreement).  
New:  New commitments (full or partial, with or without limitations) which can, i n most cases, be seen 
as "improved".  
Improved:  Overall improved commitments under the Agreement compared to those under the GATS.  
Similar:  Similar commitments with limited improvements and/or limited additional reservations.  
Excluded:  Sector or sub -sector excluded from coverage, or full reservation under the Agreement.  
Conditional:  Liberalization commitments are condition ed on  the level of alignment of the legislation of Albania  
with that of the UK.  
Source:    The United Kingdom's modifications to the inc orporated EU -Albania Agreement ; liberalization 
commitments under the incorporated Agreement (WT/REG226/3) and the United Kingdom GATS 
specific commitments ( S/C/W/380) . 
4.4.1.2.1   Business services  
4.35.   Under the GATS, the UK has commitments in all 11 sub -sectors of professional services. While 
the sub -sector is to a large extent bound, certain reservations, in particular for modes 1 and/or 3, 
apply for auditing services; medical, dental and midwives' services; veterinary services; services WT/REG454/1  
 
- 25 - 
 
  provided by nurses, physiot herapists and paramedical personnel; supply of pharmaceutical goods to 
the general public, and other related scientific technical consulting services.32 
4.36.   Computer and related services are fully committed for modes 1 -3 under the GATS. For 
research and develo pment services, the UK fully liberalizes only R&D services for social sciences and 
humanities, while real estate services33 are fully committed. Rental/leasing services without 
operators for aircraft are subject to market access limitations for modes 2 and  3, and there are no 
commitments for other services of this sub -sector ; otherwise the sub -sector is liberalized. Under 
other business services, all sub -sectors are committed either fully or with reservations, except for 
services incidental to manufacturing  and to energy distribution, which are not scheduled.  
4.37.   Under the Agreement, there are no national treatment restrictions on business services for 
mode 3 ("establishment" under the Agreement). The Parties commit to not taking measures or 
actions which render  the conditions for the supply of services significantly more restrictive than on 
31 March  2009. Further, they agree to implement paragraph 1 of Article 5 7 to allow progressively 
the supply of services between the mselves . These provisions are also dependen t on the continued 
alignment of legislation, as per Article 6 9A of the Agreement.  As reported by the United Kingdom, 
there has been no update on the matter.   
4.4.1.2.2   Communication services  
4.38.   The UK has no commitments under the GATS for postal and courier, audio -visual and other 
communication services. For telecommunication services, the UK is fully committed for the supply 
of "all services consisting of the transmission and reception of signals by any electromagnetic means, 
excluding broadcasting". Its GATS commitmen ts also incorporate the Reference Paper obligations 
for basic telecommunications services.  
4.39.   Under the Agreement, there are no national treatment restrictions on communication  services 
for mode 3. The Parties commit to not undertaking measures or actions which render the conditions 
for the supply of services significantly more restrictive than on 31  March  2009. Further, they agree 
to implement paragraph 1 of Article 57 to allow progressively the supply of services between 
themselves . These provisions are also dependent on the continued alignment of legislation, as per 
Article 69A of the Agreement.  As reported by the United Kingdom, there has been no update on the 
matter.   
4.4.1.2.3   Construction and related service s 
4.40.   The UK largely liberalizes under the GATS the supply of construction and related engineering 
services. Mode 1, however, remains unbound for the whole sector, except for site investigation work 
(CPC 5111) and excavating and earthmoving work (CPC 5114).  
4.41.   Under the Agreement, there are no national treatment restrictions on construction and related 
services for mode 3.  The Parties commit to not undertaking measures or actions which render the 
conditions for the supply of services significantly mo re restrictive than on 31  March  2009. Further, 
they agree to implement paragraph 1 of Article 57 to allow progressively the supply of services 
between the mselves . These provisions are also dependent on the continued alignment of legislation, 
as per Article  69A of the Agreement. As reported by the United Kingdom, there has been no update 
on the matter.  
4.4.1.2.4   Distribution services  
4.42.   For distribution services, the UK's commitments under the GATS exclude trade in arms, 
chemical products, explosives and precious metal ; otherwise, the sector is to a large extent open. 
The liberalization of the supply of retailing services is limited in scope and remains unbound for 
mode  1, except for mail order.  
 
32 The service involved excludes related scientific and technical consulting services on operation of 
mines, etc. (S/C/W/380).  
33 The service involved relates to the profession of real estate agents and does not affect any rights 
and/or restrictions on natural and juridic al persons purchasing real estate (S/C/W/380).  WT/REG454/1  
 
- 26 - 
 
  4.43.   Under the Agreement, there are no national treatment restrictions on d istribution services for 
mode 3 . The Parties commit to not undertaking measures or actions which render the conditions 
for the supply of services significantly more restrictive than on 31  March  2009. Further, they agree 
to implement paragraph 1 of Article  57 to allow progressively the supply of services between 
themselves . These provisions are also dependent on the continued alignment of legislation, as per 
Article 69A of the Agreement. As reported by the United Kingdom, there has been no update on the 
matter.  
4.4.1.2.5   Education services  
4.44.   Under the UK's GATS commitments, privately funded primary, secondary, higher, and adult 
education services sub -sectors are fully committed with no commitments in other education services.  
4.45.   Under the Agreement, there are no national treatment restrictions on educational services for 
mode 3. The Parties commit to not undertaking measures or actions which render the conditions for 
the supply of services significantly more restrictive than on 31  March  2009. Further, they agree to 
impleme nt paragraph 1 of Article 57 to allow progressively the supply of services between 
themselves . These provisions are also dependent on the continued alignment of legislation, as per 
Article 69A of the Agreement. As reported by the United Kingdom, there has been no update on the 
matter.  
4.4.1.2.6   Environmental Services  
4.46.   The supply of environmental services is largely liberalized by the UK under the GATS, with 
mode 1 remaining unbound for the scheduled sub -sectors.  
4.47.   Under the Agreement, there are no national treatment res trictions on environmental services 
for mode 3. The Parties commit to not undertaking measures or actions which render the conditions 
for the supply of services significantly more restrictive than on 31  March  2009. Further,  they agree 
to implement paragrap h 1 of Article 57 to allow progressively the supply of services between 
themselves . These provisions are also dependent on the continued alignment of legislation, as per 
Article 69A of the Agreement. As reported by the United Kingdom, there has been no upd ate on the 
matter.  
4.4.1.2.7   Financial Services  
4.48.   Under the GATS, the UK takes commitments in financial services in accordance with the 
provisions of the "Understanding on Commitments in Financial Services" ("the Understanding").  In 
insurance and insurance -related services, m arket access commitments in modes 1 and 2 apply  only 
to the transactions specified in the Understanding34; also, a specific legal form might be required. 
In banking and other financial services, modes 2 and 3 are subject to a n umber of reservations, in 
particular regarding forms of establishment.  
4.49.   Under the Agreement, the Parties may take measures for prudential reasons, including for 
the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is o wned 
by a financial service supplier, or to ensure the integrity and stability of the financial system 
(incorporated Article 51.2).  
4.4.1.2.8   Health related and social services  
4.50.   The UK has partial commit ments for the supply of all hospital services and social service s 
(only convalescent and rest houses, old people's homes) with modes 2 and 3 fully open and mode  1 
unbound.  
4.51.   Under the Agreement, there are no national treatment restrictions on health related and social 
services for mode 3. The Parties commit to not undert aking measures or actions which render the 
 
