RESTRICTED  
  
WT/TPR/W/147  
9 May 2018  
(18-2820) Page: 1/44 
Trade Policy Review Body    
 
* In Original language only/ En langue originale seulement /En el idioma original solamente . 
  
MONTENEGRO  
DRAFT MINUTES  OF THE MEETING* HELD ON 11 AND 13 APRIL 2018  
Delegations are invited to submit factual corrections, if any, on their own statement to the 
Secretariat ( Mrs Barbara Blanquart: barbara.blanquart@wto.org , or to  tprd@wto.org ) no later 
than 23 May 2018 . 
 
Organe d'examen des politiques commerciales  
 
MONTÉNÉGRO  
PROJET DE COMPTE REN DU DE LA RÉUNION* TENUE LES 11 ET 13 AVRIL 2018  
Les délégations sont invitées à soumettre  leurs éventuelles corrections factuelles concernant leurs 
propres déclarations au Secrétariat ( Mme Barbara Blanquart: barbara.blanquart@wto.org , ou 
tprd@wto.org ) le 23 mai 2018  au plus tard.  
 
Órgano de Examen de las Políticas Comerciales  
 
MONTENEGRO  
PROYECTO DE ACTA DE LA REUNIÓN* CELEBRADA LOS DÍAS 11 Y 13 DE ABRIL DE 2018 
Las delegaciones pueden enviar a la Secretaría (Sr a. Barbara Blanquart: 
barbara.blanquart@wto.org , o tprd@wto.org ) a más tardar el 23 de mayo de 2018  las 
correcciones fácticas que deseen introducir en sus propias declaraciones.  
 
 
_______________  
 
  WT/TPR/W/147  • Montenegro  
 
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  TRADE POLICY REVIEW  
MONTENEGRO  
DRAFT  MINUTES OF THE MEETI NG 
Chairperson: H.E. Mr Eloi Laourou (Benin)  
CONTENTS  
 
1   INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ ......................  3 
2   OPENING STATEMENT BY  THE REPRESENTATIVE O F MONTE NEGRO  ............................  5 
3   STATEMENT BY THE DIS CUSSANT  ................................ ................................ ...............  9 
4   STATEMENTS BY MEMBER S ................................ ................................ ........................  13 
5   REPLIES BY THE REPRE SENTATIVE OF MONTENE GRO AND ADDITIONAL  
COMMENTS  ................................ ................................ ................................ .....................  36 
6   CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ ........................  43 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Montenegro are reproduced in document WT/TPR/M/369/Add.1 and will be available 
online at http://www.wto.org /english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/W/147  • Montenegro  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The first Trade Policy Review of Montenegro was held on 11 and 13 April 2018. The 
Chairperson, H.E.  Mr Eloi Laourou (Benin), welcomed the delegation of Montenegro, headed by 
Mr. Goran ŠĆEPANOVIĆ, Director General, Ministry of Economy; the rest of the delegation; and the 
discussant, H.E. Ambassador Peter Matt (Liechtenstein).  
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedure s for the meeting. The report by Montenegro was contained in document 
WT/TPR/G/369 and that of the WTO Secretariat in WT/TPR/S/369.  
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
European Union; Iceland; United St ates; Brazil; Ukraine; Canada; China; Australia; Argentina; 
Costa Rica; Republic of Moldova; Mexico; and Japan. The following delegations submitted written 
questions after the deadline: Thailand; Kingdom of Saudi Arabia; Turkey; and Republic of Korea.  
1.4.  Montenegro had been an independent country since 2006, and its WTO accession according 
to Dr.  Vladimir Kavarić, the Minister of the Economy at that time, had been a big step forward in 
integrating the country into the multilateral trading system and one of the  priorities of the 
Government. Upon accession, Montenegro undertook to align its trade and related policies and 
practices to WTO principles in numerous areas, including transparency, market access, internal 
taxation, export restrictions, duties and subsidi es, standards, government procurement, 
privatization and state -owned enterprises, price controls, agriculture, and civil aircraft.  
1.5.  Since its accession, Montenegro's economy had been on a fluctuating growth path. This had 
resulted in an average annual growt h slowdown compared to the pre -accession period. Recent 
reforms had been under way to spur economic recovery. These had included a Fiscal Consolidation 
Plan, a Fiscal Consolidation Strategy, and a 2017 -2019 Economic Reform Programme, coupled with 
the reali zation of transport infrastructure projects, as well as projects in tourism and energy. 
Montenegro's regional and international competitiveness had been affected by productivity related 
and other challenges. Its lack of a national currency had constrained to some extent its ability to 
absorb external shocks. Montenegro had a small, open and import -dependent economy which 
aimed at further integrating into the world economy. Members' questions were related to issues 
such as the reduction of the informal econo my and the participation of women in the economy.  
1.6.  During the review period, new RTAs had entered into force between Montenegro and EFTA 
and Ukraine, respectively. EU accession negotiations were ongoing and were the driving force 
behind many of the legal a nd regulatory reforms undertaken over the review period. Within CEFTA 
there had been developments with respect to trade facilitation, rules of origin and trade in 
services. Montenegro had taken various initiatives to cut red tape and involve stakeholders i n 
policy formulation as well as to strengthen the independence of the judiciary and tackle corruption. 
Montenegro was open to foreign investment and was actively encouraging it through incentive 
schemes. Trade policy objectives included strengthening the c ompetitiveness of services exports, 
diversifying goods exports and increasing value -added in export -orientated production. As 
indicated by the advance written questions, Members wished to learn, among other things, more 
about the state of play of Montenegr o's WTO notifications (particularly in the areas of trade 
facilitation, domestic production support, import licensing procedures and SPS measures); the 
implementation of economic development policies; market access as shaped by regional and 
preferential tr ade agreements; and various aspects of Montenegro's foreign investment regime, 
including incentives granted and restrictions.  
1.7.  With regard to trade policy, the tariff had remained Montenegro's main trade policy 
instrument during the period under review. The  tariff's complexity had increased, the simple 
average MFN applied tariff rate had dropped slightly, and tariff protection had continued to vary 
substantially across and within sectors. The small gap between the simple average MFN applied 
and bound rates e nsured largely predictable and stable market access conditions. Trade facilitation 
initiatives had included the ratification of the WTO Trade Facilitation Agreement (TFA) in 2016. Tax 
and non -tax incentives had continued to support investment, production a nd trade. 
State -involvement in the economy, including trade, seemed limited. Montenegro had become a 
Member of the WTO Agreement on Government Procurement (GPA); and although the value of 
contracts awarded to foreign suppliers had risen more than fourfold during the period, they were WT/TPR/W/147  • Montenegro  
 
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  equivalent to a relatively small part of the total contracted value and the total number of 
contracts. Intellectual property rights protection had been strengthened with wide ranging and 
comprehensive legal reforms as well as t he expansion of international commitments. At this first 
review, Members expressed interest in developments in certain trade policy areas including trade 
facilitation initiatives, the TFA implementation, production support measures, SPS requirements, 
and intellectual property rights protection. These issues had been raised by some Members in their 
advance written questions.  
1.8.  The Chairperson drew Members' attention to the following areas, among others, where they 
were interested in having more clarity. These included: export restrictions on wood; Montenegro's 
measures to tackle illegal, unreported and unregulated fishing; its s olar energy regime; financial 
services' regulatory and market access issues; investment in and liberalization of 
telecommunications services; developments in the area of postal services; Montenegro's 
broadcasting regime; film production incentives; opportu nities for foreign investment in airport 
management; policy and infrastructural developments in the area of tourism.  
1.9.  This meeting would be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to  the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MONTENEGRO (MR. GO RAN 
ŠĆEPANOVIĆ)  
2.1.  It is my great pleasure to address you on behalf of the Government of Montenegro at our 
very first Trade Policy Review. We believe that the Review is an excellent opportunity to present 
Montenegrin achievements and developments since Montenegro acceded to the WTO in 2012.  
2.2.  At the very beginning, let me extend our appreciation to the WTO Secret ariat for its utmost 
dedication and a comprehensive assistance provided in order to conduct this trade policy review 
exercise. I would also like to thank all WTO Members that have sent us the questions on the 
reports prepared by the Government and by the S ecretariat. We appreciate very much your active 
participation in this review, which assures us that the WTO Members are interested in the progress 
made by Montenegro in the field of international trade policy.  
2.3.  I also would like to thank today's discussant , H.E. Ambassador Peter Matt from Lichtenstein. 
We appreciate Ambassador's efforts to examine our report as well as to provide us with his 
remarks.  
2.4.  Six years have passed since Montenegro has joined the WTO. Over this period, the country 
has laid solid fou ndations towards regional and international integration. Montenegro's trade with 
WTO Members is conducted transparently with due regard for the WTO core principles: the 
Most-Favoured Nation and National Treatment. Montenegro is well aware of the importance  these 
principles entail for the country's successful integration into the world economy and its further 
economic development. Our Government recognizes the significance of trade and trade -related 
policies in the country's economic and social development, and reaffirms Montenegro's full 
commitment to the international trade rules and principles as embodied in the WTO agreements.  
2.5.  The Montenegrin delegation is ready for an open and interactive discussion on the 
information presented in its report and I am ver y much honoured to have an opportunity to 
explain the economic and trade policies of Montenegro before such distinguished participants.  
2.6.  During the period under the consideration, Montenegro has achieved significant results. One 
of Montenegrin strategic goa ls is the EU accession and we have opened EU accession negotiation 
process in June 2012. Out of 33 negotiating chapters, 30 chapters have been opened while three 
have been provisionally closed.  
2.7.  The Government adopted few important documents including the E conomic Reform 
Programme and the Fiscal Strategy of Montenegro in order to alleviate the effects of world 
economic crisis on the economy of Montenegro. Potential for economic growth has been recognized 
in the sectors of tourism, energy, transport, agricult ure and manufacturing industry, which are 
identified as strategic priorities for the development of Montenegro. Construction of the highway 
Bar–Boljare, which is expected to contribute considerably to the growth and development, started 
in May 2015.  
2.8.  I woul d like to commence with the results accomplished in the year 2017, which indicate that 
the year 2017 was quite successful, and the accomplished results exceeded our expectations.  
2.9.  According to the preliminary data of the Statistical Office of Montenegro, th e economy growth 
was 4.5% in the first nine months of last year. The economic growth was primarily driven by a 
high increase in domestic demand, which resulted in employment and available income increase 
and growth of investment expenditure as a result of the investments in the domain of transport 
and tourism infrastructure and in the energy sector.  
2.10.   The available indicators for the fourth quarter of 2017 show that the GDP growth might be 
at the level of the average rate for nine months (4.5%), therefore, th e total growth rate for 2017 
might be significantly higher than the projected 4% at the annual level.  
2.11.   Due to the realization of numerous infrastructure projects – the highway construction, 
investments in the energy sector and transport infrastructure, expa nding of tourism capacities, it 
is notable that the year of 2017 is shaping up to be a construction boom. The value of the WT/TPR/W/147  • Montenegro  
 
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  construction works carried out on projects completed in 2017 was 51.5% higher in relation to the 
previous year.  
2.12.   In 2017, the employme nt achieved stable growth. According to the Employment Agency of 
Montenegro, the registered unemployment rate at the end of January 2018 was 21.3%, which is a 
decline of 0.6 percentage points compared to January 2017.  
2.13.   Foreign trade in 2017 is characterize d by an increase in exports and the coverage of imports 
by exports. Exports of goods grew at a rate of 13.9%. However, due to high import dependency; it 
still could not compensate the growth of imports by 11.7%. In 2017, exports of bauxite ore, 
boosted by exports at the Chinese market, as well as aluminum exports, increased significantly. 
On the other hand, the growth of imports is determined by the import of energy products (oil and 
electricity) and the import of machinery and transport equipment for the i nvestment projects' 
needs (construction of the highway, infrastructure, capacity expansion, etc.).  
2.14.   In the monetary sector, the business operations in 2017 are characterized by high liquidity 
and improvement of all monetary indicators. The growth of loans a nd deposits was recorded, the 
downward trend in interest rates continued, as well as the decreasing share of non -performing 
loans. The share of non -performing loans and receivables in total loans and receivables was 7.29% 
at the end of 2017, with the recor ded decline of 20.77% from the previous year.  
2.15.   According to the preliminary data for the period January -December 2017, net inflow of FDI 
amounted to €474.3 million, which is 27.6% more than in the comparative period of 2016, which 
is 11.2% of the estimated GDP (€4236.5 million). Growth of the net FDI is appropriated by the 
growth of the intercompany debt by 32.2% and by 44.6% decrease in outflows.  
2.16.   In 2017, we recorded a current budget surplus of €17.9 million or 0.43% of GDP, which is 
the first time since 20 08 that the Montenegrin budget was in surplus. The budget revenues in 
January 2018 recorded an increase of 10.7% compared to January 2017. The collected revenues 
were higher by 1.3% compared to the plan for January, indicating that the fiscal consolidation  
measures are realized according to the planned dynamics.  
2.17.   In the medium term, the growth model of the Montenegrin economy will be based on strong 
investment activity, which will dominantly impact the economic flows, with further growth of 
exports. Another  key element of the economic activity in the coming years will be the 
implementation of the consolidation of public finances based on the Fiscal Strategy of Montenegro. 
Considering all the above mentioned and according to the basic scenario envisaged for M ontenegro 
in this year's Economic Reforms Programme, the average annual rate of real economic growth in 
the period 2018 -2020 will be about 2.8%, or 3% in 2018, 2.7% in 2019 and 2.6% in 2020. 
According to the lower growth scenario, the average annual rate o f real economic growth in the 
period 2017 -2020 will be 2.1%.  
2.18.   As noted, the investment policy is recognized as one of the key elements for development 
and improvement of the country's economy. By the latest Amendments to the Law on Foreign 
Investment, adopt ed in 2014, the final restrictions on foreigners investing in companies engaged 
in the production and trade of weapons and military equipment were abolished. Foreign investors 
are provided with a national treatment, they have the same status as domestic in vestors and are 
allowed to invest in any sector of the industry and freely transfer financial and other assets, 
including profits and dividends.  
2.19.   Tourism turnover has increased and estimated revenues for 2017 amount to almost 
€1 billion. The total contribu tion of tourism and travel to employment in Montenegro is 19.3%. In 
January this year, the new Law on Tourism and Hospitality, creating the basis for new incentives in 
tourism, entered into force. By the end of 2018, the Regulation on incentives in the fie ld of tourism 
and the Regulation on Tourist Development Zones will be prepared.  
2.20.   Energy sector represents one of the strategic branches of Montenegrin economy and the 
Government of Montenegro has decided to give full attention to the development of this sec tor, 
with regard to both reform activities in the sector and inclusion into regional and European energy 
market.  WT/TPR/W/147  • Montenegro  
 
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  2.21.   There is a large number of projects that are underway related to increasing the energy 
efficiency, revitalization and modernization of the exi sting and construction of new energy 
facilities. Through their implementation we want to achieve reduction in electricity deficit, 
increased diversification of sources and energy supply security. Montenegro became a member of 
the Energy Community Treaty in  2006; we ratified the Statute of International Renewable Energy 
Agency, as well as the Energy Charter Treaty in 2015.  
2.22.   In line with the key strategic objectives of the Government of Montenegro, the transport 
sector is continuously working on the improvement of the transport infrastructure. Particularly, 
when it comes to the road sector the main infrastructure projects in r oad sector Bar -Boljare 
Highway and Adriatic -Ionian Speedway Coastal variant are taking precedence.  
2.23.   Agriculture has significant share in GDP (in 2016, including the forestry and fisheries sector, 
amounted to 7.5%). Total gross value of agricultural product ion in 2016 amounted to 
€476.4  million. In order to adequately define the process of future reforms in this sector, the 
Agriculture and Rural Development Strategy was created.  
2.24.   Accession to the EU and integration into the regional and multilateral initiativ es are strategic 
commitments of Montenegro that imply acceptance and implementation of international values and 
standards across a wide range of areas, including cross -border trade. In the area of cross -border 
trade, these commitments were confirmed by the  ratification of the WTO Trade Facilitation 
Agreement and the regional trade facilitation agreement - CEFTA Additional Protocol 5.  
2.25.   In enforcing trade facilitation commitments a number of activities have been undertaken 
from 2015 onwards including establis hing the National Trade Facilitation Committee, conducting 
the first Time Release Study, introducing simplified procedures based on bookkeeping records for 
clearance of goods, upgrading risk management system, etc. Additionally, the first Trade 
Facilitatio n Strategy founding a joint five -year reform plan for all competent authorities to comply 
with a number of international and national obligations arising from the integration processes was 
adopted.  
2.26.   The number of users of electronic communications services  in Montenegro is in constant 
growth in all segments of the market. The annual growth of mobile telephony users is 11% and 
the number of fixed broadband users has increased by 17% in 2017 compared to 2016, with high 
access speeds (above 30Mb/s) being used by about 25% of users.  
2.27.   Montenegro is fully aware of the importance of digital technologies and their contribution to 
the development of the economy and strengthening of national competitiveness. Therefore, the 
legislative framework for electronic communic ations has been created to provide a stable business 
environment for investors. As broadband infrastructure is essential for providing e -health, 
e-education, e -government, e -commerce and many other e -services, our goal is to provide 
available broadband int ernet in particular when it comes to improving the coverage of suburban 
and rural areas in order to overcome the so -called "Digital gap".  
2.28.   The Parliament of Montenegro adopted the Law on State Aid Control and the Law on 
amendments to the Law on Competition on 14 February 2018. The amendments were introduced 
with the aim of forming a single body that would perform tasks related to the protection of 
competition and the State aid.  
2.29.   As regards Intellectual Property Rights, during the period 2012 -2017 Montenegro has 
continued to improve its legislative framework. In 2015, the new Patent Law was adopted. Law on 
Trademarks, Law on Legal Protection of Industrial Design, Law on the Protection of Topographies 
of Semiconductors and Law on Copyright and Related Rights we re also amended to address the 
problems identified in the application of these laws. Starting from 2016, specific statistical reports 
on the enforcement of intellectual property rights have been prepared on annual and semi -annual 
basis.  
2.30.   I would like to us e this opportunity to reassure you once again that the Trade Policy of 
Montenegro is determined by its membership to the WTO. Moreover, Montenegro remains strongly 
committed to multilateral trading system. Additionally, foreign trade is mostly conducted un der 
preferential terms with the EU, CEFTA, EFTA, Ukraine, Turkey and the Russian Federation.  WT/TPR/W/147  • Montenegro  
 
