WT/TPR/M/369  
13 June 2018  
(18-3582) Page: 1/42 
Trade Policy Review Body  
11 and 13 April 2018   
 
  
TRADE POLICY REVIEW  
MONTENEGRO  
MINUTES OF THE MEETING  
Chairperson: H.E. Mr Eloi Laourou (Benin)  
CONTENTS  
 
1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  ................................ .......................  2 
2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MONTENEGRO  .............................  4 
3  STATEMENT BY THE DIS CUSSANT  ................................ ................................ ................  8 
4  STATEMENTS BY MEMBERS  ................................ ................................ ........................  12 
5  REPLIES BY THE REPRE SENTATIVE OF MONTENEGRO  AND ADDITIONAL 
COMMENTS  ................................ ................................ ................................ .....................  34 
6  CONCLUDING REMARKS B Y THE CHAIRPERSON  ................................ .........................  41 
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Montenegro  are reproduced in document WT/TPR/M/ 369/Add.1  and will be available 
online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.  WT/TPR/M/369  • Montenegro  
 
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  1  INTRODUCTORY REMARKS  BY THE CHAIRPERSON  
1.1.  The first Trade Policy Review of Montenegro was held on 11 and 13 April 2018. The 
Chairperson, H.E.  Mr Eloi Laourou (Benin), welcomed the delegation of Montenegro, headed b y 
Mr. Goran ŠĆEPANOVIĆ, Director General, Mi nistry of Economy; the rest of the delegation; and the 
discussant, H.E. Ambassador Peter Matt  (Liechtenstein) . 
1.2.  The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Montenegr o was co ntained in document 
WT/TPR/G/369  and that of the  WTO Secretariat in WT/TPR/S/369 . 
1.3.  Questions by the following delegations had been submitted in writing before the deadline: 
European Union; Iceland; United States; Brazil; Ukraine; Canada; China; Aust ralia; Argentina; 
Costa Rica; Republic of Moldova; Mexico; and Japan . The following delegations submitted written 
questions after the deadline: Thailand; Kingdom of Saudi Arabia; Turkey; and Republic of Korea . 
1.4.  Montenegro had  been an independent country sin ce 2006, and its  WTO accession according 
to Dr.  Vladimir Kavarić, the Minister of the Economy at that time, had been  a big step forward in 
integrating the country into the multilateral trading system and one of the priorities of the 
Government. Upon access ion, Montenegro undertook to align its trade and related policies and 
practices to WTO principles in numerous areas, including transparency, market access, internal 
taxation, export restrictions, duties and subsidies, standards, government procurement, 
privatization and state -owned enterprises, price controls, agriculture, and civil aircraft.  
1.5.  Since its acc ession, Montenegro 's economy had  been on a fluct uating growth path. This had 
result ed in an average annual growth slowdown compared to the pre -acces sion period. Recent 
reforms had  been under way to spur economic recovery. These had include d a Fiscal Consolidation 
Plan, a Fiscal Consolidation Strategy, and a 2017 -2019 Economic Reform Programme, coupled with 
the realization of transport infrastructure projec ts, as well as projects in tourism and energy. 
Montenegro 's regional and in ternational competitiveness had  been affected by productivity related 
and other challenges. Its lack of a national currency had constrained  to some extent its ability to 
absorb  external shocks. Montenegro had  a small, open and imp ort-dependent economy which 
aimed  at further integrating into the world economy. Members ' questions were related to issues 
such as the reduction of the informal economy and the participation of women in the economy.  
1.6.  During the review period, new RTAs had  entered into force between Montenegro and EFTA 
and Ukraine,  respectively. EU accession negotiations were ongoing and were the driving force 
behind many of the legal and regulatory reforms undertaken over the  review  period. Within CEFTA 
there had  been developments with respect to trade facilitation, rules of origin and t rade in 
services. Montenegro had  taken various initiatives to cut red tape and involve stakeholders in 
policy formulation as well as to streng then the independence of the judiciary and tackle corruption. 
Montenegro was open to foreign investment and was actively encouraging it through incentive 
schemes. Trade policy objectives include d strengthening the competitiveness of services exports, 
diversifying goods exports and increasing value -added in export -orientated production. As 
indicated by the advance written questions, Members wished  to learn, among other things, more 
about the state of play of Montenegro 's WTO notifications (particularly in th e areas of trade 
facilitation, domestic production support, import licensing procedures and SPS measures); the 
implementation of economic development policies; market access as shaped by regional and 
preferential trade agreements; and various aspects of Mo ntenegro 's foreign investment regime, 
including incentives granted and restrictions.  
1.7.  With regard  to trade policy, the tariff had  remained Montenegro 's main trade policy 
instrument during the period under review. The tariff 's complexity had increased, the s imple 
average MFN applied tariff rate had dropped slightly, and tariff protection had continued to vary 
substantially across and within sectors. The small gap between the simple average MFN  applied 
and bound rates ensured  largely predictable and stable mar ket access conditions. Trade facilitation 
initiatives had included the ratification of the WTO Trade Facilitation Agreement (TFA) in 2016. Tax 
and non -tax incentives had continued to support investme nt, production and trade. 
State -involvement in the econ omy, including trade, seemed  limited. Montenegro had beco me a 
Member of the WTO Agreement on Government Procurement (GPA); and although the value of 
contracts awarded to foreign suppliers had risen more than fourfold during the period, they were WT/TPR/M/369  • Montenegro  
 
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  equivalent to a relatively small part of the total contracted value and the total number of 
contracts. Intellectua l property rights protection had  been strengthened with wide ranging and 
comprehensive legal reforms as well as the expansion of international commitment s. At this first 
review, Members expressed interest in developments in certain trade policy areas including trade 
facilitation initiatives, the TFA implementation, production support measures, SPS requirements, 
and intellectual property rights protection. These issu es had  been raised by some Members in their 
advance written questions.  
1.8.  The Chairperson drew Members ' attention to the following areas, among others, where they 
were interested in having more clarity. These include d: export restrictions on wood; M ontenegro 's 
measures to tackle illegal, unreported and unregulated fishing; its solar energy regime; financial 
services ' regulatory and market access issues; investment in and liberalization of 
telecommunications services; developments in the area of posta l services; Montenegro 's 
broadcasting regime; film production incentives; opportunities for foreign investment in airport 
management; policy and infrastructural developments in the area of tourism.  
1.9.  This meeting would  be a good opportunity for Members to d iscuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange.  
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  2  OPENING STATEMENT BY  THE REPRESENTATIVE O F MONTENEGRO (MR. GORA N 
ŠĆEPANOVIĆ ) 
2.1.  It is m y great pleasure to address you on behalf of the Government of Montenegro at our 
very first Trade Policy Review. We believe that the Review is an excellent opportunity to present 
Montenegrin achievements and developments since Montenegro acceded to the WTO in 2012.  
2.2.  At the very beginning, let me extend our appreciation to the WTO Secretariat for its utmost 
dedication and a comprehensive assistance provided in order to conduct this trade policy review 
exercise. I would also like to thank all WTO Members that have sent us the questions on the 
reports prepared by the Government and by the Secretariat. We appreciate very much your active 
participation in this review,  which assures us that the WTO M embers are interested in the progress 
made by Montenegro in the fi eld of international trade policy.  
2.3.  I also would like to thank today 's discussant, H.E. Ambassador Peter Matt from Lichtenstein . 
We appreciate Ambassador 's efforts to examine our report as well as to provide us with his 
remarks.  
2.4.  Six years have passed sinc e Montenegro has joined the WTO. Over this period , the country 
has laid solid foundations towards regional and international integration. Montenegro 's trade with 
WTO Members is conducted transparently with due regard for the WTO core principles : the 
Most-Favoured Nation and National Treatment. Montenegro is well aware of the importance these 
principles entail for the country 's successful integration into the world economy and its further 
economic development. Our Government recognizes the significance of t rade and trade -related 
policies in the country 's economic and social development, and reaffirms Montenegro 's full 
commitment to the international trade rules and principles as embodied in the WTO agreements.  
2.5.  The Montenegrin delegation is ready for an open and interactive discussion on the 
information presented in its report and I am very much hono ured to have an opportunity to 
explain the economic and trade policies of Montenegro before such distinguished participants.  
2.6.  During the period under the considerat ion, Montenegro has achieved significant results. One 
of Montenegrin strategic goals is the EU accession and we have opened EU accession negotiation 
process in June 2012. Out of 33 negotiating chapters, 30 chapters have been opened while three 
have been pr ovisionally closed.  
2.7.  The Government adopted few important documents includ ing the Economic Reform 
Program me and the Fiscal Strategy of Montenegro in order to alleviate the effects of world 
economic crisis on the economy of Montenegro. Potential for economic  growth has been recognized 
in the sectors of tourism, energy, transport, agriculture and manufacturing industry, which are 
identified as strategic priorities for the development of Montenegro. Construction of the highway 
Bar–Boljare, which is expected to contribute considerably to the growth and development, started 
in May 2015.  
2.8.  I would like to commence with the results accomplished in the year 2017, which indicate that 
the year 2017 was quite successful, and the accomplished results exceeded  our expectati ons. 
2.9.  According to the preliminary data of the Statistical Office of Montenegro,  the economy growth 
was 4.5% in the first nine months of last year. The economic growth was primarily driven by a 
high increase in domestic demand, which resulted in employment and available income increase 
and growth of investment expenditure as a result of the investments in the domain of transport 
and tourism infrastructure and in the energy sector.  
2.10.   The available indicators for the fourth quarter of 2017 show that the GDP grow th might be 
at the level of the average rate for nine months (4.5%), therefore , the total growth rate for 2017 
might be significantly higher than the projected 4% at the annual level.  
2.11.   Due to the realization of numerous infrastructure projects – the highway  construction, 
investments in the energy sector and transport infrastructure, expanding of tourism capacities, it 
is notable that the year of 2017 is shaping up to be a construction boom. The value of the WT/TPR/M/369  • Montenegro  
 