34 Paragraphs B.3 and B.4 of the market access section of the Understandin g, which include, inter alia , 
insurance of risks relating to maritime shipping , commercial aviation , space launching and freight , and goods in 
international transit; reinsurance and retrocession; provision and transfer of financial information and financial 
data processing . WT/REG454/1  
 
- 27 - 
 
  conditions for the supply of services significantly more restrictive than on 31  March  2009. Further,  
they agree to implement paragraph 1 of Article 57 to allow progressively the supply of services 
between the mselv s. These provisions are also dependent on the continued alignment of legislation, 
as per Article 69A of the Agreement. As reported by the United Kingdom, there has been no update 
on the matter.   
4.4.1.2.9   Tourism and related services  
4.52.   Tourism and travel related services are largely open under the GATS, with some reservations 
applicable to scope and supply via mode 1 for hotels, restaurants and catering services.  
4.53.   Under the Agreement, there are no national treatment restrictions on tourism and travel 
servic es for mode 3. The Parties commit to not undertaking measures or actions which render the 
conditions for the supply of services significantly more restrictive than on 31  March  2009. Further, 
they agree to implement paragraph 1 of Article 57 to allow progre ssively the supply of services 
between the mselves . These provisions are also dependent on the continued alignment of legislation, 
as per Article 69A of the Agreement. As reported by the United Kingdom, there has been no update 
on the matter.   
4.4.1.2.10   Recreational,  cultural and sporting services  
4.54.   Under the GATS, the UK has full commitments for news and press agency services, while for 
entertainment services mode 1 is unbound and partial liberalization commitments apply for the 
supply of sporting and other recreationa l services other than gambling and betting services.  
4.55.   Under the Agreement, there are no national treatment restrictions on recreational, cultural 
and sporting services for mode 3. The Parties commit to not undertaking measures or actions which 
render the co nditions for the supply of services significantly more restrictive than on 31  March  2009. 
Further, they agree to implement paragraph 1 of Article 57 to allow progressively the supply of 
services between the mselves . These provisions are also dependent on th e continued alignment of 
legislation, as per Article 69A of the Agreement. As reported by the United Kingdom, there has been 
no update on the matter.  
4.4.1.2.11   Transport Services35 
4.56.   The UK has no commitments in the GATS for maritime, internal waterways, space and pipeline 
transport services.  In air transport services, maintenance and repair of aircraft and parts thereof, 
sales and marketing, and computer reservations systems are partially liberalized with , inter alia , 
certain national treatment reservations.  For ra il transport services, the UK only opens modes 2 and 
3 for maintenance and repair of rail transport equipment, with mode 1 remaining unbound. For road 
transport services, maintenance and repair of road transport equipment is fully liberalized, while for 
both passenger and freight transportation mode 1 is unbound, with specific reservations for mode 3 
for the supply of passenger transportation services.  For services auxiliary to all modes of transport, 
the UK has full commitments in freight transport agency/freight forwarding services and 
pre-shipment inspection. For storage and warehouse services (other than in ports) only mode 1 
remains unbound.  In land transport it has partial commitments  (provision of combined transport 
services), which i s scheduled under other transport services.  
4.57.   Under the Agreement, specific provisions apply for the supply of maritime, air  and inland 
transport services as described in Section 4.6.2 below. No reservations are listed for space and 
pipeline transport.  
4.4.1.2.12   Other  services not included elsewhere  
4.58.   The UK has no GATS commitments under this sector  and lists no reservations under the 
Agreement . 
 
35 Liberalization of transport services is covered by specific provisions. For further details, please refer to 
section 4.6.2 of this factual presentation.  WT/REG454/1  
 