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  2.31.   Montenegro joined the Agreement on Trade in Civil Aircraft - CA and Ministerial Declaration 
on Trade in Information Technology Products. We became the 44th member of the Agreement on 
Government Procurement (GPA), as the first country which acceded to the version of the 
agreement revised in 2014. We also ratified the Protocol Amending the TRIPS Agreement 
(Agreement on Trade -Related Aspects of Intellectual Property Ri ghts) and the International 
Convention for the Protection of New Varieties of Plants.  
2.32.   Montenegro has had a significant role when it comes to women's economic empowerment. 
Montenegro is a co -signer of the Joint Statement on electronic commerce adopted at th e 
11th Ministerial Conference.  
2.33.   When it comes to the current negotiations on fisheries subsidies, Montenegro supported the 
abolition of subsidies that support illegal unreported and unregulated fisheries and adversely affect 
already overexploited fish resou rces, but at the same time, we clearly stated that we will continue 
to subsidize development of fishing fleet.  
2.34.   Namely, due to the outdated fleet, Montenegro has a poorly developed fisheries sector, and 
it will continue to invest in the existing fishing fle et, but with constant awareness of the 
importance of sustainable fisheries and protection of the marine resources.  
2.35.   Montenegro's policy in the field of fisheries is very dedicated to the protection of the marine 
resources and establishing of a system based on sustainable fisheries, the protection of marine 
biodiversity and the suppression of illegal unreported and unregulated fisheries.  
2.36.   In the course of the preparation for this meeting, 50 SPS notification were submitted to the 
WTO Secretariat. We are aware  that some notifications are still pending, but we are currently 
working on them, and they will be submitted as soon as possible.  
2.37.   At this point, I would like to thank Members and the Secretariat for the technical assistance 
Montenegro has used as it was ve ry important for our daily activities.  
2.38.   Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Thank you, Chair. I'd also like to welcome the distinguished and quite impressing 
distinguished delegation from Montenegro led by Director General Goran Šćepanović of the 
Ministry of Economy. It is my pleasure and honour to participate as discussant in the first Trade 
Policy Review of Montenegro.  
3.2.  My country is linked with Montenegro, among others, through a Free Trade Agreement that 
we have concluded in the framework of EFTA s tates Iceland, Norway, Switzerland and my own 
country Liechtenstein. Liechtenstein indeed has been and still is acting as spokesperson for EFTA in 
this process. It is me who has the honour to assume this task.  
3.3.  I would also like to thank Montenegro and the  Secretariat for their comprehensive reports. 
These reports give us a sound basis for a fruitful and constructive exchange during this first TPR of 
Montenegro. I would also like to commend Montenegro for the constructive and open approach to 
this TPR.  
3.4.  When reading about Montenegro in the preparation of this TPR, also beyond issues that we 
are discussing today, I discovered that the country has a long and a very fascinating history of 
perseverance in securing or re -establishing independence and resisting oc cupation of more than 
1000 years. Modern Montenegro's independence has been internationally recognized for the first 
time at the Berlin Congress in 1878 as the 27th independent country in the world and the 16th in 
Europe. Montenegro was at that time a prin cipality – like my own country - before it became a 
Kingdom. After becoming part of later Yugoslavia after World War I, Montenegro could, in 2016, 
celebrate 10 years after restoration of its full independence as a republic.  
3.5.  Montenegro is a small country w ith some 650'000 people living there. Montenegro has 
undergone quite far reaching transformation in the last 15 years. Its development, in particular 
since its independence, was driven from a strong will and commitment to become a fully 
recognized partner of the international community, to integrate the country into the multilateral 
trading system and from the wish to become a member state of the European Union. I should also 
mention Montenegro's strive for regional integration, i.e. its membership to CEFTA  and other free 
trade agreements it concluded. When reading the reports on Montenegro, I was very impressed by 
these commitments and by the numerous efforts and initiatives taken at the same time at all level 
of the state. Coming from a small country mysel f I only can pay my respect for what Montenegro 
has achieved in this regard.  
3.6.  In my following statement, I will highlight some issues that struck me or seemed important 
in particular also coming from a small State. This is obviously a selective choice.  
3.7.  After having applied for WTO membership in 2004, Montenegro became a WTO Member in 
December 2012. Already in 2015 the country acceded to the revised GPA. In 2016, Montenegro 
ratified the Trade Facilitation Agreement as well as the TRIPS amendment. We have seen 
Montenegro as an active Member in the WTO both in the work of the Committees as well as in 
negotiations. Montenegro contributed also to the governance of this Organization by chairing a 
committee. Considering the size of the country and its limited re sources, this is quite remarkable. 
In this context, the Permanent Representative of Montenegro to WTO, Ambassador Zorica Marić, is 
certainly to be commended for her outstanding leadership and commitment in the cause of her 
country and for the WTO in genera l.  
3.8.  The Stabilisation and Association Agreement with the EU entered into force in 2010 and in 
the same year, the country was granted candidate status by the EU. The accession talks were 
opened in 2012. At the end of last year, 28 policy chapters had been o pened and three of them 
provisionally closed. I understand that in the meantime 30 policy chapters are open. It is certainly 
fair to say that Montenegro is the most advanced country in the region when it comes to the EU 
accession talks.  
3.9.  When turning to Mo ntenegro's economic environment, I would like to briefly dwell on the 
Montenegrin fiscal policy. During the period under review, Montenegro ran persistent annual 
deficits. While the GDP percentage steadily fell, it started to increase in 2014 from 0.7 % to  6 % in 
2016 due to fiscal loosening. It should, however, been noted that this is largely due to costs of WT/TPR/W/147  • Montenegro  
 
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  high way construction projects undertaken in the country, which is certainly a very important 
infrastructure project. In 2017, the Government started to implement a Fiscal Consolidation Plan 
aiming at putting public finances on stable footing over the medium term and this has already 
resulted in the first surplus since 2008 which is quite remarkable.  
3.10.   As I already mentioned, Montenegro and its economy u nderwent deep and far reaching 
changes since the 1990s. A feature worth mentioning in this context is the low level of state 
involvement in the economy and trading. This is the result from a comprehensive privatization of 
formerly state -owned enterprises. The privatization process began in 1999 and seems to be in its 
final phase now. Since then, nearly 90 % of Montenegrin SOEs have been privatized, and sectors 
like banking or telecom have been fully privatized. The remaining SOEs are mainly of strategic 
importance to the Montenegrin economy, like energy, broadcasting, transport and tourism. 
Montenegro is certainly to be commended for having pursued privatization in such a 
comprehensive way. In a 2017 plan, further privatization is foreseen. It should also be  noted that 
none of the 7 largest SOEs listed in the WTO accession have been privatized, albeit four them are 
included in the 2017 plan.  
3.11.   When looking at Montenegro's economy and reading the reports, we are confronted with 
features that typically can be fou nd in the case of small countries and are rather familiar to me 
coming from a small country as well. There is foremost to be mentioned the dependence on 
imports resulting in vulnerability to external shocks and international price changes. I should also 
mention the limited capacity to exploit economies of scale in the provision of goods and services. 
This results in size -related high costs of developing and running national institutions – also a 
feature that is well known to us.  
3.12.   The economies of scale are also an issue when it comes to develop Montenegro's economy. 
This is particularly true for agriculture, together with tourism, one of the economic and 
developmental priorities identified by the Government of Montenegro. The Strategy for 
Development of Agri culture and Rural Ares 2015 -2020 adopted by Montenegro therefor puts the 
focus on using traditional methods of production to develop agriculture and food and by therefore 
securing a niche in the high quality sector. This is a very good strategy successfull y applied by my 
country – albeit primarily in the industrial sector.  
3.13.   Another issue both Liechtenstein and Montenegro have in common is the lack of a national 
currency. While we have the Swiss Franc as legal currency, Montenegro uses the Euro as its 
curren cy. This means, of course, that Montenegro does not have an independent monetary policy 
as rightly outlined the Secretariat's report. This limits the ability to absorb external shocks. While 
Liechtenstein is economically highly integrated into the Swiss sy stem, just to mention the Customs 
Union Treaty between the two countries, this is not the case for Montenegro and the EU (or not 
yet). Overall, however, the adoption of the Euro as national currency has certainly benefited FDI 
and the economic development of the country as a whole.  
3.14.   Montenegro is faced with resources constraints in certain areas. The report mentions in 
particular the implementation of competition policy, consumer protection and IPR enforcement, but 
also in other areas like TBT and some noti fications in the WTO. I understand, however, that these 
concerns are being addressed. Montenegro is also seeking the cooperation of relevant stakeholders 
in many areas. Let me also underline that Montenegro's efforts are to be commended considering 
the on -going transformation of Montenegro's economy and the magnitude of the process to bring 
its regulatory framework in line with the EU legislation.  
3.15.   Looking at the structure of the GDP, we note that the percentage of manufacturing is with 
4.6% rather low whil e services contribute more than 70% to the GDP. The low percentage of 
manufacturing seems to be the result of the development of the last 15 years that came with a 
significant de -industrialisation. In the "Industrial Policy of Montenegro until 2020" adopte d in 2016 
by the Government, reindustrialization is a key objective in strengthening, rebalancing and 
diversifying Montenegro's economy. Sectors with particular growth potential are seen agro -food, 
wood processing, metal and pharmaceutical products. These efforts of diversifying its economy are 
important to make the Montenegrin economy less vulnerable to external shocks and they also 
boost exports.  WT/TPR/W/147  • Montenegro  
 
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  3.16.   Tourism is, as already mentioned, also one of the overarching objective of the 2015 -2018 
Montenegrin Developme nt Directives with a focus on high quality tourism and diversification of 
countries where tourists come from. Considering the beauty of the country with the Adriatic See 
and several natural parks as well as its cultural heritage, this seems a quite natural  choice. I'd like 
to commend Montenegro as well for pursuing a sustainable tourism in accordance with the 
Agenda  2030.  
3.17.   Areas of concern in the further economic development are labour market rigidities 
exacerbated by low productivity and high costs. During the review period, Montenegro undertook 
several legislative measures to address this situation and to boost competitiveness and labour 
flexibility as well as reducing unregistered work and the grey economy in general. Despite these 
efforts, more needs to b e done in order to reduce the high level of youth and long -term 
unemployment and to encourage long -term employment. Unemployment was relatively high at 
21.3% in 2017 albeit declining during the review period. The IMF pointed out that labour market 
flexibil ity could help reduce the informal sector and create employment opportunities. It is 
certainly a welcome step that the Government is preparing additional legislative measures like a 
new labour law.  
3.18.   In the context of creating a favourable trade and investm ent climate, Montenegro's efforts 
in the fight against corruption and informal sector of the economy are of crucial importance. The 
country has undertaken considerable efforts in this regard by joining international agreements, 
implementing relevant legisl ation and setting up an institutional framework to address corruption. 
While Montenegro – according to the 2016 report of the EU Commission - achieved some level of 
preparation in the fight against corruption, there remain serious challenges. The measures adopted 
by the Montenegrin authorities to implement and promote e -government are additional important 
element in this fight. In this context, I would also like to underline the importance of Montenegro's 
commitment to the principle of the "rule of law" and  for the measures undertaken in this regard, in 
particular the strengthening of the judicial independence through constitutional amendments and 
other measures. Rule of law and legal certainty are key prerequisite for a durable and sustainable 
economic envi ronment.  
3.19.   Turning briefly to the Montenegrin customs system, it is worth noting that the tariff, being 
one of the main trading instruments, became more complex due to its EU alignment in 2017. The 
already low simple average MFN rate dropped further. It als o to be welcomed that binding 
observance concerns regarding applied tariffs were addressed early this year.  
3.20.   In this context, Montenegro's ratification of the Trade Facilitation Agreement in 2016 and 
subsequent steps to implement the TFA are of great impor tance to strengthen Montenegro's 
competitiveness. Montenegro is also undertaking major efforts to harmonize and integrate 
standards fully into the European and international standardization systems as a significant 
element of its industrial policy. This al so reflects the country's openness to international trade as 
already referred to earlier. Montenegro is also implementing, in cooperation with the International 
Finance Cooperation, a project for Simplified Procedures and Full Implementation of the 
Program me of Authorized Economic Operators. These are just a few projects out of many more 
that Montenegro is undertaking with many partners to further improve its customs system.  
3.21.   Before coming to an end let me briefly say a few words on the most important secto r of 
Montenegro's economy, services, i.e. financial services in particular. A sound banking system is an 
important element in securing economic growth. Montenegro has considerably strengthened the 
banking system during the period under review and, in parti cular, successfully addressed the 
serious problem of non -performing loans although some challenges remain there. The banking 
sector, however, seems to be overbanked and the IMF indicated its sees merits in promoting 
consolidation. Bank lending has been pic ked up during the period under review while not fully 
responding to the economic growth. Authorities also indicated the increased competition resulting 
in lower interests made bank lending available to a broader range of clients. This is certainly an 
impor tant element for a sustainable economic growth.  
3.22.   Coming to an end and to conclude, I would like to commend again Montenegro for what it 
achieved during the period under review in difficult times of profound economic and structural 
changes, for its strong co mmitment to the multilateral trading system and for the perseverance in 
pursuing EU membership. Important measures have been taken to bring its legal and economic 
framework in line with WTO commitments and with EU legislation. Montenegro has also made WT/TPR/W/147  • Montenegro  
 
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  considerable progress in creating a favourable economic framework and in diversifying its 
economy. There, of course, remain many challenges ahead in the pursuit of its goals. But 
Montenegro seems well under way and I hope that this TPR will help Montenegro fur ther on its 
way.  
3.23.   I wish Montenegro a successful and fruitful trade policy review and I am looking forward to 
listening to Members' intervention.  
3.24.   I thank you.  
  WT/TPR/W/147  • Montenegro  
 