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  construction works carried out on projects complete d in 2017 was 51.5% higher in relation to the 
previous year.  
2.12.   In 2017, the employment achieved stable growth. According to the Employment Agency of 
Montenegro, the registered unemployment rate at the end of January 2018 was 21.3%, which is a 
decline of 0.6 percentage points compared to January 2017.  
2.13.   Foreign trade in 2017 is characterized by an increase in exports and the coverage of imports 
by exports. Exports o f goods grew at a rate of 13.9%. H owever, due to high import dependency; it 
still could not compe nsate the growth of imports by 11.7%. In 2017, exports of bauxite ore, 
boosted by exports at the Chinese market, as well as aluminum exports, increased significantly. 
On the other hand, the growth of imports is determined by the import of energy products ( oil and 
electricity) and the import of machinery and transport equipment for the investment projects ' 
needs (construction of the highway, infrastructure, capacity expansion, etc.).  
2.14.   In the monetary sector, the business operations in 2017 are characterized b y high liquidity 
and improvement of all monetary indicators. The growth of loans and deposits was recorded, the 
downward trend in interest rates continued, as well as the decreasing share of non -performing 
loans. The share of non -performing loans and recei vables in total loans and receivables was 7.29% 
at the end of 2017, with the recorded decline of 20.77% from the previous year.  
2.15.   According to the preliminary data for the period January -December 2017, net inflow of FDI 
amounted to €474.3 million, which is 27.6% more than in the comparative period of 2016, which 
is 11.2% of the estimated GDP (€4236.5 million). Growth of the net FDI is appropriated by the 
growth of the intercompany debt by 32.2% and by 44.6% decrease in outflows.  
2.16.   In 2017, we recorded a curren t budget surplus of €17.9 million or 0.43% of GDP, which is 
the first time since 2008 that the Montenegrin budget was in surplus. The budget revenues in 
January 2018 recorded an increase of 10.7% compared to January 2017. The collected revenues 
were higher  by 1.3% compared to the plan for January, indicating that the fiscal consolidation 
measures are realized according to the planned dynamics.  
2.17.   In the medium term , the growth model of the Montenegrin economy will be based on strong 
investment activity, which  will dominantly impact the economic flows, with further growth of 
exports. Another key element of the economic activity in the coming years will be  the 
implementation of the consolidation of public finances based on the Fiscal Strategy of Montenegro. 
Considering all the above mentioned and according to the basic scenario envisaged for Montenegro 
in this year 's Economic Reforms Program me, the average annual rate of real economic growth in 
the period 2018 -2020 will be about 2.8%, or 3% in 2018, 2.7% in 2019 and 2.6% in 2020. 
According to the lower growth scenario, the average annual rate of real economic growth in the 
period 2017 -2020 will be 2.1%.  
2.18.   As noted , the investment policy is recognized as one of the key elements for development 
and improvement of the country 's economy. By the latest Amendments to the Law on Foreign 
Investment, adopted in 2014, the final restrictions on foreigners investing in companies engaged 
in the production and trade of weapons and military equipment were abolished. Foreign investo rs 
are provided with a national treatment, they have the same status as domestic investors and are 
allowed to invest in any sector of the industry and freely transfer financial and other assets, 
including profits and dividends.  
2.19.   Tourism turnover has increa sed and estimated revenues for 2017 amount to almost 
€1 billion. The total contribution of tourism and travel to employment in Montenegro is 19.3%. In 
January this year , the new Law on Tourism and Hospitality, creating the basis for new incentives in 
tourism, entered into force. By the end of 2018 , the Regulation on incentives in the field of tourism 
and the Regulation on Tourist Development Zones will be prepared.  
2.20.   Energy sector represents one of the strategic branches of Montenegrin economy and the 
Government of Montenegro has decided to give full attention to the development of this sector, 
with regard to both reform activities in the sector and inclusion into regi onal and European energy 
market.  WT/TPR/M/369  • Montenegro  
 
