WT/TPR/M/337  
1 July 2016  
(16-3557)  Page: 1/30  
Trade Policy Review Body 
11 and 13 May 2016  
 
  TRADE POLICY REVIEW 
ALBANIA  
MINUTES OF THE MEETING 
Chairperson: Ms. Irene Young (Hong Kong, China) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE RE PRESENTATIVE OF ALBANIA ..................................... 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 9  
4  STATEMENTS BY MEMBERS ........................................................................................ 12  
5  REPLIES BY THE REPRESENTATIVE OF ALBANIA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 23  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 30  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Albania are reproduced in document  WT/TPR/M/337/Add.1 and will be available online 
at http://www.wto.org/english/ tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/337 • Albania 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The second Trade Policy Review of Albania was held on 11 and 13 May 2016. The 
Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of Albania headed by Mr. Ervin Mete, Deputy Minister at the Ministry of Economic Development, Tourism, Trade and 
Entrepreneurship; the rest of the delegation of Albania; and the discussant, H.E. Ambassador 
Peter Matt (Liechtenstein). As agreed by Me mbers earlier, the United Nations Industrial 
Development Organisation was attending this meeting as observer on an ad hoc basis. 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Albania was contained in document WT/TPR/G/337 and that of the WTO Secretariat in WT/TPR/S/337. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline and 
had been transmitted to the delegation of Albania:  European Union; United States; Brazil; Canada 
and Argentina. The following delegations submitte d written questions after the deadline: Turkey; 
China and Thailand. These questions had also been transmitted to the delegation of Albania. 
1.4.  At the previous TPR meeting in 2010, Members had commended Albania for its solid 
economic performance, substantial reduction of unemployment and fiscal deficit, while keeping 
inflation in control. Members had appreciated that the Albanian economy had successfully 
managed to weather the effects of the global fina ncial crisis. Members had praised Albania for the 
substantial reform of its tax system and its posi tive effect on governme nt revenues. However, 
Members had noted that challenges remained, in particular in the areas of reduction of the public debt and integration of the unregistered economic activities into the mainstream. Albania was 
invited to continue with its reform process so as to further foster fo reign direct investment. 
1.5.  Since then, Albania's economy had continued to grow; its per capita GDP and merchandise 
trade had increased significantly. Nevertheless,  the unemployment rate and the current account 
deficit also had increased. While the Albanian ec onomy was mainly driven by a growing services 
sector, the manufacturing sector had remained small, and labor productivity in agriculture was relative low. The Chairperson believed Members would wish to learn more about Albania's long 
term economic and development strategies, including its efforts to diversify its economic activities.  
1.6.  With regard to trade policy, Albania's openne ss to trade and investment had been noted at 
the time of the last Review, and Albania's success in privatizing state-owned enterprises had also been highlighted. While Members had praised Albania for the initiatives it had undertaken to 
improve its business environment, they had seen  a gap between the legal provisions and their 
implementations in the area of intellectual prop erty rights. Since then, improvements had been 
made, pursuant to Albania's Stabilization and Association Agreement with the EU and its own 
National Strategy for the Enforcement of IP Rights  (2010-2015). It was useful to know the latest 
development in this regard, in particular the new National Strategy for 2016-2020 which should be finalized within the first half of this year. 
1.7.  Government Procurement had been another issue that featured in the previous TPR. At that 
time, Members had noted Albania's increasing implementation of government procurement through electronic means, and had raised various questions. They had also encouraged Albania to 
revitalize negotiations for accession to the GPA. It  was now clear, however, that due to other more 
pressing priorities, the country did not intend to accede to the Agreement at the moment. 
1.8.  That said, Members were pleased to note that Albania had just deposited its instrument of 
acceptance for the Trade Facilitation Agreement. In deed, the authorities' good work in facilitating 
trade had been praised by Members in the last TP R. This time, noting that Albania had adopted a 
new Customs Code in 2014, Members continued to express an interest in the country's customs procedures, and asked again some questions about its method of assessing tariffs applied to 
shipments of goods with different tariff classifications. 
1.9.  In addition, Members asked about the details of Albania's competition policy and its projected 
changes, the investment regime which was revamped  last year, and also food safety standards. WT/TPR/M/337 • Albania 
 
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  1.10.  Regarding specific trade sectors, the dynamism of Albania's services sector had been noted 
at the time of the last Review. Members had shown interest regarding Albania's intentions to develop its services and manufacturing sectors, and modernize agriculture. An update from the 
delegation was much appreciated, especially in relation to agriculture, where Members asked 
questions about the increase in domestic financial support, pursuant to Albania's new Strategy for 
Agriculture and Rural Development (2014-2020).  
1.11.  This meeting was 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. WT/TPR/M/337 • Albania 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF ALBANIA (MR. ERVIN METE) 
2.1.  I'm very pleased to represent Albania in this second Trade Policy Review. From its first Trade 
Policy Review Albania has undergone substantive structural reforms and transformation and I consider the meeting today an excellent opportuni ty to present its progress and share with you 
challenges and goals towards a sustainable development of the country. Albanian trade policy is 
inspired by WTO principles and rules and follow s the dynamics of WTO structures. The trade policy 
objectives are motivated by the national economic needs and private sector developments while 
fully complying with international obligations in the field.  
2.2.  Albanian's economy is moderately free as assessed by Heritage Foundation in the Economic 
Freedom Report 2016. Albania's overall rank ing for 2016 is above the global average and 
compared with the other Western Balkan countries, Albania is ranked as the second most free 
economy.  
2.3.  Albania is experiencing a gradual economic uptu rn that is expected to continue in 2016-2018. 
GDP growth is driven by private investment, mainly in the form of foreign direct investment in the 
energy sector, and is projected to average well above 3%. Before the global financial crisis, 
Albania was one of the fastest-growing economies in Europe, enjoying average annual real growth rates of 6%, accompanied by rapid reductions in poverty. The country's growth suffered from the 
Eurozone crisis, in particular in neighboring Italy and Greece. Growth reached its lowest rate of 
1.4% in 2013. However, the economy started to recover and continued to grow since 2015, supported by improved activity in the constructi on and industrial sector s. The expected growth 
averages around is 2.7%.   
2.4.  The current account deficit showed a narrowing trend in the first half of 2015. The widening 
of domestic savings, mostly private, was the main contributor to the correction of the current deficit. The registered deficit contracted continuously and, in 2015, it was valued at around 8.5% 
as a ratio to nominal GDP. In addition, the total stock of bank loans increased (2.2% compared to 
November 2014) and the stock of loans in domestic currency increased (2.7%), while the stock in foreign currency decreased (5.7%). The non-performing loan (NPL) ratio decreased to 18.2 % at 
the end of 2015 from 24% one year before. 
2.5.  Standard and Poor's Ratings Services raised its outlook for Albania from stable to positive, 
reconfirming the positive trends of the reforms im plemented during last years. The assessment of 
Standard and Poors highlights that the Government  of Albania is moving forward with ambitious 
plans to shrink the country's deficit and reform the legal system, paving the road for the 
sustainable growth and good governance. 
2.6.  The Monetary Policy implemented managed to ma intain an average CPI inflation of 3% over 
the medium term. The exchange rate remained full y flexible and determined entirely by market 
forces. This policy relied on indirect instruments to steer financial market interest rates and conducts its monetary policy through open market  operations. This regime complements our price 
stability objective and supports our operational framework for monetary policy.  
2.7.  Between 2010 and 2015, the average CPI inflation rate in Albania was 2.4% and inflation 
remained below the inflation target since 2012. The annual dynamics of the inflation rate have been volatile reflecting the sensitivity of the Albanian Government to foreign shocks, the volatility 
of food prices and administered prices. The labo r market faced weaknesses during the period in 
review with improvement noted during 2015.  
2.8.  The monetary policy has managed to control liquidity premiums and inflation, helping to 
reduce interest rates in the interbank market, in the government debt securities market, in the 
deposit market and in the Lek denominated loan market. The monetary stimulus has been reflected in increased Lek lending to the economy. The share of Lek lending to total lending has 
increased to 40%.   
2.9.  A number of fiscal measures were introduced during 2010-2015, increasing and expanding 
the taxable base, simplifying the procedures and addressing problematic aspects of certain sectors of the economy. The changes in the fiscal po licy have positively impacted the business 
environment and contributed to the economic de velopment of Albania. The main legislative WT/TPR/M/337 • Albania 
 
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  changes during 2010-2015 are part of the fiscal consolidation reform undertaken by the 
Government of Albania and consist of: (i) introducing the progressive personal income tax; (ii) introducing zero tax for low level salaries as well as small businesses; and (iii) unified rules for VAT application compliant with the respective EU acquis, which is currently into force from 
1 January 2015. 
2.10.  In line with the current programme with the IMF, Albania intends to pursue a steady pace of 
fiscal consolidation based on a sound strategy of broadening the tax base and strengthening tax 
administration and compliance, with the goal of lowering the public debt-to-GDP ratio to below 
64% by 2018.  
2.11.  The fiscal consolidation is complemented with a large operation against informality. From 
September 2015, the Government of Albania starte d its operation against informality aiming to 
formalize the economy and contribute to fair comp etition in the market. As a result, 2015 noted an 
increased number of registered businesses of around 137% compared with 2014. The operation also helped to formalize non-registered employees, creating a more competitive and better and 
play field to businesses.  
2.12.  Reforms undertaken by the Albanian Government  during these years have focused on the 
energy sector, privatizations of state-owned companies, administrative and territorial reform, and 
reforms in the tourism sector. 
2.13.  The energy sector has recorded very positive developments, including legal and 
organizational transformations, investments and other structural efforts that contributed to a significant improvement of the financial situation in the Albanian Energy System. During 2014 and 
2015, there was acknowledged an increased performa nce of the sector, reflected in the reduction 
of losses in the distribution system, increase  of receivables and improvement of the three 
state-owned companies' liquidity. Albania is very much committed in implementing and complying 
with the Energy Treaty and further de epening the energy market opening. 
2.14.  The Administrative-Territorial Reform approved in 2015 plays a key role in creating suitable 
and supportive framework for the economic developm ent of Albanian cities and regions. The new 
territorial organization which consists of 61 municipalities will empower local and regional 
governments to enhance their capability to provide high quality and timely services to citizens.  
2.15.  In the area of privatization, there have b een several amendments to the legal framework 
which have paved the way for the privatization of the state-owned insurance company INSIG and 
other privatization processes.  
2.16.  The judiciary reform is a priority for the Gove rnment of Albania, stemming from the needs 
to strengthen the rule of law, respond to the economic and business needs and comply with 
European integration requirements. The legal enforcement and weak rule of law during the period 
in review is considered an obstacle to growth  and competitiveness of the country and therefore 
many efforts have been invested to its timely completion. This reform is at the very final stage of 
approval. 
2.17.  Tourism has emerged and became a significan t contributor to growth with 3.5 million 
inbound tourists in 2015. The sector has become a strategic sector for growth and employment, contributing directly and indirectly at around 20% of GDP. The new law on tourism approved in 
2015 defines clear rules of operation in the sector  putting emphasis on the standards and quality 
of the service provided. Albania believes that this new legal framework will promote competitiveness in the sector, increase the quality of tourism services, attract new investors and 
contribute to an increased level of consumer protection.  
2.18.  Private sector development and improvement of business environment is among the key 
reform priorities of the Government of Albania. A new Business and Investment Development 
Strategy 2014-2020 was adopted in 2014, setting the priority policies aiming to ensure a simple, 
transparent and predictable regime for private sector, while creating favorable conditions for investors and contribute to the increase of comp etitiveness and sustainable economic growth. Ease 
of Doing Business is addressed with radical and concrete reforms from early 2014, in line with the WT/TPR/M/337 • Albania 
 
