WT/TPR/M/290  
14 January 2014  
(14-0167)  Page: 1/22  
Trade Policy Review Body 
27 and 29 November 2013   
 
  TRADE POLICY REVIEW 
THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA  
MINUTES OF THE MEETING 
Chairperson: H.E. Mr. Joakim Reiter 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE REPRESENTATIVE OF THE FORMER YUGOSLAV 
REPUBLIC OF MACEDONIA ............................................................................................... 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 7  
4  STATEMENTS BY MEMBERS ........................................................................................ 10  
5  REPLIES BY THE REPRESENTATIVE OF THE FORMER YUGOSLAV REPUBLIC OF 
MACEDONIA AND ADDITI ONAL COMMENTS ................................................................... 17  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 21  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by the former Yugoslav Republic of Macedonia are reproduced in document 
WT/TPR/M/290/Add.1 and will be available online at http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The first Trade Policy Review of the former Yu goslav Republic of Macedonia was held on 27 
and 29 November 2013. The Chairperson H.E. Mr Joakim Reiter (Sweden) welcomed the delegation of the former Yugoslav Republic of Macedonia headed by Mr. Hristijan Delev, Deputy 
Minister of Economy; the rest of the delegation; colleagues from the mission in Geneva; and the 
discussant, H.E. Mr. Martin Eyjólfsson (Iceland). 
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 the former Yugoslav Republic of Macedonia was 
contained in document WT/TPR/G/290 and that of the WTO Secretariat in WT/TPR/S/290. 
1.3.  Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delega tion of the former Yugoslav Republic of 
Macedonia: China; Canada; Republic of Korea; EU; United States; Mexico; and India. The following 
delegations submitted written questions after the two week deadline: Thailand and Brazil. 
1.4.  First, the Chairperson recalled to delegations that this was the first trade policy review for the 
former Yugoslav Republic of Macedonia, which acceded to the WTO in 2003, becoming its 146th 
Member. In the decade since accession, the country  had been engaged in the reform of its trade 
and related policies with the aim of bringing domestic legislation into line with WTO requirements 
and with the EU single market regulations and common policies. The former Yugoslav Republic of 
Macedonia had thus initiated new and amended legislation in many areas, including company registration, privatization, customs, governme nt procurement, standards and SPS measures, 
competition policy and intellectual property. The Secretariat report pointed out that, overall, the 
regulatory framework for trade had undergone si gnificant improvement and the Government was 
rightly focusing on consolidating and effectively implementing recently adopted laws and regulations.  
1.5.  The Chairperson' second remark was that the reports provided considerable detail on the 
status of work carried out in different policy areas, which had been commented upon by Members in the questions they had submitted. The issues and related questions were too numerous to list 
but a few stood out. These included, but of course  were not limited to: foreign direct investment, 
government procurement, certain export measures and intellectual property protection. 
1.6.  Foreign direct investment had become the corn erstone of future export-oriented growth and 
in their questions Members had shown particular interest in how the Macedonian authorities were 
making the investment climate more stable, transparent and predictable with access to reliable 
dispute resolution.  
1.7.  At the time of WTO accession, the Government noted that it was giving consideration to 
starting negotiations for membership of the Government Procurement Agreement. Ten years on, 
the country had obtained (this year, in fact) observer status in the Government Procurement Committee and Members had raised questions about possible future membership of the GPA as 
well as the functioning of the reformed governme nt procurement system in the former Yugoslav 
Republic of Macedonia. 
1.8.  On the export side, Members wanted to know mo re about the rationale for introducing export 
restrictions, including temporary export bans on wheat flour. Regarding export finance and export 
promotion, Members were interested to know more about the activities of the Macedonian Bank for 
Development and Promotion which, inter alia,  provided financing to export-oriented companies. 
1.9.  Regarding intellectual property protection, notwithstanding a comprehensive and recently 
updated legal framework, it had been noted that  progress regarding enforcement in recent years 
had been uneven and intermittent. This had given rise to questions by Members on IP enforcement in areas such as the investigation of pirated good s by Customs, the role and effectiveness of the 
Coordination Body for Intellectual Property and the question of protection for unregistered 
well-known trademarks. 
1.10.  These issues, as well as others such as the need to update outstanding notifications, were 
potential subjects for debate in these deliberations and the Chairperson imagined that recent WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  changes to the trade regime would be elaborat ed upon in more detail in the introductory 
statements by the former Yugoslav Republic of Macedonia and the Discussant. 
1.11.  The Chairperson also noted that a podcast would be made of this TPRB meeting. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF THE FORMER YUGOSLAV 
REPUBLIC OF MACEDONIA (MR. HRISTIJAN DELEV) 
2.1.  We would like to express a pleasure in participating to the First Trade Policy Review of the 
Republic of Macedonia. We believe that this is an opportunity to present the situation in Macedonia 
in terms of trade and economic policy since the accession, and thus contributing to greater 
transparency in respect of the multilateral trading system.  
2.2.  We are very grateful to H.E. Mr Eyjolfsson, Am bassador of Iceland, who has accepted the role 
of discussant and appreciate the efforts of the Secretariat in preparing the first Report on 
Macedonian trade policies and practices. Also, we like to thank WTO Members for the number of questions submitted to us.  
2.3.  My statement will be focused on three important issues: first, I will give an overview of the 
recent economic performance and achievements; se cond, the important reforms introduced in the 
country will be pointed out; and finally, the in tegration into the regional and world economy and 
Doha Round of trade negotiations. 
Recent economic performance and achievements 
2.4.  The Republic of Macedonia is the 146th Member  of the World Trade Organization as of 
4 April 2003. WTO membership, conclusion of the Stabilisation and Association Agreement with the 
European Union and free trade agreements with parties of the region and Europe (in total 
40 countries so far) in the past ten years are the key events of Macedonia’s trade policy for the integration into the world economy. The country's total trade in goods and services is about 128% of GDP. 
2.5.  Over the past years of global financial and economic crisis, Macedonian monetary policy 
keeps playing an essential and challenging role to have sustainable macroeconomic stability and to support the economic situation in the country. Macedonian economy started to recover in the 
second half of 2012, as the economic activity decrea sed in the first half of that year. Higher growth 
rate of gross investment by 16% in 2012 limited the possible decreasing of GDP as mostly caused by negative impact of net exports. Positive tr ends in 2013 as the GDP economic growth shows to 
be 2.9% in the first quarter and 3.9% in the second quarter. 
2.6.  The average growth in the first half of this ye ar amounted to 3.4%, which is considered as 
good achievements beyond crises period. Positive trend of GDP growth is registered mostly in all sectors, therefore the construction activities contributed mostly in the total value of economic 
growth, and the real growth rate is 34.5%. Servic es sector grew by 1.9%, while the growth in 
agriculture is 0.6%. Industrial production growth is 4.1%, by following the growth of 0.7% in the 
preceding quarter. The GDP is expected to be 3.3% for 2013. 
2.7.  Positive development is shown in the real sector, by reflecting the labour market trends. The 
unemployment rate in the second quarter of 2013 is reducing.  
2.8.  In the coming medium-term period, the macroeconomic policy will be focused on the financial 
and macroeconomic stability tracking, on enhancin g the competitiveness, on improvement of the 
business environment, and on encouraging and attracting foreign and domestic investment. In the period 2014-2016, the economic activity is expected  to grow on average base by 3.8%, with the 
intention to be even intensified. The economic growth for 2014 is projected to be 3.2%, up to 
3.8% in 2015 and 4.5% in 2016, according to resent analysis of approximate projecting. 
Important reforms introduced in the country 2.9.  In time of globalization and higher competitive pressure, the economic policy of Macedonia in 
the recent years is focused on implementing re forms by providing higher  level of environment 
conditions and standards for the business sector and the business climate, as well creating new jobs and higher employment. The competitiveness as a process is considered as one of the priority 
in the Macedonian economy, which implements various documents: strategies, policies and 
programmes that have direct influence on entrepreneurship development, innovation, technological-scientific work, export and import as trade flows, attraction of investments, etc.  WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  2.10.  Over the last few years, a comprehensive regulatory reform has been implemented by 
introducing Regulatory Guillotine and Regulatory Impact Assessment – RIA for simplification of procedures for doing business, by establishing a one-stop shop for company registration including online registration and widening the range of e-government services. The World Economic Forum 
Report 2013/2014 on Global Competitiveness (Global Competitiveness Index) says that Macedonia 
has improved its rating for 7 positions up an d is ranking on 73rd (out of 148 economies). 