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  4  STATEMENTS BY MEMBER S 
EUROPEAN  UNION  
4.1.  Let me spare a few words to congratulate the Montenegro W TO team here in Geneva – and I 
call it a team while being perfectly aware that it is a one woman team – Ambassador Maric. But 
her pro -activity, her positive spirit and her presence in our daily work here in the WTO are bigger 
and better than those of many teams I met. Thanks a lot, Zorica.  
4.2.  The EU is very pleased to participate in the first review of Montenegro's trade policy since its 
accession to the WTO in 2012. I personally witnessed the significant efforts Montenegro undertook 
to join this organisation.   
4.3.  The EU enjoys a close relation with Montenegro. First, the EU and Montenegro are parties to 
the Stabilisation and Association Agreement (SAA) which has been in force for ten years. This 
Agreement constitutes the framework of relations between the Europea n Union and the Western 
Balkan countries for implementation of the Stabilisation and Association Process. The agreements 
are adapted to the specific situation of each partner country and, while establishing a free trade 
area between the EU and the country concerned, they also identify common political and economic 
objectives and encourage regional co -operation. In the context of accession to the European 
Union, the agreement serves as the basis for implementation of the accession process.  
4.4.  Secondly, and as noted by the Head of Delegation, Montenegro became the first country of 
the region with which the EU opened accession negotiations in June 2012, four years after its 
application. Accession to the EU constitutes the overarching political framework for our b ilateral 
relation. This has implied major reforms and adjustments of the public administration, as noted 
both in the Secretariat and the Government reports. The Commission's strategy for the Western 
Balkans published last February has re -confirmed the acce ssion perspectives for Montenegro and 
recognised it as a frontrunner in this process, as also noted by the Discussant. Progress with the 
rule of law will remain a key factor in determining the pace of the negotiations.  
4.5.  The EU supports Montenegro in this pr ocess of reform with technical and financial assistance 
with a budget of around €270 million for the period 2014 -2020.  
4.6.  Thirdly and unsurprisingly, the EU is Montenegro's leading trade partner. Trade in goods was 
worth €1.1 billion in 2016. However, Montene gro is yet to reap the full benefits of its relation with 
the EU in terms of exports and trade performance and to steer its goods -export base away from 
low-value added sectors in order to improve its current and trade accounts. In this regard, the EU 
ackno wledges and supports Montenegro's determined efforts in promoting also services as a 
source of diversification of the economy and in particular efforts to promote sustainable tourism.  
4.7.  Overall, Montenegro's economy has grown uninterrupted since 2013 at a r obust rate. 
Nevertheless, Montenegro needs to address persistent structural imbalances, including the high 
and increasing public debt. A lot also remains to be done to improve the life of many Montenegrin 
citizens because unemployment is still quite high, even if it has decreased and is probably inflated 
by the remaining high level of informal activities.  
4.8.  The EU welcomes the reforms already carried out by Montenegro and encourages the country 
to persevere. We particularly welcome Montenegro's recently adopt ed fiscal consolidation strategy, 
which - when implemented - would considerably reduce the country's public debt in the 
medium -term. The EU takes note of Montenegro's new labour law currently under discussion and 
would like to know more about intentions to  generate greater labour -market flexibility so as to 
reduce the weight of the informal economy and encourage formal employment.  
4.9.  More specifically, in its advanced written questions, the EU has expressed its interest in 
knowing more about the expected retu rns on the ongoing efforts deployed to attract FDI, including 
with the support of incentives and the setting up of Business Zones. The EU has also sought 
clarification of certain issues such as specific elements of TFA related notifications to the WTO 
regarding the scope of the trade facilitation strategy that is under preparation. The development of 
a Regional Economic Area, based on EU rules, as decided by the Western Balkans last year, has WT/TPR/W/147  • Montenegro  
 
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  the potential to reduce intra -regional trade transactions costs a nd generate so far untapped 
growth.  
4.10.   In fact, despite reforms, business still faces significant trade barriers. Weaknesses in the 
area of rule of law continue to negatively impact the business environment and hinder FDI: more 
progress would be needed in ar eas such as public procurement, competition and state aid, as well 
as public administration. Regarding transparency, we note that while Montenegro has complied 
with its notification obligations to the WTO in most areas, some remain outstanding or need to b e 
updated. We encourage Montenegro to finalise these as soon as possible.  
4.11.   Finally, the EU would like to acknowledge the constructive participation of Montenegro in 
various discussions in the WTO, including its active involvement in the gender and trade in itiative.  
4.12.   Before concluding, the EU would like to thank Montenegro for having accepted to test the 
WTO Secretariat's pilot electronic database for questions and answers, which we have also used. 
We wish Montenegro all the best for its first Trade Policy R eview.  
ICELAND  
4.13.   Through its WTO membership, Montenegro has undertaken efforts to liberalize its trade 
regime, and we note Montenegro's efforts on transparency.  
4.14.   Furthermore, we welcome that Montenegro has ratified the Trade Facilitation Agreement 
and has beg un efforts to implement the agreement.  
4.15.   Iceland works closely with Montenegro on a number of issues at the WTO. I applaud the 
excellent work of my colleague and good friend, Ambassador Zorica Marić -Dordević, Permanent 
Representative of Montenegro to the WTO . I would particularly like to thank Zorica for her work in 
the area of women and trade.  
4.16.   Montenegro played a central role in putting women's economic empowerment at the heart 
of the trade agenda as a member of the Trade Impact Working Group. The group was established 
under the auspices of the International Gender Champions -Geneva and is co -chaired by Sierra 
Leone, Iceland and the International Trade Centre. On the occasion of the 11th WTO Ministerial 
Conference in Buenos Aires last December, more than 120 W TO Members and Observers launched 
a joint declaration on women and economic empowerment that aims, inter alia , at sharing best 
practices and working together in the WTO to remove barriers for women's economic 
empowerment and increase their participation in  trade.  
4.17.   Iceland submitted advance written questions on the participation of women in the 
Montenegrin economy. We wish to thank Montenegro for its responses to our written questions. 
We will review the answers thoroughly and request clarifications as necess ary during the course of 
this TPR. The answers are very useful as we implement the joint declaration on trade and women's 
economic empowerment and gather best practices.  
4.18.   In closing, Iceland reiterates its appreciation for Montenegro's active engagement in the 
WTO and efforts to liberalize their trade regime following their WTO accession. We wish the 
Montenegrin delegation every success with their first Trade Policy Review and look forward to 
continuing our close collaboration with Montenegro, both bilateral ly and here at the WTO. I also 
pay tribute to Ambassador Zorica Marić -Dordević, and thank her for all her efforts. I know she is 
approaching the end of her time in Geneva so I also take this opportunity to wish her all the best 
for her future endeavours.  
BRAZIL  
4.19.   Brazil is pleased to take part in the first Trade Policy Review of Montenegro. It is positive to 
note that in the period under review the economy has grown an average 1.8% per year, and that 
the Government is adopting measures to increase economic pe rformance, including a Fiscal 
Consolidation Plan and a 2017 -2019 Economic Reform Programme. In the trade arena, 
Montenegro aims to strengthen the competitiveness of service exports, diversify goods exports 
and increase value -added in export -orientated prod uction.  WT/TPR/W/147  • Montenegro  
 
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  4.20.   Montenegro's commitment to the multilateral trading system since its accession to the WTO 
in 2012, including the ratification of the Trade Facilitation Agreement, is appreciated. This said, a 
number of notifications are still pending, in key areas such as import licensing, SPS, TBT, and 
production support in agriculture; we encourage Montenegro to submit them.  
4.21.   Tariffs are one of the main trade policy instruments of Montenegro. Although most tariff 
lines are ad valorem, the number of complex tariffs has increased as a result of alignment of the 
country's schedule with that of the European Union. Non -ad valorem tariffs are notably imposed on 
agricultural products, mainly wine, dairy and meat, and the average tariff for agricultural products, 
at 12.3%, is four times higher than the average 3.1% for non -agricultural goods. Moreover, SPS 
requirements impose special control measures for the imports of potatoes, some herbs, and 
certain plants. Since 2012, Montenegro introduced more stringent import requireme nts for citrus 
fruits from Brazil.  
4.22.   Trade and investment relations between Montenegro and Brazil have yet to achieve their full 
potential; Brazil believes there is space to strengthen and diversify our bilateral trade flows. We 
urge Montenegro to expand opp ortunities for agricultural market access, as a way to ensure a 
reliable and competitive supply in the sector. Brazilian agricultural exports can play an important 
role in the supply of high -quality products to the tourism industry value chain.  
4.23.   Let me conc lude by wishing the Montenegrin delegation a successful Trade Policy Review.  
UKRAINE  
4.24.   We are closely monitoring the economic development of Montenegro and would like to 
acknowledge the Montenegro constructive and active approach within the WTO and trade 
negotiations.  
4.25.   Bilaterally, Ukraine and Montenegro are enjoying the free trade regime according to the 
Free Trade Agreement as of 1 January 2013. Furthermore, Ukraine is interested in fostering 
relations with Montenegro in the fields of common interests, such as economy, tourism, energy 
and investments.  
4.26.   The total turnover in goods between Montenegro and Ukraine amounted to over 
US$12.5  million in 2017 and increased by 69% comparing to 2016. The volume of trade in 
services between our countries amounted to arou nd US$9.0 million. Mutual cooperation of our 
countries covers different spheres of interest: confectionery, meat and edible offal, furniture, 
gunpowder and explosives, pharmaceutical products; transport, tourism, business services and 
telecommunications.  
4.27.   Bearing in mind current free trade regime between our countries, within this TPR exercise 
Ukraine has raised a number of important questions on a range of issues of particular interest, that 
broaden the provisions of our bilateral agreement, namely:  
 import  licenses for medicines and medical devices;  
 duty and tax concessions;  
 direct credit and loans provided for farmers;  
 imposition of a ban on exports of certain wood items;  
 market access restrictions for foreign investors in solar power industry;  
 National C ommittee for Trade Facilitation and National Strategy for Trade Facilitation 
development;  
 Project "Pre -Processing of Data for Accelerated Consignments";  
 E-commerce; and  
 trade -related aspects of intellectual property rights.  
4.28.   We are grateful to Montenegro fo r the comprehensive and detailed responses to the 
Ukraine's set of questions, which we are reviewing closely.  
4.29.   I would like to end by expressing our appreciation to the delegation of Montenegro and 
Geneva -based team led by H.E. Ambassador Zorica Maric for their hard work and thoroughness in 
preparing for this TPR.  WT/TPR/W/147  • Montenegro  
 
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  4.30.   On behalf of Ukraine, I wish Montenegro a successful Trade Policy Review and look forward 
to further strengthening our cooperation.  
CANADA  
4.31.   Montenegro is an active and engaged WTO Member and has ma de substantive contributions 
to our work since joining the Organization in 2012. Montenegro has kept apace of developments, 
with the timely ratification of the Agreement on Trade Facilitation, acceptance of the Protocol 
Amending the TRIPS Agreement, adhere nce to the Government Procurement Agreement, and 
implementation of the expansion of the Information Technology Agreement. Montenegro has also 
contributed to WTO governance through its chairmanship of committees.  
4.32.   I would like to particularly commend the Gov ernment of Montenegro for its leadership on 
trade and gender. Canada looks forward to continuing to work together and to follow through on 
the Declaration on Trade and Women's Economic Empowerment. We appreciate Montenegro's 
openness to exploring new ideas  and fresh approaches that are responsive to the needs of all 
Members of the Organization including the digital economy and e -commerce, MSMEs, and 
investment facilitation.  
4.33.   As highlighted in the Secretariat report, Montenegro has submitted a number of noti fications 
to the WTO, but some remain outstanding, including for domestic support, import licensing, TBT 
and SPS. I encourage Montenegro to submit these as soon as possible to further enhance the 
transparency of Montenegro's trade policies.  
4.34.   The Government  deserves credit for the important strides it has made in improving the 
business environment. This is amply demonstrated by Montenegro improving its ranking relating to 
the environment for business, trade and investment from 56 in 2012 to 42 in 2018 in the  World 
Bank's Doing Business report.  
4.35.   Montenegro has negotiated an impressive array of bilateral agreements in support of trade 
and economic cooperation, including free trade agreements, investment promotion and protection 
agreements and double taxation avo idance agreements, evincing its commitment to remain open 
to trade, a goal that Canada applauds.  
4.36.   Permit me to briefly identify a few areas that merit focus in Montenegro's ongoing reform 
efforts.  
4.37.   First, we encourage Montenegro to take steps to modernize an d improve access to financial 
services, which is an enabling sector that can facilitate growth throughout the economy.  
4.38.   Secondly, we note the Secretariat's observation of Montenegro's efforts to address its 
productivity -related challenges through structural  reforms and reforms aiming at spurring 
productivity growth. These will be particularly important in the following areas: energy, business 
environment, and foreign trade and investment facilitation.  
4.39.   Finally, Canada has been following Montenegro's accession  negotiations with the European 
Union and we look forward to their successful conclusion. In this context, Canada commends 
Montenegro on its wide ranging work in aligning with the EU "acquis communautaire". These are 
positive steps that have cut red tape, enabled stakeholder involvement in policy formulation, and 
improved Montenegro's trade and investment laws and regulations.  
4.40.   I look forward to reviewing the responses to Canada's advance written questions and I 
encourage the Government of Montenegro to cons ider adopting the alternative timelines for its 
next TPR, as a way to enhance transparency and provide for a more substantive discussion during 
TPR meetings.  
4.41.   I wish the delegation a successful conclusion of its Trade Policy Review.  
  WT/TPR/W/147  • Montenegro  
 
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  CHINA  
4.42.   We commend the remarkable progress that Montenegro has achieved in economic and trade 
development since its accession to the WTO since 2012. This has demonstrated the determination 
of the Montenegro people to build its country and underlined the value and importance of t he 
multilateral trading system in helping economies to be integrated into the global economy.  
4.43.   We are pleased to see that Montenegro has maintained economic success, being one of the 
fastest growing economies in Europe. Montenegro's GDP growth rate in the f irst half of 2017 
reached 4.2%, significantly highly than the average growth rate of 1.8% for the period 2012 -16. 
4.44.   Such growth was driven primarily by a high increase in domestic demand, caused by a 
strong increase in investment activity. We expect Monteneg ro to maintain the growth momentum 
through the 2017 -2019 Economic Reform Programme, enhancing productivity and diversification 
and achieving the sustainable development.  
4.45.   We noted that Montenegro has achieved trade expansion, with the ratio of trade in good s 
and services to GDP reaching 103.4% in 2016, reflecting the openness of its economy. 
Montenegro's merchandise trade featuring mining and manufacturing constitutes 73.6% of its total 
merchandise export. For investment, the net FDI inflows rose by an estim ated 10.6% between 
January and September 2017.  
4.46.   Multilaterally, Montenegro has actively participated in WTO activities, by way of accepting 
the Protocol Amending the TRIPS Agreement and the Trade Facilitation Agreement (TFA), and 
became a signatory to the I nformation Technology Agreement (ITA) Expansion. We appreciate the 
role played by Montenegro in the "Friends of E -commerce for Development" (FED) and signing the 
Joint Ministerial Statement on Investment Facilitation for Development at MC11.  
4.47.   On the bilater al front, China -Montenegro bilateral relations have witnessed a lasting and 
steady development in the past years, expanding cooperation in various fields and scoring 
significant achievements.  
4.48.   China is the largest trading partner of Montenegro outside Europ e and our bilateral trade 
has reached US$199 million las year, increased by 41.3%. As the main foreign direct investment 
(FDI) partner, China has invested in Montenegro US$88.7 million in total by the end of 2017.  
4.49.   We appreciate and would study the replies provided by Montenegro to the written questions 
we raised. We would like to learn more about the trade and investment regime of Montenegro, for 
instance, liberalizing plans in the areas of postal and courier service, facilitating foreign investment 
includi ng in energy sector, border management, patent and trademark, import measures, and 
medical insurance covering traditional Chinese medicine therapy.  
4.50.   China will further enhance cooperation with Montenegro through the Belt and Road Initiative 
and cooperation mechanism between China and Central and Eastern European (CEE) countries, 
with a view to boosting economic growth in Montenegro as well as connectivity in the regions, and 
exploring potential in cooperation, in infrastructure, energy, transportation, logis tics, agriculture 
and tourism.  
4.51.   We are pleased to see that Montenegro has accepted our invitation to participate in the first 
China International Import expo (CIIE) to be held in November. We believe the Expo will become a 
new channel for Montenegro product s to China and further promote our bilateral cooperation. We 
would welcome more Members to join us in Shanghai.  
4.52.   Currently, the WTO is facing serious challenges that have to be dealt with by all WTO 
Members. Both China and Montenegro are strong supporters o f the multilateral trading system. 
China would lock arms with Montenegro and other Members to preserve the basic principles of this 
Organization, fight against unilateralism and protectionism, and collectively safeguard the 
multilateral trading system.  
4.53.   Finally, I would wish this TPR a complete success.  WT/TPR/W/147  • Montenegro  
 