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  National Action Plan for the ease of doing business. Reforms are undertaken in the areas of 
starting a business, construction permit, tr ading across borders, getting energy, etc. 
2.19.  Four important laws covering economic zones, strategic investment, concessions and PPPs 
as well as tourism were approved during 2015, providing a new momentum and philosophy in 
attracting new investment.  
2.20.  The public-private dialogue has been strengthened. The 60 days mandatory requirement for 
prior policy and legislative consultation has created better mechanism for public-private dialogue. 
The National Economic Council, chaired by the Prime Minister was established in June 2014, 
providing a single advice/consultative structure and forum for private sector to involve in dialogue on new reforms and policies. With a particular focus on investors, the Investment Council, supported by EBRD, was established in April 2015 and it is a council which is mainly focused on 
investor needs to address sectorial concerns or impediments deriving from the sectorial 
administrative procedures.  
2.21.  Trade data indicate growth since the first Trad e Policy Review of Albania in 2010. The export 
performance during the review period has contribu ted in shrinking the trade deficit by 4.8% in 
2015 compared to 2010. Compared to six years ago the map of Albanian exports has been 
diversified. From 2010, Kosovo is the second most important exporting market for Albania, a place 
that traditionally was held by Greece. This is a direct reflection of the liberalization of trade with 
Kosovo from 2007 and the trade facilitation agreement signed between the two countries from 2014. EU remains the main trading partner for Albania but also CEFTA countries are becoming important in export due to the free trade agreement with Western Balkans in force from 2007. 
2.22.  The import of machinery and equipment increased steadily during the period in review 
reconfirming new investments and policies to additionally facilitate market entry requirements for new technology and investment.  
2.23.  From the first Trade Policy Review, Albanian Tr ade Policy has followed a liberal approach in 
policy making, additionally reducing tariffs while paying attention to trade facilitation. Due to continuous tariff reduction, both in MFN and preferential tariffs, the average applied tariff is 
reduced from 1.76% in 2010 to 1.34% in 2015. Albania has fully liberalized its trade in industrial 
products with EU and Western Balkan countries, as well as, EFTA States and Turkey. With regard to agricultural trade, Albania has fully liberalized its trade in agriculture with Western Balkans while with other trading partners it has maintained a more diversified approach, providing for tariff 
protection for a limited group of products. 
2.24.  Many actions are taken to facilitate trade, in particular in the area of customs procedures. 
The new Customs Code approved in 2014 and its implementing provisions include the legal 
provisions for AEO, simplified export and import procedures, effective implementation of risk 
management, etc. Procedures of customs valuation of goods provided in the Customs Code and its implementing provisions comply with the WTO requirements and specially the GATT.  
2.25.  There is a good progress in the area of standardization since 2010. The percentage of 
standard adoption as Albanian standards in respect to their origin is: 98% European standards (CEN&CENELEC); 60% European standards (ETSI) ; 25% International standards (ISO&IEC); no 
purely Albanian standards were approved during the reporting period. All adopted standards were 
notified to CEN&CENELEC Management Centre. Du ring the reporting period, Albania has signed 
several cooperation agreements in the field of standardization with Kosovo, Macedonia, Montenegro, Turkey, Croatia, Bosnia Herz egovina, Russia and the Czech Republic. 
2.26.  Furthermore, in the area of technical regulations, 17 technical regulations transposing the 
relevant New and Old Approach directives were approved. In addition, the Market Surveillance Inspectorate was established very recently creating the institutional framework to better control 
product safety requirements in the market.  
2.27.  In the area of accreditation, the General Directorate of Accreditation (DPA) is the sole 
accreditation body in Albania. As of May 2015, DPA became a full member of the European Cooperation for Accreditation (EA).  WT/TPR/M/337 • Albania 
 
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  2.28.  The law No. 9121/2003 "On Competition Protection" was amended in 2010 to improve the 
application in practice of the legal provisions, as well as to further align the Albanian legal framework with the acquis communautaire in th e field. The legal framework of state aid was 
amended in 2009. Currently, the law is being amende d in order to improve the state aid legislation 
and further align it with the acquis communautaire reflecting changes occurred in EU legislation. 
2.29.  In the area of Intellectual Property a new strategy shall be finalized within the first half of 
2016, which follows up of the current strategy whic h ended in late 2015. The National Strategy on 
Intellectual Property (2016-2020) clearly defines the strategic objectives and measures to 
stimulate the development of a gradual process of strengthening the entire system of intellectual 
property. 
2.30.  In the area of patents and trademarks, Albania has approximated its law with EU legislation 
as well as international agreements in the field. It is a member of the European Patent 
Organization and a member of the World Intellectual Property Organization. The applications for trademarks, patents, industrial designs and geographical indications increased in 2015 by 19% 
compared to 2014 and 36.3% compared to 2013. IPR enforcement is strengthened through 
customs effective provisions implementation. 
2.31.  In the area of Copyright policies and initiatives were taken in compliance with the Action 
Plan provided by the National Strategy on Enfo rcement of Intellectual Property Rights 2010–2015. 
A new draft law on copyright was approved by the Council of Ministers in September 2015, and is 
now being discussed in Parliament.  
2.32.  In the area of trade in goods progress is noted. Trade in agriculture products is supported 
by consistent programmes of agriculture policies, in compliance with the Strategy for Agriculture 
and Rural Development 2014-2020. During the period  in review, exports of agriculture products 
have increased, especially the exports of fresh fruits and vegetables. This increase is mainly 
because of investments' increase and natural advantage. The policy for agriculture and rural 
development is focused on: (i) rural development policy, designed to address the needs for agriculture and rural development in Albania; (ii) consolidation of the domestic support scheme 
which focuses mainly on the financial support to farmers while complying with WTO Agriculture 
Agreement; and (iii) institutional development and enforcement of regulatory requirements with a 
view to align the policies and regulatory requirements with the EU. In the area of industrial products, a new Strategic Paper on the Development of Non-food Industry 2016–2025 is prepared 
and is currently in the approval process. 
2.33.  International trade in services has recorded a positive balance for nine consecutive years 
(2007-2015). Export of services represents ap proximately 18% of GDP, whereas the average 
share of imports of services to GDP in the peri od 2010-2014 was close to 16%. Imports are about 
half the value of imports of goods whereas export s of services are almost equal in value to the 
imports of goods. Progress is made in several services sectors such as financial services, both in 
banking and non-banking, electronic communications,  broadband connectivity, postal services, etc.  
2.34.  Albania follows development in the WTO and pa rticipates actively through the Permanent 
Mission of Albania to Geneva in various meeting and Committees. Albania notifies regularly in WTO all measures falling under TBT and SPS, complyin g with the transparency mechanism of the WTO. 
Since January 2010, 38 notifications on draft techni cal regulations with an impact on trade have 
been notified to the TBT Enquiry Point. In the field of SPS, since 2010, 62 regular and emergency 
notifications, the later compliant with OIE notificati ons, have been notified. The Ministry in charge 
for trade policy regularly submits all notifications to the WTO Secretariat.  
2.35.  With regard to the negotiations in the Information Technology Agreement in the WTO, 
Albania has co-sponsored the proposal of the EU  and has supported the declaration and list of 
products proposed to be covered by this agreement.  
2.36.  Albania is the 79th Member of the WTO Trad e Facilitation Agreement (TFA). Albania has 
presented yesterday to the General Director of th e WTO the Instrument of Acceptance of the TFA. 
We remain very committed to comply with the obligations deriving from the agreement. WT/TPR/M/337 • Albania 
 
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  2.37.  We have put much emphasis to trade facilitation and remain committed in deepening the 
regional cooperation, emphasizing importance to trade facilitation and connectivity with a view to meet the goals set forth in Vienna Summit as part of the Berlin process. Many efforts are invested to implement measures having an impact in trade facilitation at national level. In addition, Albania 
is contributing constructively in the preparation of the Joint Regional Actions to boost regional 
trade, combining trade facilitation actions as part of the CEFTA Additional Protocol 5 with transport "soft measures" proposed under SEETO. 
2.38.  Trade policy coordination and monitoring faced weaknesses during the last years. Therefore, 
the National Committee for Trade Policy Coordinati on and Facilitation is being established. Such 
Committee is expected to be functional within th e first half of 2016 and will be chaired by the 
Minister responsible for trade polic y. This Committee will have two fold purposes: (1) to respond to 
the commitment of the WTO Trade Facilitation Ag reement; and (2) to respond to the needs to 
strengthen the administrative capacities in trade policy.  
2.39.  EU integration and accession to the European Union (EU) remains a top priority and a 
strategic goal for the Albanian Government. The SAA was signed in 2006 and entered into force on 
2009 marking an important moment towards the EU Integration process. On 2014, the Council of 
the European Union agreed to grant Albania the candidate status, recommending, conditional to 
further development of reforms, the opening of ne gotiations. For this purpose, the Government of 
Albania drafted the Roadmap for the fulfilment of five key priorities, which was adopted in 2014. The Roadmap was then replaced in 2016 with a Short-Term Action Plan to address the recommendations of the 2015 EC Report on Albania. Our goal is to open the accession negotiations 
by the end of 2016. 
2.40.  Albania is very committed to the regional cooperation, in particular with the countries of 
Western Balkans and Turkey. Currently, Albania is very actively contributing to the regional trade 
facilitation and connectivity agenda as part of the Berlin process. Implementation of the FTA with 
Turkey and EFTA States has had a smooth progression.  
2.41.  It has been a great pleasure for Albania and the public institutions involved to enter the 
second Trade Policy for Albania. We are convinced that the review provides a good opportunity for 
Albania to improve and focus on main priority areas for development while complying with all international commitments in trade. 
2.42.  We remain very committed to play an active role within the WTO structures and give priority 
to the discussions contributing to growth, prosperity and competitiveness of Albania.  
2.43.  By concluding, I would like to thank Madame Chair for her excellent chairing of the sessions 
as well as our discussant, his Excellency Mr. Peter Matt, and the WTO Secretariat for its 
outstanding work in preparing the report and pu tting together what was presented today. Thank 
you very much. WT/TPR/M/337 • Albania 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  Thank you, Madam Chair. I'd like also to welcome the distinguished delegation from Albania 
lead by Deputy Minister for Economic Development, Tourism, Trade and Entrepreneurship, Mr. Ervin Mete and other colleagues from the Mission in Geneva. For me it is the first time ever I 
participate as a discussant in a TPR. And it is a pleasure and honor to do this for Albania's second 
trade policy review. 
3.2.  Albania is a country with a fascinating history and culture. We could talk long about Ismail 
Kadare, Albania's internationally best known author who is actually one of my favorite writers. In 
view of the limited time I will refrain from that. But please allow me one remark: next time you pass the WTO building when walking or running along the lake you may notice the statue (bust) of Albania's national hero, Gjergi Kastrioti, better known under the name of Skanderbeg. And it has 
been here since 1997. 
3.3.  I would also like to thank Albania and the Secretariat for their excellent reports. A special 
thank on a personal note must go to the Secretariat for their valuable support during my 
preparation as time was quite short.  
3.4.  In my intervention, I will first make some remarks regarding the broader economic context 
and the trade policy in general before I touch upon some specific aspects of Albania's economic 
environment and trade regime.  
Broader economic context and trade regime  3.5.  Albania has undergone a deep transformation since the early 1990s. The transition from a 
centrally planned economy to a market economy has been a huge task. And it is remarkable what 
Albania has achieved in these years. While the implementation of the WTO rules and the EU's 
acquis communautaire continued to be the major driving force for legal, institutional and economic reforms, the focus shifted during the period repo rted to the implementation of the Stabilization 
and Association Agreement (SAA) with the EU and the alignment of its legislation with the EU 
acquis communautaire, with the medium term prospect of EU membership. 
3.6.  Albania made a major step towards this goal when being granted candidate status by the EU 
in 2014. This is evidence of the progress made by Albania, but also highlights the need for further 
steps. The formal accession negotiations have therefore not been opened yet. In its latest report on Albania published in 2015, the European Commission noted, among others, some progress in the macroeconomic stability and in growth prospect s. But the report also noted that significant 
challenges remain just to mention the need for fiscal consolidation, the reform of the judiciary and 
the high unemployment rate.
1 
3.7.  Fiscal consolidation has also been raised by Me mbers in the advanced questions. The IMF also 
recommended in its Staff Report for the 2012 Article IV Consultations with Albania a gradual 
return to fiscal consolidation. This goes hand in hand with the measures already taken or envisaged by the Government of Albania to return to a strict consolidation oriented fiscal policy.
2 
3.8.  It should also be noted that Albania undertook and continues to do major reforms. The 
administrative and territorial reform as well as th e reform of the judiciary reportedly is among the 
most radical undertakings during the period reported . The reform of the judiciary is, however, still 
at relatively early stage and will certainly be a ke y reform. Legal certainty is vital for a vibrant and 
sustainable business environment. Albania also strengthened the fight against the informality and 
corruption. Albania is to commend for taking up this difficult task. This is also to be seen in the context of fiscal consolidation. Further progress is needed in this area as also highlighted in the 
latest progress report of the European Commission.  
3.9.  I am turning briefly to Albania's engagement in the WTO. Albania is a party to the 
information technology agreement and has co-spons ored the EU proposal and the list of products. 
I am also glad to hear that Albania has submitted its instrument of ratification to the Trade 
                                               