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  2.21.   There is a large number of projects that are underway related to increasing the energy 
efficiency, revitalization and modernization of the existing and construction of new energy 
facilitie s. Through their implementation  we want to achieve reduction in electricity deficit, 
increased diversification of sources and energy supply security. Montenegro became a member of 
the Energy Community Treaty in 2006; we ratified the Statute of International Renewable Energy 
Agency, as well  as the Energy Charter Treaty in 2015.  
2.22.   In line with the key strategic objectives of the Government of Montenegro,  the transport 
sector is continuously working on the improvement of the transport infrastructure. Particularly, 
when it comes to the road sect or the main infrastructure projects in road sector Bar -Boljare 
Highway and Adriatic -Ionian Speedway Coastal variant are taking precedence.  
2.23.   Agriculture has significant share in GDP (in 2016, including the forestry and fisheries sector, 
amounted to 7.5%). T otal gross value of agricultural production in 2016 amounted to 
€476.4  million. In order to adequately define the process of future reforms in this sector , the 
Agriculture and Rural Development Strategy was created.  
2.24.   Accession to the EU and integration into  the regional and multilateral initiatives are strategic 
commitments of Montenegro that imply acceptance and implementation of international values and 
standards across a wide range of areas, including cross -border trade. In the area of cross -border 
trade , these commitments were confirmed by  the ratification of the WTO Trade Facilitation 
Agreement and the regional trade facilitation agreement - CEFTA Additional Protocol 5.  
2.25.   In enforcing trade facilitation commitments a number of activities have been underta ken 
from 2015 onwards including establishing the National Trade Facilitation Committee, conducting 
the first Time Release Study, introducing simplified procedures based on bookkeeping records for 
clearance of goods, upgrading risk management system, etc. A dditionally, the first Trade 
Facilitation Strategy founding a joint five -year reform plan for all competent authorities to comply 
with a number of international and national obligations arising from the integration processes was 
adopted.  
2.26.   The number of use rs of electronic communications services in Montenegro is in constant 
growth in all segments of the market. The annual growth of mobile telephony users is 11% and 
the number of fixed broadband users has increased by 17% in 2017 compared to 2016, with  high 
access speeds (above 30Mb /s) being used by about 25% of users.  
2.27.   Montenegro is fully aware of the importance of digital technologies and their contribution to 
the development of  the economy and strengthening of national competitiveness. Therefore, the 
legislative framework for electronic communications has been created to provide a stable business 
environment for investors. As broadband infrastructure is esse ntial for providing e -health, 
e-education, e -government, e -commerce and many other e -services, our go al is to provide 
available broadband internet in particular when it comes to improving the coverage of suburban 
and rural areas in order to overcome the so -called "Digital gap ". 
2.28.   The Parliament of Montenegro adopted the Law on State Aid Control and the Law on 
amendments to the Law on Competition on 14 February 2018. The amendments were introduced 
with the aim of forming a single body that would perform tasks related to the pro tection of 
competition and the S tate aid.  
2.29.   As regards Intellectual Property Rights,  during the period 2012 -2017 Montenegro has 
continued to improve its legislative framework. In 2015 , the new Patent Law was adopted. Law on 
Trademarks, Law on Legal Protection of Industrial Design, Law on the Protection of Topographies 
of Semiconductors an d Law on Copyright and Related Rights were also amended to address the 
problems identified in the application of these laws. Starting from 2016, specific statistical reports 
on the enforcement of intellectual property rights have been prepared on annual an d semi -annual 
basis.  
2.30.   I would like to use this opportunity to reassure you once again that the Trade Policy of 
Montenegro is determined by its membership to the WTO. Moreover, Montenegro remains strongly 
committed to multilateral trading system. Additional ly, foreign trade is mostly cond ucted under 
preferential terms  with the EU, CEFTA, EFTA, Ukraine, Turkey and the Russian Federation.  WT/TPR/M/369  • Montenegro  
 
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  2.31.   Montenegro joined the Agreement on Trade in Civil Aircraft - CA and Ministerial Declaration 
on Trade in Information Technol ogy Products. We became the 44th member of the Agreement on 
Government Procurement (GPA), as the first country which acceded to the version of the 
agreement revised in 2014. We also ratified the Protocol Amending the TRIPS Agreement 
(Agreement on Trade -Related Aspects of Intellectual Property Rights) and the International 
Convention for the Protection of New Varieties of Plants.  
2.32.   Montenegro has had a significant role when it comes to women 's economic e mpowerment. 
Montenegro is a co -signer of the Joint Statem ent on electr onic commerce adopted at the 
11th Ministerial Conference.  
2.33.   When it comes to the current negotiations on fisheries subsidies, Montenegro supported the 
abolition of subsidies that support illegal unreported and unregulated fisheries and adversely  affect 
already overexploited fish resources, but at the same time , we clearly stated that we will continue 
to subsidize development of fishing fleet.  
2.34.   Namely, due to the outdated fleet , Montenegro has a poorly developed fisheries sector, and 
it will contin ue to invest in the existing fishing fleet, but with constant awareness of the 
importance of sustainable fisheries and protection of the marine resources.  
2.35.   Montenegro 's policy in the field of fisheries is very dedicated to the protection of the marine 
resou rces and establishing of a system based on sustainable fisheries, the protection of marine 
biodiversity and the suppression of illegal unreported and unregulated fisheries.  
2.36.   In the course of the preparation for this meeting , 50 SPS notification were submit ted to the 
WTO Secretariat. We are aware that some notifications are still pending, but we are currently 
working on them, and they will be submitted as soon as possible . 
2.37.   At this point , I would like to thank Members and the Secretariat for the technical assistance 
Montenegro has used as it was very important for our daily activities.  
2.38.   Thank you.  
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  3  STATEMENT BY THE DIS CUSSANT  
3.1.  Thank you, Chair. I 'd also like to welcome the d istinguished and quite impress ing 
distinguished delega tion from Montenegro led by Director General Goran Šćepanović of the 
Ministry of Economy. It is my pleasure and honour to participate as discussant in the first Trade 
Policy Review of Montenegro.  
3.2.  My country is linked with Montenegro, among others,  through a Free Trade Agreement that 
we have concluded in the framework of EFTA states Iceland, Norway, Switzerland and my own 
country Liechtenstein. Liechtenstein indeed has been and still is acting as spokesperson for EFTA in 
this process. It is me who h as the honour to assume this task.  
3.3.  I would also like to thank Montenegro and the Secretariat for their comprehensive reports. 
These reports give us a sound basis for a fruitful and constructive exchange during this first TPR of 
Montenegro. I would also like to commend Montenegro for the constructive and open approach to 
this TPR.  
3.4.  When reading about Montenegro in the preparation of this TPR, also beyond issues that we 
are discussing  today, I discovered that the country has a long and a very fascinating his tory of 
perseverance in securing or re -establishing independence and resisting occupation of more than 
1000 years. Modern Montenegro 's independence has been internationally recognized  for the first 
time at the Berlin Congress in 1878 as the 27th independen t country in the world and the 16th in 
Europe. Montenegro was at that time a principality – like my own country - before it became a 
Kingdom. After becoming part of later Yugoslavia after World War I , Montenegro could, in 2016, 
celebrate 10 years after res toration of its full independence as a republic.  
3.5.  Montenegro is a small country with some 650 '000 people living there. Montenegro has 
undergone quite far reaching transformation in the last 15 years. Its development, in particular 
since its independence, w as driven from a strong will and commitment to become a fully 
recognized partner of the international community, to integrate the country into the multilateral 
trading system and from the wish to become a member state of the European Union. I should also 
mention Montenegro 's strive for regional integration, i.e. its membership to CEFTA and other free 
trade agreements it concluded. When reading the reports on Montenegro,  I was very impressed by 
these commitments and by the numerous efforts and initiatives taken at the same time at all level 
of the state. Coming from a small country myself I only can pay my respect for what Montenegro 
has achieved  in this regard . 
3.6.  In my fol lowing statement , I will highlight some issues that struck me or seemed important in 
particular also coming from a small S tate. This is obviously a selective choice.  
3.7.  After having applied for WTO membership in 2004 , Montenegro became  a WTO M ember in 
Decemb er 2012. Already in 2015 the country acceded to the revised GPA. In 2016 , Montenegro 
ratified the Trade Facilitation Agreement  as well as the TRIPS amendment . We hav e seen 
Montenegro as an active M ember in the WTO both in the work of the Committees as well  as in 
negotiations. Montenegro contributed also to  the governance of this Organiz ation by chairing a 
committee. Considering the size of the country and its limited resources , this is quite remarkable. 
In this context , the Permanent Representative of Monte negro to WTO, Ambassador Zorica Marić, is 
certainly to be commended for her outstanding leadership and commitment in the cause of her 
country and for the WTO in general.  
3.8.  The Stabilisation and Association Agreement with the EU entered into force in 2010 an d in the 
same year, the country was granted candidate status by the EU. The accession talks were opened 
in 2012. At the end of last year , 28 policy chapters had been opened and three of them 
provisionally closed. I understand that in the meantime 30 policy  chapters are open. It is certainly 
fair to say that Montenegro is the most advanced country in the region when it comes to the EU 
accession talks.  
3.9.  When turning to Montenegro 's economic environment , I would like to briefly dwell on the 
Montenegrin fiscal policy. During the period under review , Montenegro ra n persistent annual 
deficits. While the GDP percentage steadily fell , it started to increase in 2014 from 0.7 % to 6 % in 
2016 due to fiscal loosening. It should , however , been noted that this is largely  due to costs of WT/TPR/M/369  • Montenegro  
 