2.11.  The establishing of the electronic One-Stop -Shop system of import and export licenses 
(EXIM) at the end of 2008, a substantial progress, is provided in customs operation, by creating 
free movement of goods. The special internet portal enables the economic operators to submit request for obtaining an import or export licenses as issued by relevant state institutions. Also, the importers can electronically submit applications for tariff quotas distribution available pursuant to 
the free trade agreements based on “first come first served” principle.  
2.12.  In recent years, the Government of the Republic of Macedonia provides great efforts to 
attract investors in the country. According to the last  data in the first half of 2013, the FDI inflows 
have increased by 44% compared to the same period last year, amounting €101.4 million. In the 
first half of 2013, FDI inflows picked up again, reaching 2.7% of GDP. As of countries, Great Britain; Austria; Turkey; Belgium; Netherlands; Germany; Slovenia; and Greece are the biggest 
investors, providing over half of the total foreign investment stock. 
2.13.  The investments contributed to the acceleration of the economic growth of the country by 
creating new jobs, increasing productivity and competition, industrial specialization, the transfer of sophisticated technology, faster access to the global market, transfer of management skills, 
introduction of innovations, as well as higher integration of the country in the international trade. 
The corporate income tax rate is 10%, value added tax is 18% on general base and 5% as preferential tax rate, property tax is 0.2% and sales tax on real estate is between 2-4%. 
2.14.  According to the latest Report of World Bank and IFC, the Republic of Macedonia for the 
fourth time is among the top ten economies in the world where business and regulatory 
environment have been the most improved in 2013-2014, ranking on 25th position.  
2.15.  Currently, 31 economic promoters are engaged for active promotion of investment 
opportunities and export potential of the Repub lic of Macedonia to the United States, Canada, 
Brazil, EU members, Russia, Qatar, China, Malaysia and Japan. For the future, the Agency for Foreign Investments and Export Promotion (Invest Macedonia) will continue to provide efforts in 
attracting investors in target countries through promotional events called Road shows led by senior 
government officials (including the Prime Minist er and Deputy Prime Ministers), by directly 
addressing the investment incentives.  
2.16.  Additionally, the Invest Macedonia has developed a database of locations that are offered for 
sale, joint venture or lease, and those can be found on its website. In this way, the potential investors are provided with direct, easy and quick access to interested locations, in order to 
implement their visible projects. 
Integration into the regional and world economy and Doha Round  2.17.  Since the accession to the WTO, Macedonia has consistently pursued to be a country with an 
open and transparent trade regime fully compatible  with WTO rules and disciplines. Despite all the 
challenges and economic uncertainties ahead, Macedonia strongly sticks to its commitment to 
follow the reforms, and to foster the necessary steps in providing free treatment, and fair and 
sustainable trade and investment, by respecting its integration into the world economy.  
2.18.  The Government of the Republic of Macedonia implements a number of trade and 
trade-related measures to help the economy to over come the crisis. Measures that facilitate trade 
and trade flows have been introduced in particular reduction and elimination of customs duties on 
more than 700 tariff lines such as manufacturer imputes machinery and equipment in metal 
processing industry, textile, agriculture, etc.   
2.19.  For the purpose of opening new markets during the review period, the Republic of 
Macedonia approaches to further trade liberalization of goods through concluding free trade WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  agreements with the neighbouring countries an d the region: the SAA, CEFTA 2006, EFTA, Turkey 
and Ukraine. Trade integration of Macedonia with the EU progressed further: over 73% of total exports have been destined to the EU in the firs t half of 2013, compared to 65% a year earlier. 
Macedonia has been a candidate country for EU membership since 2005, and the recommendation 
given by the European Commission for starting negoti ation is given five years in a row already.   
2.20.  The Republic of Macedonia strongly supports the strengthening and implementation of the 
functions of the WTO and the Doha Round of trade negotiations. We are aware of the complexities 
and challenges of the Doha Round and hope that flexibilities in positions on the key areas will be 
achieved and that the Bali Ministerial Conference  will ensure progress and successful negotiated 
outcome.  
2.21.  We believe that the negotiations in agriculture are moving in direction of creating a fair and 
market trading system and Macedonia supports reforms in all three pillars (market access, 
domestic support and export subsidies). During the accession, in spite of the fact that agricultural sector in Macedonia was in transition, the rules for developed countries were applied. Macedonia is 
committed to a very low level of domestic support, implements substantial market access 
commitments and provides no export subsidies.  In this context Macedonia is supporting the 
positions recognizing a more favourable status for the Recently Acceded WTO Members. 
2.22.  On non-agricultural market access, Macedonia supports position of the Very Recently 
Acceded Members to be excluded from further tariff reductions, considering the numerous market access commitments that have been undertaken during accession. Similarly, in the services area, the Government of the Republic of Macedonia is of  the view that the account should be taken of 
the extensive market access commitments made during the accession.  
2.23.  As a land lock country Macedonia is supporting negotiations on trade facilitation of 
improving and clarifying relevant aspects of GATT provisions. On TRIPS, the country follows the 
negotiations regarding public health, extendin g the list of patents regarding protection of 
biodiversity and traditional knowledge and achieving a higher level of protection of products with 
geographical indication. Macedonia has ratified the Protocol for Amending the TRIPS Agreement. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I want to begin by welcoming the delegation of  the former Yugoslav Republic of Macedonia, 
headed by Vice Minister of Economy Mr Hristian Delev, and thank you for your opening statement. 
I would also like to thank Macedonia and the Secretariat team for their high-quality reports. They 
form a good factual basis for our discussions.  
3.2.  I am honoured to take part in the Trade Policy Review of the former Yugoslav Republic of 
Macedonia knowing it is a country of splendid nature and rich historical and cultural heritage. 
3.3.  The sizable Macedonian delegation – from seven ministries and agencies - reflects the 
importance that Macedonia attaches to the WTO,  this review and the opinions of other WTO 
Members. It also reflects the complexities of administering a cross-cutting trade agenda, where competencies are shared by many ministries. Th e presence of the Macedonian delegation will 
facilitate a detailed exchange of views and ensure  that our open and frank discussions are shared 
throughout the relevant parts of the Macedonian administration.  
3.4.  Both of you have already provided overvi ews of the major recent developments in 
Macedonia’s economic policy and trade. To avoid du plication, and for the sake of brevity, I will 
limit myself to some general observations that resonated with me as I reviewed the reports.  
- Firstly I will touch upon Macedonia’s economic development in a broader context.  
- Secondly, I will devote part of my intervention on the trade policy and focus especially on 
 how Macedonian authorities have improved their business environment by various means. 
- Finally, I will discuss the main challenges ahead for Macedonian authorities.  
The Economic development in a broader context 
3.5.  For starters, I want to put Macedonia’s economic development into a broader perspective.  
3.6.  Although statistics normally flood my life with unhappiness, Macedonian ones do not. They 
are impressive. Looking back at the approximat ely two decades of independence, the economic 
development of Macedonia has been very positive. Macedonia had some teething problems when it 
was taking its first steps in the early nineties with a negative growth of up to 7.5% in 1993. But after that, Macedonia has enjoyed constant growth - and really handsome growth in most years. 
There are in fact only two exceptions. The conf lict between the Government and ethnic Albanian 
insurgents in 2001 and the financial crisis.  
3.7.  Indeed, Macedonia did weather the recession quite well, amazingly well indeed. With only 
0.9% negative growth in 2009 and then consistent growth of around 3% thereafter. Earlier this 
month, Central Bank Governor Dimitar Bogov told the media that “growth for 2013 has been 
revised upwards to 3.3% and that next year growth was expected to reach 3.7%". In 2015 the growth is forecasted at 4.4% which is a cause of envy for most of other European countries at 
least. 