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  AUSTRALIA  
4.54.   Australia commends the openness of the Montenegrin economy to international trade as 
reflected in its strong ratio of trade to GDP. We congratulate Montenegro for acceding to the WTO 
in 2012 and not e that in preparing for its accession, Montenegro implemented significant trade 
policy reforms, including the elimination of import quotas, the reduction of import licensing 
requirements and prohibitions, the streamlining of customs procedures and the redu ction in tariff 
and non -tariff barriers.  
4.55.   Since its accession, Montenegro has been an active and engaged WTO Member taking on 
commitments in government procurement, trade facilitation, and under the protocol amending the 
TRIPS Agreement.  
4.56.   Australia has work ed closely with Montenegro to support the multilateral trading system and 
we welcome Montenegro's support for MC11 joint initiatives on e -commerce, services domestic 
regulation, investment, MSMEs and women, and economic empowerment which are helping to 
re-energize the Organization.  
4.57.   We welcome Montenegro's ratification of the WTO Trade Facilitation Agreement in 2016 and 
its subsequent submission of its Category A, B and C notifications, and the efforts Montenegro has 
made domestically to facilitate trade, in cluding establishing its national trade facilitation committee 
and developing a national strategy to address bottlenecks in cross -border trade.  
4.58.   Given the importance of transparency to the WTO system, we are concerned by the 
outstanding notifications identi fied in the Secretariat report relating to import licensing, SPS, TBT 
and production support, and we encourage Montenegro to submit its notifications promptly in line 
with WTO rules.  
4.59.   Montenegro has experienced solid economic growth in recent years and we e ncourage the 
pursuit of trade and investment policies and structural reform that will underpin sustained growth 
into the future.  
4.60.   In this regard, we note the Fiscal Consolidation Plan of 2017 and we encourage Montenegro 
to continue improvements in this dire ction. Reforms to attract foreign investments, including the 
2015 Decree of Direct Investment Incentives are also good to see.  
4.61.   Further improvement in the implementation and enforcement of legislation affecting foreign 
investments, along with further develo pment of national legal institutions such as the Agency for 
Protection of Competition, will help drive trade and investment activity.  
4.62.   Similarly, government procurement processes would benefit from greater transparency and 
we welcome Montenegro's progress t owards an electronic public procurement system which will 
improve efficiency and transparency in public procurement.  
4.63.   While bilateral trade between Australia and Montenegro is modest and based largely on 
Montenegro's goods exports to Australia there is potential for the economic relationship to grow 
with positive visible signs in the mining, aviation and tourism sectors.  
4.64.   Finally, Australia submitted a number of questions as part of this review on Montenegro's 
investment regime, banking sector and competi tion policy. We thank Montenegro for its responses 
which we are currently reviewing.  
4.65.   I would like to wish Montenegro a successful and constructive first Trade Policy Review.  
ARGENTINA  
4.66.   Como se destaca en el informe de la Secretaría, la economía de Monteneg ro se caracteriza 
por ser abierta y depender de las importaciones. Estas características la hacen vulnerable a 
conmociones exógenas. También enfrenta riesgos endógenos, como la  elevada tasa de 
desempleo.  WT/TPR/W/147  • Montenegro  
 
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  4.67.   En ese contexto, la República Argentina valora las reformas estructurales emprendidas por 
Montenegro relacionadas con el comercio en esferas como la administración fiscal, la política de 
competencia y el mercado de trabajo. Asimismo, observa con gran interés otras reformas en 
marcha en diversos sectores, e ntre ellos, energía, transporte y telecomunicaciones y comercio 
exterior.  
4.68.   Esperamos que las medidas adoptadas permitan a Montenegro hacer frente a las 
dificultades relacionadas con la diversificación de la producción y la competitividad internacional, 
logrando los objetivos enunciados en el Programa de Reforma Económica 2017 -2019 y un 
crecimiento inclusivo.  
4.69.   Según el informe de la Secretaría, el comercio de bienes y servicios de Montenegro 
representa el 103,4% del PBI, lo cual refleja la voluntad del país de  integrarse en la economía 
mundial. Europa es el principal mercado y proveedor de Montenegro, en tanto los intercambios 
comerciales en el marco de acuerdos comerciales regionales representan más del 80% del 
comercio exterior total.  
4.70.   El comercio bilateral co n la Argentina es poco significativo. En 2017 las exportaciones 
argentinas fueron de 1,2 millones de dólares EE.UU., concentrándose principalmente en limones, 
maníes y maíz. Sin embargo, existe potencial para el crecimiento del comercio bilateral. 
Esperamo s que el Acuerdo sobre Cooperación Económica y Comercial firmado en 2016, en ocasión 
de la visita del entonces Primer Ministro de Montenegro Milo Djukanovic a la Argentina, permita 
intensificar los vínculos comerciales entre los dos países.  
4.71.   Reiteramos nues tro reconocimiento por esta oportunidad de intercambiar elementos de 
juicio y consideraciones sobre las políticas y prácticas comerciales de Montenegro.  
4.72.   Para finalizar, agradecemos las respuestas de Montenegro a nuestras preguntas y deseamos 
a las autorid ades montenegrinas la exitosa conclusión del presente examen.  
COSTA  RICA 
4.73.   Good morning Chair and thank you for giving me the floor. First, I would like to congratulate 
you on your appointment as Chair of the Trade Policy Review Body and wish you success in this 
new endeavour.  
4.74.   As the representative of a small but open and forward -looking country, it pleases me to see 
how the multilateral trading system has brought benefits to all, and we see this impulse in 
Montenegro. Just as Costa Rica, Montenegro understoo d the importance of trusting the system to 
boost their trade flows, attract investment, create more job opportunities and provide prosperity 
for its people. After its accession to the WTO in 2012, important structural changes have taken 
place in this Balka n economy and we see this process with very positive eyes, as Costa Rica can 
also relate to the challenges this might bring. This hasn't slowed Montenegro from working 
towards a more competitive, export and services -oriented economy and we congratulate the  
efforts they have made through the Economic Reform Program, their participation in various RTAs, 
the alignment to the EU "acquis communautaire", the ratification of the TFA, and in line with their 
accession commitments they recently amended their pending MFN applied tariffs to the bound 
level, to name a few steps.  
4.75.   Under this roof, Montenegro and Costa Rica also share their common interests in working 
towards a robust development -centered agenda in electronic commerce as partners within the 
Friends of e -Commerce for Development group; we also support and encourage the strengthening 
of entrepreneurship as members of the Informal Working Group on MSMEs; and as many other 
members, we recently subscribed the Buenos Aires Declaration on Women and Trade, conscious  of 
the importance an inclusive trade agenda.  
4.76.   As the Secretariat's report reflects, there are areas of opportunity we consider important to 
address, like the agriculture and fisheries sector where there is capacity to further engage and 
grow in a sustainab le fashion, given the natural wealth that Montenegro enjoys.  WT/TPR/W/147  • Montenegro  
 
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  4.77.   In this context, we want to highlight the progressiveness of its National Strategy for 
Sustainable Development, which comprises six goals with which Costa Rica fully identifies, that is 
Introduc ing a Green Economy; Preservation and Valorisation of Natural Capital; Inclusive Growth; 
Knowledge -based Development; Management for Sustainable Development and Balanced Regional 
Development.  
4.78.   Yet, despite their open -minded approach, Montenegro faces the sa me challenges that a 
small economy - with limited local market - might face. We understand these limitations as we too 
depend on international trade and foreign direct investment to boost our economy. We can relate 
to the need to undergo a fiscal and econo mic reform and its implications, but also we empathize 
with the fact that only by keeping ambitious and straightforward policies, economies such as ours 
will be able to strive and achieve development. Moving to a more Services -oriented economy is 
one of th ose bold steps Montenegro has wisely taken, as the new trade trends and rise of digital 
technologies have proven.  
4.79.   In fact, given our same interest and orientation, Costa Rica submitted a series of questions 
related to Services, and we thank their prompt re sponse. We have shared them with our Capital 
and we will come back to the reviewed Member in case needed.  
4.80.   Allow me to conclude this intervention by wishing the Montenegrin delegation a successful 
Trade Policy Review and thank the Membership and the Secreta riat for the efforts and participation 
in this remarkable transparency exercise.  
REPUBLIC  OF MOLDOVA  
4.81.   On this important and unique, indeed, occasion, we would like to first take the opportunity 
to congratulate Montenegro on the deep and extensive commitment s undertaken upon its 
accession to the WTO. Today Montenegro is re -integrated into the multilateral trading system, 
aiming to foster trade and investment with its regional and global partners.  
4.82.   Republic of Moldova appreciates Montenegro's commitment to str engthening the multilateral 
trading system in the interest of all WTO Member States and its active participation in trade 
negotiations, as well as its openness to new issues and approaches aiming at pragmatic outcomes 
that are relevant and responsive to th e needs of all Members.  
4.83.   We are pleased to notice that during the period following its accession, Montenegro has 
fulfilled its membership commitments and obligations with great seriousness and dedication. We 
welcome the adoption of a number of trade -relate d structural reforms in areas such as tax 
administration, competition policy and the labour market, and particularly the adoption of the 
2017-2019 Economic Reform Programme, which will contribute to strengthening the 
competitiveness of service exports, div ersifying goods exports and increasing value -added in 
export -oriented production.  
4.84.   We also note with satisfaction the fact that Montenegro's accession to the WTO has been 
strengthened by the negotiations for the accession to the EU. In this sense, the Stab ilization and 
Association Agreement with the EU has contributed to the alignment of the relevant legislation 
with the EU "acquis communautaire" allowing for the harmonization of a consistent part of the 
legislation with the regional provisions.  
4.85.   In the agr icultural sector, we note the fact that Montenegro does not provide export 
subsidies and domestic support is modest, we also take note of the fact that in the context of EU 
accession, a gradual decoupling of payments from production is envisaged. Despite t he low 
productivity of the agricultural sector, we believe that Montenegro will be able to reform the sector 
through the production of high -quality, organic farming products.  
4.86.   In regards to government procurement, we congratulate Montenegro on the substant ial 
changes made to the government procurement legislation according to the EU acquis and the WTO 
GPA Agreement. We encourage Montenegro to continue the ongoing initiatives to raise 
procurement efficiency and monitoring through the introduction of e -procur ement tools.  WT/TPR/W/147  • Montenegro  
 
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  4.87.   During the period following its accession, Montenegro has proved its openness to 
international trade and integration into the world economy by maintaining a predictable and stable 
market access conditions. Furthermore, Montenegro is open to FDI and activel y encourages 
investment through various incentive schemes applied in a non -discriminatory manner.  
4.88.   Montenegro's commitment to the multilateral trading system has been reflected not only in 
its obligations undertaken in trade in goods, but particularly in t he services sector, which accounts 
for more than 70% of its economic activity. In the process of finalizing negotiations for accession 
to the WTO, Montenegro ensured extensive liberalization as regards freedom to provide services. 
GATS commitments undertak en in all of the 12 sector groups and in over 80% of its subsectors, as 
well as a number of "additional commitments" are proof of Montenegro's strong support to 
services.  
4.89.   Moldova has addressed several questions to Montenegro and we thank the Montenegrin 
delegation for providing answers to our questions.  
4.90.   Moldova -Montenegro bilateral relations are currently taking place under the Central 
European Free Trade Agreement (CEFTA), a modern, comprehensive and ambitious free trade 
agreement with parties from South E astern Europe, aimed at stimulating economic development 
and the EU accession agenda in the region. It provides a strong legal basis for policy formulation 
and implementation in key areas related to trade and investment. More recently, a number of 
trade fa cilitating initiatives are being implemented at the CEFTA level, with a view to reducing 
costs caused by inefficient clearance procedures and compliance with international and regional 
requirements for safety and security measures. Two years negotiations o n the CEFTA Additional 
Protocol 5, built upon WTO TFA, were concluded in 2016 and ratification by all Parties is expected 
to finalize soon. The AP5 goes beyond the WTO TFA by correlating with the actions at the regional 
level in order to promote investment s and trade for the benefit of the private sector.  
4.91.   Other areas of interest include agriculture and sanitary and phytosanitary measures, 
non-tariff measures, rules of origin and trade in services, investment policy and promotion.  
4.92.   Major increases in commer cial relations between the Republic of Moldova and Montenegro 
have been registered in 2017 compared to 2016. Thus, exports have grown by 431.48% compared 
to 2016, reaching a value of US$310.39 thousand, while imports have increased by 52.74%, 
reaching a va lue of US$49.46 thousand. Main exported products are fruit, sunflower seeds, fresh 
apples and pears, fresh and dried grapes. Main imported products are medications and engine 
parts.  
4.93.   The Republic of Moldova is looking forward towards strengthening our bila teral trade 
relations, including new areas in services and reducing non -tariff barriers to trade.  
4.94.   We would like to conclude our speech by conveying a message of gratitude and appreciation 
on behalf of our Minister of Foreign Affairs and European Integratio n, H.E. Mr. Tudor Ulianovschi, 
to H.E. Zorica Marić -Đorđević for her impressive work in representing Montenegro in all the fora of 
this House, as well as for her commitment and involvement in all the important trade negotiations, 
discussions and debates du ring her mandate. We wish Ambassador Zorica Marić -Đorđević the 
utmost success in her future activity.  
MÉXICO  
4.95.   Nos complace saber que, a pesar de los efectos derivados de la crisis en Europa que afectó 
el crecimiento del PIB con una recesión de 2,7% en 2012,  Montenegro prevé un crecimiento de la 
economía mediante la importante captación de inversión extranjera directa dirigida principalmente 
a áreas estratégicas como infraestructura, energía, turismo y agricultura.  
4.96.   Sin embargo, de acuerdo con algunos análisi s económicos, un tema que debería requerir 
atención de su parte, es el referente a la alta concentración de sus exportaciones en sectores de 
bajo valor añadido, ya que éstas han dependido principalmente de la minería, la cual representó 
un 48% del total de  las exportaciones en 2016. Esto conlleva a importantes riesgos al exponer su 
comercio a la volatilidad de los precios de los productos básicos y a la competencia de países con 
bajos costos.  WT/TPR/W/147  • Montenegro  
 
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  Reformas estructurales  
4.97.   Ante ello, mi delegación quisiera felicitar a Montenegro por la implementación de 
importantes reformas estructurales y relacionadas con el comercio, en diversas esferas tales como 
la gestión de las finanzas públicas, energía, transporte y telecomunicacione s, entorno empresarial, 
reducción de la economía informal, comercio exterior y facilitación de las inversiones, las cuales 
coadyuvarán al crecimiento de la productividad para enfrentar las dificultades respecto a la 
diversificación de la producción y la co mpetitividad internacional. Asimismo, es importante 
destacar la modernización de su Administración estatal mediante la creación de un portal de 
gobierno electrónico que funciona como punto único.   
OMC 
4.98.   En cuanto a sus obligaciones como Miembro de la OMC, s abemos que Montenegro ha 
presentado notificaciones en la mayoría de las esferas. Sin embargo, y de acuerdo con el informe 
de la Secretaría, hasta diciembre de 2017 había notificaciones pendientes en agricultura, 
contratación pública, trámite de licencias d e importación, restricciones cuantitativas y 
subvenciones y medidas compensatorias, por lo que le instamos a ponerse al día, cumpliendo así 
con los compromisos convenidos con esta organización.  
Adhesión de Montenegro a la UE  
4.99.   Con relación a su proceso de a dhesión a la Unión Europea iniciado en 2011, nos complace 
saber que se han logrado importantes avances hasta el momento y les deseamos éxito en la 
continuación de sus negociaciones.  
Comercio electrónico  
4.100.   Aplaudimos también la adopción en 2016 de la Estrate gia de Desarrollo de la Sociedad de 
la Información 2016 -2020 que busca aumentar la participación del comercio electrónico en su 
comercio total en un 1,5% para 2020. Esta acción puede igualmente contribuir a la creación de 
nuevas oportunidades comerciales p ara Montenegro en el comercio mundial.  
Telecomunicaciones  
4.101.   También destacamos la Estrategia de Desarrollo de la Sociedad de la Información 2020, 
adoptada en 2016, que busca fomentar el crecimiento del sector de las TIC mediante la concreción 
de una serie de  prioridades de desarrollo estratégico; así como los 11 puestos escalados por 
Montenegro desde 2012, que lo sitúa en el número 62 de un total de 175 economías en el índice 
de desarrollo de las TIC de la UIT, logrando esto, según lo dicho por sus autoridade s, mediante la 
mejora de las medidas adoptadas para estimular las inversiones en las redes existentes y a las 
innovaciones en las tecnologías de acceso. Esperamos que estas mejoras incrementen su 
competitividad y contribuyan igualmente al crecimiento de su  economía.  
Servicios turísticos  
4.102.   En el sector del turismo, las actividades de alojamiento, servicio de comidas y actividades 
conexas representaron una aportación al PIB de 22,1% y al empleo de 14,6% en el 2016. 
Sabemos que los principales productos turístic os se relacionan con actividades costeras, y que se 
han puesto en marcha acciones dirigidas para su diversificación. Siendo este un sector muy 
importante para Montenegro, nos alegra saber que su intención es fomentar un turismo sostenible 
mediante la Estra tegia Nacional de Desarrollo Sostenible hasta 2030 con el fin de hacer frente al 
creciente impacto del cambio climático.  
Cierre  
4.103.   Antes de concluir, queremos agradecer a Montenegro por las respuestas a las preguntas 
formuladas por mi delegación y expresar n uestros mejores deseos para la exitosa conclusión de 
este Examen.  
  WT/TPR/W/147  • Montenegro  
 