- 28 - 
 
  4.4.2   Albania  
4.59.   Under the GATS, Albania  made commitments in 11 out of 12 services sectors with no 
commitments , inter alia , in R&D and r eal estate services;  audiovisual services ; social services ; 
internal waterways,  space, rail and pipeline transport services ; and other services not included 
elsewhere . 
4.60.   Under the Agreement, Albania  incorporates  without modifications , mutatis  mutandis , 
liberalization commitments under the EU -Albania  Agreement36, where all services are covered except 
for air transport services, inland waterways and maritime cabotage services to which Chapter  II of 
Title V on establishment does not apply (incorpo rated Article 5 2). As there are no schedules of 
commitments or lists of reservations for existing or future non -conforming measures, liberalization 
under the Agreement is conditional on the alignment of Albania's  legislation to that of the UK.  
4.61.   Table 4.2 pr ovides a comparison of Albania's  GATS specific commitments in modes 1 -3 with 
those taken under the Agreement . Horizontal limitations, MFN reservations and mode 4 are not 
taken into account in the table which should be read in conjunction with the respectiv e provisions of 
the Agreement.  
Table 4.2 Albania : Comparison between the GATS and Agreement specific commitments . 
Sectors / Sub -sectors  GATS  FTA sector -specific liberalizationa 
Compared 
to GATSb Sector coverage  Commit - 
ments  Trade in 
services  Establish -
ment  
1. Business services       
A. Professional  Services  Partial  Full Full Conditional  Improved  
B. Computer  and Related  Services  Full Full Full Conditional  Same  
C. Research  and Development  Services  --- Full Full Conditional  New 
D. Real Estate  Services  --- Full Full Conditional  New 
E. Rental/Leasing  Services  without  Operators  Partial  Full Full Conditional  Improved  
F. Other Business  Services  Partial  Full Full Conditional  Improved  
2. Communication services       
A. Postal services  Partial  Full Full Conditional  Improved  
B. Courier  services  Full Full Full Conditional  Same   
C. Telecommunication  services  Full Full Full Conditional  Same  
D. Audiovisual services  --- Full Full Conditional  New 
E. Other --- Full Full Conditional  New 
3. Construction and related engineering 
services       
A. General  construction  work for buildings  Full Full Full Conditional  Same   
B. General  construction  work for civil engineering  Full Full Full Conditional  Same   
C. Installation  and assembly  work  Full Full Full Conditional  Same   
D. Building  completion  and finishing  work  Full Full Full Conditional  Same   
E. Other Full Full Full Conditional  Same   
4. Distribution services       
A. Commission  agents'  services  Partial  Full Full Conditional  Improved  
B. Wholesale  trade services  Partial  Full Full Conditional  Improved  
C. Retailing  services  Partial  Full Full Conditional  Improved  
D. Franchising  Full Full Full Conditional  Same  
E. Other --- Full Full Conditional  New 
5. Education al services       
A. Primary education services  Partial  Full Full Conditional  Improved  
B. Secondary education services  Partial  Full Full Conditional  Improved  
C. Higher education services  Full Full Full Conditional  Same  
D. Adult education  Full Full Full Conditional  Same  
E. Other education services  --- Full Full Conditional  New 
6. Environmental services       
A. Sewage services  Full Full Full Conditional  Same  
B. Refuse disposal services  Full Full Full Conditional  Same  
C. Sanitation and similar services  Full Full Full Conditional  Same  
D. Other Partial  Full Full Conditional  Improved  
7. Financial services       
A. All insurance  and insurance -related  services  Partial  Full Partial  Conditional  Improved  
B. Banking  and other financial  services  Partial  Full Partial  Conditional  Improved  
C. Other --- Full Partial  Conditional  New 
8. Health related and social services       
A. Hospital services  Full Full Full Conditional  Same  
 
36 For further details, see Section III.D in document WT/REG 226/3 . WT/REG454/1  
 
- 29 - 
 
  Sectors / Sub -sectors  GATS  FTA sector -specific liberalizationa 
Compared 
to GATSb Sector coverage  Commit - 
ments  Trade in 
services  Establish -
ment  
B. Other Human Health Services  Full Full Full Conditional  Same  
C. Social Services  --- Full Full Conditional  New 
D. Other --- Full Full Conditional  New 
9. Tourism and travel related services       
A. Hotels and restaurants (including catering)  Full Full Full Conditional  Same  
B. Travel agencies  and tour operators  services  Full Full Full Conditional  Same  
C. Tourist  guides  services  Full Full Full Conditional  Same  
D. Other --- Full Full Conditional  New 
10. Recreational and cultural and sporting 
services       
A. Entertainment  services  Partial  Full Full Conditional  Improved  
B. News agency services  Full Full Full Conditional  Same  
C. Libraries, archives, museums and other cultural 
services  Partial  Full Full Conditional  Improved  
D. Sporting and other recreational services  Full  Full Full Conditional  Same  
E. Other --- Full Full Conditional  New 
11. Transport services       
A. Maritime Transport Services  Partial  Partial  Partial  Conditional  Similar  
B. Internal Waterways Transport  --- Partial  Excluded  Conditional  Similar  
C. Air Transport  Services  Partial  Partial  Excluded  Conditional  Similar  
D. Space Transport  --- Partial  Full Conditional  New 
E. Rail Transport  Services  --- Partial  Full Conditional  New 
F. Road Transport  Services  Partial  Partial  Full Conditional  Similar  
G. Pipeline  Transport  --- Partial  Full Conditional  New 
H. Services  auxiliary  to all modes  of transport  Partial  Partial  Full Conditional  Improved  
I. Other Transport  Services  --- Partial  Full Conditional  New 
12. Other services not included elsewhere  --- Full Full Conditional  New 
General Note:   MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not included . As there 
are no schedules of commitments or lists of reservations for existing or future non -conforming 
measures, liberalization under the Agreement is  based on  the pri nciple of the alignment  of the 
legislation of Albania  with that of the UK. 
a Progressive liberalization depends on the continued alignment of the legislation of Albania  to that of 
the UK (Article 67A).  
b Based on the sectoral coverage and progressive liberalization set out in the Agreement (incorporated 
Article 6).  
Full:  Specific commitments not subject to market access or national treatment limitation(s), under any of 
the three modes.  
Partial:  Specific commitments subject to some market access or national treatment limitation(s) under any of 
the three modes.  
---:  No specific commitment (under GATS), or no specific reservation (under the Agreement).  
New:  New commitments (full or partial, with or without  limitations) which can be seen as "improved".  
Improved:  Overall improved commitments made under the Agreement compared to those under the GATS.  
Similar:   Similar commitments ; though with limited improvements and/or limited additional reservations.  
Exclu ded:   Sector or sub -sector excluded from the coverage, or full reservation (under the Agreement).  
Conditional:  Liberalization commitments are condition ed on  the level of alignment of the legislation of Albania  
with that of the UK.  
Source:   The liberalization commitments under the incorporated Agreement (WT/REG 226/3 ) and GATS Specific 
Commitments  of Albania ( GATS/SC/131) . 
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.62.   There is no provision per se  in the incorporated Agreement on domestic regulation in line with 
Article VI of the GATS.  WT/REG454/1  
 