3.8.  The long-term trend is unmistakably positive and this economic performance shows 
remarkable resilience and must be commended.  
3.9.  By the way when talking about your GDP levels I must mention one thing. I noticed that in 
the first quarter of 2012 you had a decline of 8.1% in the construction industry because of bad weather. Well, Icelanders know a thing or two about that. I can promise you that we can teach you how to build a house in a bad weather. Indeed, there are very few houses built in sunshine in 
Iceland so if you want to avoid a recession in your construction industry feel free to come to 
Iceland. 
3.10.  On a more serious note, I think it is safe to say that another cause of envy for us that live in 
this part of the world (not to mention Iceland) is the debt situation. A public debt to GDP ratio of 
only 30% gives hope for a bright future. This situation gives you leeway to invest in the necessary infrastructure reforms, in roads, railways, education and R+D.  WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  Improved business climate – Trade Policy 
3.11.  I will now turn to how Macedonian authorities have in recent years strived for improving 
general conditions for businesses, inter alia,  through its trade policy.  
3.12.  There are many things that affect the willingness of both domestic and foreign investors. 
One factor, that can not be underestimated, is stability and foreseeability.  
3.13.  The exchange rate strategy (that is pegging th e Denar to the Euro) has proven to be quite 
successful in maintaining low and stable inflation, close to the EU average for the past seventeen 
years. Indeed, the inflation rate has constantly remained below 3% since 2007 and the exchange 
rate has been almost unchanged over the past 13 years. 
3.14.  Furthermore, the Government has been investing in technological industrial development 
zones (TDZs), characterized by good access to infrastructure and tax incentives. This has 
contributed and will continue to encourage foreign investments - the cornerstone of future export-
oriented growth. Currently there are nine established TIDZs in FYROM out of which four are functional with 1270 employees and those numbe rs have doubled in less than two years. 
3.15.  Recently, the country has been successful in attracting significant Greenfield FDI, in 
particular in the automotive industry. The shif t towards Greenfield FDI reflects the country’s 
investments-related strengths. This includes: low labour costs and taxes; geographical proximity 
to western and central Europe plus Turkey and a number of investment incentives. The inflow in 
the first quarter of 2013 of FDI was almost 80% up from the same quarter the year before with most investors coming from Turkey, USA or the older EU member states. 
3.16.  Strong adherence to the disciplines of the mult ilateral trading system and the standards of 
other international trade agreements is an integral part of making the country an attractive 
destination for foreign investors and contributes to the favourable business environment. In the ten years of Macedonian Membership of the WTO, domestic legislation has been brought into line 
with WTO requirements to a large extent and the EU membership aspirations have brought the 
country into line with EU legislation in many impo rtant areas. This has resulted in the review and 
updating of almost all trade-related legislation in the country. 
3.17.  In addition to this, Macedonian trade is strongly oriented towards its FTA partners with 90% 
of its exports and nearly 80% of its imports carried out under the FTAs.  
3.18.  The Macedonian authorities have cut red-tape considerably for the past years and made 
vast improvements for economic operators. A confirmation of this can be found in the most recent 
Doing Business Report where the former Yugoslav  Republic of Macedonia ranks number 25 out of 
189 economies and has made a big leap forward in almost every topic measured. To name an example, it takes only two days to start a company in the country compared to 11 in OECD 
countries and the cost is only half compared to the latter. 
Challenges 3.19.  With one of the highest unemployment rates on the European Continent, the biggest 
challenge for Macedonian authorities in the years to come is to create more jobs, especially for the 
young people. In a recent report on migration, th e European statistics agency EUROSTAT said that 
from 1998 to 2011, some 230,000 people left Macedonia to work and live abroad. 
3.20.  The figure represents more than 10% of th e country’s population of 2.1 million. But 
EUROSTAT said that the figures are not final and could be much higher, because they do not 
include those Macedonians who have left the country and are living abroad without official permission. 
3.21.  Most agree that the main driving forces behind the trend are low salaries and high 
unemployment, at almost 30%. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  3.22.  Admittedly emigration to wealthier EU countries and elsewhere is a trend in most eastern 
European and Balkan countries. But this should not be a consolation for the Macedonian authorities which are striving to keep the “young and bright” in the country. 
3.23.  Maybe a lesson could be learnt from the ex periences of Sweden and Finland when they 
entered into a financial and economic crisis in the late nineties. Their response was to invest 
heavily in the educational system and research an d developments. This marked the beginning of a 
new and prosperous era for both countries and underpinned their present position as frontrunners 
in many high tech industry areas. 
3.24.  With the envious debt to GDP ratio of Macedo nia this is not only possible and doable, but 
should be one of the first if not the first priority in my view. 
3.25.  Making the country a more attractive place to live in would be further enhanced by 
improving general living conditions and by strengthening the rule of law. Although the former 
Republic of Macedonia is ranking number 76 out of 176 countries by Transparency International 
and is scoring higher than all of its bordering neighbours, the country is still regarded as 
“significantly corrupt”.  
3.26.  As a Discussant, I chose to look at economic and trade policy of the former Yugoslav 
Republic of Macedonia from a bird’s eye view; to  explore the interplay between the comprehensive 
economic strategy and trade; and to raise some  of the strengths and weaknesses of the current 
regime. There are certainly many other important issues, specific trade related issues that I did not touch upon in detail but that will certainly be raised by the Members.  
3.27.  It is of crucial importance for the country to combat unemployment and continue to lure 
foreign investors into the country. By that, the country confirms its place as a new and growing 
investment destination. One of the challenges is  the still unresolved dispute with Greece that has 
an impact on Macedonia’s international relations and ability to join international organizations. 
However, the priority given by the current Government to economic development has materialised 
into a range of generous tax incentives and a generally improved business climate. The country’s EU candidate status is a powerful endorsement of trust between Macedonia and the international 
community. 
3.28.  Recently acceded EU members have almost without exception experienced a huge FDI 
boost. Hopefully, this will be the case when the country will enter the EU.  
3.29.  However, if your lake of patience will  dry, you are always welcome to EFTA. 
3.30.  It has been an honour and great pleasure to act as a Discussant in the first day of this trade 
policy review. I thank you for this opportunity. I wi sh the Macedonian delegation a very successful 
Trade Policy Review.  WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  4  STATEMENTS BY MEMBERS 
CANADA 4.1.  I congratulate the Government of the former Yu goslav Republic of Macedonia on the occasion 
of its first trade policy review at the WTO,  and welcome the delegation led by Deputy 
Minister Delev. Indeed, since joining the WTO, the Government has made considerable progress in 
implementing policies that foster growth while maintaining prudence in macroeconomic and financial policy. Indeed, monetary policy has been successful in maintaining inflation at low and 
stable levels while keeping both Government an d external debt within manageable, moderate 
limits. And the former Yugoslav Republic of Macedonia has negotiated an impressive array of bilateral agreements in support of trade and economic cooperation, including free trade agreements, investment promotion and protection agreements and double taxation avoidance 
agreements, evincing its commitment to remain open  to trade, a goal that Canada both applauds 
and itself ambitiously pursues. 
4.2.  Many of these measures were undertaken as part of the reform efforts aimed at accelerating 
the former Yugoslav Republic of Macedonia’s accession to the European Union. But ultimately, 
what is most admirable is that, as the Deputy Minister highlighted, the country is sensibly framing its trade policies in the context of overall co mpetitiveness, integrating structural reforms, 
regulatory modernization, trade and investment. Canada takes due note of the Government’s 
comprehensive and on-going review and renewal of trade-related policy and legislation, as it continues its work to align with both WTO requirements and EU’s "acquis communautaire". 
4.3.  The Government deserves credit for the important strides it has made in improving the 
business environment. This is as amply demons trated by the former Yugoslav Republic of 
Macedonia’s ranking of 23rd in the World Bank’s “Doing Business 2013” report, the highest in South East Europe. 
4.4.  Permit me to briefly identify a number of areas that merit focus in the former Yugoslav 
Republic of Macedonia’s on -going reform efforts. 