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  high way construction projects undertaken in the country , which is certainly a very important 
infrastructure project . In 2017 , the Government started to implement a Fiscal Consolidation Plan 
aiming at putting public finances on stable foot ing over the medium term and this has already 
resulted in the first surplus since 2008 which is quite remarkable.  
3.10.   As I already mentioned , Montenegro and its economy underwent deep and far reaching 
changes since the 1990 s. A feature worth mentioning in thi s context is the low level of state 
involvement in the economy and trading . This is the result  from a comprehensive privatization of 
formerly state -owne d enterprises. The privatiz ation process began in 1999 and seems to be in its 
final phase now. Since the n, nearly 90 % of Montenegrin SOEs have been privatized, and sectors 
like banking or telecom have been fully privatized. The remaining SOEs are mainly of strategic 
importance to the Montenegrin economy, like energy, broadcasting, transport and tourism. 
Montenegro is certainly to be comme nded for having pursued privatiz ation in such a 
comprehensive way. In a 2017 plan , further privatiz ation is foreseen. It should also be noted that 
none of the 7 largest SOEs listed in the WTO accession have been privatize d, albeit four them are 
included in the 2017 plan.  
3.11.   When looking at Montenegro 's economy and reading the reports , we are confronted with 
features that typically can be found in the case of small countries and are rather familiar to me 
coming from a small co untry as well. There is foremost to be mentioned the dependence on 
imports resulting in vulnerability to external shocks and international price changes. I should also 
mention the limited capacity to exploit economies of scale in the provision of goods and  services. 
This results in size -related high costs of developing and running national institutions – also a 
feature  that is  well known to us.  
3.12.   The economies of scale are also an issue when it comes to develop Montenegro 's economy. 
This is particularly true  for agriculture, together with tourism , one of the economic and 
developmental priorities identified by the Government of Montenegro. The Strategy for 
Development of Agriculture and Rural Ares 2015 -2020 adopted by Montenegro therefor puts the 
focus on usin g traditional methods of production to develop agriculture and food and by therefor e 
securing a niche in the high quality sector. This is a very good strategy successfully applied by my 
country – albeit primarily in the industrial sector.  
3.13.   Another issue bo th Liechtenstein and Montenegro have in common is the lack of a national 
currency. While we have the Swiss Franc as legal currency , Montenegro uses the Euro as its 
currency. This means , of course , that Montenegro does not have an independent monetary polic y 
as rightly outlined the Secretariat 's report. This limits the ability to absorb external shocks. While 
Liechtenstein is economically highly integrated into the Swiss system, just to mention the Customs 
Union Treaty  between the two countries , this is not the case for Montenegro and the EU (or not 
yet). Overall , however, the adoption of the Euro as national currency has certainly benefited FDI 
and the economic development of the country as a whole.  
3.14.   Montenegro is faced with resources constraints in certain areas. The report mentions in 
particular the implementation of competition policy, consumer protection and IPR enforcement, but 
also in other areas like TBT and some notifications in the  WTO. I understand , however , that these 
concerns are being addressed. Montenegro is also seeking the cooperation of relevant stakeholders 
in many areas. Let me also underline that Montenegro 's efforts are to be commended considering 
the on -going transformation of Montenegro 's economy and the magnitude of the process to bring  
its regulatory framework in line with the EU legislation.  
3.15.   Looking at the structure of the GDP, we note that the percenta ge of manufacturing is with 
4.6% rather low while s ervices contribute more than 70 % to the GDP. The low percentage of 
manufacturing se ems to be the result of the development of the last 15 years that came with a 
significant de -industrialisation. In the "Industrial Policy of Montenegro until 2020 " adopted in 2016 
by the Government , reindustrializ ation is a key objective in strengthening, rebalancing and 
diversifying Montenegro 's economy. Sectors with particular growth potential are seen agro -food, 
wood processing, metal and pharmaceutical products. These efforts of diversifying its economy are 
important to make the Montenegrin economy less  vulnerable to external shocks  and they also 
boost exports . WT/TPR/M/369  • Montenegro  
 
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  3.16.   Tourism is, as already mentioned, also one of the overarching objective of the  2015-2018 
Montenegrin  Development Directives with a focus on high quality tourism and diversification of 
countries where tourists come from. Consid ering the beauty of the country  with the Adriatic See 
and several natural parks as well as its cultural heritage, this seems a qui te natural choice. I 'd like 
to commend Montenegro as well for pursuing a sustainable touris m in accordance with the 
Agenda  2030.  
3.17.   Areas of concern in the further economic development are labour market rigidities 
exacerbated by low productivity and high cost s. During the review period , Montenegro undertook 
several legislative measures to address this situation and to boost competitiveness and labour 
flexibility as well as reducing unregistered work and the grey economy in general. Despite these 
efforts , more needs to be done in order to reduce t he high level of youth and long -term 
unemployment and to encourage long -term employment. Unemploym ent was relatively high at 
21.3% in 2017 albeit declining during the review period. The IMF pointed out  that labour marke t 
flexibility could  help reduce the informal sector and create employment opportunities. It is 
certainly a welcome step that the Government is preparing additional legislative measure s like a 
new labour law.  
3.18.   In the context of creating a favourable trade a nd investment climate , Montenegro 's efforts 
in the fight against corruption and informal sector of the economy are of crucial importance. The 
country has undertaken considerable efforts in this regard by joining international agreements, 
implementing relev ant legislation and setting up an institutional framework to address corruption. 
While Montenegro – according to the 2016 report of the EU Commission - achieved some level of 
preparation in the fight against corruption , there remain serious challenges. The  measures adopted 
by the Montenegrin authorities to implement and promote e -government are additional important 
element in this fight. In this context , I would also like to underline the importance of Montenegro 's 
commitment to the principle of the "rule o f law" and for the measures undertaken in this regard, in 
particular the strengthening of the judicial independence through constitutional amendments and 
other measures. Rule of law and legal certainty are key prerequisite for a durable and sustainable 
economic environment.  
3.19.   Turning briefly to the Montenegrin customs system , it is worth noting  that the tariff, being 
one of the main trading instruments, became more complex due to its EU alignment in 2017. The 
already low simple average MFN rate dropped furth er. It also to be welcomed that binding 
observance concerns regarding applied tariffs were addressed early this year.  
3.20.   In this context , Montenegro 's ratification of the Trade Facilitation Agreement in 2016 and 
subsequent steps to implement the TFA are of g reat importance to strengthen Montenegro 's 
competitiveness. Montenegro is also undertaking major efforts to harmonize and integrate 
standards fully into the European and international standardization systems as a significant 
element of its industrial polic y. This also reflects the country 's openness to international trade as 
already referred to earlier. Montenegro is also implementing, in cooperation with the International 
Finance Cooperation, a project for Simplified Procedures and Full Implementation of t he 
Program me of Authorized Economic Operators. These are just a few projects out of many more 
that Montenegro is undertaking with many partners to further improve its customs system.  
3.21.   Before coming to an end let me briefly say a few words on the most impor tant sector of 
Montenegro 's economy, services, i.e. financial services in particular. A sound banking system is an 
important element in securing economic growth. Montenegro ha s considerably  strengthened the 
banking system during the period under review and , in particular , successfully addressed the 
serious problem of non -performing loans  although some challenges remain there . The banking 
sector , however , seems to be overbanked and the IMF indicated its sees merits in promoting 
consolidatio n. Bank lending ha s been picked  up during the period under review while not fully 
responding to the economic growth. Authorities also indicated the increased competition resulting 
in lower interests made bank lending available to a broader range of clients. This is certainl y an 
important element for a sustainable economic growth.  
3.22.   Coming to an end and t o conclude , I would like to commend  again  Montenegro for what it 
achieved during the period under review in difficult times of profound economic and structural 
changes, for its strong commitment to the multilateral trading system and for the perseverance in 
pursuing EU membership. Important measu res have been taken to bri ng its legal and economic 
frame work in line with WTO commitments and with EU legislation. Montenegro has also made WT/TPR/M/369  • Montenegro  
 