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  UNITED  STATES  
4.104.   Montenegro has achieved many economic successes in recent years. Perhaps most 
importantly, is its accession to the WTO in 2012, and since then it has made many significant 
contributions to this Organization. Montenegro is, simply put, an outstanding "citiz en" of this 
Organization. Its active participation across our committee structures, the willingness of its 
Permanent Representative to chair one of our working groups, and the seriousness with which 
Montenegro responds to inquiries from the United States a nd other Members are examples of how 
this Member has shown its dedication to our common work. Over this same time -period, 
Montenegro has become an accession candidate in negotiations with the European Union, another 
demonstration of its commitment to trade  liberalization and regional integration.  
4.105.   Montenegro conducted its WTO accession with dedication and enthusiasm, and in particular 
the United States commends Montenegro for additional undertakings in several plurilateral WTO 
agreements, including the Trad e in Civil Aircraft Agreement, the Information Technology 
Agreement and most recently its accession to the revised Government Procurement Agreement.   
4.106.   Montenegro has also demonstrated leadership in trade facilitation. We recognize 
Montenegro's early accept ance of the Trade Facilitation Agreement and its timely notifications. We 
appreciated the inclusion of details regarding Montenegro's National Committee for Trade 
Facilitation in its report, and we look forward to learning more about its Strategy on Trade 
Facilitation in the Trade Facilitation Committee as we work jointly with Montenegro to build that 
Committee.  
4.107.   We look forward to seeing Montenegro's continued progress in reforming its business 
environment and reducing trade barriers. During the review per iod, Montenegro has implemented 
significant reforms in its trade policy regime, including promoting good regulatory practices, 
eliminating import quotas, reducing import licensing requirements and prohibitions, streamlining 
customs procedures, and reducing  tariff and non -tariff barriers.  
4.108.   We would like to draw attention to the laudable efforts Montenegro has made to promote 
good regulatory practice, including the adoption and application of Regulatory Impact Assessments 
as well as the intriguing program ref erred to as "Guillotine Regulations" which we understand to be 
a very aptly named effort to eliminate and reduce bureaucracy and red tape. We also applaud 
similar efforts undertaken to build the capacity of the Montenegrin accreditation system and the 
expansion of conformity assessment bodies, which will improve investor and trader confidence in 
accessing Montenegro's market. We support Montenegro's continuing structural reforms, and look 
forward to further advancements that support trade and economic growt h. 
4.109.   Concerning intellectual property (IP) rights, Montenegro has taken a number of steps to 
align its IP law and regulations with the TRIPS Agreement. This is an important factor in further 
facilitating trade in IP -intensive goods and services. We hope to o btain further updates and 
clarifications related to Montenegro's amendments to and implementation of its copyright and 
industrial property laws.  
4.110.   Today's Trade Policy Review plays an important role in encouraging the dialogue between 
Montenegro and other WT O Members on issues that, if successfully addressed, would lead to 
expanded trade and greater prosperity for Montenegro and its trading partners. During this review, 
we have posed a number of written questions aimed at facilitating a better understanding o n 
issues related to Montenegro's alignment of its tariffs with the EU; the standard -setting framework 
in relation to food; its intellectual property rights regime; and its investment policy and customs 
system.  
4.111.   We want to take this opportunity to thank Mont enegro for its written responses to the 
questions we raised. We are undertaking a comprehensive review of the responses in Washington.  
4.112.   We look forward to closer cooperation with Montenegro here at the WTO, and bilaterally. 
We also wish to take a moment to  acknowledge Montenegro's Ambassador, Zorica Maric -Dordevic 
for her close cooperation and collaboration with the United States, and for setting an incredibly 
high standard of hard work and dedication.  WT/TPR/W/147  • Montenegro  
 
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  4.113.   We also look forward to continuing to work with Montene gro and other Members to 
strengthen the global economy and the WTO. We hope that our discussions today will help 
Montenegro expand upon the considerable progress it has already made in its trade regime.  
THAILAND  
4.114.   In 2017, total trade value between Thailand  and Montenegro was US$2.12 million. 
Although the bilateral trade is still relatively small, there is trade potential that can be explored. 
For exports from Thailand, such potential may exist in prepared fish, iron, rubber, cotton, paper, 
and staple fibers . While vessels and parts of machinery can be considered potential exports from 
Montenegro.  
4.115.   Thailand welcomes Montenegro's consistent efforts in spurring economic recovery and 
productivity growth by undertaking fiscal and trade -related structural reforms i n several areas 
such as tax administration, competition policy, the labour market, public finance management, 
energy, and foreign trade and investment facilitation.  
4.116.   Thailand appreciates the openness of Montenegro's economy to international trade and its 
aim to integrate into the world economy. These efforts are reflected in the high ratio of trade in 
goods and services to GDP, which was 103.4% in 2016. Montenegro's efforts in improving the 
business environment by providing various incentive schemes in a non -discriminatory manner also 
deserve positive mention.  
4.117.   Since WTO accession, Montenegro has adopted constitutional amendments to reinforce 
judicial independence. Thailand commends Montenegro for undertaking commitments in 
government procurement and trade fac ilitation.  
4.118.   During the review period, trade facilitation developments in Montenegro included the 
ratification of the TFA in 2016, steps to implement an authorized economic operator scheme, and 
the establishment of a National Trade Facilitation Committee to address bottlenecks in this area.  
4.119.   Regarding customs valuation, we are pleased to learn that the transaction value was the 
most used method and no reference or minimum prices or fixed valuation schedules were used. In 
addition, we commend Montenegro's commi tments to ensuring predictable and stable market 
access conditions as all tariff lines are bound on an ad valorem basis.  
4.120.   In this review, Thailand submitted a set of questions covering the policies and measures of 
our interests such as business zones, inves tments in agricultural farms, electronic communications 
for foreign -service providers, and privatization of state -owned enterprises. We thank Montenegro 
in advance for written responses.  
4.121.   In conclusion, we wish Montenegro a successful first Trade Policy Rev iew. 
KINGDOM  OF SAUDI  ARABIA  
4.122.   Despite its small open economy largely driven by tourism and services and 
import -dependent, Montenegro has enjoyed high economic growth from -2.7% (in 2012) to 3% (in 
2017).  
4.123.   Montenegro is to be commended for its great efforts t o achieve sustainable economic 
growth through the implementation of the fiscal consolidation strategy, the development of the 
financial sector, labour market reforms, and business environment and governance.  
4.124.   The Secretariat and Government reports highlight ed the structural reforms by Montenegro 
to promote diversification of production and productivity increase including many areas such as 
corporate governance, competition, taxation, energy, transport and communications, and 
facilitation of foreign investmen t. 
4.125.   The Secretariat's report also highlighted changes and updates to the comprehensive 
regulatory and institutional framework in many areas to ensure compliance with future EU 
accession requirements such as sanitary and phytosanitary measures, intellectual pro perty rights, WT/TPR/W/147  • Montenegro  
 
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  promotion of small and medium -sized enterprises, research and development and improved 
competitiveness.  
4.126.   We also note with great attention that the Montenegro's economy is transitioning to a 
market system. As of 2015, around 90% of Montenegrin  state-owned companies have been 
privatized, including 100% of banking, telecommunications, and oil distribution.  
4.127.   The bilateral relations between the Kingdom of Saudi Arabia and Montenegro enjoy a 
stable and positive development with the potential to incre ase and expand economic cooperation 
in tourism, industry, agriculture, construction services, IT, and trade and investment.  
4.128.   The Kingdom of Saudi Arabia has submitted some questions to Montenegro regarding 
economic growth plans, banking regulations, FDI reg ime, and transportation, and will be happy to 
receive Montenegro replies to these questions.  
4.129.   To conclude, we wish the entire delegation of Montenegro a very successful Trade Policy 
Review.  
TURKEY  
4.130.   We observe with satisfaction that Montenegro continued to fo llow a liberal trade and 
investment policy during the review period. Also, significant reforms have been undertaken in 
terms of taxation, competition and labour market policies, as well as with respect to technical 
regulations and standards, as part of the  accession process of Montenegro to the EU. It is obvious 
that liberal and reform oriented trade and investment policies of Montenegro contributed 
significantly to the economic development of the country.  
4.131.   Despite some fluctuations, a steady growth rate has  been maintained, the inflation is 
under control, and the unemployment is in a decreasing trend. As a result, GDP per capita 
increased 24% during the review period.  
4.132.   However, the lack of national currency and national monetary policy negatively affects the 
competitiveness of the economy and complicates the adjustment of the balance of payments. 
Increasing current account deficit is a source of concern for the economy, as the exports of goods 
decreased more than 10% during the review period, while the imports  increased 13%.  
4.133.   Having said that, we are confident that continuing reforms in the labour market prices, 
fiscal consolidation, improvement of investment protection regime, the ambitious incentive regime 
and the guiding strategy for the manufacturing sector that have been adopted by the Government, 
will boost the competitiveness of the economy, develop the manufacturing sector and address the 
remaining challenges of the economy.  
4.134.   Montenegro is an important economic partner for Turkey in its region, thanks to i ts level of 
economic development and open trade and investment regime. The free trade agreement between 
Turkey and Montenegro dates back to 2010 and it has contributed considerably to develop our 
bilateral trade. We believe that the ratification of our bil ateral investment treaty will give a further 
impetus to the bilateral economic relations.  
4.135.   As a specific issue, I would like to refer to the policy of Montenegro for accepting the 
equivalence of the conformity assessment documents issued by the EU notified bodies in terms of 
technical regulations, and remind Turkey's expectation of recognition by Montenegro of the 
certificates issued by the notified bodies accredited by Turkish Accreditation Agency, as part of the 
Turkey -EU Customs Union and Turkey's full tr ansposition of the EU technical regulations in this 
framework.  
4.136.   To conclude, we would like to reiterate our satisfaction by the commitment of Montenegro 
to the multilateral rules -based trading system.  
4.137.   We look forward to develop our cooperation with Monteneg ro both in bilateral and 
multilateral platforms, and we wish Montenegro a very successful trade policy review exercise.  WT/TPR/W/147  • Montenegro  
 
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  REPUBLIC  OF KOREA  
4.138.   Taking this opportunity, Korea would like to express its sincere appreciation to Montenegro 
and the Secretariat for th e successful implementation of the on -line Q&A system. Korea, which 
voluntarily participated in the trial version of the on -line Q&A system, hopes that the system will 
be fully taken advantage of during future TPRs.  
4.139.   Since the establishment of bilateral rel ations in 2006, Korea and Montenegro have 
developed a sound economic partnership. However, at the same time, I must say that the two 
countries still have much room for realizing the full potential of our economic cooperation. As the 
Secretariat report poin ts out, Montenegro's trade under Regional Trade Agreements (RTAs) 
account for more than 80% of total foreign trade. Should bilateral trade between Korea and 
Montenegro expand, it will go a long way towards helping Montenegro diversify its trading partners 
and achieving stable economic growth.  
4.140.   As the Secretariat report highlights, since its WTO accession in 2012, Montenegro has 
made an effort to integrate into the world economy. It is noteworthy that Montenegro has 
undertaken WTO commitments in government pr ocurement and trade facilitation. At the same 
time, Montenegro is a member of five RTAs encompassing a total of 41 economies. Moreover, EU 
accession negotiations were launched in 2011 and are currently ongoing. Korea hopes that the EU 
accession process may  act as a stimulus for improving Montenegro's trade policy instruments and 
trade and investment -related laws and regulations.  
4.141.   At this TPR, Korea submitted, albeit somewhat late, our written questions on tariff reform. 
We look forward to receiving your view  in due course.  
4.142.   I would like to conclude by once again expressing my appreciation to the delegation of 
Montenegro, and I wish the delegation every success for the TPR.  
INDIA  
4.143.   This is Montenegro's first Trade Policy Review after accession to the WTO in 2012.  We note 
from the Secretariat and Government reports that during the period of review the economy of 
Montenegro has grown at a fluctuating rate. The average growth rate for the period from 
2012 2016 stood at 1.8% and in the first two quarters of 2017 the e conomy witnessed a stronger 
growth of around 4.2% due to the rise in demand and investment. The challenges for Montenegro 
include mobilizing resources for public infrastructure, addressing unemployment, continuous labour 
market rigidities, current account deficit, substantial external debt and high dependence on 
imports. We commend the Government of Montenegro for the various measures it is taking to 
address these challenges which include strategies for fiscal consolidation, economic reform 
programmes – for strengthening infrastructure, focussing on projects in tourism and energy, tax 
reforms, structural reforms and focussing on investment policy to attract foreign investment.  
4.144.   India and Montenegro have traditionally shared close and friendly relations. The t rade 
between both countries though modest has potential for growth in items like machinery, textiles, 
engineering goods, metals, agricultural products, automobiles and chemicals. Both countries are 
also exploring business opportunities with exchanges of bu siness delegation and participation in 
trade fairs. There is also potential to promote investments of Indian companies in Montenegro 
especially in the areas of hospitality, tourism, agriculture and infrastructure development including 
roads, power, renewab le energy, etc.  
4.145.   For capacity building and human resources development, India is also regularly offering 
slots in various training institutions to professionals from Montenegro under India's Economic and 
Technical Cooperation programme.  
4.146.   To conclude, we look  forward to working closely with the authorities of Montenegro for 
further expanding and harnessing the potential of our trade and investment ties for mutual 
benefit. We wish the delegation of Montenegro a productive and successful TPR.  
  WT/TPR/W/147  • Montenegro  
 
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  SINGAPORE  
4.147.   Singapore enjoys good relations with Montenegro. We may both be small and far apart, 
yet our bilateral trade stood at US$4.03 million (S$5.3 million) last year. This shows that distance 
and size are not inherent barriers to building economic and trade link s. 
4.148.   We note that the EU remains Montenegro's largest and most important trading partner, 
and that many of Montenegro's economic reforms are results of its efforts to align its legislation 
with the EU acquis and advance its EU accession goals. Notwithstandin g the importance of the 
surrounding region to its economy, we look forward to more economic and trade engagements 
with Montenegro, as Montenegro becomes more integrated into the multilateral trading system.  
4.149.   Since acceding to the WTO in April 2012, Monteneg ro has made substantive efforts to 
integrate into the multilateral trading system. We commend Montenegro for its openness to trade, 
which stood at 103.4% of its GDP in 2016. Moreover, Montenegro's relatively low simple average 
MFN tariff rate of 5.1% and t he limited gap between this and its bound rates (1.4% difference) 
offer a stable and predictable base for trade to grow. During this period, Montenegro also 
improved its rankings in the World Bank's Ease of Doing Business report from 56th place in 2012 to 
42nd place in 2018.  
4.150.   Montenegro has participated actively in the WTO, notably since establishing its Permanent 
Mission to the WTO in 2015. I would, in particular, like to express appreciation for Ambassador and 
Permanent Representative Zorica Marić -Djordjev ić's constructive and consistent contributions to 
our work, including as Chair of the Working Group on Trade and Transfer of Technology.  
4.151.   Montenegro's commitment to the multilateral trading system is reflected in its ratification 
of the Trade Facilitation A greement and submission of its Category "A" notification, and its 
acceptance of the Protocol Amending the TRIPS Agreement. We also appreciate Montenegro's 
participation in the Government Procurement Agreement (GPA) and the Information Technology 
Agreement (ITA). Moving forward, we encourage Montenegro to address its outstanding 
notifications, such as those related to SPS, TBT and import licensing.  
4.152.   We wish Montenegro a very successful first TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.153.   At the outset, I would like to congratulate you on your appointment as the Chair of this 
Body. We look forward to working with you, and you can be assured of our support and confidence 
in your leadership.  
4.154.   Montenegro should be commended on the openness to international trade it has shown 
since acceding to the WTO in 2012. Its commitments in terms of market access for both goods and 
services are very comprehensive. For trade in goods, Montenegro has bound all tariff lines with an 
average rate at 6.4%; and  the majority of its bindings are already in force. We expect 
implementation of the remaining commitments to be completed by 2022. As mentioned in the 
Secretariat report, the MFN rates applied to some commodities appear to have exceeded their 
bound level i n 2017. We are pleased to note, however, that the Montenegro has taken action to 
correct this situation.  
4.155.   As far as trade policy is concerned, we are encouraged by the fact that Montenegro is a 
strong advocate of the rules -based multilateral trading system,  as embodied by the WTO. Since 
becoming a Member, Montenegro has shown its intention to engage strongly in the work of the 
WTO by joining the GPA, ITA2 and the Agreement on Trade in Civil Aircraft, as well as registering 
its acceptance of the TFA and the P rotocol amending the TRIPS Agreement. Its voice has already 
been heard in several areas of WTO discussion, such as e -commerce, services, domestic 
regulation, investment facilitation, MSMEs, and women's empowerment, and we hope it will 
continue this level o f constructive engagement into the future.   
4.156.   We are very sorry to have to say farewell to Ambassador Zorica Marić -Đorđević. My 
delegation has enjoyed working with her, and we wish her all the very best in her future 
endeavours.  WT/TPR/W/147  • Montenegro  
 