4.5.  First, what I might term “investor relations”, as the Ambassador of Iceland emphasized.  
Several Canadian companies are currently actively pursuing opportunities in the extractive and 
infrastructure sectors. Key to sustaining investor confidence is a predictable and transparent business climate, one which respects shareholder rights and recognizes the validity of existing agreements, contracts and licenses. In this context, the manner in which the Government 
authorities conduct their relations with key existing investors is a critical factor in attracting new 
foreign investors. 
4.6.  Secondly, we note with interest the introduction  of an electronic system for the issuance of 
import and export licenses, the so-called “EXIM”, and welcome the Deputy Minister’s confirmation 
that the Government will seek further refinements and simplification of related procedures, as noted in the Secretariat’s Report. 
4.7.  Thirdly, Canada notes the Secretariat’s observation to the effect that product certification is 
at an early stage of development and we encourage Government authorities in their efforts to make progress in this area, which has a direct link to future trade flows. More generally, the Deputy Minister, the Chair, the Secretariat and the Discussant all confirm that the country’s 
trade-related regulatory framework has seen significant improvements in recent years and we 
certainly wish the former Yugoslav Republic of Macedonia every success in coming years as they work to consolidate and implement these newly amended laws and regulations. 
4.8.  Fourthly, as a landlocked country, and given the importance the former Yugoslav Republic of 
Macedonia places on increasing trade and attrac ting more FDI and tourism, we agree with the 
Secretariat regarding the need for further investment in and liberalization of the air transport 
sector. Canada commends the Government’s success in negotiating numerous bilateral air 
transportation agreements, including with Canada.  WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  4.9.  Fifthly, Canada also encourages the former Yugo slav Republic of Macedonia to take steps to 
modernize and improve access to financial services, an enabling sector that can facilitate growth throughout the economy.  
4.10.  Finally, Canada has submitted written questions that reflect our concerns regarding several 
trade-policy related measures that may impede market access or otherwise constrain mutually 
beneficial growth in trade and investment between our two countries. We look forward to the former Yugoslav Republic of Macedonia’s responses, and more generally to a constructive 
exchange of views on all related aspects of trade policy. 
CHINA 4.11.  China is very happy to see that, during the re view period, the former Yugoslav Republic of 
Macedonia has made progress in areas such as promoting growth, stabilizing the macroeconomic 
and financial environment against external shoc ks and increasing improvement of the business 
environment. 
4.12.  China highly commends the country’s great effort towards integration in the multilateral 
trading system, integration in the EU and regional trade integration. On plurilateral, China wants 
to highlight some significant improvements the country has made on its trade regime towards accession to the EU, such as company registrati on, customs, government procurement, standards 
and SPS measures, competition policy, and intellectual property, which we think will in turn benefit 
its cooperation with all WTO Members in the long run. On multilateral, since its accession to the WTO, the country has declined its simple average applied tariff from 11.1% in 2004 to 8.5% in 2013, and increased the coverage of bound tariff lines from 79.4% in 2003 to 100% by 2012 with 
thousands of tariff lines eventually bound at zero, and eliminated or not reintroduced non-tariff 
measures. It is also worthy of noting that the country has opened and liberalized the market of 115 of 155 services sectors. On investment policy, China appreciates the country’s practice of 
investing in technological industrial development zones (TIDZs) and commitment to making the 
investment climate more stable and predictable while still ensuring its WTO obligations enforcement. Having said that, we believe that th ere is still room for improvement in the country’s 
trade policy. 
4.13.  Last but not least, China commends the former Yugoslav Republic of Macedonia’s 
commitment to the multilateral trading system and maintaining an open and transparent trade 
regime. China notices that the country has attached considerable importance to the DDA 
negotiations, especially the trade facilitation negotiations due to its landlocked situation and made 
substantial progress toward improving of simplification, harmonisation of customs and trade procedures. China fully agrees with the former Yugoslav Republic of Macedonia that a small 
package in Bali will definitely send the important signal that the multilateral trading system is 
working and multilateral agreements are doable, and China is willing to move together with other Members in direction of creating and strengthening the WTO rules. 
REPUBLIC
 OF KOREA 
4.14.  We understand that this TPR is very import ant and meaningful for the former Yugoslav 
Republic of Macedonia. It is not just because this is the first TPR for Macedonia. It is also because 
this TPR will provide a valuable opportunity for Ko rea and other delegations not only to appreciate 
what Macedonia has done since its accession to the WTO in 2003, but also to exchange their views 
and ideas regarding the desired policy direction that would need to be taken to ensure that Macedonia can further develop its economy while making contributions towards strengthening the 
multilateral trading system as a responsible Member of the WTO. 
4.15.  Thus, we attach great importance to this very first exercise for them.  
4.16.  In this regard, first and foremost, we would like to note that the Macedonian Government 
has undertaken a number of reforms that we believe will help strengthen its economy over time.  
4.17.  As the Secretariat’s Report aptly points out, despite the inherent disadvantage of small size 
(around US$10 billion) and limited resources, the Macedonian Government has established and maintained a robust policy framework that has enabled it to promote growth; to stabilize the WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  macroeconomic and financial environment in the face of external shocks; and to facilitate access to 
other important markets through signing free trade agreements and, of course, accession to this organization.  
4.18.  In addition, we would like to recognize the Macedonian Government’s tireless efforts to 
continue to promote a more sustainable, business-friendly environment for foreign investors. As 
the Secretariat’s Report also highlights, recently, the country has been successful in attracting significant Greenfield FDI, in particular, in the automotive components sector. We find this very 
encouraging as it shows that the Macedonian economy is quickly becoming part of the Global value 
Chain. 
4.19.  This is why we would like to encourage the Macedonian Government to stay on course. 
4.20.  Having said that, we would like to take this opportunity register our interest in Macedonia’s 
government procurement market. We hope and trust that Korea’s participation in Macedonia’s 
government procurement market will bring a win-win outcome for both countries. 
4.21.  Thus, we have submitted a written question in  this regard. We would like to thank the 
Macedonian delegation for their answer to this question, which we will review carefully to follow up 
on the matter down the road.  
EUROPEAN
 UNION 
4.22.  The former Yugoslav Republic of Macedonia has the status of candidate country to the EU 
since December 2005. To prepare the opening of accession negotiations, the European Commission has launched in March 2012 a High Level Accession Dialogue with the Government. This process covers a wide scope of issues such as developing a fully functioning market economy, 
strengthening the rule of law, reforming public administration. All these policy areas have the 
potential to impact on the future economic performances and the business climate of our partner. The EU in its advanced questions has raised some relevant issues relating for example to the legal 
and institutional framework.  
4.23.  Regarding trade, the EU is the largest partne r of the country. The EU grants autonomous 
trade preferences to the country since 2000 which concretely means duty free access for almost all 
goods into the EU market. Due to EU's significant weight in the country's total trade (more than 
60%), the economic situation in the EU itself has consequences in the former Yugoslav Republic of 
Macedonia's economic perspectives. I note in this context that, in particular, Germany and Bulgaria, but also Kosovo, which are the major export destinations of the country reviewed, are 
expected to grow at respectable rates in 2014.  
4.24.  Regarding EU aid to the country, it is comprehensive and reflects the ultimate objective of 
our bilateral relation which is the accession to the EU. It covers areas such as private sector 
development, agriculture, rural development, tran sport, climate change, social development and a 
number of reforms related to governance and justice. The amounts committed to the country, which do not include the shares of the EU regional assistance programmes that also benefit the 
country, are superior to 610 million over the last seven years.  
4.25.  The EU seizes the opportunity of this review to note several issues that, for most of them, 
are reflected in its advanced written questions such as clarification questions on the privatization process or on the competition authority's organization and resources.  
4.26.  The authorities adopted import restrictions on wheat and flour last July, which the 
Secretariat Report could not mention due to the cut-off date for finalizing the document. The EU expects that any such measure is taken in compliance with international law. The EU also seizes 
this opportunity to recall the importance of the transparency obligation of the WTO Members in 
particular, but not only, regarding their import licensing practices.  