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  considerable progress in creating a favourable economic framework and in diversifying its 
economy. There , of course , remain many challenges ahead in the pursuit of its goals. But 
Montenegro seems well under way and I hope that this TPR will help Montenegro further on its 
way.  
3.23.   I wish Montenegro a successful and fruitful trade policy review and I am looking forward to 
listening to Members ' intervention.  
3.24.   I thank you.  
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  4  STATEMENTS BY MEMBER S 
EUROPEAN  UNION  
4.1.  Let me spare a few words to congratulate the Montenegro WTO team here in Geneva – and I 
call it a team while being perfectly aware that it is a one woman team – Ambassador Maric. But 
her pro -activity, her positive spirit and her presence in our daily work here in the WTO are bigger 
and better than those of many teams I met. Thanks a lot, Zorica.  
4.2.  The EU is very pleased to participate in the first review of Montenegro 's trade policy since its 
accession to the WTO in 2012. I personally witnessed the significan t efforts Montenegro undertook 
to join this organisation.  
4.3.  The EU enjoys a close relation with Montenegro. First, the EU and Montenegro are parties to 
the Stabilisation and Association Agreement (SAA) which has been in force for ten years. This 
Agreement c onstitutes the framework of relations between the European Union and the Western 
Balkan countries for implementation of the Stabilisation and Association Process. The agreements 
are adapted to the specific situation of each partner country and, while estab lishing a free trade 
area between the EU and the country concerned, they also identify common political and economic 
objectives and encourage regional co -operation. In the context of accession to the European 
Union, the agreement serves as the basis for im plementation of the accession process.  
4.4.  Secondly, and as noted by the Head of Delegation, Montenegro became the first country of 
the region with which the EU opened accession negotiations in June 2012, four years after its 
application. Accession to the EU c onstitutes the overarching political framework for our bilateral 
relation. This has implied major reforms and adjustments of the public administration, as noted 
both in the Secretariat and the Government reports. The Commission 's strategy for the Western 
Balkans published last February has re -confirmed the accession perspectives for Montenegro and 
recognised it as a frontrunner in this process, as also noted by the Discussant. Progress with the 
rule of law will remain a key factor in determining the pace of  the negotiations.  
4.5.  The EU supports Montenegro in this process of reform with technical and financial assistance 
with a budget of around €270 million for the period 2014 -2020.  
4.6.  Thirdly and unsurprisingly, the EU is Montenegro 's leading trade partner. Trade i n goods was 
worth €1.1 billion in 2016. However, Montenegro is yet to reap the full benefits of its relation with 
the EU in terms of exports and trade performance and to steer its goods -export base away from 
low-value added sectors in order to improve its current and trade accounts. In this regard, the EU 
acknowledges and supports Montenegro 's determined efforts in promoting also services as a 
source of diversification of the economy and in particular efforts to promote sustainable tourism.  
4.7.  Overall, Montenegro 's economy has grown uninterrupted since 2013 at a robust rate. 
Nevertheless, Montenegro needs to address persistent structural imbalances, including the high 
and increasing public debt. A lot also remains to be done to improve the life of many M ontenegrin 
citizens because unemployment is still quite high, even if it has decreased and is probably inflated 
by the remaining high level of informal activities.  
4.8.  The EU welcomes the reforms already carried out by Montenegro and encourages the country 
to persevere. We particularly welcome Montenegro 's recently adopted fiscal consolidation strategy, 
which - when implemented - would considerably reduce the country 's public deb t in the 
medium -term. The EU takes note of Montenegro 's new labour law currently un der discussion and 
would like to know more about intentions to generate greater labour -market flexibility so as to 
reduce the weight of the informal economy and encourage formal employment.  
4.9.  More specifically, in its advanced written questions, the EU has expressed its interest in 
knowing more about the expected returns on the ongoing efforts deployed to attract FDI, including 
with the support of incentives and the setting up of Business Zones. The EU has also sought 
clarification of certain issues such as specific elements of TFA related notifications to the WTO 
regarding the scope of the trade facilitation strategy that is under preparation. The development of 
a Regional Economic Area, based on EU rules, as decided by the Western Balkans last year, has WT/TPR/M/369  • Montenegro  
 
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  the potential to reduce intra -regional trade transactions costs and generate so far untapped 
growth.  
4.10.   In fact, despite reforms, business still faces significant trade barriers. Weaknesses in the 
area of rule of law continue to negatively impact the business e nvironment and hinder FDI: more 
progress would be needed in areas such as public procurement, competition and state aid, as well 
as public administration. Regarding transparency, we note that while Montenegro has complied 
with its notification obligations to the WTO in most areas, some remain outstanding or need to be 
updated. We encourage Montenegro to finalise these as soon as possible.  
4.11.   Finally, the EU would like to acknowledge the constructive participation of Montenegro in 
various discussions in the WT O, including its active involvement in the gender and trade initiative.  
4.12.   Before concluding, the EU would like to thank Montenegro for having accepted to test the 
WTO Secretariat 's pilot electronic database for questions and answers, which we have also used . 
We wish Montenegro all the best for its first Trade Policy Review.  
ICELAND  
4.13.   Through its WTO membership, Montenegro has undertaken efforts to liberalize its trade 
regime, and we note Montenegro 's efforts on transparency.  
4.14.   Furthermore, we welcome that Monten egro has ratified the Trade Facilitation Agreement and 
has begun efforts to implement the agreement.  
4.15.   Iceland works closely with Montenegro on a number of issues at the WTO. I applaud the 
excellent work of my colleague and good friend, Ambassador Zorica Mar ić-Dordević, Permanent 
Representative of Montenegro to the WTO. I would particularly like to thank Zorica for her work in 
the area of women and trade.  
4.16.   Montenegro played a central role in putting women 's economic empowerment at the heart of 
the trade agenda  as a member of the Trade Impact Working Group. The group was established 
under the auspices of the International Gender Champions -Geneva and is co -chaired by Sierra 
Leone, Iceland and the International Trade Centre. On the occasion of the 11th WTO Ministe rial 
Conference in Buenos Aires last December , more than 120 WTO Members and Observers launched 
a joint declaration on women and economic empowerment that aims, inter alia , at sharing best 
practices and working together in the WTO to remove barriers for wo men's economic 
empowerment and increase their participation in trade.  
4.17.   Iceland submitted advance written questions on the participation of women in the 
Montenegrin economy. We wish to thank Montenegro for its responses to our written questions. 
We will revi ew the answers thoroughly and request clarifications as necessary during the course of 
this TPR. The answers are very useful as we implement the joint declaration on trade and women 's 
economic empowerment and gather best practices.  
4.18.   In closing, Iceland reit erates its appreciation for Montenegro 's active engagement in the 
WTO and efforts to liberalize their trade regime following their WTO accession. We wish the 
Montenegrin delegation every success with their first Trade Policy Review and look forward to 
continuing our close collaboration with Montenegro, both bilaterally and here at the WTO. I also 
pay tribute to Ambassador Zorica Marić -Dordević, and thank her for all her efforts. I know she is 
approaching the end of her time in Geneva so I also take this  opportunity to wish her all the best 
for her future endeavours.  
BRAZIL  
4.19.   Brazil is pleased to take part in the first Trade Policy Review of Montenegro. It is positive to 
note that in the period under review the economy has grown an average 1.8% per year, an d that 
the Government is adopting measures to increase economic performance, including a Fiscal 
Consolidation Plan and a 2017 -2019 Economic Reform Programme. In the trade arena, 
Montenegro aims to strengthen the competitiveness of service exports, diversif y goods exports 
and increase value -added in export -orientated production.  WT/TPR/M/369  • Montenegro  
 