- 30 - 
 
  4.5.2   Recognition  
4.63.   The Agreement fully incorporates Article 5 4 that provides the possibility for mutual recognition 
of qualifications.  As reported by the Parties, there is no bilateral agreement on the recognition o f 
professional qualifications yet.   
4.5.3   Subsidies  
4.64.   Like the EU -Albania Agreement, the Agreement contains no provisions on subsidies in trade 
in services.  
4.5.4   Safeguards  
4.65.   The EU -Albania Agreement provisions on safeguards in  services are incorporated into the 
Agreement. For further details see paragraphs 77 and 78 of the Factual Presentation WT/REG226/3.  
4.5.5   Other  
4.5.5.1   Investment  
4.66.   The Agreement incorporates, with no modification, Article 91 of Title VIII of the EU -Albania 
Agreement, wh ich establishes cooperation between the Parties on investment promotion and 
protection matters with the particular aim of bringing about a favourable climate for private 
investment, both domestic and foreign, in Albania.  
4.6  Sector specific provisions on trade  in services  
4.6.1    Financial Services  
4.67.   Like the GATS Annex on Financial Services, incorporated Article 51.2 states that the Parties 
shall not be prevented from taking measures for prudential reasons, including for the protection of 
investors, depositors, policy  holders or persons to whom a fiduciary duty is owed by a financial 
service supplier, or to ensure the integrity and stability of the financial system.  
4.68.   Further to incorporated Articles 49 and 51, the Agreement fully incorporates Annex IV to the 
EU-Albania  Agreement, which defines the scope and definition of financial services for the purposes 
of the incorporated Agreement, and which also to a large extent mirror the provisions of the GATS 
Annex o n Financial Services.  
4.6.2   Transport services  
4.69.   Under the incorporated Agreement specific provisions apply to maritime, internal waterways, 
air and inland transport services .37 Air transport, inland waterways transport and maritime cabotage 
services  are excluded  from the provisions on establishment  (incorporated Article 52.1)  
4.70.   For international maritime transport, the Agreement incorporates with modifications38 
Article  59.2, which provides for the effective application by the Parties of the principle of unrestricted 
access to the market and traffic on a commercial basis , and to respect international obligations on 
safety, security and environmental standards . The Parties affirm their commitment to a freely 
competitive environment as an essential featur e of international maritime transport. In this context, 
they commit to not introduce cargo -sharing clauses in future bilateral agreements with third parties ; 
abolish all unilateral measures and administrative, technical and other obstacles that could have 
restrictive or discriminatory effects on the free supply of services in international maritime transport ; 
and grant non -discriminat ory access to ports open to international trade, the use of infrastructure 
and auxiliary maritime services of the ports, a s well as related fees and charges, customs facilities 
and the assignment of berths and facilities for loading and unloading (incorporated Article 5 9.3). 
 
37 For further details see paragraphs 7 0-72 of the Factual Presentation WT/REG226/3  
38 Modifications to paragraphs 1, 2 and 6 of Article 59 of the EU -Albania Agreement are in 
paragraphs  6(h)-(j) of Annex I to the Agreement.  WT/REG454/1  
 
- 31 - 
 
  4.71.   On air transport services, the Parties agree to negotiate special agreements regarding the 
conditions of mutual market access (incorporated Article  59.4). As reported by the Parties, there 
has been no update on the matter.  Prior to the conclusion of such agreements, the Parties agree not 
to take any measures or actions which are more restrictive  or discriminatory than before  the entry 
into force of the Agreement (incorporated Article 5 9.5).  
4.72.   The supply of inland transport services is governed b y incorporated and modified  Protocol 539 
to the EU -Albania Agreement . The Protocol  aims to promote coope ration between the Parties on land 
transport, and in particular transit traffic (incorporated Article 1). Cooperation covers land transport, 
in particular road, rail and combined transport, including relevant infrastructure  (incorporated 
Article  2). 
4.73.   The Pa rties agree to adopt mutually coordinated measures necessary for the development 
and promotion of rail and combined transport to ensur e that a major proportion of their bilateral and 
transit transport through Albania occurs  under more environmentally -friendly conditions 
(incorporated Article 7) . As reported by the Parties, there has been no update on the matter.   
4.74.   In road transport, the Parties agree to grant unrestricted access to transit traffic (Article 11 
of the Protocol).  
4.75.   Further to incorporated Articl e 59.7, the Partnership, Trade and Cooperation Counc il shall 
examine ways of creating the conditions necessary for improving the freedom of providing air and 
inland transport services.  As reported by the Parties, there has been no update on the matter.   
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  Under the incorporated EU -Albania Agreement, the Agreement contains no general 
transparency obligation . The Agreement does  however  contai n some specific transparency 
obligations  (for example Article 71.5 on state aid requires the provision of annual reports and on 
iron and steel in Protocol I Article 5.4). For further details see the Factual Presentation 
WT/REG226/1/Rev.1.  
5.2  Current payments  and capital movements  
5.2.  The Agreement incorporates, with modifications40, Chapter IV of Title V of the EU -Albania 
Agreement on current payments  and movement of capital . The Parties shall authorize, in freely 
convertible currency, any payment and transfer be tween their current accounts, in accordance with 
IMF regulations.  
5.3.  The Parties shall ensure the free movement of capital relating to direct investments in 
companies formed in accordance with the laws of the host country and investments in accordance 
with th e provisions of the Agreement's Chapter II of Title V (on establishment), as well as the free 
movement of capital relating to the liquidation or repatriation of these investments and of any profit 
stemming therefrom (Article 61) . The same provision applies  to free movement between the Parties 
of capital for credits related to commercial transactions or to the provision of services in which a 
resident of one of the Parties is participating, and to financial loans and credits with a maturity longer 
than a yea r. As reported by Albania, the Parties are engaged in a dialogue regarding the progressive 
liberalization o f the acquisition of real estate rights by UK nationals. The Parties  clarify that  
no modifications have yet been made to the Agreement on Article 61.  The review clauses are 
within  7 years for Albanian real estate, and from 5 years for the free movement of capital relating 
to portfolio investment and financial loans and credits with maturity shorter than a year. As the 
Agreement entered into force in 20 21, these reviews are yet to be explored.    
5.4.  The Parties commit to not introduce any new restriction on the movement of capital and current 
payments between their residents, and to not make the existing arrangements more restrictive 
 
39 Modifications to Protocol 5 are set out in paragraphs 15(a) -(r) of Annex I to the Agreement.  
40 Article 62 of the EU -Albania Agreement on the progressive application of EU rules on the free 
movement of capital was not incorporated (paragraph 6(k) of Annex I to the Agreement).  WT/REG454/1  
 