UNITED
 STATES 
4.27.  The Republic of Macedonia’s progress and pursui t of economic reform over the past decade 
is notable, especially considering the setbacks of the global financial crisis and the challenging WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  economic situation of some of Macedonia’s most important trading partners. Driven both by its 
WTO commitments and determination to draw closer to the European Union, the Republic of Macedonia has pursued considerable reforms since its accession to the WTO. Through such reforms, Macedonia has sought increased integration into the multilateral trading system, 
integration bilaterally with the European Union, an d increased regional trade. As highlighted by the 
Secretariat, the Republic of Macedonia has active ly pursued agreements to further these goals, 
and has concluded 32 bilateral trade and economic cooperation agreements as well as 38 bilateral 
agreements on promotion and mutual protection of investments.   
4.28.  We would also like to commend the Republic of Macedonia for becoming the newest 
observer to the WTO Agreement on Government Procurement this past June, and we hope that it will consider becoming a full Member in the near  future. Having Macedonia move from an observer 
to a full member of the GPA would constitute a sign ificant expansion of the Agreement, as we look 
to welcome developing country members into an  agreement designed to promote transparency, 
consistency, and non-discrimination in government procurement. We look forward to working with 
the Republic of Macedonia on this e ffort as well as many others.   
4.29.  Noting the efforts undertaken since its accession, there are a few issues where we hope to 
obtain clarification from the Republic of Macedonia, as reflected in United States’ questions 
submitted in advance for this review.    
4.30.  For example, with respect to the Republic of Macedonia’s EU candidacy process, the United 
States would appreciate more information on the extent to which Macedonia has adopted or harmonized its regulations with EU technical and sanitary and phytosanitary regulations affecting 
imports, including whether Codex, OIE and IPPC standards have been taken fully into account.   
4.31.  In the area of intellectual property rights, wh ile the Republic of Macedonia appears to have 
put in place an IPR legislative framework that generally fulfils the requirements of TRIPS and other 
international agreements, we have concerns about the adequacy of IPR protection, which 
sometimes reflects inconsistent or insufficient enforcement results, combined with a lack of public education on the need for IP protections. For example, we have concerns about reports on the 
wide use of unregistered software in public office s. Further, with regards to trademarks, we would 
also appreciate additional information on whethe r Macedonia provides protection for unregistered 
well-known marks. 
4.32.  We would also be interested in an update regarding pending notifications, including 
responses to the annual Questionnaire on Import Licensing Procedures. The Secretariat indicated 
that as of the end of June 2013, a number of notifications were under preparation, including those related to the Agreement on Agriculture and TRIPS. We would be interested in the current status 
of those notifications. 
4.33.  Finally, as the Secretariat has noted, the Government of the Republic of Macedonia has, 
periodically, introduced export restrictions, including temporary export bans on wheat flour to 
prevent serious shortages in the domestic market, resulting from insufficient wheat production in 
the country. At the same time, we have heard reports of import restraints on wheat and flour. We would appreciate further information on these apparent contradictory policy decisions, including the effects that such policies have had, and how the Government plans to handle trade policy in 
this area in the future.  
4.34.  To conclude, we congratulate the Republic of Macedonia on its tenth year of WTO 
Membership. Opening its economy to trade and investment within the framework of the WTO’s 
rules and obligations has undoubtedly contributed to Macedonia’s growth and global 
competitiveness, despite the challenges of the continuing global economic climate. 
4.35.  The United States appreciates this opportunity to participate in the discussion of the 
Republic of Macedonia’s trade and investment regime. We thank the delegation for its answers to 
our written questions and look forward to reviewing them. We also look forward to continuing to work together with the Republic of Macedonia to strengthen and build on the WTO’s rules-based system, and wish Macedonia a productive review. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  INDIA 
4.36.  Since its accession to the WTO in 2003, the former Yugoslav Republic of Macedonia has 
initiated and implemented several structural and institutional reforms to bring its trade regime in compliance with WTO agreements. This has involved review and updating of its trade related 
legislation in the areas of customs, standards, inte llectual property, competition policy etc. It has 
achieved a high level of harmonization with international SPS standards. At the same time, Macedonia’s aspiration to join the EU has guided its efforts towards adoption of regulations and 
common policies of the EU single market. As a result of these reforms, the overall regulatory 
framework has been improved leading to a positive impact on the business climate in the country. The challenge before Macedonia now is to consolidate and effectively implement the newly adopted and amended laws and regulations.  
4.37.  As a small landlocked country, with limited resources and a small domestic market, the 
former Yugoslav Republic of Macedonia is heavily dependent on trade, especially with the EU. As a 
result, its economic performance has been closely li nked to developments in the EU and the global 
economy in general. Its positive growth betw een 2006 and 2008 was interrupted by the global 
financial crisis leading to a contraction in the GDP in 2009. The subsequent modest recovery was short lived with GDP contracting again in 2012 due to the Euro Zone crisis and weak demand for 
exports. While growth is expected to pick up in  2013, the short term outlook remains uncertain as 
Macedonia’s growth will depend to a large extent  on global conditions and Euro Zone recovery. 
This reflects the vulnerability of the Macedonian economy to external demand fluctuations and underlines the need for continuing structural reforms and implementing appropriate 
macroeconomic policies to attract investment. 
4.38.  Greater investment in infrastructure will help Macedonia in improving productivity and 
competitiveness by lowering business costs. Being a landlocked country, transport services and 
logistics are vital for the economic development of Macedonia. However, significant challenges 
remain on this front including the transport infrastructure of its neighbours. We are, therefore, encouraged to note Macedonia’s commitment to make the investment climate more stable and 
predictable in order to attract more investment s. Setting up of the Technological Industrial 
Development Zones is a positive step in this direction.  
4.39.  Macedonia is also faced with high and persistent unemployment of more than 31% which is 
among the highest in Europe. This calls for grea ter emphasis on development of human resources 
and job creation. Poverty is another challenge which Macedonia is trying to address and we hope 
that they can tackle it successfully.  
4.40.  On the trade front Macedonia has liberalized its tariffs. However, it continues to face a large 
trade deficit resulting from increasing imports of essential items like petroleum. It would be 
interesting to know how Macedonia proposes to enhance its trade capacity and address the trade deficit. 
BRAZIL 
4.41.  It is a matter of great satisfaction for Brazil to participate in the first Macedonian TPR. The 
relations between our countries have experienced a very discernible and positive growth over the 
past few years and we are convinced that there is still room for further improvement. Brazil’s 
commitment to Macedonia is reflected in the current bilateral engagement regarding educational 
cooperation, as well as in the bilateral political and trade initiatives currently being undertaken.  
4.42.  Despite the impact of the 2008 Economic Crisis, the economy of the Macedonia has 
registered a positive growth since its accession to the WTO. From 2004 onwards, the country grew 
at an average of 3.2%, in line with the world aver age economic output, as a result of the country’s 
macroeconomic stability and low inflation, achieved as a result of extensive fiscal and business 
sector reforms. These reforms improved the bu siness environment and promoted innovation and 
entrepreneurship, but unfortunately that was not enough to attract foreign investment and create new jobs as would have been desirable. Still, GDP per capita increased by 73% from 2004 to 2012 and inflation has remained relatively stable, averaging 2.3% from 1996 to mid-2013. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  4.43.  The trade flow between Brazil and the former Yugoslav Republic of Macedonia has increased 
6-fold, since 2003. Nevertheless, there is still room for improvement. Bilateral trade is well below its potential and can be further expanded, both in terms of volume and of diversification. 
4.44.  Based on the improving macroeconomic indicators there are certainly grounds for optimism. 
We praise the former Yugoslav Repu blic of Macedonia for its persiste nt effort to open the economy, 
which has the potential to attract more foreign direct investment. This can already been seen in the Greenfield exported-oriented projects, such as auto industry, food and construction.  
4.45.  It is equally important to highlight the large number of bilateral agreements on trade and 
economic cooperation that the country has signed. Only in 2012, the former Yugoslav Republic of Macedonia signed 38 bilateral agreements on prom otion and mutual protection of investments and 
other 42 agreements to avoid double taxation. 