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  4.20.   Montenegro 's commitment to the multilateral trading system since its accession to the WTO 
in 2012, including the ratification of the Trade Facilitation Agreement, is appreciated. Thi s said, a 
number of notifications are still pending, in key areas such as import licensing, SPS, TBT, and 
production support in agriculture; we encourage Montenegro to submit them.  
4.21.   Tariffs are one of the main trade policy instruments of Montenegro. Althoug h most tariff 
lines are ad valorem, the number of complex tariffs has increased as a result of alignment of the 
country 's schedule with that of the European Union. Non -ad valorem ta riffs are notably imposed on 
agricultural products, mainly wine, dairy and meat, and the average tariff for agricultural products, 
at 12.3%, is four times higher than the average 3.1% for non -agricultural goods. Moreover, SPS 
requirements impose special control measures for the imports of potatoes, some herbs, and 
certain plants.  Since 2012, Montenegro introduced more  stringent import requirements for citrus 
fruits from Brazil.  
4.22.   Trade and investment relations between Montenegro and Brazil have yet to achieve their full 
potential; Brazil believes there is space to strengthen and div ersify our bilateral trade flows. We 
urge Montenegro to expand opportunities for agricultural market access, as a way to ensure a 
reliable and competitive supply in the sector. Brazilian agricultural exports can play an important 
role in the supply of high -quality products to the tourism industry value chain.  
4.23.   Let me conclude by wishing the Montenegrin delegation a successful Trade Policy Review.  
UKRAINE  
4.24.   We are closely monitoring the economic development of Montenegro and would like to 
acknowledge the Montenegro constructive and active approach within the WTO and trade 
negotiations.  
4.25.   Bilaterally , Ukraine and Montenegro are enjoying the free  trade regime according to the 
Free Trade A greement as of 1 January 2013. Furthermore , Ukraine is interested in fost ering 
relations with Montenegro in the fields of common interests, such as economy, tourism, energy 
and investments.  
4.26.   The total turnover in goods between Montenegro and Ukraine amounted to over 
US$12.5  million in 2017 and increased by 69% comparing to 2016 . The volume of trade in 
services between our countries amounted to around US $9.0 million. Mutual cooperation of our 
countries covers different spheres of interest: confectionery, meat and edible offal, furniture, 
gunpowder and explosives, pharmaceutical p roducts; transport, tourism, business services and 
telecommunications.  
4.27.   Bearing in mind current free trade regime between our countries, within this TPR exercise 
Ukraine has raised a number of important questions on a range of issues of particular interest,  that 
broaden the provisions of our bilateral agreement, namely:  
 import licenses for medicines and medical devices;  
 duty and tax concessions;  
 direct credit and loans provided for farmers;  
 imposition of a ban on exports of certain wood items;  
 market acces s restrictions for foreign investors in solar power industry;  
 National Committee for Trade Facilitation and National Strategy for Trade Facilitation 
development;  
 Project "Pre-Processing of Data for Accelerated Consignments "; 
 E-commerce ; and 
 trade -related aspects of intellectual property rights.  
4.28.   We are grateful to Montenegro for the comprehensive and detailed responses to the 
Ukraine 's set of questions, which we are reviewing closely.  
4.29.   I would like to end by expressing our appreciation to the delegation of Montenegro and 
Geneva -based team led by H.E. Ambassador Zorica Maric for their hard work and thoroughness in 
preparing for this TPR.  WT/TPR/M/369  • Montenegro  
 
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  4.30.   On behalf of Ukraine,  I wish Montenegro a successful Trade Policy Review and look forward 
to further strengthening our coop eration.  
CANADA  
4.31.   Montenegro is an active and engaged WTO Member and has made substantive contributions 
to our work since joining the Organization in 2012. Montenegro has kept apace of developments, 
with the timely ratification of the Agreement on Trade Faci litation, acceptance of the Protocol 
Amending the TRIPS Agreement, adherence to the Government Procurement Agreement, and 
implementation of the expansion of the Information Technology Agreement. Montenegro has also 
contributed to WTO governance through its  chairmanship of committees.  
4.32.   I would li ke to particularly commend the G overnment of Montenegro for its leadership on 
trade and gender. Canada looks forward to continuing to work together and to follow through on 
the Declaration on Trade and Women 's Economi c Empowerment. We appreciate Montenegro 's 
openness to exploring new ideas and fresh approaches that are responsive to the needs of all 
Members of the Organization including the digital economy and e -commerce, MSMEs, and 
investment facilitation.  
4.33.   As highlig hted in the Secretariat report, Montenegro has submitted a number of notifications 
to the WTO, but some remain outstanding, including for domestic support, import licensing, TBT 
and SPS. I encourage Montenegro to submit these as soon as possible to further  enhance the 
transparency of Montenegro 's trade policies.  
4.34.   The Government deserves credit for the important strides it has made in improving the 
business environment. This is amply demonstrated by Montenegro improving its ranking relating to 
the environmen t for business, trade and investment from 56 in 2012 to 42 in 2018 in the World 
Bank's Doing Business report.  
4.35.   Montenegro has negotiated an impressive array of bilateral agreements in support of trade 
and economic cooperation, including free trade agreement s, investment promotion and protection 
agreements and double taxation avoidance agreements, evincing its commitment to remain open 
to trade, a goal that Canada applauds.  
4.36.   Permit me to briefly identify a few areas that merit focus in Montenegro 's ongoing ref orm 
efforts.  
4.37.   First, we encourage Montenegro to take steps to modernize and improve access to financial 
services, which is an enabling sector that can facilitate growth throughout the economy.  
4.38.   Secondly, we note the Secretariat 's observation of Montenegro 's efforts to address its 
productivity -related challenges through structural reforms and reforms aiming at  spurring 
productivity growth. These will be particularly important in the following areas: energy, business 
environment, and foreign trade and investmen t facilitation.  
4.39.   Finally, Canada has been following Montenegro 's accession negotiations with the European 
Union and we look forward to  their successful conclusion. In this context, Canada commends 
Montenegro on its wide ranging work in aligning wit h the EU "acquis communautaire". These are 
positive steps that have cut red tape, enabled stakeholder involvement in policy formulation, and 
improved Montenegro 's trade and in vestment laws and regulations.  
4.40.   I look forward to reviewing the responses to Canada 's advan ce written questions and I 
encourage the Government of Montenegro to consider adopting the alternative timelines for its 
next TPR, as a way to enhance transparency and provide for a more substantive discussion during 
TPR meetings.  
4.41.   I wish the delegation a successful conclusion of its Trade Policy R eview.  
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  CHINA  
4.42.   We commend the remarkable progress that Montenegro has achieved in economic and trade 
development since its accession to the WTO since 2012. This has demonstrated the determination 
of the Montenegro  people to build its country and underlined the value and importance of the 
multilateral trading system in helping economies to be integrated into the global economy.  
4.43.   We are pleased to see that Montenegro has maintained economic success, being one of the 
fastest growing economies in Europe. Montenegro 's GDP growth rate in the first half of 2017 
reached 4.2%, significantly highly than the average growth rate of 1.8% for the period 2012 -16. 
4.44.   Such growth was driven primarily by a high increase in domestic deman d, caused by a 
strong increase in investment activity. We expect Montenegro to maintain the growth momentum 
through the 2017 -2019 Economic Reform Programme, enhancing productivity and diversification 
and achieving the sustainable development.  
4.45.   We noted that  Montenegro has achieved trade expansion, with the ratio of trade in goods 
and services to GDP reaching 103.4% in 2016, reflecting the openness of its economy. 
Montenegro 's merchandise trade featuring mining and manufacturing constitutes 73.6% of its total  
merchandise export. For investment, the net FDI inflows rose by an estimated 10.6% between 
January and September 2017.  
4.46.   Multilaterally, Montenegro has actively participated in WTO activities, by way of accepting 
the Protocol Amending the TRIPS Agreement an d the Trade Facilitation Agreement (TFA), and 
became a signatory to the Information Technology Agreement (ITA) Expansion. We appreciate the 
role played by Montenegro in the "Friends of E -commerce for Development " (FED) and signing the 
Joint Ministerial Sta tement on Investment Facilitation for Development at MC11.  
4.47.   On the bilateral front, China -Montenegro bilateral relations have witnessed a lasting and 
steady development in the past years, expanding cooperation in various fields and scoring 
significant achie vements.  
4.48.   China is the largest trading partner of Montenegro outside Europe and our bilateral trade 
has reached US$199 million las year, increased by 41.3%. As the main foreign direct investment 
(FDI) partner, China has invested in Montenegro US$88.7 millio n in total by the end of 2017.  
4.49.   We appreciate and would study the replies provided by Montenegro to the written questions 
we raised. We would like to learn more about the trade and investment regime of Montenegro, for 
instance, liberalizing plans in the are as of postal and courier service, facilitating foreign investment 
including in energy sector, border management, patent and trademark, import measures, and 
medical insurance covering traditional Chinese medicine therapy.  
4.50.   China will further enhance cooperat ion with Montenegro through the Belt and Road Initiative 
and cooperation mechanism between China and Central and Eastern European (CEE) countries, 
with a view to boosting economic growth in Montenegro as well as connectivity in the regions, and 
exploring p otential in cooperation, in infrastructure, energy, transportation, logistics, agriculture 
and tourism.  
4.51.   We are pleased to see that Montenegro has accepted our invitation to participate in the first 
China International Import expo (CIIE) to be held in Novem ber. We believe the Expo will become a 
new channel for Montenegro products to China and further promote our bilateral cooperation. We 
would welcome more Members to join us in Shanghai.  
4.52.   Currently, the WTO is facing serious challenges that have to be dealt w ith by all WTO 
Members. Both China and Montenegro are strong supporters of the multilateral trading system. 
China would lock arms with Montenegro and other Members to preserve the basic principles of this 
Organization, fight against unilateralism and prote ctionism, and collectively safeguard the 
multilateral trading system.  
4.53.   Finally, I would wish this TPR a complete success.  WT/TPR/M/369  • Montenegro  
 