- 32 - 
 
  (Article 61.3). Moreover, they commit to consult each other with a v iew to facilitating the movement 
of capital between themselves (Article 63.6). For more details see paragraphs 78 -80 of Factual 
Presentation WT/REG226/3.  
5.3  Exceptions  
5.5.  The exceptions contained in the EU -Albania Agreement on Title V are incorporated into the 
Agreement. For further details see paragraphs 83 -85 of the Factual Presentation WT/REG226/3.  
5.4  Accession and withdrawal  
5.6.  Article 12.5 of the Agreement concerns termination of provisional application of the Agreement. 
Through incorporation of Article 130 of the EU -Albania Agreement, the Parties have agreed that the  
Agreement is concluded for an unlimited period, although either Party may denounce the Agreement 
by notifying the other Party. In such a  case the Agreement would be terminated six months later.  
5.7.  Amendments of the Agreement are permitted under Article 11.1 and 2.  
5.5  Institutional framework  
5.8.  The Agreement incorporates Title X of the EU -Albania Agreement , modified by Article 9 of the 
Agreement, modifying all references to the Stabilisation and Association C ouncil in the EU -Albania 
Agreement to the Partnership, Trade and Cooperation Council under the Agreement, and may make 
decisions different to, modify, revoke or supersede decisions adopted by the Stabilisation and 
Association Council under the EU -Albania A greement . For further details see paragraph 86 of the 
Factual Presentation WT/REG226/3.  
5.6  Dispute settlement  
5.9.  With the exception of provisions on consultations under the incorporated EU -Albania 
Agreement, and Article 119 (providing that each Party shall refe r to the Stabilisation and Association 
Council any dispute relating to the application or interpretation of the Agreement for binding 
decision), the Agreement contains no formal dispute settlement resolution mechanism . For further 
details see paragraphs 83 -87 of WT/REG226/ 1/Rev.1.  
5.7  Relationship with other agreements concluded by the parties  
5.10.   Table 5.1 sets out the Parties notified and non -notified RTAs in force.  
Table 5.1 United Kingdom and Albania : participation in other RTAs (notified and non -
notified in force), as of 29 August 2023  
RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
UNITED KINGDOM  
United Kingdom – Australia  31-May-23 Goods & 
Services  2023 GATT Art. XXIV & GATS Art. V  
 
United Kingdom – New Zealand  31-May-23 Goods & 
Services  2023 GATT Art. XXIV & GATS Art. V  
 
United Kingdom – Iceland, 
Liechtenstein and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V   
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM 
States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  WT/REG454/1  
 
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  RTA Name  Entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
United Kingdom - Central America  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia , 
Ecuador and Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Eastern and 
Southern Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of 
Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of 
Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and 
Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
ALBANIA  
EFTA – Albania  01-Nov-10 Goods  2011 GATT Art. XXIV  
Türkiye – Albania  01-May-08 Goods  2008 GATT Art. XXIV  
Central European Free Trade 
Agreement (CEFTA)  01-May-07 Goods  2007 GATT Art. XXIV  
CEFTA – Protocol on Trade in 
Services  Albania:  
11-Jan-21 Services  Not notified  
EU – Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
a Dates of the first entry into force/provisional application for at least one of the Parties.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).  
Source:  WTO Secretaria t. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org .  
 WT/REG454/1  
 
- 34 - 
 
  5.8  Government procurement  
5.11.   The Agreement incorporates the provisions on public contracts in the EU -Albania FTA 
Agreement into the Agreement. For further details see paragraphs 54-56 of the Factual Presentation 
WT/REG226/ 1/Rev.1 . 
5.9  Intellectual property rights  
5.12.   The Agreement incorporates the provisions of Annex V to the EU -Albania Agreement in which 
the Parties have stated their commitment to, inter alia, the WTO Agreement on TRIPS , although it 
expressly excludes paragraph 3 o f Annex V (concerning MFN treatment in respect of intellectual 
property rights , as well as a transition period granted to Albania in Article 73.2 of the EU -Albania 
Agreement ).41 For further details see paragraph s 57-58 and 68 -72 of the Factual Presentation  
WT/REG226/1/Rev.1.  
5.10  Competition  
5.13.   The Agreement incorporates the provisions of Chapter V, Title VI of the EU -Albania 
Agreement. Article 71, paragraph 1 illustrates practices which are incompatible with the proper 
functioning of the agreement, in so far as th ey affect trade between the Parties.42 The Parties shall 
ensure that an operationally independent public body is entrusted with the powers necessary for the 
full application of paragraph 1(i) and (ii), regarding private and public undertakings and undertakings 
to which special rights have been gra nted (paragraph 3) . They may take appropriate measures 
following consultations in the Stabilization and Association Council, or 30 working days after referral 
for consultations, if one of the Parties considers that a particular practice is incompatible wit h the 
terms of paragraph 1.  For further details see paragraph 49 -53 of the Factual Presentation 
WT/REG226/1/Rev.1.  
5.14.   For public undertakings and undertakings to which special or exclusive rights have been 
granted,  the Parties shall neither take nor maintain  any measure distorting trade between the m 
without  obstruct ing the performance in law or in fact of the particular tasks assigned to those 
undertakings . 
5.11  Environment  
5.15.   The Agreement incorporates Article 108 of the EU -Albania Agreement on Environment , and 
accordingly t he Parties have agreed to develop and strengthen their cooperation in the task of 
combat ting environmental degradation, with the aim of promoting environmental sustainability.  
5.12  Labour  
5.16.   Apart from in the context of Title III on regional cooperation; Title VI on Services ; and Title 
V on movement of workers, establishment, supply of services, current payments and movement of 
capital  (movement of natural persons  and movement of workers)  there are no provisions in the 
Agreement on labour.  
5.13  Electronic commerce  
5.17.   There are no provisions in the Agreement on electronic commerce.  
 