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  4.157.   In conclusion, my delegatio n looks forward to strengthening our trade and economic 
relations with Montenegro in the years to come, and of course we wish Montenegro a very 
successful first trade policy review.  
BÉNIN  
4.158.   La délégation du Bénin apprécie les efforts et les réalisations du M onténégro depuis son 
Accession à l'OMC, en dépit des difficultés rencontrées, liées notamment à la conjoncture 
économique régionale et internationale. Les résultats obtenus se sont traduits par une inflation 
maîtrisée, avec un taux moyen estimé à 2,4% sur la période allant de janvier à septembre 2017, 
et un déficit du compte courant qui a connu une baisse de 9,2%. La croissance du PIB était 
estimée à 4% en 2017, contre 2,9% en 2016, soit une progression nette enregistrée par 
l'économie monténégrine.  
4.159.   La délé gation du Bénin se réjouit que la reprise de la croissance dans l'Union européenne 
impactera de façon positive la situation économique du Monténégro les années à venir.  
4.160.   Cette perspective est combinée avec les différentes réformes majeures conduites par le 
Gouvernement du Monténégro, notamment la simplification des procédures fiscales et la 
transparence dans l'exécution des obligations fiscales, la création d'un système efficace pour 
réduire le secteur informel en vue de son élimination totale, et l'améliora tion continue de 
l'environnement des affaires. Toutes ces réformes sont soutenues par celles menées dans le 
système judiciaire, l'une des plus importantes entreprises au cours des dix dernières années.  
4.161.   La délégation du Bénin poursuivra sa collaboration ave c son homologue du Monténégro au 
sein des Organes de négociations de l'OMC sur les questions d'intérêt commun.  
4.162.   Elle félicite l'Ambassadeur, Représentant Permanent du Monténégro, Son Excellence 
Madame Zorica Maric Djordjevic, pour son implication active dan s les travaux de négociations à 
l'OMC.  
4.163.   La délégation du Bénin remercie le Secrétariat de l'OMC et le Gouvernement du 
Monténégro pour les rapports très informatifs élaborés dans le cadre de la présente session 
d'Examen des politiques commerciales du Monténé gro. 
4.164.   Elle souhaite plein succès au Monténégro, pour son premier Examen des politiques 
commerciales.  
ALBANIA  
4.165.   Albania would like to associate itself with the statement of the European Union.  
4.166.   At the outset, Albania would like to congratulate Montenegro as a c ountry which, since its 
WTO accession, has adopted constitutional amendments to reinforce judicial independence, and 
has undertaken institutional and legislative reforms to combat corruption. These achievements are 
clearly demonstrated by the 2017 -2019 Eco nomic Reform Programme, where trade and 
trade -related policy objectives are focused on strengthening the competitiveness of service 
exports, diversifying goods exports and increasing value -added in export -orientated production.  
4.167.   We also recognize that during the reporting period, the average annual real growth rate of 
GDP was 1.8%, adding that the lack of diversification on the supply side has caused the high 
import dependence, which has reduced the growth rates of GDP. But, it is encouraging project th at 
the Government expects the average GDP growth rate for the period 2018 -2020 to be 2.8%,  
4.168.   Albania is of the hope that recent signs of the Montenegrin economic recovery will assist in 
ensuring the rise in employment throughout the coming years.  
4.169.   By its memb ership in the WTO, Montenegro has liberalized its trade regime and successive 
cuts of customs rates have been implemented annually while the last cut is envisaged for year 
2022. It is to be appreciated the Montenegrin Government engagements to join the WTO  
plurilateral agreements, the Protocol amending the TRIPS Agreement as well as the regular WT/TPR/W/147  • Montenegro  
 
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  submission of notifications as one of the key instrument providing transparency of our multilateral 
trading system.  
4.170.   Albania commends also the progress of Montenegro which is the first among other 
countries of Western Balkans to enter the EU negotiations under the so -called ''new approach", 
and we wish Montenegro a successful negotiating process to finalize its EU membership. Regarding 
our common objectives – to join t he EU – both countries are convinced this will further facilitate 
our overall economic and trade cooperation in benefits of our people. In this context, Albania 
wishes to congratulate Montenegro on its successful steps ahead to fulfil relevant Chapters of the 
Accession Agreement with EU, and we are very pleased to observe that Montenegro is taking 
positive and further steps to ensure its own membership to the EU.  
4.171.   In this framework, both Governments will continue to support each other in particular on 
issues  related to the administration in sharing our experience and developing strategies and 
capacities for the needed engagements with the EU institutions.  
4.172.   In the bilateral front, Montenegro is our neighbour, and both countries have established 
strong and stabl e relationship. Trade cooperation is on the rise with implementation of the regional 
free trade agreement in goods under CEFTA Agreement, where Albania and Montenegro are part of 
and that continue to support diversification of our trade in 12 years of its existence. Among other 
CEFTA members, Albania and Montenegro remain committed to further strengthening economic 
ties. Our two Governments have signed the Agreement on Economic Cooperation in 
November  2015 whose aim is to further explore potential opportuni ties for collaboration in 
industry, energy, agriculture, protection of the environment, tourism and transportation. In the 
WTO frame, Albania and Montenegro have ratified TFA which constitutes a strong signal for 
building more effective cooperation between  customs and other appropriate authorities on 
facilitating movement of goods and cross -border cooperation.  
4.173.   In the framework of the Cross -Border Cooperation we believe that it is imperative that 
both parties coordinate, at the political and technical level,  for listing, identifying and prioritizing 
some of the Cross -Border projects, in view to secure funding and implementing them, to the 
mutual benefit. Albania pays great attention to different Cross -Border infrastructural projects with 
real impact to cross border communities that are being implemented by different Agencies. We 
would encourage the Montenegrin authorities for more efforts, regarding the fulfilment of some 
infrastructural cross -border projects in its own territory.  
4.174.   Regarding this TPR, Albania e ncourages the Montenegrin Government undertaking further 
measures on strong investment activity in particular on FDI inflows which will increase the 
available capital in the area of infrastructure, energy, tourism and agriculture. They surely will 
increase  the potential for growth of the Montenegrin economy, whose effects will positively affect 
the overall economic activity in the medium and long term. The same encouragement is related to 
the area of tourism which is perceived as one of priorities for devel opment where additional efforts 
are being made to further diversify the tourist product, so as to overcome seasonal character of 
the destination. Further collaboration with neighbouring countries such Albania is also in the good 
track.   
4.175.   As conclusion, Alb ania wishes to the Montenegrin Government a successful and productive 
Trade Policy Review, and we are looking forward to continuing excellent and constructive 
engagement with the delegation of Montenegro in Geneva.  
SRI LANKA  
4.176.   We believe that the sound and p ersistent economic policies of the Government of 
Montenegro such as 2017 -2019 Economic Reform Programme and Fiscal Consolidation Strategy 
will help the country to improve its economic status despite the current economic challenges the 
country faces. It is evident that the trade and trade -related structural reforms undertaken during 
the review period in areas such as tax administration, competition policy, and the labour market 
has positively contributed towards achieving this target.  
4.177.   The openness of the Mo ntenegrin economy to international trade and its aim to integrate 
into the world economy continues to be reflected in its trade to GDP ratio. Montenegro places WT/TPR/W/147  • Montenegro  
 
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  among one of the highest investment per capita economy in Europe. This has been resulted by low 
restrictions imposed on investors and availability of incentive schemes applied in a 
non-discriminatory manner. Its efforts to improve the business environment have been reflected in 
improved international rankings as well.  
4.178.   It is interesting to note that all the tariff lines in Montenegro's tariff schedule are bound on 
ad valorem basis, ensuring more transparency. Only around 10% of tariff lines are exceeding 
applied tariff of 10%. There is high predictability in the tariff regime as only a small gap exist s 
between average applied and average bound rates. We believe that the Government of 
Montenegro will take necessary steps to rectify the situation of exceeded bound rates of few tariff 
lines as recorded.  
4.179.   The bilateral trade between Montenegro and Sri Lanka  stands at a very moderate level, but 
with an increasing phase. The trade has always being in favour of Sri Lanka. Both countries share 
common economic challenges such as higher debt to GDP ratio, trade and fiscal deficit and 
international competitiveness challenges. On the other hand both Montenegro and Sri Lanka are 
blessed with natural beauty which attracts a significant number of tourists every year. It is 
interesting to note that Montenegro attracts each year three times as many visitors as 
Montenegro' s total population.  
4.180.   In the multilateral front, my delegation appreciates Montenegro's highly valued 
contribution to the multilateral trading system and its active engagement in the negotiations in the 
WTO since its accession to the WTO in 2012. Montenegro  has undertaken commitments under the 
Trade Facilitation Agreement and the Government Procurement Agreement reaffirming its 
commitment to the multilateralism. It is interesting to note that most of the TFA provisions have 
been implemented by the time the A greement came into effect.  
4.181.   In concluding, my delegation appreciates Montenegro's highly valued contribution to the 
multilateral trading system and its active engagement in the negotiations in the WTO. The dynamic 
and the vibrant role played by Ambassador Zorica Marić -Đorđević in proactively engaging in 
ongoing activities of WTO, including with her leadership to certain subsidiary bodies of this 
organization, is highly admirable.  
4.182.   In concluding, let me thank both the WTO Secretariat and the Government of Mon tenegro 
for the productive reports made available well in advance to this meeting. My appreciation is also 
goes to the discussant, H.E. Mr. Peter Matt of Liechtenstein, for his analytical presentation on this 
trade policy review.  
EL SALVADOR  
4.183.   Para El Salvad or es un honor participar en este primer ejercicio de transparencia de 
Montenegro. Al igual que El Salvador, Montenegro es un país pequeño con una extensión territorial 
de casi 14,000 km2, también con una economía pequeña y abierta, en proceso de transició n a una 
economía de Mercado, dependiente de importaciones y orientada al sector de los servicios. Por lo 
que nos identificamos plenamente con los retos que este país enfrenta para insertarse en las 
corrientes de comercio mundiales y brindar mejores niveles  de vida a sus ciudadanos.  
4.184.   Entrando en materia, como indica el reporte de la Secretaría, desde la adhesión del país a 
la OMC, en abril de 2012, ha experimentado fluctuaciones en su crecimiento económico.  
4.185.   Durante el período objeto de examen, el ritmo de cr ecimiento anual del PIB de Montenegro 
osciló entre el -2,7% (en 2012) y el 3,5% (en 2013), y el promedio anual durante el período 
2012-2016 fue del 1,8%, lo que representa una importante desaceleración con respecto al 
promedio del 3,4% registrado entre 200 1 y 2011.  
4.186.   En este contexto desfavorable, es de reconocer al Gobierno de Montenegro los esfuerzos 
que se encuentra realizando a través de una serie de reformas, entre ellas, un Plan de 
Consolidación Fiscal (diciembre de 2016), una Estrategia de Consolidación Fiscal (junio de 2017) y 
un Programa de Reforma Económica para el período 2017 -2019, todo con objeto de estimular la 
recuperación económica.  WT/TPR/W/147  • Montenegro  
 
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  4.187.   De igual forma, es de hacer notar el ambicioso programa de reformas implementado por el 
Gobierno por ejemplo, en materia de gestión de las finanzas públicas, energía, transporte y 
telecomunicaciones, entorno empresarial, reducción de la economía informal, comercio exterior y 
facilitación de las inversiones) con el objeto de estimular el crecimiento de la productividad.  
4.188.   Como la mayoría de países pequeños, Montenegro experimenta dificultades relacionadas 
con la diversificación de la producción y la competitividad internacional, así como su dependencia 
con el mercado europeo.  
4.189.   En el marco multilateral, desde su adhesión a la OMC, es de destacar la activa 
participación de Montenegro con los trabajos que se llevan a cabo en esta Organización, prueba de 
ello son sus compromisos en materia de contratación pública, facilitación del comercio y en el 
marco del Acuerd o sobre los ADPIC.  
4.190.   Igualmente es de señalar que Montenegro participa activamente en diferentes iniciativas 
encaminadas a discutir temas de actualidad mundial y que tienen relevancia con esta 
Organización.  
4.191.   Me permito resaltar la contribución de mi estimada  amiga Embajadora Zorica para lograr 
que esta Organización y, en general aquí en Ginebra, tengamos ahora diversas plataformas que 
nos permitirán discutir aspectos relacionados con la igualdad de género y como incentivar la 
participación de las mujeres en e l comercio mundial.  
4.192.   En el ámbito bilateral, por el momento nuestras relaciones comerciales son modestas, sin 
embargo, mis autoridades se encuentran analizando las oportunidades que brinda Montenegro 
como punto de entrada al resto de países Balcanes y en ese sentido, esperamos  que en el futuro 
próximo se puedan fortalecer y ampliar.  
4.193.   No me queda desear más que los mejores éxitos a Montenegro en este ejercicio de política 
comercial.  
GUATEMALA  
4.194.   Durante el período estudiado, observamos como medidas positivas, el impulso en los 
diversos sectores productivos en especial los referentes a servicios y turismo, generó un 
crecimiento en el mercado laboral, disminuyendo en gran medida las tasas de desempleo.  
4.195.   Uno de los puntos a destacar dentro del informe del examen de política comercial de  
Montenegro es lo relacionado a su sistema fiscal cual se basa en el principio de la auto -imposición, 
el cual se delega a los contribuyentes el cálculo y declaración de las obligaciones fiscales a sus 
contribuyentes, siendo estos personas naturales o juríd icas. Dicho sistema es competitivo y la 
aplicación de sus desgravaciones especiales, convierten a Montenegro en un país atractivo para la 
inversión. Esto aunado a la aplicación de su calendario fiscal 2020 que lo convierte en un sistema 
estable y eficiente  evitando cambios abruptos en sus obligaciones impositivas.   
4.196.   Otro de los temas a destacar son los procesos legislativos en los cuales se han promulgado 
diversas leyes con respecto al comercio e inversión, lo cual conlleva a generar nuevos climas de 
negoci os y la creación de cadenas productivas que fortalecen el crecimiento económico de 
Montenegro, posesionándolo de mejor manera en el índice comercial mundial.  
4.197.   La implementación de su Estrategia de Desarrollo de las PYMES para el periodo 2011 -2015 
logró su o bjetivo de mejorar el entorno empresarial, generando medidas estables y la creación de 
alianzas público –privada que fortalecieron la apertura a nuevos mercados y la promoción de 
iniciativas empresariales  
4.198.   El Gobierno de Montenegro busca en un futuro próximo  la implementación de un gobierno 
electrónico, con el cual se faciliten los diversos procesos administrativos, generando herramientas 
de prestación de servicios administrativos de manera ágil y con resultados más eficientes. Tal es el 
caso de su Ley de Org anizaciones Empresariales, que busca el registro de empresas en un corto 
plazo bajo un proceso rápido y sencillo.  WT/TPR/W/147  • Montenegro  
 
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  4.199.   En materia judicial cabe resaltar que la implementación de su Estrategia de Reforma del 
Poder Judicial 2014 -2018, cuyo objetivo primordial es el proporcionar a las instituciones judiciales 
directrices que permitan realizar la aplicación de sus funciones de manera más eficiente.  
4.200.   El Gobierno de Montenegro en el año 2012 lanza su Estrategia de Propiedad Intelectual 
con la cual busca fortalecer el u so de los sistemas de propiedad intelectual como un activo 
económico y elemento de desarrollo. Establecer herramientas que fomenten la creatividad e 
innovación así como una adecuada observancia de los derechos de propiedad intelectual. Razón 
por la cual ha  realizado diversos cambios legislativos en esta materia a fin de cumplir con los 
compromisos establecidos en los Acuerdos de la OMC.  
4.201.   Para finalizar, deseamos a la delegación de Montenegro una exitosa conclusión de su 
primer Examen de políticas comerciale s. 
PAKISTAN  
4.202.   At the outset, Chair, we would like to congratulate you on your appointment to this 
important assignment and wish you all the best in your future efforts.  
4.203.   Pakistan recognized Montenegro as an independent state in 2006 and the two countries 
enjoy cordial bilateral relations. Existing trade potential between the two countries is largely left 
unexploited.  
4.204.   Pakistan is pleased to note that since its WTO accession in April 2012, Montenegro's 
economy has been on a growth path as demonstrated by its di fferent economic indicators. During 
the review period, Montenegro's annual GDP growth ranged from -2.7% in 2012 to 3.5% in 2013; 
its annual average growth rate for the period 2012 -16 stood at 1.8%. Consumer price inflation 
dropped from a peak of 4.1% in 20 12 to 1.5% in 2015, the unemployment rate declined 
progressively.  
4.205.   During the review period, some trade and trade -related structural reforms were 
undertaken in areas such as tax administration, competition policy, and the labour market. Gross 
external debt dropped from 155.9% of GDP in 2012 to 152.1% in 2015. Foreign exchange 
reserves have increased steadily. The openness of the Montenegrin economy to international trade 
is reflected in the ratio of its trade in goods and services to GDP, which was 103.4% in  2016.  
4.206.   Pakistan is very appreciative of the fact that Montenegro is open to FDI; its only FDI 
restrictions relate to the ownership of land and assets within one kilometer of the border and 
agricultural land. It actively encourages investment through variou s incentive schemes which are 
applied in a non -discriminatory manner. Efforts to improve the business environment have been 
reflected in improved international rankings.  
4.207.   Since joining the WTO, Montenegro has undertaken commitments in government 
procuremen t and trade facilitation; it also accepted the Protocol Amending the TRIPS Agreement. 
Montenegro has never been involved in a WTO dispute settlement case either as complainant, 
respondent or third party.  
4.208.   Although most tariff lines are ad valorem, tariff's  complexity increased as a result of its EU 
alignment and in 2017 it involved a multiplicity of rates. The simple average MFN applied tariff rate 
dropped slightly from 6% in 2012 to 5.1% in 2017.  
4.209.   During the review period, trade facilitation developments i ncluded steps to implement an 
authorized economic operator scheme, the establishment of a National Trade Facilitation 
Committee to address bottlenecks in this area.  
4.210.   Montenegro's intellectual property rights legislation has been strengthened with wide -
ranging and comprehensive amendments or new laws. During the review period, several legislative 
and institutional changes were undertaken under the competition policy and consumer protection 
framework.  WT/TPR/W/147  • Montenegro  
 