1 Commission Staff Working Document Albania 2015 Report, SWD (2015 213 final). 
2 International Monetary Fund, Albania Article IV Consultation, January 2013. WT/TPR/M/337 • Albania 
 
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  Facilitation Agreement and I congratulate Albania for this. Albania has not taken any 
anti-dumping, countervailing, or safeguard measures since its accession to the WTO in September 2000. 
3.10.  Albania is currently an observer to the WTO Agreement on Government Procurement. 
Albania intends not to accede to the GPA at the moment giving priority to the process of 
harmonization of its national legislation with the EU acquis in all areas. It would be nevertheless interesting to hear whether Albania envisages at some point to accede to the GPA before entering 
the EU or only after that as an EU member? Co uld Albania explain the reason for this choice? 
3.11.  It is worth noting that Albania has not extended its network of free trade agreements since 
its last review beyond the existing agreements CEFTA, Turkey and the EFTA States. It is also interesting to note that Albania has 42 bilateral investment treaties in force and signed 7 such 
agreements during the period under review. Albania is also linked by double taxation agreements 
with 84 States. It would be interesting to know why these two networks of agreements are much 
vaster than Albania's RTA network? RTAs could be an appropriate way to promote diversification of 
Albania's exports to countries beyond the current main export markets. Albania has made some 
progress in diversification of its export markets using its existing RTA network. 
3.12.  None of the existing RTAs comprises proper services chapters while negotiations to liberalize 
services within CEFTA are ongoing. It has also to be noted that Albania has undertaken extensive 
WTO commitments, also in GATS. 
Closer look at the economic environment and trade policy 3.13.  Albania has a relatively open trade regime underpinned by its extensive WTO commitments, 
and is not reliant on customs duties for government revenue. Albania's overall simple average MFN 
tariff declined to 4.2% in 2015 (compared with 5.2% in 2009), with the highest applied rate of 15%. The average applied tariff on agricultural products (WTO definition), at 8.7%, is higher than 
on non-agricultural products (3.0%). Its average bound tariff is 6.7%. All tariffs are ad valorem. 
3.14.  During the period under review (2010-15), Albania's economic growth weakened up until 
2013; since 2014, however, economic recovery appears to be under way. Per capita GDP reached 
around US$4,562 in 2014, up from US$4,086 in 2010. Inflation has declined to 1.6% in 2014, 
while the unemployment rate increased to 17.5% in 2014. The current account deficit increased to 12.9% of GDP in 2014. How does Albania intend to meet the challenge of increasing unemployment? 
3.15.  The Albanian economy is mainly driven by a growing services sector. Services accounted for 
around 52.3% of GDP in 2014. On the other hand, the manufacturing sector strictu sensu 
remained relatively small, contributing 5.6% to GDP. The textile and leather/footwear sector 
accounts for the largest part (29.5%) followed by metal products, rubber and plastic products, as 
well as food processing. Could Albania explain reasons behind this very small GDP share of manufacturing? Albania with its geographical proximity to the EU and its relatively low labour costs 
could be a niche market. It would be interesting to hear Albania's view on that. 
3.16.  Agriculture accounted for around 47.9% of tota l employment in 2014, while its share of GDP 
was just around 14% (or 22% including forestry and fishing). Thus, labour productivity in agriculture is rather low compared to the other sectors. This is certainly due to the fact that the 
sector continues to be characterized by small and fragmented farms. Most farming is also 
subsistence. In 2014, a new strategy for agricultural and rural development (Intersectoral Strategy for Agriculture and Rural Development 2014-2020, ISARD) was adopted moving towards 
integration into the agricultural policies of the EU. Could Albania elaborate on what are the 
remaining challenges in promoting the development of Albania's agricultural production and trade? In this context, delegations have also raised so me questions, in particular regarding domestic 
support. 
3.17.  On customs procedure, it is worth mentioning the adoption of a new Customs Code on 
31 July 2014. Certain sections of the code containing provisions on, inter alia , authorized economic 
operators, simplified procedures, and exemption from import duties have entered into force. WT/TPR/M/337 • Albania 
 
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  3.18.  Under the new customs code, a practice that was already a concern during the first TPR is 
continued. When a shipment consists of goods with different tariff classifications, the customs authorities may, upon request of the importer, apply the same customs duties to all cargo based on the tariff subheading with the highest level of customs duty on import. This option is given to 
economic operators if the administrative burden may result high, as Albania specified in the 
written answers.
3 This practice nevertheless raises some concerns and further explanation of the 
objectives for maintaining this valuation methodology would be appreciated. 
3.19.  It is also worth mentioning that the investment regime has been revamped in 2015 by a 
new law on strategic investment which foresees new and reinforced fiscal, administrative, and procedural incentives for both national and foreign investors. Albania adopted already in 2009 a single-window system. A reform to eliminate or alle viate many licensing requirements is also under 
way. Albania has furthermore adopted an e-registration system for businesses operational since 
February 2015. Could Albania tell us about the results or prospects of results of those new 
policies? 
3.20.  Before concluding, let me briefly turn to Intellectual property law. Some delegations have 
raised questions, in particular regarding the pres ence of counterfeited products in Albania and the 
measures undertaken by Albania to strengthen IPR enforcement. Progress has been reported in 
this area, in particular with regard to the Customs authorities enforcing compliance with 
Intellectual property legislation.  
3.21.  To conclude, Albania has gone a long way of transformation since the 1990s and has made 
important progress. The candidate status granted by the EU is certainly a milestone. The way to 
membership is however long, and further comprehensive economic, institutional and legal reforms 
will be necessary. The reform of the judiciary, fiscal consolidation, and fight against informality and 
also against corruption will be important elements. Albania is to commend for what is has achieved 
and for its commitment to continue this path. Coming myself from a small country, I know that 
this is a huge task that you have to undertake with limited resources and you are confronted with many challenges and merit our full support. 
                                               
3 RD/TPR/622 p.24. WT/TPR/M/337 • Albania 
 
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  4  STATEMENTS BY MEMBERS 
EUROPEAN  UNION 
4.1.  Since its first Trade Policy Review in 2010, Albania has suffered from declining foreign inflows 
following the financial crisis, due to the fall in exports and remittances. However, overall, Albania 
can be commended for having resisted the impact of the crisis rather well, in particular by 
ensuring fiscal consolidation combined with some important structural reforms. The forecast for the GDP growth for 2015 is 2.7%. Nevertheless, a lot remains to be done to improve the life of 
many Albanian citizens as the unemployment is still at quite high level (17%), even if this figure is 
probably inflated by the remaining high level of informal activities. 
4.2.  Albania plays active role in the WTO and the EU appreciates the regular contacts we have 
with the mission of Albania in Geneva. The EU continues to be the first trading partner of Albania 
and accounts for 67% of its total trade. In 2015,  we exchanged goods worth €3.7 billion, which 
represents more an increase of more than 30% si nce the entry into force of the Stabilization and 
Association Agreement (SAA) in 2009. This agreemen t is the basis for the bilateral free trade area 
between the EU and Albania and it also constitutes the legal instrument for alignment of Albania to 
the EU acquis and Albania's progressive integration into the EU structures. 
4.3.  Albania applied for EU membership in 2009 and obtained the status of candidate country in 
June 2014, which implies major reforms and adjustments of the legal, administrative and judicial 
framework. The opening of the accession negotiat ions is conditioned on fulfilling a set of key 
priorities, including public administration reform, reform of the judicial system and fight against 
corruption. The EU supports Albania with technica l and financial assistance to implement these 
necessary reforms - the budget allocated for the period 2014-2020 amounts to about €650 million. 
4.4.  The EU would like to praise Albania for the reforms already carried out. I would like to use 
this opportunity to highlight the instrument of acceptance of Trade Facilitation Agreement that 
Albania deposited yesterday. Another example of these reforms is the new law on copyright and 
the EU would be interested to know more abou t its implementation and enforcement. We would 
also appreciate Albania's views on the perspectives for further measures aiming at reducing the 
size of the informal sector. Additionally, it would useful to better understand Albania's intentions 
regarding the opening up of certain economic sect ors (public procurement, energy, and health) in 
order to further promote competition as well as the assessment by Albania of the impact of the ongoing efforts deployed to attract FDI, notably with  the support of incentives. This review is also 
a good opportunity for us to learn more about the recent institutional changes regarding Albania's 
trade policy, for example, the ongoing establishment of three new bodies - the National Committee for Trade Policy Coordination and Facilitation, the National Economic Council, and the Investment 
Council. 
4.5.  The EU very much supports Albania's reform efforts which are needed as European 
businesses still face important trade barriers, includ ing at the border. In other areas such as public 
procurement, competition, IPR enforcement, and pu blic administration, further progress would also 
be welcomed. In the financial sector, the high num ber of non-performing loans needs to be further 
addressed in order to tackle the continued risk aversion by banks which limits access to credit for businesses. In our advanced written questions, we have sought clarification on these and couple of 
other issues. 
4.6.  Finally, the EU would like to commend Albania for using the alternative timeframe for this 
TPR as it makes this exercise more transparent and interactive.  
UNITED
 STATES 
4.7.  Albania has faced a number of economic challenges in recent years, including fall-out from 
the global financial crisis, which significantly depressed demand for Albania's exports. But as 
outlined in the Secretariat's report, Albania is well on its way to recovery, with per capita GDP 
increasing by 10% between 2010 and 2014. Albania's WTO membership and its EU aspirations continue to help drive positive economic and political reforms, which will be necessary for Albania's further development. WT/TPR/M/337 • Albania 
 