41 Note also the incorporated Joint Declaration in relation to Article 73 of the Agreement, where the 
Parties have agreed that for the purposes of the Agreement, intellectual, industrial and commercial property 
includes in particular copyright, including the copyright in computer programs, and neighbouring rights, the 
rights relating to databases, patents, industrial d esigns, trademarks and service marks, topographies of 
integrated circuits and geographical indications, including appellations of origin, as well as protection against 
unfair competition as referred to in Article 10a of the Paris Convention for the Protect ion of Industrial Property 
and protection of undisclosed information on know -how. 
42 Incompatible practices include all agreements between undertakings, decisions by associations of 
undertakings and concerted practices between undertakings which as their ob ject or effect the prevention, 
restriction or distortion of competition;  and abuse by one or more undertakings of a dominant position in the 
United Kingdom or Albania as a whole or in a substantial part thereof . WT/REG454/1  
 
- 35 - 
 
  5.14  Small and medium -sized enterprises  
5.18.   Article 93 of the incorporated EU Albania Agreement provides that the Parties will coo perate 
with the aim of developing and strengthening private sector small and medium -sized enterprises 
(SMEs) and shall take due account of priority areas related to the field of SMEs .  
5.15  Cooperation policies  
5.19.   Articles 86 -111 in Title VIII of the Agreement on Cooperation Policies (incorporated from the 
EU Albania Agreement with modifications) sets out extensive cooperation mechanisms covering 
cooperation and development on a range of Albanian sectors, including economic and trade policy, 
banking, insurance and other financial services, audit and financial control cooperation,  tourism, 
agriculture, investment promotion and protection, industrial cooperation, fisheries, customs, 
taxation and other sectors. WT/REG454/1  
 
- 36 - 
 
  ANNEX 1  
1. Tables A1.1 and A1 .2 show tariff liberalization by the Parties under the Agreement by total 
products, agricultural products ( HS Chapters 1 -24) and industrial products (HS Chapters 25-97). In 
2021 the UK's overall average applied MFN tariff was 3.8%; it was 2.5% for industri al products and 
considerably higher at 8.9% for agricultural products. Under the Agreement the UK's average applied 
tariff fell to 0.1% for imports from Albania (zero for industrial products and 0.5% for agricultural 
products. As a result, Albanian exporte rs had a relative margin of preference of 97.4% overall, 100% 
for industrial products and 94.4% for agricultural products. Under  the Agreement, 97.2% of all 
products became duty free (89.4% of agricultural products and 100% of industrial products  
compared to 47% overall and 18.8% and 57.1% respectively for agricultural and industrial products 
on an MFN basis .  
Table A1. 1 United Kingdom: Indicators of MFN and preferential rates for imports from 
Albania  
Origin of 
goods  Year ALL PRODU CTS HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
Albania  2021  0.1 9.3 97.2 0.5 9.3 89.4 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties1, the average rate for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff 
rates are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK.  
 
2. In 2021 Albania's overall average applied MFN tariff was 4.1%; it was 3% for industrial 
products and considerably higher at 7.2% for agricultural products. Under the Agreement Albania's 
average applied tariff fell to 0.9% for imports from the UK (zero for ind ustrial products and 3.3% 
for agricultural products. As a result, UK exporters had a relative margin of preference of 78% 
overall, 100% for industrial products and 54.2% for agricultural products. Under  the Agreement, 
92.7% of all products became duty free  (72.4% of agricultural products and 100% of industrial 
products compared to 50.4% overall and 29.9% and 57.8% respectively for agricultural and 
industrial products on an MFN basis.  
 
1 Tariff lines 0302.41.00, 0302.43.90, 0302. 44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10.22, 0805.10.24, 0805.10.28, 0808.10.80, 
0808.30.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties . WT/REG454/1  
 
- 37 - 
 
  Table A1. 2 Albania: Indicators of MFN tariff rat es and preferential rates for imports from 
the UK  
Origin 
of 
goods  Year ALL PRODUCTS  HS chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  
Share of 
duty-free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 4.1 8.3 50.4 7.2 10.3 29.9 3.0 7.1 57.8 
UK 2021 0.9 12.0 92.7 3.3 12.0 72.4 0.0 0.0 100.0  
Note:  For the calculation of averages, specific rates are excluded  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Albania.  
 
3. Table A1.3 shows market access opportunities under the Agreement for Albanian exports to 
the UK. During 2018 -20 Albania's average top 25 exports accounted for 33.3% of its global exports 
and were covered by 75 tariff lines at the HS 6 digit level in the UK tariff. In 2021 16 of these lines 
were duty free on an MFN basis. Under  the Agreement, 58 lines of the 59 lines  remaining dutiable  
were subject to duty free entry into the UK.  The one line remaining dutiable is prepared or preserved 
anchovies, which in 2021 had an MFN tariff of 25%.  
Table A1. 3 United Kingdom: Market access o pportunities under the Agreement for 
Albania's top 25 exports to the world  
Albania's top export products  
in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share 
in 
global 
exports 
(%) MFN 2021  No. of duty 
free lines 
under the 
agreeme nt 
Remain 
Dutiable  
Avg. 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
dutia -
ble 
lines  2021  
640610  Uppers and parts thereof  7.4 0.0 2    
620342  Men's or boys' trousers  3.0 12.0  7 7  
640340  Footwear  2.6 8.0  1 1  
640399  Footwear with outer soles of 
rubber  2.3 7.5  11 11  
261000  Chromium ores and concentrates  1.5 0.0 1    
620520  Men's or boys' shirts of cotton  1.5 12.0  1 1  
481940  Sacks and bags  1.4 0.0 1    
070200  Tomatoes, fresh or chilled  1.4 11.0  1 1  
720241  Ferro-chromium  1.2 0.0 2    
121190  Plants, parts of plants  1.0 1.0 1 1 1  
721420  Bars and rods, of iron or non -alloy 
steel 1.0 0.0 1    
610910  T-shirts, singlets and other vests of 
cotton  1.0 12.0  1 1  
610711  Men's or boys' underpants and 
briefs of cotton  0.9 12.0  1 1  
160416  Prepared or preserved anchovies, 
whole or in pieces  0.8 25.0  1  1 
271600  Electrical energy  0.8 0.0 1    
610821  Women's or girls' briefs and 
panties of cotton  0.8 12.0  1 1  
620462  Women's or girls' trousers, bib and 
brace overalls, breeches and shorts 
of cotton  0.8 12.0  7 7  
200570  Olives   0.6 12.0  1 1  WT/REG454/1  
 