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  AUSTRALIA  
4.54.   Australia commends the openness of the Montenegrin economy to international trade as 
reflected in its strong ratio of trade t o GDP. We congratulate Montenegro for acceding to the WTO 
in 2012 and note that in preparing for its accession, Montenegro implemented significant trade 
policy reforms, including the elimination of import quotas,  the reduction of import licensing 
requirements and prohibitions, the streamlining of customs procedures and the reduction in tariff 
and non -tariff barriers.  
4.55.   Since its accession, Montenegro has been an active and engaged WTO Member taking on 
commitments in  government procurement, trade facilitation, and under the protocol amending the 
TRIPS Agreement.  
4.56.   Australia has worked closely with Montenegro to support the multilateral trading system and 
we welcome Montenegro 's support for MC11 joint init iatives on e -commerce, services  domestic 
regulation, investment , MSMEs and women, and economic empowerment which are helping to 
re-energize the Organization.  
4.57.   We welcome Montenegro 's ratification of the WTO Trade Facilitation Agreement in 2016 and 
its subsequent submissi on of its Category A, B and C notifications, and the efforts Montenegro has 
made domestically to facilitate trade, including establishing its national trade facilitation committee 
and developing a national strategy to address bottlenecks in cross -border tr ade. 
4.58.   Given the importance of transparency to the WTO system, we are concerned by the 
outstanding notifications identified in the Secretariat report relating to import licensing, SPS, TBT 
and production support, and we encourage Montenegro to submit its not ifications promptly in line 
with WTO rules.  
4.59.   Montenegro has  experience d solid economic growth in recent years and we encourage the 
pursuit of trade and investment policies and structural reform that will underpin sustained growth 
into the future.  
4.60.   In this regard, we note the Fiscal Consolidation Plan of 2017 and we encourage Montenegro 
to continue improvements in this direction. Reforms to attract foreign investments, including the 
2015 Decree of Direct Investment Incentives are also good to see.  
4.61.   Further im provement in the implementation and enforcement of legislation affecting foreign 
investments, along with further development of national legal institutions such as the Agency for 
Protection of Competition, will help drive trade and investment activity.  
4.62.   Similarly, government procurement processes would benefit from greater transparency and 
we welcome Montenegro 's progress towards an electronic public procurement system which will 
improve efficiency and transparency in public procurement.  
4.63.   While  bilateral trad e between Australia and Montenegro is modest and based largely on  
Montenegro 's goods exports to Australia there is potential for the economic relationship to grow 
with positive visible signs in the mining, aviation and tourism sectors.  
4.64.   Finally, Australia s ubmitted a number of questions as part of this review on Montenegro 's 
investment regime, banking sector and competition policy. We thank Montenegro for its responses 
which we are currently reviewing.  
4.65.   I would like to wish Montenegro a successful and constr uctive first Trade Policy Review.  
ARGENTINA  
4.66.   As noted in the Secretariat report, the main features of the economy of Montenegro are its 
openness and its dependence on imports. As a consequence it is vulnerable to exogenous shocks. 
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  4.67.   Against that background, Argentina welcomes the trade -related structural reforms 
undertaken by Montenegro in areas such as tax administration, competition policy, and the 
labour  market. We are also most interested to note o ther reforms under way in various sectors, 
including energy, transport and telecommunications, and external trade.  
4.68.   We hope that the measures that Montenegro has taken will enable it to address the 
production diversification and international competitivenes s challenges facing the country, meet 
the targets set forth in the 2017 -2019 Economic Reform Programme, and achieve inclusive 
growth.  
4.69.   According to the Secretariat report, Montenegro's trade in goods and services represents 
103.4% of GDP, reflecting the cou ntry's intention to become integrated in the global economy. 
Europe is Montenegro's chief market and supplier, and trade under regional trade agreements 
accounts for more than 80% of total external trade.  
4.70.   Bilateral trade with Argentina is modest. In 2017, Argentine exports amounted to 
US$1.2  million, mainly consisting of lemons, groundnuts and maize. However there is potential for 
bilateral trade to grow. We hope that the Agreement on Economic and Trade Cooperation signed 
in 2016 on the occasion of the visi t to Argentina by the then Prime  Minister of Montenegro, 
Milo Dukanović, will pave the way for closer trade links between our two countries.  
4.71.   We reiterate our appreciation of this opportunity to exchange points of view and comments 
on Montenegro's trade pol icies and practices.  
4.72.   Finally, we thank Montenegro for its replies to our questions and wish the Montenegrin 
authorities every success in this review.  
COSTA  RICA 
4.73.   Good morning Chair  and thank you for giving me the floor. First , I would like to congratulate 
you on your appointment as Chair of the Trade Policy Review Body and wish you success in this 
new endeavo ur. 
4.74.   As the representative of a small but open and forward -looking country, it pleases me to see 
how the multilateral trad ing system has brought benefits to all, and we see this impulse in 
Montenegro. Just as Costa Rica, Montenegro understood the importance of trusting the system to 
boost their trade flows, attract investment, create more job opportunities and provide prosper ity 
for its people. After its accession to  the WTO in 2012, important structural changes have taken 
place in this Balkan economy and we see this process with very positive eyes, as Costa Rica can 
also relate to the challenges this might bring. This hasn 't slowed Montenegro from working 
towards a more competitive, export and services -oriented economy and we congratulate the 
efforts they have made through the Economic Reform Program, their participation in various RTAs, 
the alignment to the EU "acquis communa utaire ", the ratification of the TFA, and in line with their 
accession commitments they recently amended their pending MFN applied tariffs to the bound 
level, to name a few steps.  
4.75.   Under this roof, Montenegro and Costa Rica also share their common interests  in working 
towards a robust development -centered agenda in electronic commerce as partners within the 
Friends of e -Commerce for Development group; we also support and encourage the strengthening 
of entrepreneurship as members of the Informal Working Group  on MSMEs; and as many other 
members, we recently subscribed the Buenos Aires Declaration on Women and Trade, conscious of 
the importance an inclusive trade agenda.  
4.76.   As the Secretariat 's report reflects, there are areas of opportunity we consider important to 
address, like the agriculture and fisheries sector where there is capacity to further engage and 
grow in a sustainable fashion, given the natural wealth that Montenegro enjoys.  
4.77.   In this context, we want to highlight the progressiveness of its National S trategy for 
Sustainable Development, which comprises six goals with which Costa Rica fully identifies, that is 
Introducing a Green Economy; Preservation and Valorisation  of Natural Capital; Inclusive Growth; WT/TPR/M/369  • Montenegro  
 