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  4.8.  We congratulate Albania for undertaking seve ral of the recommended reforms highlighted 
during its first TPR in 2010. Albania's success in recovering from the financial crisis depended on these reforms, which entailed reducing protectionist trade measures and proceeding with privatization. The result is that today, Albania has a more competitive business environment. 
Albania has also benefited from its pursuit of economic integration and multilateral free-trade 
agreements, becoming a signatory of the Central European Free Trade Agreement, the European Free Trade Association, and a bilateral Free Trad e Agreement with Turkey. Additionally, Albania 
participates in the U.S. Generalized System of Preferences (GSP) and the Stabilization Association 
Agreement with EU member states.  
4.9.  U.S.-Albania trade has increased substantially since the last TPR. Two-way goods trade 
totalled US$190.8 million in 2015, a 59% increase from 2014 and almost double the amount in 
2013. Since the 2010 review, Albanian firms have increased their use of the GSP programme, 
reaching US$2.9 million in 2015. We are pleased th at Albania is utilizing its GSP opportunities and 
will continue to work with Albania to help its businesses take maximum advantage of the 
programme.  
4.10.  We also recognize that Albania has taken additional steps to create a firm foundation for 
future economic growth. Albania has transitioned  to a digital system for customs and border 
compliance, which has streamlined the processing  of imports and substantially reduced fees. 
Furthermore, Albania has taken no anti-dumping, countervailing, or safeguard measures since its accession to the WTO. We would also commend Albania for joining the ITA expansion agreement, and look forward to timely implementation if its commitments. We also commend Albania for 
submitting its acceptance of the Trade Facilitati on Agreement yesterday. This sends an important 
signal to the international community about Albania's commitment to enhancing its competitiveness. 
4.11.  Looking ahead, we encourage Albania to maintain this positive momentum on reforms and 
to guard against back-sliding. After reaching an a ll-time high on the World Bank's "Doing Business" 
report at 68th place in 2015, Albania's ranking fell to 97 in 2016. The decline in ranking is an 
unfortunate reversal of a positive trend in Albania's business climate; a number of high-profile 
international investment disputes, including disputes with U.S. companies, have not helped Albania promote itself as an attractive destination for foreign investment. We are hopeful, however, that this is only temporary set-back. We note Albania's commitment to addressing systemic problems, 
such as a lack of transparency in institutions.   
4.12.  We support Albania's integration into Euro-Atlantic institutions and welcome Albania's 
adoption of a National Plan for European Integration, with medium and long-term measures for 
meeting the requirements for joining the European Union. The United States highlights the 
particular importance of two areas to strengthen rule of law in Albania: judicial reform and robust anti-corruption measures. Further steps to reduce corruption and increase transparency will 
increase legal certainty, make Albania more attractive for trade and investment, and facilitate 
regional integration.  
4.13.  We note that in the area of intellectual property rights, applications for trademarks, patents, 
and industrial designs in Albania have grown sign ificantly since the last review, reflecting an 
increasingly vibrant and innovative economy. Albania is now party to several international 
conventions on intellectual property rights. We look forward to learning more about Albania's recently passed copyright law and how it will increase current copyright protections once 
implemented. In particular, we are interested in knowing whether the law will provide legal 
protection for technological protection measures, which are not covered by the law currently in force.  
4.14.  The United States also has concerns about Albanian Sanitary and Phytosanitary (SPS) 
measures, especially the ban on the use of hormones in food and products of animal origins, including for imports. The United States questions the scientific basis and justification for this prohibition. The United States is also seeking clarification regarding Albania's approach to foods 
produced through biotechnology. Specifically, we would like to understand what is encapsulated in 
the category of "new food" as applied to products of biotechnology, and what the labeling requirements are. WT/TPR/M/337 • Albania 
 
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  4.15.  The Secretariat's report notes that Law "Number 9374 On State Aid" prohibits incentivizing 
domestic over imported goods, in compliance with the WTO's principles of non-discrimination. However, this law does not appear to apply to  agriculture and fisheries, so the U.S. would 
appreciate clarification on that point. 
4.16.  In conclusion, the United States welcomes Albania's significant advances in several areas 
since its initial TPR in 2010, and we look forw ard to working with you in implementing the 
additional reforms necessary to facilitate Albania's continued economic development and 
integration in Euro-Atlantic structures. 
BRAZIL 4.17.  Despite the many challenges imposed by the 2008 international crisis, Albania's economy 
has been resilient. Per capita income has continued to grow, and inflation rates have declined in 
the period under review, reaching 1.6% in 2014. Ec onomic activity has grown by 2.7% in the first 
three quarters of 2015 supported by expans ion in the industry and construction.  
4.18.  While the services sector is the main driver of the economy, with a share of 52.3% of the 
GDP, agriculture still accounts for 47.9% of total employment, which highlights the importance of 
the measures adopted by the Albanian government to improve competitiveness and productivity in this sector. 
4.19.  In that regard, we note the adjustments to the policies that are under consideration or have 
already been implemented as part of the process fo r joining the EU, in particular the new strategy 
for agricultural and rural developm ent of 2014. As a large exporter of agricultural products, Brazil 
is interested in future reforms that will move Albania's trade-related policies towards integration 
into the agricultural policies of the EU.  
4.20.  My delegation commends Albania's commitment to trade liberalization and support to the 
multilateral trading system. We therefore would like to take this opportunity to thank Albania for 
co-sponsoring the joint Brazil-EU proposal on export competition last year, which contributed to 
achieve a historic result in the Nairobi Ministerial Conference, with the elimination of export subsidies to agriculture products and additional disciplines for measures of equivalent effect. We 
also praise the structural reforms undertaken to support the economy, safeguard the 
macroeconomic stability and promote trade. In th at regard, Brazil welcomes the initiative of 
establishing a National Committee for Trade Policy Coordination and Facilitation, which among other functions will coordinate activities in the context of the Trade Facilitation Agreement.  
4.21.  Turning now to the bilateral realm, Albania and Brazil have a fluid relationship. Our bilateral 
trade experienced a significant increase in th e beginning of the century, which among other 
factors, justified the opening of the Brazilian Embassy in Tirana in 2010. Following that, the 
Albanian Parliament established, in 2011, the Albania-Brazil Parliamentary Friendship Committee, 
another major step for strengthening the ties between our two nations.  
4.22.  Nevertheless, we believe that our economic and trade relations have yet to achieve their full 
potential. There are no significant stocks of inve stments on both sides and imports and exports are 
highly concentrated. Meat and sugar account for around 97% of Brazilian exports to Albania, whereas aluminum and clothing comprise 75% of Albania's total exports to Brazil. 
4.23.  Given its strategic position and the presence of Albanian communities in the other countries 
in the Balkans, Albania is also a natural partner to a closer trade and economic relationship 
between Brazil and the region. 
4.24.  We have submitted questions and we are grateful for the responses which will be reviewed 
carefully.  
CANADA 4.25.  Canada congratulates Albania on its second Trade Policy Review since its accession to the 
World Trade Organization in 2000. Since joining the WTO, Albania has experienced significant 
change, including the challenging transition to a market-based economy, the privatization of many WT/TPR/M/337 • Albania 
 
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  state and socially-owned enterprises, the modernization of its banking system, all of this 
accompanying efforts to enhance foreign trade. These changes have resulted in a significant 
improvement in the standard of living for Albanian citizens but it also indicates that, given the challenges, continued reforms, enhanced reforms and a strengthened commitment to rule of law 
are still going to be necessary.  
4.26.  What may be most impressive in the Albanian delegation here today, because we see and 
welcome representatives of various Ministries, is that I found a very concrete reflection of the 
Government wide effort and coordination that is under way. Most importantly, the investment you 
are making in fiscal consolidation is core to benefiting and creating an enabling business environment. Albania is making great strides in its efforts to align itself with EU standards, and has implemented or amended laws related to in tellectual property, the energy sector, and 
telecommunications. We are impressed with the und erstanding that Albania reflects and the need 
to accompany trade liberalization with a necessary structural reform and macroeconomic policies that in total enable business to take advantage of trade and investment opportunities. We also 
heard already the importance of reforms related to the justice system because the rule of law 
really is what gives traders, investors, and privat e sector companies, confidence to do business.  
4.27.  We respect the commitment to deal with corru ption and, indeed, marked improvement in 
Transparency International's ranking that is accompanied by efforts to streamline administrative 
procedures for businesses, including through one-stop-shops for registration and licensing. However, we also note that it has not yet been effective enough to have the ranking by the World Bank on the Ease of Doing Business to send the signal to the business community. We are very 
hopeful that the Business and the Investment De velopment Strategy for 2014 to 2020 will improve 
on this situation. 
4.28.  What we share with Albania is strong support for their active engagement in pursuing 
economic and technical cooperation agreements since the last Trade Policy Review. But, most 
important, to accompany that with the necessary domestic reforms to attract more foreign investment and more trade through commitment to tr ansparency, rule of law and a fair regulatory 
framework. Canada, in fact, is one of the two largest sources of foreign direct investment in 
Albania. We experienced both the rewards of work ing in Albanian communities and the challenges 
of operating in an environment where decisions sometimes lack transparency and where the business environment can be unpredictable. We urge the authorities to consider the impact these 
challenges have on the ability of Albania to attract more high-quality investments and consider the 
effect on potential investors. 
4.29.  The revamping of trade policy coordination and beyond the inter-ministerial effort to create 
a single consultation structure between the Government, national and foreign-owned companies, 
financial organizations, and academia to increase the dialogue has tremendous potential to improve the business environment and to promot e good governance. Having a committee is 
sometimes offered as an answer to everything, having a committee to decide and to implement 
what the committee represents is going to be more important than just having a structure itself. So we wish Albania every success. Let me congratulate them in particular for the ratification of the Trade Facilitation Agreement and let me thank the authorities and the delegation for the work that 
went into responding to our written questions. We will be digesting and studying those responses 
carefully. 
ARGENTINA 
4.30.  Argentina is most interested to see how Albania has developed over the last two years in 
terms of its economy and trade. We welcome Albania's focus on the business environment and its clear policies aimed at attracting key investment to the country. These policies will most certainly 
help to strengthen its economy and, we hope, create employment. The creation of jobs is vital, 
given that unemployment has risen from 14% in 2010 to 15.5% in 2014. 
4.31.  Worthy of note, in addition to its strategies to improve the business climate, are Albania's 
efforts to modernize its legal system in this regard. Of particular significance is the fact that its 
new strategic investment law of 2015 includes se ctors such as energy and mining, transport, 
infrastructure and agriculture, as well as fisheries. WT/TPR/M/337 • Albania 
 