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  Albania's top export products  
in 2018 -20 Access Conditions to UK's markets  
HS number and description  Share 
in 
global 
exports 
(%) MFN 2021  No. of duty 
free lines 
under the 
agreeme nt 
Remain 
Dutiable  
Avg. 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
dutia -
ble 
lines  2021  
620343  Men's or boys' trousers, bib and 
brace overalls, breeches and shorts 
of synthetic fibres  0.6 12.0  5 5  
252329  Portland cement  0.6 0.0 1    
640299  Footwear with outer soles and 
uppers of rubber or plastics  0.6 16.0  9 9  
640690  Parts of footwear; removable in -
soles, heel cushions and similar 
articles; gaiters, leggings and 
similar articles, and parts thereof  0.5 0.0 4    
640351  Footwear with outer soles and 
uppers of leather   0.4 8.0  7 7  
070960  Fresh or chilled fruits of the genus 
capsicum or pimenta  0.4 3.0 2 2 2  
070700  Cucumbers and gherkins  0.4 12.0  2 2  
Total of above  33.3 7.5 16 59 58 1 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of averages, 
specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For the tariff lines subject to seasonal duties, the average rat e for the entire year is used for the 
calculation. The products classified beyond the HS 8 -digit level are counted once and their tariff rates 
are averaged to the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK and UNSD Comtrade Data base. 
 
4. Table A1. 4 shows market access opportunities under the Agreement for UK exports to Albania . 
During 2018 -20 the UK's  average top 25 exports accounted for 38.4% of its global exports and were 
covered by 95 tariff lines at the HS 6 -digit level in the  Albanian  tariff. In 2021 65 of these lines were 
duty free on an MFN basis. Under the Agreement, all the remaining 30 lines were liberalized for 
imports from the UK.   
Table A1. 4 Albania: Market access opportunities under the agreeme nt for the UK's 
top 25 exports to the world  
United Kingdom's top export products  
in 2018 - 2020  Access Conditions to 
Albania 's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  
Duty Free under 
the Agreement  Avg MFN 
applied rate 
(%) No. of lines  Duty-free  
Duti-able 
710813  Gold, incl. gold plated with platinum, in semi -manufactured 
forms, for non -monetary purposes  5.6 2.0  2 2 
270900  Petroleum oils and oils obtained from bituminous minerals, 
crude  4.9 5.0 1 1 1 
300490  Medicaments consisting of mixed or unmixed products for 
therapeutic or prophylactic purposes,  3.2 0.0 1   
880330  Parts of aeroplanes or helicopters, n.e.s.  2.9 2.0  1 1 
841112  Turbojets of a thrust > 25 kn 2.6 0.0 3   
870323  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  2.4 0.0 3   
841191  Parts of turbojets or turbopropellers, n.e.s.  2.1 0.0 1   WT/REG454/1  
 
- 39 - 
 
  United Kingdom's top export products  
in 2018 - 2020  Access Conditions to 
Albania 's import markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2021  
Duty Free under 
the Agreement  Avg MFN 
applied rate 
(%) No. of lines  Duty-free  
Duti-able 
870324  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, of a cylinder capacity > 3.000 
cm³ 1.7 0.0 2   
220830  Whiskies  1.3 0.0 11   
271012  Light oils and preparations  1.3 4.9 4 7 7 
970110  Paintings, e.g. oil paintings, watercolours and pastels, and 
drawings executed entirely by hand  1.3 0.0 1   
870322  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, of a cylinder capacity > 1.000 
cm³ but <= 1.500 cm³  1.2 0.0 2   
711319  Articles of jewellery and parts thereof, of precious metal 
other than silver  1.0 15.0  1 1 
271019  Medium oils and preparations, of petroleum or bituminous 
minerals, not containing biodiesel, n.e.s.  1.0 4.0 11 14 14 
870332  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.7 0.0 3   
300220  Vaccines for human medicine  0.6 0.0 1   
870340  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, of a cylinder capacity > 1.500 
cm³ but <= 2.500 cm³  0.6 0.0 2   
711021  Palladium, unwrought or in powder form  0.6 2.0  1 1 
300215  Immunological products, for retail sale  0.6 0.0 1   
851762  Machines for the reception, conversion and transmission or 
regeneration of voice, images or other data  0.6 0.0 1   
382200  Diagnostic or laboratory reagents on a backing, prepared 
diagnostic or laboratory reagents  0.5 0.0 1   
490199  Printed books, brochures and similar printed matter  0.5 0.0 1   
870333  Motor cars and other motor vehicles principally designed for 
the transport of <10 persons, incl. station wagons and racing 
cars, with only diesel engine of a cylinder capacity > 2.500 
cm³  0.5 0.0 3   
840890  Compression -ignition internal combustion piston engine 
"diesel or semi -diesel engine"  0.4 0.0 12   
870899  Parts and accessories, for tractors, motor vehicles for the 
transport of ten or more persons  0.4 2.0  3 3 
 
Total of above  38.4  
65 30 30 
Note:  For the calculation of averages, specific rates are excluded .  
 Based on the HS 2017 nomenclature .  
Source:  WTO estimates based on data from Albania and the UK.   
  WT/REG454/1  
 