4.46.  I would like now to refer to the Macedonian Food Safety Law and in this respect to ask the 
distinguished Delegation of Macedonia how the country intends to ensure that the “precautionary principle” will comply with the requiremen ts of Article 5.7 of the SPS Agreement. 
4.47.  The Agreement requires that Members apply their SPS measures on the basis of sound 
scientific principles. Bearing that in mind, we re call that while Article 5.7 of the SPS Agreement 
does provide for provisional imposition of SPS measures “in cases where relevant scientific 
evidence is insufficient”, it also obliges Members to “seek to obtain additional information 
necessary for a more objective assessment of risk and review the sanitary and phytosanitary measures accordingly within a reasonable period of time”. 
4.48.  As regards the implementation of reduced physic al checks of consignments, Brazil would like 
to know when the Macedonian Government expects it to be fully operational. Moreover, we would 
like to know what regulatory basis will be applied for the imposition of SPS control. 
4.49.  I would like to conclude by reiterating that Brazil stands ready to further enhance its 
cooperation and trade with the former Yugoslav  Republic of Macedonia and that we wish a 
successful Trade Policy Review to the Government of  the former Yugoslav Republic of Macedonia. 
ARGENTINA 
4.50.  My delegation is pleased to be participating in the first Trade Policy Review of this country, 
with which we have maintained bilateral relations since 1999. Being its first review, this is an event of great significance for the evalua tion of its trade policies and practices. 
4.51.  Although trade between the former Yugoslav Re public of Macedonia and Argentina is modest 
in scale, it has been growing moderately in recent years. 
4.52.  The non-competitive, yet complementary, nature of the main sectors of our bilateral trade 
increase the likelihood of continued growth in the trade relationship between our countries. 
4.53.  We note that, in 2012, in the context of weaker external demand from the EU for 
Macedonian products, exports of goods and services from the Member under consideration reduced by 0.4%, while at the same time its imports grew by 3.6%. 
4.54.  However, it should be underlined that, in the same year, the former Yugoslav Republic 
of Macedonia recorded a slight trade surplus with Argentina, increasing its exports to Argentina by 20% compared with 2011. 
4.55.  This performance suggests that the decline in exports to traditional markets could be offset 
by increased trade with other markets. 
4.56.  In addition, we appreciate the commitment of the former Yugoslav Republic of Macedonia 
to completing the Doha Round trade negotiations being conducted under WTO auspices, a process 
in which all of those present here today ar e involved, sharing the desire for a prompt 
and successful outcome. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  4.57.  In conclusion, while reiterating our appreciation of this new opportunity to exchange points 
of view and comments on the trade policy of the fo rmer Yugoslav Republic of Macedonia, we would 
draw attention once again to the importance of this exercise in transparency, in all its aspects. 
JAPAN 
4.58.  Let me start with the former Yugoslav Republic of Macedonia's macroeconomic policies. 
4.59.  On one hand, according to the Report by the Secretariat, despite the inherent disadvantages 
of small size and limited resources, the former Yugoslav Republic of Macedonia Government has 
had considerable success in several areas: promoting growth, stabilizing the macroeconomic and 
financial environment, and so forth. On the other hand, the infrastructural shortcomings, such as poor road safety, low competitiveness of railway operations are reported in addition to the challenges mentioned above. Japan hopes that the former Yugoslav Republic of Macedonia will 
overcome these challenges and will achieve stable economic growth, as well as attracting foreign 
direct investment. 
4.60.  The former Yugoslav Republic of Macedonia ha s maintained open trade policy through its 
accession to the WTO in 2003. Japan hopes that th e former Yugoslav Republic of Macedonia will 
continue its contribution to maintaining and strengthening multilateral trading system, committing to WTO actively. 
4.61.  In addition, according to the Report by the Secretariat, 90% of Macedonia's exports and 
nearly 80% of its imports are carried out under FTA's, currently. Japan hopes that FTAs and RTAs concluded by the former Yugoslav Republic of Macedonia will complement the multilateral trading system represented by the WTO. 
4.62.  Last but not least, I congratulate on the hist oric first Trade Policy Review of the former 
Yugoslav Republic of Macedonia. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  5  REPLIES BY THE REPRESENTATIVE OF THE FORMER YUGOSLAV REPUBLIC OF 
MACEDONIA AND ADDITIONAL COMMENTS 
5.1.  Please allow me to express my deep appreciation to H.E. Joakim Reiter, Chair of Trade Policy 
Review Body, H.E. Eyjolfsson, and all participants for their positive comments to Macedonian TPR, 
as well as for the respected questions. For the Re public of Macedonia, the questions provided by 
countries are good driver for further developing our trade policies and practices. 
5.2.  The economic policy of Republic of Macedonia recently is focused on implementing reforms 
by: improving the business environment, enhancin g supportive innovation and entrepreneurship, 
as main areas of the dynamic economic growth.  
5.3.  Macedonian Government considers FDI’s as cornerstones for further growth and undertakes 
many activities focusing on wide-range reforms that already improved the business climate, 
resulting with entering of multinational companies and diversification of the export structure.  
5.4.  The questions Macedonia received by nine Members are focused on: 1. Privatization; 
2. Investment policy; 3. Agriculture and SPS; and 4. TRIPS and others. 
5.5.  Please allow me to share more information related to topics raised during the first part of the 
Session. 
5.6.  Privatization: the privatization process in Macedonia is finished, only four companies are with 
majority state capital, OHIS, EMO, Eurokompozit and TKP. Currently Eurokompozit is on 
international tender for sale, four International companies in the military industry have picked up the tender documentation and the call will be finished on 15 January 2014. Tutunski Kombinat Prilep recently finished the call for strategic pa rtnership and the contract was awarded to Philip 
Morris International. EMO is currently undergoing extensive reorganization and new evaluation is 
undergoing, the international tender for sale of  the company is expected to be published in 
mid-January. OHIS recently adopted a state programme for pay-leave packages for more than 
800 employees and international call for Expression of  Interest is published. The call will be open 
until 30 November, and on 1 December the call for proposals will be published. Until today we received two LOI’s: one from Swiss company and one from Croatia.  
5.7.  The turbulent transition and privatization process in the past left many closed factories and 
unsolved bankruptcy procedures. To tackle these problems the Government created a specialized web page for promoting the old factories and warehouses to potential domestic and foreign investors. New specialized law for ending the 300 open bankruptcy procedures is adopted by the 
Government giving chance to bankruptcy managers in period of six months to end the procedures 
and liquidate the companies. This will give additional stimulus for reopening of the factories and creating new jobs.   
5.8.  The recently adopted reforms for attracting FDI (is recognized in the statement of the 
Members), resulted directly in creating new jobs. By the end of the year, total number of created new jobs is more than 5000 and according to the current signed contracts with the investors, we 
are expecting additional 4000 jobs for 2014.  
5.9.  Besides the extensive campaign for attracting FD I, the Government is focused on after care 
services and maintaining good relationship with the current investors, resulting in their re-investment in second or third project in the country.  
5.10.  Regarding the agriculture question: wheat is a necessity product for Macedonia, it is used 
for production of wheat flour and bread with an average annual consumption of 300.000 tonnes; 
60% is produced domestically while the rest of the 100.000-120.000 tonnes is imported. To secure 
constant supply and fully meeting the demand, th e import policy in regards to this strategic 
product is based on full trade liberalization. That is achieved by the duty-free tariff quota of 80.000 tonnes as specified in the Macedonia's Schedule of Concessions and Commitments on 
Goods, as well as by the regional CEFTA Agreem ent. Most of imported quantity of wheat and 
wheat flour comes from CEFTA countries. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  5.11.  In specific situations of market shortages that significantly influence food security in the 
country, or in situations of significant market surpluses negatively affecting the national production of wheat, the Government of the Republic of Macedonia undertook measures in line with the 
international trade regulations.   
5.12.  In 2010, the total import and domestically produced quantities of 230.000 tonnes were not 
sufficient to meet the domestic demand for production of wheat flour and bread. To relieve the critical shortage of this product, the Government  of the Republic of Macedonia adopted a Decision 
for sale of 40.000 tonnes of wheat from the stock reserves.  