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  4.32.  Argentina believes it is highly positive that Albania's efforts to encourage investment focus 
on both domestic and foreign investment. The new investment law, in conjunction with the implementation of a single window in 2009, the new customs code of 2014, and the online 
registration system for commercial transactions, is expected to have a positive effect, increasing 
foreign investment. This is extremely important bearing in mind that foreign investment fell by 8% 
between 2013 and 2014. This type of initiative is  closely linked to the purpose of our work as 
Members under the WTO framework. 
4.33.  We wish to highlight that these measures also help to improve the business climate, as 
reflected by the fact that Albania, in the past year, has improved in respect of eight of the ten 
criteria measured by the World Bank in this area. In this light, Albania's European Union accession 
process will generate considerable challenges and opportunities, both for its traditional trading 
partners and for those with which trading relations can be enhanced. 
4.34.  Argentina wishes to highlight Albania's commitment to international trade, and shares its 
efforts to contribute to a fair and balanced multilateral trading system. 
4.35.  In the context of this trade policy review, Argentina recently submitted questions to Albania 
relating, among other things, to its 2014 2020 business and investment development strategy, the main aim of which is the integration in the medium term of Albania in the European Union. We 
thank Albania for its replies, which will be examined in detail by our capital. 
4.36.  Argentina wishes to continue working together with Albania to deepen our bilateral ties, so 
as to accompany the country along the path to providing better living conditions for its people. Argentina is willing to make every effort to expand relations between the two countries in the 
areas of agriculture, science, technology and health. 
4.37.  To conclude, while reiterating our appreciation of this renewed opportunity to exchange 
points of view and comments on the trade policies an d practices of Albania, we would like to draw 
attention once again to the importance of this ex ercise in transparency from every point of view, 
and to wish the authorities a successful conclusion to this review. 
TURKEY 
4.38.  It is my pleasure to be present at the second  trade policy review of Albania. After the WTO 
accession in 2000, Albania has proven an impressive economic performance which was accompanied by positive changes in employment and a strong reduction in poverty rates until 2009. However, as a result of the global and Eurozone economic crisis in 2008 the country 
experienced a slowdown in its economy. During the period under review (2010-2015), the 
economic growth weakened up until 2013; neve rtheless, Albania has successfully maintained 
macroeconomic stability amidst the turbulent external environment since 2014. GDP grew by 2.2% 
in 2014 up from 1.4% in 2013 and Per capita GDP reached over US$4,500 in 2014. Moreover, 
economic growth is expected to accelerate further in the coming years, based on higher domestic demand, an expected improvement of the extern al financial environment, and the impact of 
business-friendly structural reforms. At this stage,  faster implementation of structural reforms is 
critical to strengthen competitiveness, improve the investment climate, and catalyze stronger growth. 
4.39.  I am pleased to observe that Albania has sign ificantly improved its legal, regulatory and 
institutional framework that paved the way for an  economic environment more open to trade and 
investment. As referred to in the Government Re port, Albanian's economy is moderately free as 
assessed by Heritage Foundation in the Economic Freedom Report 2016 and it is ranked as the 
second freer economy among the other Western Balkans countries. Moreover, according to the 
2015 World Bank Doing Business Report, Albania made progress in regulatory reforms, moving up 40 slots from 108 in 2014 to 68 out of 189 economies in 2015. Turkey commends Albanian trade 
policy inspired by WTO principles and encourages Albania to further liberalize the trade via 
structural reforms. 
4.40.  Albania became an EU candidate country in J une 2014 and is currently working to fulfill the 
criteria that would pave the way for the start of accession negotiations. Besides, I believe that the 
Albanian economy is on the right track. The consistent efforts by the Albanian Government to WT/TPR/M/337 • Albania 
 
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  harmonize its legislation with that of the EU in various areas may serve as a strong incentive for 
the country to push forward on structural reforms and help improve business climate.  
4.41.  On the bilateral side, Turkey has good political and economic relations and deep rooted 
historical, cultural ties with Albania. As far as trade concerns, Turkey is the 4th trade partner of 
Albania, notably thanks to the Free Trade Agreement that became effective in 2008. However, the 
bilateral trade volume between our countries decreased from US$415 million in 2014 to US$337 million in 2015, corresponding to a 19% decrease. Turkey has always considered Albania 
as an important partner in the Southeastern Europe, and desires to further improve its trade and 
economic relations. In this regard, further steps could be taken to raise the volume of trade and investment between our countries to a level reflecting our potential. I believe that inclusion of the investments and services into the FTA would increase our bilateral trade volume considerably. 
4.42.  Furthermore, Turkish companies are amongst the largest foreign investors in Albania and 
are major services providers in a number of fi elds such as banking, telecommunication and 
infrastructure. The total value of Turkish investments in Albania has reached US$2 billion. In 
addition, Turkey has carries out a number of social and economic projects in Albania.  
4.43.  Before concluding, let me also mention that Turkey submitted a number of written questions 
in advance, seeking further clarification on certain aspects of Albania's policy direction and 
approach. I am grateful to Albania for its responses. We will carefully examine them. 
CHINA 4.44.  China is pleased to see the on-going econom ic recovery in Albania since 2014, with its 
annual GDP growth rate reaching 2.2%. That being said, certain long-standing problems such as 
high unemployment rate, growing current account de ficit and low productivity in agriculture are 
still undermining its recovery and development.  
4.45.  The period under review witnessed admirable efforts of Albania to improve its regulatory 
framework and integrate into global economy. Albania designed its new business and investment 
strategy, with a view to further aligning itself with the EU industrial policy such as the European 2020, and achieving long-term sustainability of in vestment. It submitted Category A notification 
under the TFA in 2014. It adopted a single-window system in 2009, and a reform to eliminate or 
alleviate licensing requirements is under way. China believes these efforts would be helpful for Albania to fully explore its economic potential, and achieve sound and sustainable development in 
the future. 
4.46.  China and Albania enjoyed sound bilateral economic cooperation in recent years. China is 
the second largest trading partner of Albania next only to the EU, with a trade value of US$559 million last year. During a meeting in November last year, our Prime Ministers have 
decided to further promote the Sino-Albania cooperation in infrastructure such as harbor facility, 
railway and electricity network. Our cooperation in finance, mining and agriculture is also promising. China wishes our cooperation would help Albania achieve economic growth and 
diversification, and bring tangible benefits to peop le from both countries. Me anwhile, we would like 
to urge Albania to take concrete measures to solve our specific concerns, especially difficulties in work visa application, and lengthy customs clearance.  
4.47.  Albania has been a strong supporter of the multilateral trading system since its WTO 
accession. As an "Article XII Member", it ha s made extensive commitments and contribution 
during its accession, which has been emphasized by the Secretariat report. China also appreciates its active engagement in various negotiations and other activities of the WTO. China is ready to 
work closely with Albania and other Members, to make best use of our time before the MC11, and 
put the negotiation function of the WTO back on tr ack. In this regard, I would like to recall the 
Albania proverb, "Never put off till tomorrow what can be done today". 
REPUBLIC
 OF MOLDOVA 
4.48.  We congratulate Albania on the very recent ratification of the Trade Facilitation Agreement. 
Albania has co-sponsored the EU proposal on the Information Technology Agreement and it has increased its responsibility in trade-related areas through the renewed institutional framework of WT/TPR/M/337 • Albania 
 
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  trade policy coordination, consisted by three new Government bodies in charge with Trade and 
Investment Policy: the National Committee for Trade Policy Coordination and Facilitation, the National Economic Council, and the Investment Council. We look forward to see the finalization of the process of establishment of these important bodies and encourage Albania to see a successful 
unfolding of this endeavor. 
4.49.  Maintaining sound macroeconomic and fiscal policies, while reforming the business 
environment, Albania has improved productivity an d achieved solid economic growth over the past 
5 years. During the period under review, following a slower economic growth until 2013, 
afterwards there has been registered a cont inued economic recovery. GDP per capita has 
increased, while inflation has been declining since 2010, reaching 1.6% in 2014, lower than 3.6% in 2010. 
4.50.  I n  m y  p r e v i o u s  c a p a c i t y  a s  t h e  M o l d o v a  G o v e r n m e n t  o f f i c i a l ,  i n  t h e  p a s t  y e a r  I  h a d  t h e  
opportunity to visit various parts of Albania 4 times. During these working visits, I saw with own eyes the positive results of Albania's economic and investment policies, witnessing a sustainably 
developing economy of this country. Particularly, I have good memories of visiting Berat, a unique 
region of Albania, registered as a UNESCO herita ge value. Berat is a good example of sound FDI 
attraction in Albania infrastructure.  
4.51.  Many issues related to investment have been integrated into the business and investment 
development strategy for 2014-2020. The investment regime has been re-shaped in 2015 by a new law on strategic investment. Albania has adopted a new customs code on 31 July 2014, which is considered to be in full compliance with EU legislation. This strategy indicates that Albania's 
trade policy objectives are guided by WTO principles. 
4.52.  Bearing in mind the afore-mentioned extent of legislative changes, we recommend as 
essential to focus on implementation and further strengthening of the judicial system, as a true 
backbone of Albania's sound and sustainable economic growth. 
4.53.  Albania has not extended its network of free trad e agreements since its last review, which is 
still composed by CEFTA, Agreement with Turk ey, and the European Free Trade Association. 
4.54.  Albania's exports of goods and services amo unted to around 29.9% of GDP in 2014, while 
imports were around 49%. The EU is by far the destination for the largest share of Albanian exports: around 77.4% in 2014. The EU is also Al bania's main source of imports, accounting for 
around 61.1% of the total value in 2014. The share of imports from the EU and CIS declined over 
the period, while the share of imports from Chin a, Turkey, Serbia, and Switzerland increased. 
4.55.  The volume of bilateral trade of the Republic of Moldova and Albania has been rather 
modest. In 2015, the trade volume amounted to US$18 million, a sharp decrease with 
US$6.8 million in comparison with 2014. The year  2015 has had a negative impact for Moldovan 
exports to Albania registering a decrease of 70 % from 2014, while imports registering a similar 
decrease. The Republic of Moldova reiterates its readiness to identify new ways and dimensions of 
bilateral cooperation. 
4.56.  A modest bilateral trade relation is added to the sporadic regional cooperation in the 
framework of CEFTA, BSEC and Regional Cooperation Council. 
4.57.  As we can clearly see from Albania's statistical data, the foreign trade is mainly focused on 
EU countries, which is a clear reflection of its foreign policy priority to join the European Union, 
with a view to create conditions to promote and to attract considerable amounts of foreign investments, and thereby to ensure continued economic development.  
4.58.  Albania's relationship with the EU remains governed by the 2009 Stabilization and 
Association Agreement. Albania obtained the status of EU candidate country in June 2014. 
4.59.  Having in mind the similarity between Albania and the Republic of Moldova, pertaining to the 
advantages of promoting the European integratio n dimension, my delegation further encourages 
Albania to efficiently and diligently implemen t the EU agenda, which will secure further 
development and modernization of the Albanian ec onomy, promoting structural reforms according WT/TPR/M/337 • Albania 
 
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  to EU standards, while gaining from continuing  process of reform, which has yielded positive 
results so far.  
4.60.  The Republic of Moldova is confident that this se cond exercise of the trade policy review will 
help Albania to capitalize the potential of fulfilling its economic objectives and fully honor its 
international commitments. 
4.61.  We look forward to continue further strengthening our bilateral and regional relations with 
Albania. 
MONTENEGRO 
4.62.  Montenegro would like to associate itself with the statement of the European Union. 
4.63.  At the outset, Montenegro would like to congratulate Albania for ratifying the new Trade 
Facilitation Agreement (TFA) and for depositing th e instrument of acceptance yesterday in advance 
of today's TPR. This is yet another proof that Al banian trade policy continues to be inspired by 
WTO principles and rules, which have so far provided for a stable trade regime for Albania and contributed to a positive trend of its foreign trade.  
4.64.  Montenegro recognizes that, although Albanian  economic growth had been weakening until 
2013, since 2014, economic recovery appears to be under way. In addition, Montenegro notes that real GDP increased by 2.7% in the first three qu arters of 2015, supported mainly by improved 
activity in the construction and industrial sector s. We hope that Albanian economic growth will 
continue in the coming years, with Albania repeating its high annual real growth rates from previous years.  
4.65.  Notwithstanding the above positive statistics, Montenegro notes that unemployment in 
Albania had increased to 17.5% in 2014, up from 14% in 2010. Montenegro hopes that recent 
signs of economic recovery will assist in ensuri ng the rise in employment throughout the coming 
years.   
4.66.  Of particular interest to Montenegro are the steps that Albania has taken to improve tourism 
and achieve sustainable long-term growth in the ar ea, while also safeguarding the environment. In 
this regard, Montenegro wishes to congratulate the Government of Albania on approving new Law 
(No. 93/2015) on tourism in July 2015. However, if tourism is to continue acting as an important 
contributor to the Albanian economy, it is key that national standards for tourism related activities are introduced and that both competition and consumer protection are encouraged. In addition, we recognize that improving the labor productivity in agriculture and expending the manufacture will 
be a particular challenge. Montenegro will contin ue to follow closely the implementation of the 
business and investment strategy that has been recently adopted as part of the wider national development and integration plan.  
4.67.  Bilateral relationship with Albania as our neighbor is strong and stable. We share common 
border that for many decades divided two countries, but once political walls were lifted those borders became point of friendship, cooperation and diverse connections between the two nations. 
Trade cooperation is on the rise with implementati on of the regional free trade agreement in goods 
under umbrella of CEFTA – which both Montenegro and Albania are part of and that continue to support diversification of our trade in 10 years of its existence. Still, Albania accounts for only 1.6% of our total import and 4.2% of our total export. In 2014 and 2015, the value of total trade 
was €49 and €43 million respectively. Committed to further strengthening economic ties, our two 
Governments signed the Agreement on Economic Cooperation in November 2015. The Agreement is aimed to unleash full potentials for collaboration in industry, energy, agriculture, protection of 
the environment, tourism and transportation. In addition, the fact that both Albania and 
Montenegro ratified new TFA will give a strong signal for building more effective cooperation between customs and other appropriate authorities on facilitating movement of goods and 
cross-border cooperation. 
4.68.  Montenegro believes that our common objective – full membership in the EU - will further 
facilitate our overall economic cooperation. In this context, Montenegro wishes to congratulate Albania on being granted the European Union Candidate status in June 2014. Montenegro WT/TPR/M/337 • Albania 
 