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  4.211.   It is commendable that nearly 70% of Montenegro's territory  is covered by forests or 
forest land and in recent years reforestation has occurred as farmers have abandoned agricultural 
land.  
4.212.   Montenegro's energy production comes from hydro -electricity, coal and fuelwoods. To 
meet domestic demand, it imports around 1 0%-15% of its energy needs.  
4.213.   In 2016, the GDP share of manufacturing in the economy was 4.6% and the sector 
accounted for 6.3% of the total number of employed persons. Manufacturing production is 
dominated by pharmaceutical products and preparations; basic  metals and metal products; food 
products, beverages and tobacco; other non -metallic mineral products; machines and equipment, 
and wood and cork products. Its main exports are iron and steel bars and rods; medicines; and 
certain machinery and transport equ ipment.  
4.214.   Services account for more than 70% of economic activity. Montenegro has undertaken 
GATS commitments in all of the 12 sector groups listed in the Services Sector Classification List 
and in over 80% of its subsectors. Montenegro's banking and insura nce sectors are open to foreign 
investment. The telecommunications sector is fully privately owned.  
4.215.   Tourism remains one of Montenegro's main economic activities as well as serving as a 
stimulus to other sectors. There are no FDI restrictions on any type of  tourism accommodation in 
Montenegro, and no nationality requirements applied to tourist service providers. Various 
incentives are offered, particularly to stimulate investment in high quality facilities. Montenegro's 
growth is likely to accelerate in the near future, driven largely by highway construction spending 
and tourism and energy investments, as well as related higher consumption.  
4.216.   We appreciate the very active role of Montenegro in FEDS (Friends of Ecommerce for 
Development), of which we are also a  Member, and also the role of Ambassador of Montenegro to 
the WTO, Ms. Zorica Maric Djordjević in upholding of the multilateral trading system and in trying 
to achieve consensus on difficult issues.  
4.217.   In the end, we want to wish Montenegro a very successful  and fruitful TPR.  
GEORGIA  
4.218.   Since its accession in 2012, Montenegro has experienced fluctuating growth path, and a 
number of actions and economic reforms were put in place to tackle the existing economic 
challenges.  
4.219.   Despite all the current economic hardshi ps and vulnerabilities preconditioned by high 
import dependence, increased unemployment rate, rising public debt and other downside 
circumstances, Montenegro in recent years managed to maintain its annual average growth rate at 
1.8%. Georgia commends Monte negro's path for reforms, adopted programmes and strategies like 
the 2017 -2019 Economic Reform Programme.   
4.220.   Georgia and Montenegro established diplomatic relations in 2007. The two countries share 
the same values and aspirations with respect to full integr ation to the EU structures. Montenegro is 
a valuable partner and we wish Montenegro all the success in its endeavours.  
4.221.   Georgia and Montenegro do not demonstrate distinguished relations in terms of trade and 
economic activities. Our countries are enjoying m odest bilateral trade. Georgia's sole export to 
Montenegro is hazelnut.  
4.222.   Considering the existing economic environment, Georgia expresses its readiness to widen 
economic relations between the two States in terms of enhanced import and export activities and  
other trade related arrangements by introducing new initiatives and programmes.  
4.223.   It is important to note that tourism remains a main economic sphere for both Montenegro 
and Georgia. Georgia encourages mutual diversified efforts to offer various incentives to stimulate 
investment in tourism sector in both countries.  WT/TPR/W/147  • Montenegro  
 
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  4.224.   To conclude, Georgia once again expresses the gratitude for the comprehensive reports 
and wishes Montenegro a successful review.  
RUSSIAN  FEDERATION  
4.225.   Accession to the WTO in 2012 was a landmark fo r both Montenegro and the WTO. On the 
part of Montenegro, it implied wide -ranging reforms. For the WTO it represented a big step 
towards universality. We observe with interest how Podgorica is coping with the challenges of 
implementing structural reform me asures aimed at diversification of national economy.  
4.226.   The Russian Federation and Montenegro have a long history of diplomatic, trade and 
economic relations. On 10 June 2006, the Russian Federation was the first country in the world to 
recognize Montenegro a s a sovereign State.  
4.227.   Russia's exports to Montenegro in 2017 amounted to US11.4 million. We export raw 
aluminium (47.6%), tobacco products (13%), oil products (13%) and articles of stone (40.5%).  
4.228.   During this TPR, the Russian delegation has not addressed any  written questions to 
Montenegro. However, I would like to draw the attention of Members to a number of issues.  
4.229.   First, to our regret, our bilateral trade in goods has dropped significantly after Podgorica 
joined EU unilateral measures against Russia. Last year, our total trade turnover declined by 
38.5% compared to 2016. We remain deeply concerned with a number of trade restrictive 
measures imposed by Montenegro against the Russian Federation due to non -economic reasons. 
In this respect, we would like to ex press our regrets and disappointment with the escalating of 
anti-Russian political rhetoric of Podgorica, which brings nothing but harm to both sides including 
mutual economic, trade and investment losses. The Russian Federation reiterates its request to 
Montenegro to bring its measures in line with the commitments under the WTO Agreements and to 
terminate all unfounded restrictive measures immediately.  
4.230.   Second, in April 2017, Rospotrebnadzor suspended the import of alcoholic products from 
one Montenegrin en terprise, namely "13JUL.PLANTAZE" AD, into the territory of the Russian 
Federation. Based on the results of the conducted research, it was established that the products of 
this enterprise contained pesticides, plasticizers and other additives. Since that t ime, we have not 
obtained information from Montenegro on the actions to identify the causes of contamination of 
alcoholic products imported to the Russian market.  
4.231.   Third, the institutional basis for our bilateral cooperation is the Intergovernmental Russia -
Montenegro Committee on Trade, Economic and Scientific Cooperation. However, since the 
parliamentary elections in October 2016, Podgorica has not yet appointed a co -chair of this 
Committee. As a result, our bilateral contacts were put on hold.  
4.232.   Lastly, a nu mber of large energy companies from Russia are interested in expanding 
bilateral cooperation with Montenegro in the electric power industry. However, their initiatives do 
not find understanding in Podgorica.  
4.233.   One of a few areas where we have positive dynami cs is tourism. According to 
Montenegro's data, the number of Russian tourists having visited this country in 2017 amounted to 
almost 350 thousand.  
4.234.   We would like to flag our intention to continue the dialogue with Montenegro on the issues 
mentioned above.  
4.235.   In conclusion, I thank the delegation of Montenegro, the Secretariat and, of course, our 
esteemed discussant, for their hard work done so far. We wish Montenegro a successful trade 
policy review.  
JORDAN  
4.236.   We congratulate Montenegro for the recent economic ref orms which led to higher economic 
growth rates especially in the year 2017, increased investments, and continuous improvement to WT/TPR/W/147  • Montenegro  
 
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  its competitive business environment that will enhance further integration into the global 
economy.  
4.237.   We comment Montenegro's com mitment towards its WTO obligations, and its constructive 
role in the efforts to strengthen the multilateral trading system.  
4.238.   Finally, we wish Montenegro all prosperity and a successful Trade Policy Review.  
MR. GORAN  ŠĆEPANOVIĆ  (HEAD  OF DELEGATION)   
4.239.   Very br iefly, I would like to thank first of all Ambassador Matt for his discussion and to 
thank him for all his comments that have been very positive. Of course, from what we heard we 
will turn back on Friday in our expression for this TPR. Thank you very much.  
  WT/TPR/W/147  • Montenegro  
 
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  5  REPLIES BY THE REPRE SENTATIVE OF MONTENE GRO AND ADDITIONAL C OMMENTS  
5.1.  Let me express our sincere appreciation for your participation in the first trade policy review 
of Montenegro, thank you for your valuable comments and questions we have received. The 
questions have showed that both, Secretariat's and report of the Governm ent of Montenegro were 
examined with an attention, and that the main messages we wanted to convey are well received.  
5.2.  We appreciate the interest of Members to take part in the TPR of Montenegro. We understand 
some of the comments as the willingness to make  an additional effort towards engaging in a 
constructive dialog in order to improve the bilateral relations. As we expressed during our 
TPR review, Montenegro has been and will always be open to cooperate with all the countries in 
line with the WTO rule -based multilateral trading system to which Montenegro is fully committed.  
5.3.  Our particular appreciation goes to Permanent Representative of Liechtenstein  Ambassador 
Peter Matt, who in a comprehensive way, examined the reports and gave thorough remarks on our 
trade policies and economy. I would like also to thank Mr. Willy Alfaro and his team as we together 
made this review to be a success. Also, we thank our Representative in the WTO for her 
committed work.  
5.4.  We will take into consideration all the issues that w ere raised by the Member States.  
5.5.  I would like to thank you for acknowledging the efforts we undertook in implementing 
reforms on our path to the European Union.  
5.6.  We have noted all the written questions raised by Member States and my colleagues from the 
Montenegrin delegation made efforts and answered all written questions during the course of this 
TPR process. We have also systematized the remarks mentioned by particular Member on 
Wednesday and want to highlight some positive advancement as recognized thro ugh their 
statements.  
Economic challenges and structural reforms  
5.7.  Several Members praised the efforts Montenegro has taken to reform and modernize its tax 
administration. Amendments to the legal framework were introduced in order to clarify the role of 
tax and customs administration in revenue collection, simplification of tax procedures, 
strengthening of internal control of tax administration and integrity of tax officials, and improving 
tax collection. Montenegro has established a stable and predictable ta x system, where for certain 
taxes a tax calendar is established by 2020, so that in the mentioned period there will be no 
further increase in the rates, other than the tax rates already determined in advance by the tax 
calendar. In the forthcoming period, the main strategy will be to improve the legal framework for 
the suppression of the informal sector. To this end, concrete projects have been launched and one 
of the most important projects is the "Modernization of Tax Administration" financed from the 
World Bank loan. The realization of the Project has begun in January 2018.  
5.8.  Members also commended Montenegro for privatizing more than 90% of the state -owned 
companies or companies with the majority of state ownership, including 100% of privatization in 
the b anking sector, telecommunications and oil distribution. Most of the companies that have not 
been privatized for the time being are of the strategic relevance for the Montenegrin economy in 
the energy, transport and tourism sectors.  
5.9.  Members also supported the Montenegrin efforts to reduce public debt.  
5.10.   A Member was interested in Montenegro's intentions to generate greater labour -market 
flexibility and encourage formal employment. I would like to note that the amendments to the 
relevant Law are underway. The  amendments to the Law are drafted in cooperation with all 
important stakeholders, including the representatives of private sector, and are expected to 
strengthen the competitiveness of the Montenegrin economy. Its adoption by the Government is 
envisaged f or the end of June 2018.  WT/TPR/W/147  • Montenegro  
 
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  Trade policy objectives   
5.11.   We were pleased to see that Members unanimously recognized Montenegrin efforts to 
contribute to the multilateral trading system. Members commended our efforts to join plurilateral 
agreements, early accepta nce of the TFA and leadership in initiatives such as women's economic 
empowerment.  
5.12.   A Member was interested in MFN tariffs of Montenegro. As one of the most recently acceded 
WTO Members, Montenegro bound all tariffs on an ad valorem  rate basis. Moreover, th e market 
access in goods is one of the most liberalized in the WTO with the average final bound rate (by 
2022) at the level of 5.1%, while the trade under preferential terms is conducted with historical 
trading partners, i.e. neighbouring countries.   
5.13.   Many  Members noted that certain notifications are pending. I would like to note that 50 SPS 
notifications were submitted to the WTO Secretariat. When it comes to the transparency procedure 
and notification of technical regulations arising from the agreement on  TBT, preparation of 
relevant notifications is in progress, and those will be sent to the WTO shortly. At the end of 
December of 2017, Montenegro submitted the first notification for Domestic Support for 2013, and 
it has been adopted at the regular meeting  of the WTO Committee on Agriculture on 
20 February  2018. Starting from 2017, the Statistical Office is producing data necessary to report 
AMS. Notifications on Import Licensing and Subsidies are in the final stage of preparation. As two 
mentioned areas ar e under the responsibility of several institutions, their finalization requires 
inter-sectoral coordination and cooperation.  
Foreign investment and business environment  
5.14.   Members were interested in FDIs and in availability of foreign investors to the incent ives. 
The Decree on Direct Investment Incentives is being applied continuously since 2015. The 
Secretariat for Development Projects published three public notices for participation in the 
procedure of award of financial incentives for encouraging investmen ts, as follows: 1 July 2015, 
11 March 2016 and 3  March 2017. Both Montenegrin and foreign legal entities can apply for 
investment incentives but only legal entities with registered office in Montenegro can be recipients 
of investment incentives.  
Tariffs an d Trade facilitation  
5.15.   Several Members mentioned the issue of implementing the commitments undertaken by the 
Schedule of Concessions, in particular with regard to the applied rates exceeding the final bound 
rates. I would like to explain that in August 2017,  competent national authorities took a 
comprehensive analysis of the Schedule. This was done as a result of the WTO's request for 
approval of the Transposed Schedule of Concessions from HS 2007 to HS 2012, which was 
prepared by the WTO Secretariat. Since t he consent was granted to the Transposed Schedule of 
Concessions, the actions have been taken for the full alignment of all HS items with the mentioned 
Schedule. These actions include harmonization of those 56 HS items that are identified in the 
Secretaria t's report. The before mentioned was reflected in the national Decree on customs tariffs 
for 2018 , which is in application from 1 January 2018.  
5.16.   Members were also interested in the trade facilitation reforms. As envisaged by the newly 
adopted Trade Facilita tion Strategy by 31 December 2022, Montenegro will eliminate cross -border 
administrative inefficiencies affecting its competitiveness, thus reducing the time for import, export 
and transit of goods by 50% and the accompanying costs by 20%. The operational goals are 
focused on improving transparency and access to information; harmonization and rationalization of 
formalities, documentation and fees; implementation of simplified and expedited procedures for 
clearance of goods; improving cooperation and increas ing the effectiveness of border controls; and 
extension of automatic processing and electronic data exchange.  
Import licensing  
5.17.   A Member was interested in the fees for import licences for medicines, medical devices, 
drugs and psychotropic substances, which  are based on the merchandise value. The Agency for 
Medical Devices confirmed that after the adoption of the new Law on Medicines (which is planned WT/TPR/W/147  • Montenegro  
 