5.13.  In such situation of shortage and real risk of  wheat and wheat flour to be exported abroad 
because of regional and wider world markets deficiencies and market speculation, the Government of the Republic of Macedonia in 2011 imposed urgent and temporary market-protective measure to 
ban the export for wheat following the country in the region and wider region. The measure was 
adopted to prevent larger increase of the shortages registered in the domestic market essential. It 
was applied less than six months. 
5.14.  This year, Macedonia faced greater challenge. During the harvest, the import of wheat and 
wheat flour, in relatively short period quantities of 60.000 tonnes entered the Macedonian market and directly flooded the domestic market. In order to protect integrity of the domestic market, the 
Government of the Republic of Macedonia was forced to implement urgent and protective 
measure. The measure was abolished after stabilizing the domestic market, less than three months.  
5.15.  Regarding the SPS (sanitary and Phytosanitary) regulation, the Republic of Macedonia is in 
line with EU "acquis", including the Codex, OIE and IPPC standards. 
5.16.  As a precautionary principle, part of SPS is  regulated in the Food Safety Law and fully 
harmonized with Article 7 of EU Regulation 178/2002, laying down the general principles and 
requirements of Food Law. The risk and review of  the SPS measures will be within a reasonable 
time period, depending of the nature of the risk to  life or health identified. The scientific type of 
information needed, and to conduct more comprehensive risk assessment is pointed in 
Paragraph 2, Article 8 of Macedonia Food Safety Law. 
5.17.  T h e  r e d u c i n g  o f  p h y s i c a l  c h e c k s  o f  c o n s i g n m e n t s  i s  i n  t h e  P r o g r a m m e  o f  t h e  F o o d  a n d  
Veterinary Agency for next year, meaning that will be fully operational in the first half of 2014. In the past year, the Agency worked on preparing operation project for providing technical and 
logistical support for implementation of the Program.  
5.18.   In the area of Intellectual Property Rights , in the Republic of Macedonia there are two 
general laws: Law on Customs Measures for Protection of IPRs, and Law on Industrial Property.  
5.19.  The Coordinative Body for Intellectual Property  is the main body for IPRs protection.  
5.20.  The quantity of the temporary seized goods due to suspicion for infringement of the IPRs in 
customs procedure in the last six years exceeded 4.6 million pieces.  
5.21.  Regarding the unregistered software as infringe ment of IPR, number of on-going measures 
and actions are implemented. The efforts in this ar ea substantially increased in 2009. As result of 
the action in 2011 and 2012, hardly any hardware is found on the market with pre-installed pirated software. These activities are permanent, last month, several cases were discovered where 
entities (amongst them notary offices, medical institutions) used pirated software, and appropriate 
measures enforced. 
5.22.  World Customs Organization in 2009 noted the progress and awarded Customs 
Administration of the Republic of Macedonia with its highest award in the field of IPR protection - 
“Yolanda Benitez WCO Trophy 2009 Combating Counterfeiting and Piracy”. 
5.23.  Great effort is made by the authorities raising public awareness campaign, workshops, 
training and education in IPR issues. The biggest event was organized in 2008, in cooperation and 
sponsored by the Embassy of Netherlands. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  5.24.  The well-known un-registered trademarks are also subject of protection in case of suspicion 
for infringement of IPR during the customs procedure. For un-registered trademark, the customs authorities are acting ex-officio. The holder of the IPR is informed and has a period of time to take 
legal actions. During the period of the le gal action the goods are temporary seized. 
DISCUSSANT 
5.25.  I would like to thank Deputy Minister Hristijan Delev, Head of the Macedonian Delegation; 
Dusko Uzunovski, Head of the Mission and the whole of the Macedonian team for their hard work 
in replying to the Members’ numerous questions as well as the open and constructive attitude that 
they have approached this exercise with.  
5.26.  In my intervention I will try to pick-up on  some of the messages and comments by Members 
from the first day – both positive ones as well as when Members have spotted imperfections. 
5.27.  A couple of days ago we had a fruitful and enlightening exchange of views. The 
approximately 100 questions we received should be a clear indication that the Macedonian 
economy is of keen interest to the WTO Membership. 
5.28.  On Wednesday, The former Yugoslav Republic of Macedonia was generally commended for 
its economic performance. The country's track reco rd of low inflation, stable currency, moderate 
budget deficits and relatively low public debt level were hailed. I think it is a fair assessment to 
claim that Macedonia's economy has been among the brighter performers in Europe during the 
past years. The debt to GDP ratio level is so low that even Joakim’s employers in Stockholm would envy not to mention my own bosses in Reykjavík. 
5.29.  Regulatory reforms and the FDI environment in general such as low taxes, speed-of-light 
procedures for registering businesses, enhanced climate for FDI, and measures to speed up 
registrations and building-permits and developmen ts were also among issues looked at very 
positively by Members in the Wednesday session.  
5.30.  All this being said and not to be underestimated, the Membership was also critical.  
5.31.  In spite of notable achievements and an impressive list of FDI reforms, many countries 
posed questions regarding conditions that meet foreign investors in Macedonia. They, as well as 
the Secretariat, pointed out that further reforms are needed to safeguard the rule of law and 
corruption. In its answers, the Macedonian authorities pointed to two national programmes and Pre-Accession projects aimed at efficient preventi on of and the fight against corruption. These are 
aimed, among other things, at making the judiciary more independent and effective and limiting 
the discretionary powers in the administration. Furthermore, they aim to increase competition in 
public procurement and strengthen the sy stem of internal control and auditing. 
5.32.  These plans to curb corruption are welcome an d were praised by the Membership. It will 
also help the country to make a big leap from its 76th (out of 176th) place on the Transparency 
International survey and hopefully get rid of its classification as a “significantly corrupt” country. Thus, it should make Macedonia a more attractive place both to live and do business in. 
5.33.  Quite a few countries asked about Macedonia’s stated intentions to become a full member of 
the Government Procurement Agreement and hoped that its observer status will lead to full membership sooner rather than later.  
5.34.  Proverbs have been quite popular recently in the WTO and a Macedonian one says: “If my 
neighbour is happy my own work will go easier, too”. I think this is so true when it comes to the 
economic happiness of Macedonia. With the lion’s share of its external trade and considerable 
investments coming from the EU, Macedonia’s economic health is inextricably linked to a continued 
stable recovery and growth in its big neighbouring trading block.  
5.35.  Let me now end my intervention on a less a serious note. You know fish is always close to 
Iceland’s heart. We even waged a Cod War against Her Majesty’s fleet in the seventies. Well, that 
is not the point here but the one that Thailand ma kes. In its written submission it asks why “nets 
for commercial fishing” are subject to import licence s by the Macedonian authorities. In its answer WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  Macedonia states that the Food and Vet Agency’s requirements for licenses are not intended to 
restrict trade, “but to protect human and/or animal life or health”. Given the competences of the Macedonia's Food and Vet Agency and given the fact that second-hand fishing nets are almost never traded, especially not internationally I wonder what could be the reasoning behind the 
licensing. I admit that fishing nets threaten the life (thereby health) of fish but who else’s?  
5.36.  I don’t expect you to answer my question. I w ill find the answer on the net, I mean the 
internet! 
5.37.  And one more thing. Under the Programme for Development of Tourism, you grant subsidies 
to tourist operators that bring foreign tourists into your beautiful country depending on the country and means of travel. Then you classify your tourists, you only pay 10 to 20 Euros for the poor Serbians and Greeks, Turks and Croats. The Greeks and Croats become more valuable if you fly 
them in. Twenty-five  euros for all most EU member states. And then you pay 65 euros for Danes, 
Fins, Swedes and Norwegians. The point that I am trying to make here is that you pay nothing for bringing in Icelanders, zero euros. I mean I was worth at least something when I was a football 
player but as a tourist headed for Macedonia I am worthless or perhaps priceless! This is really 
hard to swallow, Deputy Minister Delev. I am confident you will fix this before I visit your beautiful country.  