- 40 - 
 
  ANNEX 2  
Table A2. 1 UK tariff rate quotas for imports from A lbania  
TRQ/Product HS Codes  Tariff rates under 
the Agreement  MFN Rates  
In-quota  Out-of-
quota  
TRQ1: Products from HS Chapter 03 (7,000 kg )a 
03019110, 03021110, 03031410, 03044250, 0304520010, 
03048250, 0304992111, 0304992112, 0304992120  0% 5.6%  8% 
03019190, 03021120, 03021180, 03031420, 03031490, 
03044210, 03044290, 03048210, 03048290, 0305100010, 
0305598561, 0305698061  0% 8.4%  12% 
03054300  0% 9.8%  14% 
0305399010  0% 11.2%  16% 
TRQ2 a: Carp  (3,000 kg )b    
03019300, 03027300, 03032500, 0304390020, 
0304510010, 0304690020, 0304939010  0% 5.6%  8% 
0305520010, 0305640010, 0305100020  0% 8.4%  12% 
0305449010  0% 9.8%  14% 
0305310010  0% 11.2%  16% 
TRQ2 b: Sea Bream (3,000 kg)b    
0304999920  0% 1.8%  6% 
0305100030, 0305598565, 0305698065  0% 3.6%  12% 
03028510, 03038950, 0304599040, 0304899030,  
0305498040, 0304899040  0% 4.2%  14% 
0301998580, 0305399070  0% 4.8%  16% 
0304499060  0% 5.4%  18% 
TRQ2c: Sea Bass (3,000 kg)b    
0304999970  0% 1.8%  6% 
0305100040, 0305598567, 0305698067  0% 3.6%  12% 
03028410, 03038410, 0304599045, 0304 899040 , 
0305498050  0% 4.2%  14% 
0301998522, 0305399080  0% 4.8%  16% 
0304499070  0% 5.4%  18% 
TRQ3: Products from HS Chapter 16 (14,000 kg)c 
16041311, 16041319  6% MFN 12% 
1604205010, 1604205019  6% MFN 25% 
TRQ4: Products from HS Chapter 16 (218,000 kg)d 
16041600, 16042040  0% MFN 25% 
TRQ5: Products from HS Chapter 17 (136,000 kg)e    
17022010, 17026080, 17026095, 17029071, 17029080, 
17029095  0% MFN 0.30 GBP/100 kg/% 
sacchar.  
17022090  0% MFN 8% 
17021100, 17021900  0% MFN 11 GBP/100 kg  
17029010  0% MFN 12% 
17023090, 17024090, 17029050, 17029079  0% MFN 16 GBP/100 kg  
17025000  0% MFN 16% + 42 
GBP/100kg/  
net dry  
17023050  0% MFN 22 GBP/100 kg  
17029075  0% MFN 23 GBP/100 kg  
17011310*, 17011410*  0% MFN 28 GBP/100 kg/std 
qual 
17011290, 17011390, 17011490, 17019100, 17019910, 
17019990  0% MFN 35 GBP/100 kg  
17023010, 17024010, 17026010, 17029030  0% MFN 42 GBP/100 kg/net 
dry 
TRQ6: Products from HS Chapter 22 (27,200 litres)f 
2204229451, 2204229651, 2204229851, 2204299451, 
2204299651, 2204299851  0% MFN 1.40 GBP/% vol/hl  
2204229411, 2204229611, 2204229811, 2204299411, 
2204299611, 2204299811  0% MFN 8.20 GBP/hl  
2204229421, 2204229621, 2204229821, 2204299421, 
2204299621, 2204299821  0% MFN 10 GBP/hl  
2204229431, 2204229631, 2204229831, 2204299431, 
2204299631, 2204299831  0% MFN 12 GBP/hl  WT/REG454/1  
 
- 41 - 
 
  TRQ/Product HS Codes  Tariff rates under 
the Agreement  MFN Rates  
In-quota  Out-of-
quota  
2204229441, 2204229641, 2204229841, 2204299441, 
2204299641, 2204299841, 22042293*, 22042295*, 
22042297*, 22042993*, 22042995*, 22042997*  0% MFN 17 GBP/hl  
22042210, 22042910  0% MFN 26 GBP/hl  
TRQ7: Products from HS Chapter 22 (68,100 litres)g    
2204219351, 2204219451, 2204219651, 2204219851  0% MFN 1.40 GBP/% vol/hl  
2204229310, 2204229411, 2204229510, 2204229611, 
2204229710, 2204229811, 2204299310, 2204299411, 
2204299510, 2204299611, 2204299710, 2204299811  0% MFN 8.20 GBP/hl  
2204219319, 2204219419, 2204219611, 2204219811, 
2204219319, 2204219419, 2204219511, 2204219611, 
2204219711, 2204219811, 220422932 0, 2204229421, 
2204229520, 2204229621, 2204229720, 2204229821, 
2204299320, 2204299421, 2204299520, 2204299621, 
2204299720, 2204299821  0% MFN 10 GBP/hl  
2204219329, 2204219429, 2204219621, 2204219821, 
2204219329, 2204219429, 2204219521, 2204219621, 
2204219721, 2204219821  0% MFN 12 GBP/hl  
2204219331, 2204219431, 2204219631, 2204219831  0% MFN 15 GBP/hl  
2204219341, 2204219441, 2204219641, 2204219841, 
22042195*, 22042197*  0% MFN 17 GBP/hl  
22041093, 22041094, 22041096, 22041098, 22042106, 
22042107, 22042108, 22042109  0% MFN 26 GBP/hl  
*  Tariff lines also subject to MFN TRQs.  
a  In 2021, 4,660 kg for pro rata quota volume from 03 -05 to 31 -12 for TRQ1.  
b  In 2021, 2 tons for pro rata quota volume from 03 -05 to 31 -12 for TRQ2.  
c  In 2021, 9,321 kg for pro rata quota volume from 03 -05 to 31 -12 for TRQ3.  
d  In 2021, 145,134 kg for pro rata quota volume from 03 -05 to 31 -12 for TRQ4.  
e  In 2021, 90,542 kg for pro rata quota volume from 03 -05 to 31 -12 for TRQ5.  
f  In 2021, 18,108 litres for pro rata quota volume from 03 -05 to 31 -12 for TRQ6.  
g  In 2021, 45,338 litres for pro rata quota volume from 03 -05 to 31 -12 for TRQ7, except for lines 
2204299310 and 2204299621 (453 litres). For each product in TRQ7, there are two separate quota s 
(05.1512 and  05.1532). The latter quota can only be used after the other quotas for wine have been 
used.  
Source:  Based on data provided by the UK .  
Table A2. 2 Albania tariff rate quotas for imports from the UK  
Product  In-quota 
Rates  Out-
quota  
Rates  
(MFN)  Volume*  (metric tonnes)  
Annual  Available 
from 
03.05.2021  
Milk and cream, not concentrated nor containing added sugar or other 
sweetening matter, of a fat content, by weight   
04011010, 04012011 and 04012091  0% 10% 108 71.73  
Common wheat and meslin  
10019120  
10019900  0% 2% 
0% 5,720  3,813.60  
Maize (except seeds)  
10059000  0% 2% 1,362  908 
Sparkling wine, in containers holding 2 litres or less  
220410, 220421  0% 15% 1,362  908 HL  
Tomato ketchup and other tomato sauces  
21032000  0% 15% 8 5.44 
* Since the Agreement's entry into force is on 3 May 2021, the calculation of quantities is done pro  
rata for the period May to December 2021.  
Source:  Based on the data provided by Albania.  
 
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