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  welcomes Albania's National Plan for European Integration (2016–2020) and the Short-Term 
Action Plan adopted in 2016. We believe that only decisive action to address recommendations of the 2015 EC Report on Albania and EU mandated  reforms would bring opening of the accession 
negotiations. As a state that is firmly committed to European Union membership, Montenegro is 
very pleased to observe that Albania is taking positive steps to ensure its own membership to the 
European Union. We will continue our full support to Albanian administration in sharing our experience and developing strategies and capacities for the needed engagements with the EU 
institutions.  
4.69.  Finally, Montenegro is looking forward to continuing excellent and constructive engagement 
with the delegation of Albania in Geneva and my distinguished colleague Ambassador Filloreta 
Kodra. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.70.  After a decade of sustained economic develo pment, the engines of economic growth in 
Albania slowed down in reflection to the European  economic crisis. During the period under review, 
Albania's GDP grew slowly, but steadily. Per capita GDP grew to US$4,562 in 2014, up from 
US$4,086 in 2010. Meanwhile, Albania was able to keep its inflation rates in low level, 1.6% in 2014, down from 3.6% in 2010. The economic recove ry in Albania appears to be under way since 
2014. 
4.71.  In terms of trade policy objectives, we take no te that Albania has launched its "Business and 
Investment Development Strategy 2014-2020" in October 2014. This strategy aims at productivity growth, competitiveness, and promotion of in vestment. We welcome that these trade policy 
objectives are guided by WTO principles and th erefore guarantee the absence of quantitative 
restriction on imports and exports, export subsidies, any kind of tax on exports and export bans. We are convinced that the Albanian Government will continue the reform process to attract the 
investment, especially foreign direct investment, which is needed for its emerging manufacturing 
sector. 
4.72.  With respect to the tariff regime of Albania, the overall simple average applied MFN tariff in 
2015 was 4.2%, steadily reducing from 5.2% in 2009. We commend the progress and 
commitments made by the Albani an Government to gradually liberalize its market. However, 
Albania's applied MFN rates for some tariff lines st ill exceed their corresponding bound rates. We 
would therefore urge Albania to reduce those exceeding applied rates to be in line with Albania's 
commitment to WTO. 
4.73.  As far as the two-way trade between Albania and the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu is concerned, it has been  increasing steadily in the recent years. While 
overall bilateral trade between us was still moderate, US$14 million in 2015, it was quickly 
growing. We look forward to a continuously expanding trade relationship between our two economies in the future. 
4.74.  While recognizing the efforts Albania made to simplify its Customs procedures, we also 
welcome Albania to become the newly member who ratified the Trade Facilitation Agreement yesterday. It is evident that the improvements of trade facilitation will bring important benefits to economy, including reducing trade costs, as well as establishing better investment environment, 
and increasing competitiveness. 
4.75.  We welcome that Albania is a participant to ITA expansion. In addition, we take note that 
Albania is an observer to Government Procurem ent Agreement since 2001, and welcome its efforts 
in amending its Government Procurement law in the recent years, to further harmonize with the 
EU directives in this area. We would like to encourage Albania to facilitate its accession process to the GPA, so that it may enjoy the considerable opportunities and benefits that the GPA can bring. 
4.76.  As a Member of the Article XII Group, Albania undertook extensive market access 
commitments at the time of its WTO accession. My delegation would continue to work with Albania closely to further engage constructively in the future negotiations. WT/TPR/M/337 • Albania 
 
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  4.77.  In conclusion, we strongly encourage Albania to hold firm to its economic and trade policy 
reforms for the improvement of its business and investment environment.  
SINGAPORE 4.78.  At the outset, Singapore would like to comme nd Albania for the extensive economic and 
institutional reforms it has undertaken over the past two decades, propelled in part by its 
accession to the WTO in September 2000 and prospe cts of joining the European Union. While the 
global economic downturn and fall in commodity prices have not been favourable to Albania's 
economy, Albania has pursued the right fundamentals of maintaining market openness and 
increasing private sector involvement. These are essential for a more competitive and resilient economy. We urge Albania to take further steps to  diversify its economic base and press on with 
its efforts at improving its investment climate. 
4.79.  We welcome the institutional reforms Albania has undertaken to improve trade policy 
coordination, with the establishment of the National Economic Council, the Investment Council and the National Committee for Trade Policy Coordination and Facilitation. These are important steps 
towards streamlining domestic regulations and facilitating trade and investment flows. With these 
reforms, Albania will be in a much better position to respond to business needs and provide a much-needed boost to its key economic indicators.  
4.80.  We would also like to commend Albania for maintaining a simple tariff structure with 
relatively low applied tariffs. However, we note with concern that applied MFN rates for some tariff 
lines exceed their corresponding bound rates. As we have emphasized before, the WTO bound rate commitments are integral to a predictable, rules- based trading system. We therefore urge Albania 
to bring its applied tariffs into conformity with its bound rate commitments without delay. 
4.81.  Finally, we would like congratulate Albania for completing its ratification of the WTO Trade 
Facilitation Agreement and submitting its instrument of acceptance yesterday.  
4.82.  We wish Albania a successful trade policy review, and hope that it finds the process 
constructive and beneficial.  
GEORGIA 
4.83.  Albania and Georgia share not only the common past, but also the common aspiration 
towards the European integration. We wish Albani a every success in its path to the Accession to 
the European Union.  
4.84.  Georgia highlights the strong commitment of the Albanian Government to facilitate trade 
with the purpose of gaining maximum bene fits from the tariff liberalization.  
4.85.  Georgia joins previous speakers in welcoming the ratification of TFA by Albania. 
4.86.  Albania has the number of Free Trade Agreemen ts (FTAs) that proves the aim of the 
Government of Albania to diversify trade partners and facilitate trade. 
4.87.  Economic relations between Georgia and Albania have been developing over the past years. 
Trade turnover in 2015 increased by 28%. However, there is a potential to further develop mutual 
economic performance between the two countries an d to increase import and export volume over 
the course of following years. 
4.88.  Before the global economic slowdown in 2008, Albania was one of the fastest growing 
economies in Europe enjoying average annual real growth rates of 6%, however, the following 
economic recession had a negative impact on Albania's overall economic performance which was 
reflected in the falling of exports, remittances and to some extent on foreign direct investments resulting in the lowest growth rate of 1.4% in 2013. The gradual economic revival started in 2014 
by implementing sound fiscal policies and structural reforms reaching 2.1% increase in 2014. The 
economic activity in Albania has continued to grow  in 2015. The real GDP increased by 2.7% in the 
first three quarters of 2015. WT/TPR/M/337 • Albania 
 
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  4.89.  Georgia notes with appreciation that Albania has been working towards the strengthening of 
the institutional capabilities though introducing three new bodies: The National Committee for Trade Policy Coordination and Facilitation, the National Economic Council, and the Investment Council. 
4.90.  The Trade and investments policies are improved significantly. Georgia welcomes the 
adoption of the trade enhancing strategies by Albania alongside the institutional strengthening 
measures, such as a business and investment strategy and a national development and integration 
strategy.  
4.91.  Many efforts are invested in the areas such as starting a business, taxation, property 
registration and other fields. Due to commitment and dedication by the Government to this agenda Albania reached its best ranking in the WB Doin g Business Report of 2015. Further improvements 
are expected due to the ongoing reforms. 
4.92.  In conclusion, let me stress Georgia's readiness to further develop cooperation with Albania 
both, in bilateral and multilateral formats. Georgia wishes Albania the fruitful TPR and success in 
every mission Albania strives to accomplish. WT/TPR/M/337 • Albania 
 
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  5  REPLIES BY THE REPRESENTATIVE OF ALBANIA AND ADDITIONAL COMMENTS 
MRS.  PRANVERA  KASTRATI 
5.1.  Please allow me on behalf of the Government of Albania to thank the WTO members for their 
appreciation of the reforms undertaken so far in Albania. We are thankful for your assessment and 
the encouragement towards the Albanian institutio ns in pursuing economic reforms and ensuring 
smooth and sustainable economic development. 
5.2.  Albania has already answered all advanced questions and it is ready to inform the WTO 
members on any new issue of interest. We very  much appreciate the interest shown from 
members at this point, and would like on behalf of the Albanian Delegation to present additional 
information with regard to the economic and commercial reforms during the period in review.  
5.3.  With regard to the plans to diversify the econom ic structure, Albania is focused on strategic 
sectors namely agriculture, energy, services, with a particular attention to tourism, transport, ICT 
and telecommunication. The National Strategy  for Development and Integration 2015-2020 was 
approved yesterday by the Council of Ministers and it sets forth the main objectives and priorities 
for economic development and integration.  
Agriculture 5.4.  Policies for agriculture and rural development are based on the strategic document 
"Inter-sectorial Strategy for Agriculture and Rural Development in Albania, 2014-2020" which 
provides a framework for the interventions needed to develop a viable and competitive agricultural and food processing sector and foster a balanced economic development in rural areas. In order to meet these objectives, along with legislative and institutional consolidation, due attention is given 
to the financial support of the sector. The financial support is based on the Law on Agriculture and 
Rural Development and the yearly support schemes  approved by Council of Ministers. Financial 
support in agriculture will also be provided thro ugh EU assistance, at the value of €71 million, in 
accordance with IPARD II programme.  
5.5.  With regard to the issue of application of st ate aid in the sector, though the state aid law 
excludes agriculture and fishery, the law on ag riculture and rural development, which covers 
domestic support in the sector, is applied in a non-discriminatory manner.  
5.6.  With regard to SPS measures, Albania applies them on a proportional basis, safeguarding the 
public interest, ensuring health and safety requ irements and avoiding any excessive restrictive 
measure in the field. The Albanian legislation on GMOs is compliant with the EU respective acquis. 
It allows its placing in the market for the first time conditional to a marketing authorization, which 
is issued on a case by case. The placing in th e market of GMOs should also comply with the 
labelling requirement which asks for the content or composition of the GMOs as well as the 
specificity of the kind of the GMO contained to be in the label. 
Energy 5.7.  Energy is a sector with high potential to positi vely affect the economic growth of Albania. The 
reform in energy sector aims to diversify sources of energy, paying due attention to all sources, in 
particular gas and renewable energy. The long term  challenges for the energy sector require to: 
(1) meet the demands for energy in order to ensure economic and social development, (2) determine and apply best practices to meet demand on the "least cost" principle, (3) increase 
energy efficiency in compliance with the country's EU  integration obligations, and (4) meet energy 
needs of vulnerable groups. 
5.8.  In terms of market opening, the new law on the power sector, aligned with the EU's third 
energy package, in force from April 2015, and the law on the gas sector, adopted in 
September 2015, form the basis for a gradual open ing of the energy market. The market openings 
will be based on Market Model and unbundling of  energy enterprises, by-laws which are at a 
drafting phase. On gas sector, the Trans-Adriatic  Pipeline (TAP) will provide new opportunities for 
consolidating and diversifying the energy sector wh ile creating additional employment. In addition, WT/TPR/M/337 • Albania 
 