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  for 2018), the price list will be changed to include a new fixed import tariff system, i.e. the import 
fee w ill be fixed, regardless of merchandise value and of the number of different medicines.  
5.18.   Montenegro is fully aware of the undertaken commitment to ensure that all fees and 
charges for services applied in connection with importation and exportation would be  applied in 
conformity with the WTO Agreement, including Articles VIII and X of the GATT 1994 and confirms 
that there are no other services rendered depending on the merchandise value.  
Standards and technical regulations  
5.19.   A Member commended the expansion of the conformity assessment bodies, which will 
improve investors' and traders' confidence in accessing Montenegro's market. In the areas covered 
by the TBT agreement, Montenegro will continue with a positive trends regarding the adoption of 
technical regu lations, adoption of MEST standards based on international and regional (European 
standards), number of accredited conformity assessment bodies. Harmonization with international 
standards is crucial for the economy to achieve "smart" growth through increas ed competitiveness 
and attraction of foreign direct investment. Full harmonization of technical regulations and 
standards would contribute to simplified procedures and better business access to domestic and 
foreign markets. Also, Montenegro will continue w ith providing support for conformity assessment 
accreditation and increasing of MSMEs competitiveness through harmonization of product -related 
international standards.  
SPS 
5.20.   When it comes to the implementation of the SPS Agreement, we would like to note that  
Montenegro is in the EU integration  process and in the process of legislative transposition. 
Therefore, it can happen that due to the accession  obligations some measures  which result from 
harmonization  with relevant EU legislation might seem  stricter.  
Government procurement  
5.21.   Members enquired about the plans to establish the electronic public procurement system. 
Montenegro launched the activities on establishing this system through the project IPA 2014, with 
the value of €1.65 million. The selection of the most appropriate bidder to establish the electronic 
public procurement system  is expected in the second half of 2018.  
Competition policy  
5.22.   Members were also interested in the competition policy. The Agency for Protection of 
Competition was established in 2 012. The Agency independently performs tasks within the scope 
of its competencies and its d ecisions are final. The future activities of the Agency will be focused 
on further strengthening  of the capacities through projects of technical assistance - trainin g of 
existing and new Agency's  staff, in particular as regards conducting inspections on spot (dawn 
raids)  and r aising  awareness activities . Particular attention should be paid to the work of the 
judicial authorities, with an emphasis on continuous training for judges of the Administrative and 
in particular of the misdemeanour courts in this area . The implementation of the EBRD/IDLO 
project to strengthen the capacity of the Agency for Protection of Competition, funded by the 
EBRD, has officially star ted in March 2018.  
Intellectual property rights  
5.23.   Members expressed interest in main developments in the IP legislative framework. The main 
novelty introduced in the new Patent Law is related to the evidence of patentability. Namely, the 
holder of the paten t is to submit the written evidence before expiration of the ninth year of the 
patent, proving that the invention protected by the patent meets the requirements of novelty, 
inventive step and industrial applicability.  
5.24.   This law as a novelty also provides i ssuing of the compulsory licenses for the patents related 
to manufacturing of the pharmaceutical products for export to countries with public health 
problems.  WT/TPR/W/147  • Montenegro  
 
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  5.25.   Amendments to the Law on Trademarks and the Law on Legal Protection of Industrial 
Design improve d the enforcement of rights in this regard.  
Agriculture, fisheries, and forestry  
5.26.   Annual national support through measures of the Agro budget has continued. The amount of 
support in the period 2012 -2017 has increased and it has been harmonized with the WTO 
Agreement on Agriculture. Montenegro will continue to invest in fishery sector in order to 
strengthen current fishing fleet, but not to the level which can lead to the overcapacity and 
overfishing, and with a great awareness of the significance of sustaina ble fisheries and 
conservation of marine resources.  
5.27.   Forestry is important for Montenegro, especially in rural areas where the population in large 
numbers depend in some way on this natural resource. Montenegro has introduced export licenses 
on raw materia ls or wood of a lower level of processing, in order to preserve the stability of the 
supply of raw materials to the processing sector as well as to control the preservation of the forest 
fund, combat illegal harvesting, control the implementation of the cu tting in line with the cutting 
plan. 
Energy  
5.28.   Finally, we received several energy -related questions. Montenegro in the past decade has 
gone through a transition period, and therefore there are significant changes in the energy sector. 
With the establishment of Energy Community, the EU has expanded its internal energy market to 
South -Eastern Europe and opened the possibility of expanding to all those who express interest. 
With the amendments to the Law on Energy the provisions from the Second and Third Energy 
package have been transposed thereby guarantying the investors with favourable conditions for 
their investments in the field of energy.  
5.29.   I would also like to use this opportunity to thank all Members who have supported us and 
provided technical assistance. Their help was instrumental in achieving the fulfilment of obligations 
from the WTO Agreement.  
5.30.   Thank you Mr. Chairman.  
DISCUSSANT  
5.31.   I'd like to thank the distinguished delegation from Montenegro led by Director General 
Goran  Šćepanović, for the hard work you put into this 1st Trade Policy Review of Montenegro and 
for the comprehensive answers you provided to the questions submitted by Members in writing as 
well as during Day 1 of this TPR. My special appreciation in this regard also goes Ambassador 
Zorica Marić, Permanent Representative of Montenegro to the WTO. The open and constructive 
approach of Montenegro throughout the TPR has allowed for a fruitful and enriching dialogue 
within this Body.  
5.32.   In general terms, Members commended Montenegro for its open e conomy. They, however, 
also noted that it is few diversified and, due to the size of the country, heavily import dependent 
making it vulnerable to external shocks. Some Members drew attention to the fact that 
Montenegrin exports are often of low value adde d like mining and also stressed the need to 
increase this value added. Members also welcomed the progress achieved by Montenegro during 
the review period to diversify its economy and encouraged it to continue structural reforms in this 
regard. They also no ted Montenegro's high ratio of trade in goods and services to the GDP 
amounting to 103.2% as sign for the openness of its economy. Members welcomed the fiscal 
consolidation strategy of Montenegro being implemented as of 2017 and also showing positive 
results as we have heard. Delegations referred to tourism as one of the key drivers for economic 
growth and commended Montenegro for pursing a sustainable tourism. They also noted the 
important role FDI was playing to boost economic growth in the country.  
5.33.   Most Members furthermore commended Montenegro with good reason for its strong 
commitment to and support of a rules -based multilateral trading system as embodied in the WTO 
and for its strong engagement both in the regular work of WTO committees as well as in WT/TPR/W/147  • Montenegro  
 
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  negotiations. Members also commended Montenegro for undertaking broad commitments upon 
accession to the WTO. Members in this regard also rightly applauded Ambassador Zorica Marić for 
her outstanding engagement and constructive work within this Organization.  Many delegations 
specifically mentioned Montenegro's important contribution to the promotion of gender and trade 
and to the empowerment of women. Members also noted Montenegro's timely ratification of the 
Trade Facilitation Agreement and welcomed the esta blishment of the "National Committee for 
Trade Facilitation" and further implementation measures taken by Montenegro.  
5.34.   Several delegations raised concerns about outstanding notifications in areas like agriculture, 
TBT and SPS and encouraged Montenegro to s ubmit these notifications as soon as possible. In his 
introductory statement Director General Goran Šćepanović stated that Montenegro was aware of 
this and assured that the outstanding notifications would be submitted shortly and preparations 
are well unde r way.  
5.35.   Montenegro was applauded by several Members for having bound all tariffs ad valorem . It 
was also commended for having its average applied MFN rates only marginally exceeded by 
average bound rates. Delegations noted that this provided for transparen cy and predictability. 
Some delegations, however, noted the increased complexity of tariffs due the EU alignment. 
Members also welcomed that Montenegro addressed the issue of some applied MFN rates 
exceeding bound rates by early 2018.  
5.36.   Many Members referred to Montenegro's EU accession process as a main driver for 
legislative and economic reforms and congratulated the country for its pioneering role in the region 
as it is rightly considered as the most advanced country in this regard.  
5.37.   Members also noted Montenegro's progress achieved in competitiveness and creating an 
enabling framework for investment and business. They also referred to improvements achieved in 
respective international rankings. Members highlighted several areas where Mo ntenegro undertook 
significant reforms like customs procedure, taxation, competition law, intellectual property rights, 
modernization of the public administration and e -government, just to name a few. Some Members 
also encouraged Montenegro to continue its  labour market reforms. Several delegations 
commended Montenegro for strengthening the independence of the judiciary. They also noted that 
further efforts are needed.  
5.38.   To sum up, it is fair to say that Montenegro was rightly praised for its strong commitme nt to 
the multilateral trading system and for the constructive role it played in the Organization. With 
good reason, Montenegro was also commended for the transformation it achieved since the 1990s. 
The accession process to the EU has been and continues to  be one of the main drivers for reforms 
in many areas. Many challenges, of course, still lie ahead of Montenegro in its pursuit of EU 
membership. But I am convinced that the country is well under way and I wish Montenegro a lot of 
success in its future end eavours.  
5.39.   Finally I would like to congratulate the delegation of Montenegro for the great work in this 
TPR, and thank you for the honour of having me as the discussant.  
5.40.   Before concluding, on a personal note, I would like to express my sincere appreciation t o 
my dear friend, Zorica, it was a privilege and very inspiring to work with you. You have made an 
important contribution to the WTO and to Geneva international beyond the WTO. I would also like 
to thank you for your friendship and wish you all the best fo r your future endeavours.  
5.41.   I thank you for your attention.  
EUROPEAN  UNION  
5.42.   The EU would like to thank the delegation of Montenegro for providing very comprehensive 
replies to our advance questions as well as for the additional information this morning addres sing 
the issues we and some other Members raised on the first day. We do not have any follow -up 
questions.  
5.43.   The EU again welcomes all the reforms already carried out by Montenegro and we 
encourage the country to continue on this path. As mentioned on the fi rst day, the Commission's WT/TPR/W/147  • Montenegro  
 
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  strategy for the Western Balkans published last February has re -confirmed the EU accession 
perspectives for Montenegro and recognized it as a frontrunner in this process.  
5.44.   The EU would like to thank again Montenegro for having acce pted to test the WTO 
Secretariat's pilot electronic database for questions and answers, which we also tried out.  
5.45.   In conclusion, the EU congratulates Montenegro on successful conclusion of its first Trade 
Policy Review.  
UNITED  STATES  
5.46.   We would first like to express our appreciation to Director General Šćepanović for his 
presentation today, and his efforts to address the issues and concerns raised by Members during 
this review. We also acknowledge the valuable contributions made by the discussant, Ambassador 
Matt, which provides us with instructive context for the trade policy regime and economic reform 
efforts of Montenegro.  
5.47.   We also want to take the opportunity to recognize and thank the members of the 
Montenegrin delegation who have invested countless hours i n preparing for this review, and 
responding to Member's advance questions and those raised during day one. This review could not 
have been a success without your dedication and efforts.  
5.48.   During the presentation provided today by the Director General, we hav e heard the serious 
manner in which Montenegro has listened to the views Members expressed during this review, and 
provided useful and substantive responses to issues and concerns raised. For us, this isn't 
surprising and further confirms Montenegro's stro ng commitment to the institution.  
5.49.   The United States as well as other Members highlighted Montenegrin efforts in the area of 
trade facilitation and in implementing the TFA. Montenegro has been an active Member of the TF 
Committee and we want to express our desire to continue to working closely with you in the 
Committee, and we do hope that Montenegro will continue to share its implementation experiences 
with Members because those have been invaluable from our perspective.  
5.50.   We note that, during the review, a n umber of Members raised issues related to notifications 
and requested additional focus be given by Montenegro to ensuring that it is up to date with 
notification obligations, we appreciate hearing today that those views have been taken on board. 
We look fo rward to working with Montenegro as they seek to address the notification concerns.  
5.51.   We appreciate the thoughtful and comprehensive responses to our advance written 
questions. We have submitted two additional follow up questions. First, we are seeking clar ification 
on SPS notifications and some discrepancies we see between the written responses from 
Montenegro and what it is included in the SPS IMS system, which does not reflect the 
50 notifications that Montenegro has cited. We have also submitted a questi on to seek additional 
clarification on the meaning of a "conscientious person" in the context of copyright infringement. 
We look forward to receiving those responses.  
5.52.   In conclusion, I would also like to express, personally and also on behalf of the entire U.S. 
Mission, our sincerest appreciation to Ambassador Maric, for her close collaboration, cooperation 
and kindness that she has extended to us and we have enjoyed from her during her tenure here.  
5.53.   Director General, we congratulate you and your delegation o n a successful first Trade Policy 
Review and we look forward to hearing of your continued success in your next review.  
MR. GORAN  ŠĆEPANOVIĆ  (HEAD  OF DELEGATION)  
5.54.   On behalf of the Montenegrin delegation, I would like to reiterate my appreciation to you, 
Chair, Discussant and to thank the Secretariat, all Members that have raised questions and have 
shown interest for the Montenegrin TPR which was a very constructive and useful experience for 
us. WT/TPR/W/147  • Montenegro  
 
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  5.55.   I also would like to thank all my colleagues from Montenegro who worked hard during the 
previous year in order to complete this process in a satisfactory manner.  
5.56.   Being the first country to use the WTO Secretariat's pilot electronic platform for questions 
and answers, we have the pleasure to express our satisfaction with  such an advanced means of 
communication which has made our work easier and more efficient. Other delegations stand ready 
in sharing experience on how to use this platform. Thank you.  
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  6  CONCLUDING REMARKS B Y THE CHAIRPERSON  
6.1.  The first Trade Policy Review of Montenegro has offered us a good opportunity to deepen our 
understanding of recent developments in, and challenges to, its trade, economic, and investment 
policies. Since its accession in 2012, Montenegro's initiatives to i ntegrate into the multilateral 
trading system have been greatly appreciated. Indeed, the more than 195 advance written 
questions submitted by 17 Members and the 28 delegations that took the floor during the first day 
underline the importance attached to Mo ntenegro's trade and investment policies and practices.  
6.2.  I would like to thank the Montenegrin delegation, led by the Director General of the Ministry 
of Economy , Mr. Goran Šćepanović . Also, I would like to thank our discussant Ambassador Peter 
Matt of Liechtenstein for his insightful remarks, and all the delegations that took the floor for their 
valuable contributions to this Review.  
6.3.  Despite its small size and the related limitations and vulnerabilities, Montenegro has 
managed to maintain strong, albeit fluctuating, growth s ince its WTO accession . Members 
commended Montenegro for its openness to trade and investment and performance -boosting 
trade -related reforms, including the 2017 -19 Economic Reform Programme and the fiscal 
consolidation strategy. Montenegro's use of the euro as its national currency provided stability to 
its economy but could also be a challenge for its monetary policy and competitiveness.  
6.4.  Montenegro was praised for its efforts to strengthen the environment fo r business and 
investment, including: judicial reforms, non -discriminatory incentive schemes, measures to tackle 
corruption, and the rule of law and its regulatory framework. Some Members encouraged 
Montenegro to continue to address persisting structural i mbalances and market rigidities, 
concentration of exports on low value products and informal activities, all of which inhibit its 
potential.  
6.5.  Efforts to diversify the economy, including by promoting services, were an important element 
in reducing the vulne rability of the economy to external shocks. Consequently, to support trade 
and economic growth, Members urged Montenegro to continue with productivity -related and 
foreign investment -attracting structural reforms in several areas.  
6.6.  Montenegro has remained c ommitted to the rules -based multilateral trading system while 
expanding its participation in RTAs. Members welcomed Montenegro's wide -ranging action taken to 
align itself with WTO principles and the EU acquis communautaire  in several areas. They took note 
of progress in accession negotiations to the EU, which has been the driving force behind many of 
the recent reforms. Members commended Montenegro for its extensive commitments undertaken 
upon WTO accession as well as ratification of the Trade Facilitation Agreement (TFA), becoming a 
participant in the revised GPA, participating in the expansion of the ITA, and accepting the Protocol 
Amending the TRIPS Agreement.  
6.7.  The active engagement of Montenegro in the WTO was also appreciated. Members referred in 
partic ular to Montenegro's contribution to work in the areas of e -commerce, services, domestic 
regulation, investment facilitation, MSMEs and women's empowerment.  Some Members 
encouraged Montenegro to improve its WTO notifications record in certain areas and too k note of 
Montenegro's stated commitment to submit pending notifications shortly.  
6.8.  Members welcomed Montenegro's trade facilitation strategy and expressed interest in the 
steps undertaken to implement the WTO TFA in order to strengthen competitiveness.  They 
appreciated the predictability of Montenegro's tariff regime, as bindings were set on an ad valorem  
basis, and the limited gap between applied and bound rates; nevertheless, they noted that the 
tariff had become more complex due to its EU alignment and th ere were some concerns about 
tariff binding observance. Some Members commended changes, such as streamlining customs 
procedures, the elimination of import quotas, the reduction in import licensing requirements and 
prohibitions, and reforms to the governmen t procurement regime. Some concerns were expressed, 
and more information was sought on certain food standards and SPS requirements as well as 
trade -related aspects of intellectual property rights.  
6.9.  Some Members saw opportunities for sustainable development in the agricultural and 
fisheries sectors and increasing the value added for goods. Montenegro was also encouraged to WT/TPR/W/147  • Montenegro  
 
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  improve market access for agricultural products. It was suggested that, although the financial 
services sector has been fully privatized, Montenegro should modernize and improve access to 
these services which would also benefit other sectors. Members noted with interest reforms under 
way in the areas of energy, transport and telecommunications. Members also referred to the 
increasing service -orientation of the economy, which now accounts for over 70% of economic 
activity. Some were interested in hearing more about strategies to sustainably develop and 
diversify the tourism sector, a pillar of the economy.  
6.10.   The above are some of the key issues that had emerged in our discussion. I hope that the 
Montenegrin delegation will take into account and further reflect on the many constructive 
comments, both broad and detailed, that it has received during this Review. Finally, I would like to 
thank all th ose that participated in our discussion, and I look forward to receiving the answers 
from Montenegro to any outstanding questions within the next month, at which point the Review 
will be successfully concluded.  
__________