5.38.  The European Union asked you about improving your legislation on taxes in order not to 
socialize the cost in that relation. I must say that having gone through that in Iceland five years ago, some EU countries were highly critical of us and it was really difficult for us at that time. I can just only strongly advice from our experience to follow closely what the EU is doing. Since you are 
really making reforms, regulatory reforms, this wi ll attract foreign investors. You really have to be 
cautious about your foreign currency resource. Your cornerstone in your policy is the stable currency, that is very important but it's very difficult to keep that aim so you have to apply almost 
caution. Be very careful because the more you at tract foreign investors, which is positive, the 
more you expose yourself as well. So you just have to take one step at a time.  
5.39.  I think that I talk on behalf of all Members participating in this TPR when I say that we 
would appreciate it if their comments, both the positive and critical ones, would be kept in mind in 
the on-going readjustment phase of your economy and business environment. 
5.40.  Before I conclude my remarks I want to wish the Macedonian Delegation a safe trip back 
home. I wanted to point out that if you take your return leg via Iceland you safe 65 euros for each 
delegation member but you corrected me. 
CHAIRPERSON 5.41.  Sweden went through that as well in 1993, havi ng been a little too much on steroids, on hot 
money, and the effect was catastrophic with 10% loss of GDP and with a rather brutal cut in 
Government spending (before that we had an average of 3.5% unemployment) and we reached 8% unemployment which in the Swedish context is really bad. Since then, we have not been able 
to bring it back down to 4%, we are still at 8%. The situation of pegged currency which invites 
speculation against the Swedish economy, combin ed with too much hot money, created a huge 
difficult situation and we paid duly for it for many years. 
UNITED
 STATES 
5.42.  The United States would like to thank the former Yugoslav Republic of Macedonia for its 
answers to our questions and thanks Deputy Minister Delev and Ambassador Eyjólfsson for their presentations today.  
5.43.  The United States encourages Macedonia to continue to pursue trade policies in a direction 
of opening its economy to trade and investment within the framework of the WTO rules and obligations contributing to further growth and increased global competitiveness. In particular, we 
encourage Macedonia to pursue full membership in government procurement agreement to ensure 
greater and more consistent intellectual property protections to ensure full compliance with WTO notification obligations and to give full consideration in implementing its trade policy. WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The first Trade Policy Review of the former Yugoslav Republic of Macedonia has enabled us to 
deepen our understanding of the key developments in its trade and trade-related policies since its accession to the WTO in 2003 and of the challenges it faces. The Government and Secretariat 
reports, together with the Macedonian written re sponses to the numerous questions by Members, 
have contributed significantly to enhancing the tr ansparency of the country's trade policies and 
practices. Our discussion has clearly benefited from the active and constructive participation of the 
Macedonian delegation, led by the distinguished De puty Minister of Economy, Mr. Hristian Delev, 
as well as from the insightful contribution of the discussant, Ambassador Martin Eyjólfsson, and the interventions by Members. I thank the former Yugoslav Republic of Macedonia for its positive 
engagement and commitment to this exercise. 
6.2.  Members expressed strong appreciation for the progress made by the Macedonian 
Government in implementing policies that have fostered consistent growth and stabilized the macroeconomic and financial environment against external shocks. Monetary policy has succeeded 
in keeping inflation at low and stable levels as well as government and external debt within 
reasonable limits.  Members also  commended the Macedonian Government for making significant 
progress in improving the business environment. This is not to say that the former Yugoslav 
Republic of Macedonia is not facing challenges.  In this context, Members highlighted the need to 
improve governance as well as the persistent high  level of unemployment making job creation one 
of the most prioritized actions for the future. 
6.3.  Members noted that after a decade of WTO membership, the progressive opening of the 
Macedonian economy to trade and investment and other reforms within the framework of 
multilateral rules and obligations have clearly contributed to the country's growth and increasing competitiveness despite the challenging economic situation of some of its key trading partners. 
6.4.  Through various reforms, the country has followed a policy of increased regional trade and 
improved integration with the European Union. In this regard, the former Yugoslav Republic of Macedonia has concluded an impressive number of bilateral trade and economic cooperation 
agreements as well as bilateral agreements on promotion and mutual protection of investments 
and double taxation agreements. Regarding th e country's increased integration into the 
multilateral system, the Government strongly supports the strengthening of the WTO's rules-based system through inter alia successful negotiations in the Doha Round, including the Bali package. 
6.5.  Furthermore, beyond its overall open trade and investment policy, Members commended the 
Macedonian Government for continuing to initiate specific reforms with the objective of bringing domestic legislation into line with WTO requirements and with the EU single market regulations 
and common policies. This review has brought to light that the regulatory framework in many 
areas - including privatization, customs, govern ment procurement, standards and SPS measures, 
competition policy, and services - has undergone significant improvement and the Government is 
currently focusing on consolidating and implementing newly adopted laws and regulations. The 
Government has also noted that it has reduced and eliminated customs duties on more than 700 tariff lines concerning manufacturing inputs, which is indeed a welcome move in order to increase 
competitiveness and attract investment 
6.6.  Thus while noting several positive developments, Members pointed to a number of areas 
where further improvements could be made. In addition to Members' calls for an update of pending WTO notifications, the main areas that merit focus in the Government's ongoing reform 
efforts include the following points and we take note of the Macedonian delegation's helpful 
statement in this regard: 
 On intellectual property rights, Members have pointed out that the former Yugoslav Republic 
 of Macedonia has established a legislative framework that generally meets the requirements 
 of the TRIPS and other international agreements but have expressed concerns about the  adequacy of intellectual property protection, which is manifest in uneven and intermittent  progress in IPR enforcement and the lack of pu blic education on the need for IP protection. 
 Specific questions have been raised in several areas including the investigation of pirated 
 goods by Customs, the role and effectiveness of the Coordination Body for Intellectual WT/TPR/M/290 • The former Yugoslav Republic of Macedonia 
 
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   Property and, in the trademark area, the de gree of protection provided for unregistered 
 well-known marks. 
 Members acknowledged that foreign direct investment in sectors such as the auto industry, 
 food and construction has become the corner stone of future export-oriented growth but 
 stressed that in order to sustain investor confidence it is necessary to have a predictable and 
 transparent business climate in which existing agreements and contracts are respected and  access to reliable dispute resolution is assured.  
 Members noted with interest the introduction of, and progress made by, the EXIM electronic 
 system for issuing import and export licences  and encouraged the Macedonian authorities to 
 pursue further refinements and simplification of the procedures involved.  
 On SPS issues, regarding the Macedonian Food Safety Law, while the Government has 
 pointed out that it is in line with the EU acquis, the question was raised as to how the 
 country aims to ensure that the precautionar y principle complies with the requirements of 
 the SPS Agreement to apply SPS measures on the basis of sound scientific evidence. 
 Second, as to the implementation of reduced physical checks of consignments, the 
 Macedonian Government was asked when the system was expected to be fully operational. 
 Members commended the former Yugoslav Republic of Macedonia on becoming the most 
 recent observer to the WTO Agreement on Government Procurement and expressed the 
 hope that it will consider joining the GPA as a full member in the foreseeable future, given  the improved functioning of the country's  reformed government procurement system. 
 Regarding agricultural trade restrictions, Members wanted to know more about the 
 Macedonian Government's rationale for introducing import and export restrictions, including 
 temporary export bans on wheat flour to alleviate shortages in the domestic market, about  the effects of this policy and how the Government was planning to deal with such issues in 
 the future. 
6.7.  This successfully concludes our first Review of th e former Yugoslav Republic of Macedonia. It 
has been informative, yielding many useful insigh ts into Macedonian trade policies and practices 
and the challenges the country faces. Let me on ce again thank the Macedonian delegation, the 
discussant and Members for contributing to what has been a both detailed and enlightening discussion. 
6.8.  The former Yugoslav Republic of Macedonia has undergone an impressive transformation in 
the last two decades. In many ways, it is a shining example of successful reforms in south east 
Europe and the many economic benefits that successful persistent reforms may bring. 
 
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