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  the legislative changes will contribute to further consolidate the companies operating in the energy 
sector while achieving a gradual energy market opening.  
5.9.  The drafting of the National Strategy on ener gy, supported by USAID, is at the preparation 
phase. The draft strategy will focus on the deve lopment of the energy sector until 2030, through 
introducing a sound legislative basis for the use of renewable energy sources and energy 
efficiency, gasification of Albania by 2020, and th e regional cooperation to establish a regional 
power market.  
Infrastructure 
5.10.  Infrastructure is very important to increase Albania's competitiveness, providing for better 
quality of connectivity. Albania puts emphasis to the connectivity agenda in the region and is very much committed in new infrastructure facilities. Albania sees trade facilitation and connectivity 
agenda as a combination of measures and needs deriving from: (i) the multilateral objectives 
(WTO Trade facilitation Agreement), (ii) the regional objectives (CEFTA Additional Protocol 5 on trade facilitation), (iii) the bilateral cooperation (i.e. agreement on trade facilitation with Kosovo 
and border crossing agreement with Montenegro), and (iv) national needs to boost trade and 
transport facilitation. 
5.11.  The combination of trade facilitation agenda with the investment in infrastructure and soft 
measures in transport is crucial to meet the objectives of sustainable growth and increased 
competitiveness. In the context of SEETO, ther e are priorities already taken on board from 
Albania, in particular: (i) diversification of the external trade dependence from road and maritime 
transport through upgrading the Albanian rail network, (ii) the Adriatic–Ionian 
Highway/Expressway-extension of the TEN-T Co re Network, and (iii) other investment in 
infrastructure and implementation of soft measure to reduce the cost of transport. 
Tourism 
5.12.  Tourism has emerged to be an important sect or to the economic recovery of Albania. 
Contributing directly and indirectly at around 20% of GDP, measures in this regard are concentrated in diversification of touristic services while combining traditional culinary with the 
historical and archeological heritage of Albania.  Implementation of the new standards in tourism 
stem from the economic needs of development of  the sector as well as large potentials for 
employment. The enforcement of the standards is embodied within the newly established market 
surveillance inspectorate.  
Rule of law 
5.13.  Rule of law, combined with a large operation to tackle informality and corruption, are key 
priorities for the Albanian Government. The form alization of the economy through the last year 
operation is combined with incentives for SMEs to  be formalized. Therefore, the incentive to SMEs 
providing 0% tax as of 1 January 2016 serves as a catalyst to increase the number of registered business as well as formalizing unregistered empl oyees. The Government of Albania is aware of 
the need to address corruption and,  therefore, an action plan to fight corruption, along with other 
public awareness campaign and transparency mechanism, were introduced. Corruption is 
addressed intensively at all levels of the Government and the anticorruption reform is led by the Prime Minister.  
Justice reform 
5.14.  Justice reform is a key priority reform as a response to national economic needs, private 
sector demand, and EU integration conditionality. The justice system reform is already in its third 
phase and was supported by Venice Commission throughout the whole process. The third 
necessary phase of the reform started with the wo rk of local and international experts tasked to 
draft the constitutional amendments. The draft aims at reforming the main institutions of the 
Justice System, both from the institutional point of view and the respective competences. 
Following the Venice Commission final opinion on 1 April 2016, the draft Constitution amendments were agreed upon in principle and, article by ar ticle, discussion is taking place in Parliament. WT/TPR/M/337 • Albania 
 
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  Financial stability 
5.15.  Financial stability is crucial to the sustainable growth of the country and, therefore, major 
attention is given to the introduction of inst ruments preserving such financial stability.  
5.16.  Albanian authorities have designed a national action plan which focuses on the direct 
reduction of the NPLs and on collateral execution. Early signs are encouraging while NPLs dropped 
from a peak of roughly 25% in 2014, down to 18.2% by the end of 2015. 
Competition policy 
5.17.  The competition policy in Albania aims to ensure effective competition in the market, to 
protect the freedom of the economic activity of  market participants, to reduce market entry 
barriers, to foster fairness in business relations, etc. The law on Competition Protection is fully approximated with Articles 101 and 102 of the Lisb on Treaty, is widely approximated with the EU 
competition legislation and has also been complemented with secondary legislation in compliance 
with the EU legislation. The main aim of the law is the protection of free and effective competition 
in the market, focusing on prohibited agreements , abuse of dominant position and the control of 
concentrations. The Albanian Competition Authority is in the process of revising the National 
Competition Policy, reflecting the experience and challenges to date and setting the philosophy of the future Competition Policy. This process will be accompanied with a large public consultation 
and transparency, including all stakeholders interested in the field. 
5.18.  Albanian Competition Authority (ACA), being an independent decision making authority, has 
taken during the reporting period 260 decisions, from which 13 on abuse of dominant position, 
20 on prohibited agreements, 57 on concentration control, 14 on sanctions imposed, 31 on 
recommendation issued to public institutions, etc. The Competition Commission decisions are 
subject of appeal at the court. In the report ing period, 11 cases are upheld from the second 
judiciary instance and 5 cases were rejected from these courts. In our experience, there are no 
cases when the court has overturned the Commission decisions on procedural grounds. 
Public procurement 5.19.  With regard to public procurement, Public Proc urement Legislation in Albania is generally in 
line with the European Directives in this area. The public procurement market in Albania is open, 
liberal and transparent. The provisions on  public procurement are implemented on a 
non-discriminatory manner. Albanian legislation in public procurement aims at a gradual transposition of the EU respective acquis and the efforts of public administration at this stage are 
dedicated in this direction. 
5.20.  Business environment is a priority of the Government of Albania. The policies in this regard 
are integrated in the Business and Investment De velopment Strategy 2014-2020, mirroring the EU 
strategy 2020. The focus of the policies are as following: 
Establish the necessary institutional framework to support trade and investment  policy.  
5.21.  The establishment of the National Committee on Trade Policy Coordination and Facilitation is 
a priority. The Committee will serve two fold objectives: (i) to comply with WTO TFA and respond 
to the needs of trade facilitation agenda in th e multilateral, regional and bilateral fora, and 
(ii) coordinate in a structured manner trade policy, through a sound monitoring instrument to be established. With the support of USAID, the rules of procedures, including the scope of work of the 
Committee, are being prepared. Albania intends to launch the establishment of the Committee and 
present the main outlines of the work plan for 2016-2017 within June 2016. 
5.22.  In addition, National Economic Council (NEC) and Investment Council (IC) are established in 
June 2014 and April 2015, respectively. These structures have different scope of work. None of 
them has a legally binding decision making power. There is no explicit correlation between these structures as their scope of work and target gr oup differ. However, the coordination among their 
agenda, results and activities needs to be ensure d and avoidance of any overlapping in their scope 
of work is of utmost importance. WT/TPR/M/337 • Albania 
 
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  5.23.  The objective of these institutions, with some differences though, aims to improve business 
climate, provide the opportunity to consult and discuss the main policy agenda to ensure 
sustainable growth, increase competitiveness and improve conditions for foreign investment. 
Public private dialogue  
5.24.  The 60 days mandatory requirement for prior poli cy and legislative consultation has created 
better mechanism for public-private dialogue. The main challenges in the implementation of this requirement are related to the dynamics of legi slation harmonization agenda and the speed the 
legislative process requires. The legislative planni ng does not specify the consultation period and 
therefore each institution should be aware of the binding requirement for consultation. In addition, 
alternative instrument for consultation may be introduced by state institutions (i.e. direct consultation through round tables) to complement the online consultation as foreseen by the law.  
Doing Business reform 
5.25.  GoA pursues a systemic evaluation of the ease of doing business and the way to address the 
private sector needs through specific policy reforms, with a view to address key obstacles to 
growth and competitiveness. The reform is led by  the Minister responsible for entrepreneurship 
and follows the National Plan on the ease of do ing business. The ranking of Albania in the Doing 
Business 2015 showed considerable improvement. Th e decline in the following report was mainly 
due to the reform on construction permit and the Administrative Territorial reform. During the 
current year, many reforms in the area of starting  a business, construction permit, getting energy 
and trading across border are undertaken. We be lieve that these reforms will result in the 
improvement of the overall ranking of Albania in the upcoming Doing Business report. 
5.26.  The National Business Center, recently established, provides a one stop shop for business 
registration and licensing. Introduction of the e- service for registration and licensing has already 
proven to be effective and well received by  the private sector. The procedure and general 
conditions of licensing and permitting are clearly stipulated in the national legislation, ensuring the 
application of any criteria and requirements on a non-discriminatory manner. The requirements and criteria are publicly available and their free online access is guaranteed.  
Facilitation of Customs Procedures  
5.27.  As recognized by all WTO Members in their interventions, development during the reporting 
period in the area of customs is appreciated. Th e new Customs Code of Albania, approved in 2014 
is effectively being implemented. The legal provis ions for AEO and the simplified export and import 
procedures, in force from 1 January 2015, and part ially harmonizing the EU Regulations in this 
regard, have created new potentials for trade faci litation. While being balanced between the trade 
facilitation needs and security and safety aspect, the new Customs Code ensures a better and 
simplified approach toward customs procedures. In addition, risk management and e-payment are 
introduced in the customs clearance procedures providing for facilitated procedures for the private sector.  
5.28.  Albania is a signatory of the Regional Conven tion on Pan-Euro-Mediterranean preferential 
rules of origin (PEM Convention) which has been in force since 1 May 2012. We have already made linkages of PEM Convention with CEFTA Parties and EU, while the linkage with Turkey is in process. 
Inclusion of Albania within the PEM system provides  for new potentials to reduce non-tariff barriers 
to trade and offer the opportunity to benefit from th e cumulation of origin of good with all trading 
partners having an FTA in force. 
5.29.  With regard to the concern raised by Member s on the difference between MFN rate and the 
bound rate for few tariff lines, Albania would like to inform that the legislative amendments have 
already started to comply with WTO obligations. However, Albania deems important to highlight that this difference was due to the correlations an d changes in the tariff classification. This was an 
incidental action with no intention to be in breach with WTO schedule of commitments.  
5.30.  Policies to attract Foreign Direct Investment are at the core of the Albanian Government 
Programme, National Strategy for development and Integration 2015-2020 and the Strategy for Business and Investment Development 2014-2020.  WT/TPR/M/337 • Albania 
 
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  5.31.  As acknowledged by WTO Members, Albania reva mped the practice in this regard through 
the introduction of the new law on strategic investment. The law on Strategic Investments aims to support foreign investors offering simplified proc edures and strengthening legal guarantees. This 
law is founded on two main elements: increasing contractual security of foreign and domestic 
investment and the adoption of "fast track" procedures by responsible agency. 
5.32.  This law encourages and supports domestic and foreign investments equally, in sectors such 
as energy, mining, transport and infrastructure , telecommunications, tourism, agriculture, 
technology and economic development areas an d priority development areas. There are no 
elements of financial or other incentives provided to the potential investors apart from the facilitation and the streamlining of procedural aspects. 
5.33.  The investment agency (AIDA) is the responsible administrative structure for providing 
services to investors in a "single window". AIDA performs the role of the assisting agent, and 
follows all the administrative procedures till th e realization of the investment project. In the 
meantime, AIDA is the Technical Secretariat of the Strategic Investment Committee, a collegial 
body leaded by the Prime Minister of Albania whic h has the right to approve the strategic status to 
the investment projects. 
5.34.  Progress has been made in the area of copy right. A new law on Copyright is approved, 
transposing a number of EC directives, aiming to ensure better protection of copyrights and 
related rights, as well as technological protection measures. The new law provides, among others, provisions on transparency, payments to right holders, alternative dispute resolution procedures etc. The new Copyright law is in full harmony with the Directive 2001/29/EC of the European 
Parliament or InfoSoc Directive and provides for compensation for the right holders for using a 
private copy of the work, and has foreseen the mechanisms to make possible the implementation 
of this provision. These provisions are fore seen in the Articles 130 and 131 of the law. 
5.35.  Other legislative changes have been made to incr ease the level of protection with regard to 
IPR. Therefore, penalties in infringement of copyright are included in the Penal code, Civil Procedures Code, Civil Code and Custom legislation.  
5.36.  The new law provides the necessary criteria that Collective Management Organizations 
(CMO) have to meet in order to perform collective  rights management in Albania. These criteria, 
elaborated in full in the advanced answers, are defined in the Article 133 of the law on copyright. 
5.37.  The enforcement of the provisions on copyri ght is included in the above legislation 
mentioned. The enforcement IPR related provisio ns are ensured at the border and behind the 
border. The recent established Market Surveillan ce Inspectorate is responsible to oversee the 
market to increase the level of protection of IP rights. In addition, the General Directorate of 
Customs implements the IPR provisions in a way that the level of protection be similar to that of 
the EU. Concerning the Marrakesh Treaty and the Be ijing Treaty, Albania plans to ratify that in 
2018. 
5.38.  With regard to the registration of the industrial  designs, the law on pr otection of Industrial 
Property does not protect the product design if it contains a national seal, flag or emblem, the name or abbreviation of the name of a country or international organization. This provisions are drafted in light of Article 25 of TRIPS. 
5.39.  With regard to the extensions of the actual FTAs with provisions on trade in services and 
investment, Albania is currently negotiating with Western Balkan countries to liberalize trade in services with a view to reach GATS+ level of commitments. Albania has expressed its readiness to 
negotiate trade in services with Turkey but no concrete development is made in this regard. 
5.40.  With regard to concerns raised for the visa regime, Albania would like to inform that the 
process of harmonization of the national legislation on foreigners with EU respective acquis is in 
progress. The implementation of the provisions is non-discriminatory, although in specific cases 
delays may occur. 
5.41.  Albania considers the second Trade Policy Review as important as it will help in orienting 
upcoming reforms in trade. We intend to present th e results of the review in a National Conference WT/TPR/M/337 • Albania 
 
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  to be organized shortly and we would very much appreciate to have the support of the WTO in 
presenting the results of the second TPR of Al bania together with the Albanian institutions. 
5.42.  By concluding, on behalf of the Albanian delegation, allow me to thank once again, Madam 
Chair, for her excellent chairing of the second TP R of Albania, the discussant, H.E. Mr. Matt for his 
outstanding remarks on the Albanian economic and trade performance and all the WTO Members 
for their appreciation and interest shown for Albania. 
5.43.  A special thanking goes for Mr. Hayafuji an d Mr. Latrille from the WTO Secretariat in 
preparing the Secretariat report, presenting in details the achievement and progress made by 
Albania during the period in review.  
DISCUSSANT 5.44.  Let me start by thanking Deputy Minister Ervin Mete and his delegation for the hard work 
they put into this second TPR of Albania and for the comprehensive answers you provided to the 
questions submitted by Members during Day 1 and in your statement just delivered. Your open 
and constructive approach throughout the TPR has allowed for a fruitful and enriching dialogue 
within this Body.  
5.45.  Generally, Members commended rightly Albania for being a strong supporter of the 
multilateral trading system and for its commitment to trade liberalization. Members also acclaimed 
Albania for its extensive commitments as an Article XII Member of the WTO. 
5.46.  Members furthermore applauded Albania's ratifi cation of the Trade Facilitation Agreement 
prior to Day 1 of the current TPR. They also we lcomed the simplification and the adoption of the 
new customs code.  
5.47.  Members also welcomed Albania's engagement during the negotiations on the expansion of 
the Information Technology Agreement.  
5.48.  Albania was also encouraged to facilitate the accession process to the GPA while Members 
welcomed Albania's effort to align its legislation with the EU acquis.  
5.49.  Members welcomed the relatively low applied tariffs. One Member noted, however, with 
concern that applied MFN tariffs for some tariff li nes exceeded their corresponding bound rates and 
urged Albania to remedy this fact. Albania has already undertaken legislative measures to remedy 
that which is very much appreciated. 
5.50.  Another delegation raised concerns regarding Albania's sanitary and phytosanitary 
measures, especially the ban on the use of hormones in food and products of animal origin 
including for imports.  
5.51.  Members encouraged Albania to pursue the conclusion of economic and technical 
cooperation agreements, as well as to include services and investment chapters in its RTAs. A 
Member also showed interest in Albania's intention to open up further sectors as public 
procurement, energy, health and tourism. 
5.52.  Members noted that economic growth weakened as a consequence of the 2008 International 
crisis until 2013 and that economic recovery was well under way since then. They also 
acknowledged that Albania's economy has been resilient during the crisis and that Albania successfully maintained macroeconomic stability in a turbulent environment. One delegation also raised concerns regarding the high number of non-performing loans in the financial sector that 
needed to be addressed and we also have heard in the statement today that the situation has 
already improved.  
5.53.  Several Members were concerned by the high unemployment rate that has further risen up 
to 17.5% in 2014, the growing current account deficit and the low productivity in agriculture. WT/TPR/M/337 • Albania 
 
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  5.54.  Albania was praised with good reason for th e reforms already undertaken, some of them 
recommended during the first TPR in 2010. This has considerably improved its legal, regulatory and institutional framework. Members, however, also noted that further reforms were needed. 
5.55.  Several Members noted that Albania's process to accede to the European Union posed 
challenges and opportunities for Albania. Members also considered it to be an important driver for 
economic, institutional and legal reforms. They welcomed the adoption of a National Plan for European Integration and a short time action plan. 
5.56.  Members highlighted the need to pursue the re form of the judiciary and underlined that the 
rule of law and legal certainty are essential for a vibrant and sustainable business environment. In their statements, Deputy Minister Ervin Mete and Mrs. Kastrati also underlined that this is a high priority for the Albanian Government. 
5.57.  Members welcomed the institutional and structural reforms undertaken by Albania to better 
coordinate trade policy with the establishment of the National Economic Council, the Investment Council and the National Committee for Trade Policy Coordination and Facilitation. They also 
praised the revamping of Albania's investment sector and the adoption of a new investment and 
business development strategy. 
5.58.  Members commended Albania for the results achieved in the fight against corruption and 
informality. However, Members also noted that fu rther progress is needed to make Albania more 
attractive for trade and investment and showed interest to know more about its efforts reducing the size of the informal sector.  
5.59.  Delegations welcomed the reforms carried out by Albania in the area of intellectual property 
law aimed at strengthening the enforcement of in tellectual property rights. They also showed 
interest to hear more about the state of implementation and the effect on enforcement of IP laws. 
5.60.  To sum up: it is fair to say that Albania was rightly praised for its commitment to the 
multilateral trading system and to further liberali zation of trade policy. With good reason, Albania 
was also commended for the transformation it has achieved since the early 1990s and since the first TPR in particular. The accession process to the EU has been and continues to be the main 
driver for reforms in many areas. But many challenges still lie ahead of Albania in its pursuit of EU 
membership. I wish Albania a lot of success in its future endeavors. I also appreciate your statement on how you intend to follow up with the results of the TPR.  
5.61.  Finally, I would like to congratulate the delegation of Albania for the great work in this TPR, 
and thank you for the honor of having me as the discussant. 
EUROPEAN
 UNION 
5.62.  The EU would like to take this opportunity of  the second day of the meeting to thank and 
commend Albania for the comprehensiveness of th e replies provided in advance to our advance 
written questions. We would also like to express appreciation for having chosen the alternative timeframe. 
5.63.  The EU only had one additional question on th e application of the new copyright law that we 
submitted in writing yesterday to Albania. We al ready have received the reply so we thank very 
much Albania for this efficient response. 
5.64.  Concluding, we would like to thank Albania for the interventions today and on Wednesday 
that provided additional useful information to the many areas of interest to the EU. We would like 
to wish all the best to the delegation in finalizing this review. WT/TPR/M/337 • Albania 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The second Trade Policy Review of Albania has pr ovided us with a good opportunity to better 
understand the recent developments of its trade an d related policies since its previous Review in 
2010, as well as the challenges Albania is facing.  
6.2.  Our discussion has benefitted from the contributions made by the Albanian delegation, 
headed by Mr. Ervin Mete, Deputy Minister in th e Ministry of Economic Development, Tourism, 
Trade and Entrepreneurship and the Second Day statement by Mrs. Kastrati; the discussant, 
Ambassador Peter Matt, Permanent Representative of Liechtenstein to the WTO; and all the 
Members that took the floor. 
6.3.  In their interventions, many Members commended Albania for its continued economic growth. 
They also commended its institutional and economic reforms, including the reduction of trade 
barriers, privatization of state-owned enterprises,  and fiscal consolidation. They noted, however, 
that Albania was confronted with high unemployment and non-performing loans. Some Members asked about Albania's plan to formalize economic activities. Some urged Albania to undertake 
further structural reforms, diversify its economy, strengthen the judicial system, and improve its 
investment climate. Some applauded Albania's efforts to fight corruption and streamline administrative procedures. 
6.4.  Regarding trade and investment policies in particular, Members commended Albania for the 
establishment of three new relevant bodies, namely the National Committee for Trade Policy Coordination and Facilitation, the National Economic Council, and the Investment Council. Members were interested in learning more about them. 
6.5.  Members recognized Albania's efforts in liberalizing and facilitating trade. Examples 
highlighted included the reduction of tariffs while maintaining a simple tariff structure, the adoption of a new Customs Code, and amendments  to its government procurement legislation. 
They commended Albania for not having taken an y anti-dumping, countervailing, or safeguard 
measures since its accession to the WTO in 2000. However, Members had concerns about issues including the time required for customs clearance, some applied MFN tariff rates exceeding the 
bound rates, its use of sanitary and phytosanitar y measures and food standards, transparency and 
predictability of its investment regime, and the application process for work visas. Members were interested in learning more about Albania's re vised investment policies, customs procedures, 
reforms in its intellectual property regime includ ing the new copyright law, the law on state aid, 
agricultural policies including domestic support, and its intentions to liberalize certain economic 
sectors including energy and health. 
6.6.  Commenting on its international trade relations, Members appreciated Albania's commitment 
to the multilateral trading system, noting that many of its domestic reforms actually had been 
guided by WTO principles. They congratulated Albania on having deposited its instruments of acceptance for the Trade Facilitation Agreement, acknowledged its participation in the expanded 
Information Technology Agreement, and enquired abou t its plans, if any, to join the Agreement on 
Government Procurement in the future. 
6.7.  Members noted that Albania did not enter into any new regional trade agreements during the 
review period, but had obtained in June 2014 the status of candidate country for accession to the 
EU, which provided strong incentives for Albania to harmonize its legislation with that of the EU in 
various areas based on the 2009 Stabilization and Association Agreement. 
6.8.  In the context of this review, Members commended Albania for its use of the alternative 
timeline for handling written questions and answer s. Indeed, Albania has already responded, in a 
very timely manner, to all advance written questions. I think Members would appreciate that, just as Albania would feel encouraged by the importance  that Members have attached to this exercise. 
I hope the delegation will bring home the constructive comments that it has received, and further 
develop its economic and trade policies, with a view to enhancing its competitiveness in the global economy, and making further contributions to the multilateral trading system. 
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