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  Knowledge -based Development; Management for Sust ainable Development and Balanced Regional 
Development.  
4.78.   Yet, despite their open -minded approach, Montenegro faces the same challenges that a 
small economy - with limited local market - might face. We understand these limitations as we too 
depend on internat ional trade and foreign direc t investment to boost  our economy. We can relate 
to the need to undergo a fiscal and economic reform and its implications, but also we empathize 
with the fact that only by keeping ambitious and straightforward policies, economi es such as ours 
will be able to strive and achieve development. Moving to a more Services -oriented economy is 
one of those bold steps Montenegro has wisely taken, as the new trade trends and rise of digital 
technologies have proven.  
4.79.   In fact, given our same  interest and orientation, Costa Rica submitted a series of questions 
related to Services, and we thank their prompt response. We have shared them with our Capital 
and we will come back to the reviewed Member in case needed.  
4.80.   Allow me to conclude this inter vention by wishing the Montenegrin delegation a successful 
Trade Policy Review and thank the Membership and the Secretariat for the efforts and participation 
in this remarkable transparency exercise.  
REPUBLIC  OF MOLDOVA  
4.81.   On this important and unique, indeed , occasion, we would like to first take the opportunity 
to congratulate Montenegro on the deep and extensive commitments undertaken upon its 
accession to the WTO. Today Montenegro is re -integrated into the multilateral trading system, 
aiming to foster trad e and investment with its regional and global partners.  
4.82.   Republic of Moldova appreciates Montenegro 's commitment to strengthening the multilateral 
trading s ystem in the interest of all WTO Member States and its active participation in trade 
negotiations, as well as its openness to new issues and approaches aiming at pragmatic outcomes 
that are relevant and responsive to the needs of all Members.  
4.83.   We are pleas ed to notice that during the period following its accession, Montenegro has 
fulfilled its membership commitments and obligations with great seriousness and dedication. We 
welcome the adoption of a number of trade -related structural reforms in areas such as  tax 
administration, competition policy and the labour market, and particularly the adoption of the 
2017-2019 Economic Reform Programme, which will contribute to strengthening the 
competitiveness of service exports, diversifying goods exports and increasin g value -added in 
export -oriented production.  
4.84.   We also note with satisfaction the fact that Montenegro 's accession to the WTO has been 
strengthened by the negotiations for the accession to the EU. In this sense, the Stabilization and 
Association Agreement w ith the EU has contributed to the alignment of the relevant legislation 
with the EU "acquis communautaire " allowing for the harmonization of a consistent part of the 
legislation with the regional provisions.  
4.85.   In the agricultural sector, we note the fact th at Montenegro does not provide export 
subsidies and domestic support is modest, we also take note of the fact that in the context of EU 
accession, a gradual decoupling of payments from production is envisaged. Despite the low 
productivity of the agricultur al sector, we believe that Montenegro will be able to reform the sector 
through the production of high -quality, organic farming products.  
4.86.   In regards to government procurement, we congratulate Montenegro on the substantial 
changes made to the government pr ocurement legislation according to the EU acquis and the WTO 
GPA Agreement. We encourage Montenegro to continue the ongoing initiatives to raise 
procurement efficiency and monitoring through the introduction of e -procurement tools.  
4.87.   During the period follo wing its accession, Montenegro has proved its openness to 
international trade and integration into the world economy by maintaining a predictable and stable 
market access conditions. Furthermore, Montenegro is open to FDI and actively encourages 
investment  through various incentive schemes applied in a non -discriminatory manner.  WT/TPR/M/369  • Montenegro  
 
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  4.88.   Montenegro 's commitment to the multilateral trading system has been reflected not only in 
its obligations undertaken in trade in goods, but particularly in the services sector, which accounts 
for more than 70% of its economic activity. In the process of finalizing ne gotiations for accession 
to the WTO, Montenegro ensured extensive liberalization as regards freedom to provide services. 
GATS commitments undertaken in all of the 12 sector groups and in over 80% of its subsectors, as 
well as a number of "additional commit ments " are proof of Montenegro 's strong support to 
services.  
4.89.   Moldova has addressed several questions to Montenegro and we thank the Montenegrin 
delegation for providing answers to our questions.  
4.90.   Moldova -Montenegro bilateral relations are currently taking p lace under the Central 
European Free Trade Agreement (CEFTA), a modern, comprehensive and ambitious free trade 
agreement with parties from South Eastern Europe, aimed at stimulating economic development 
and the EU accession agenda in the region. It provide s a strong legal basis for policy formulation 
and implementation in key areas related to trade and investment. More recently, a number of 
trade facilitating initiatives are being implemented at the CEFTA level, with a view to reducing 
costs caused by ineff icient clearance procedures and compliance with international and regional 
requirements for safety and security measures. Two years negotiations on the CEFTA Additional 
Protocol 5, built upon WTO TFA, were concluded in 2016 and ratification by all Parties is expected 
to finalize soon. The AP5 goes beyond the WTO TFA by correlating with the actions at the regional 
level in order to promote investments and trade for the benefit of the private sector.  
4.91.   Other areas of interest include agriculture and sanitary a nd phytosanitary meas ures, 
non-tariff measures, rules of origin and trade in services, investment policy and promotion.  
4.92.   Major increases in commercial relations between the Republic of Moldova and Montenegro 
have been registered in 2017 compared to 2016. T hus, exports have gro wn by 431. 48% compared 
to 2016, reaching a value of US$310.39 thousand, whi le imports have increased by 52. 74%, 
reaching a value of US$49.46 thousand. Main exported products are fruit, sunflower seeds, fresh 
apples and pears, fresh and  dried grapes. Main imported products are medications and engine 
parts.  
4.93.   The Republic of Moldova is looking forward towards strengthening our bilateral trade 
relations, including new areas in services and reducing non -tariff barriers to trade.  
4.94.   We would lik e to conclude our speech by conveying a message of gratitude and appreciation 
on behalf of our Minister of Foreign Affairs and European Integration, H.E. Mr. Tudor Ulianovschi , 
to H.E. Zorica Marić -Đorđević for her impressive work in representing Mont enegr o in all the fora of 
this H ouse, as well as for her commitment and involvement in all the important trade negotiations, 
discussions and debates during her mandate. We wish Ambassador Zorica Marić -Đorđević the 
utmost success in her future activity.  
MEXICO 
4.95.   We are pleased to hear that despite the spillover from the crisis in Europe and its adverse 
impact on GDP growth, including a recession of 2.7% in 2012, Montenegro forecasts that its 
economy will grow by attracting significant foreign direct investment, chi efly in strategic areas 
such as infrastructure, energy, tourism and agriculture.  
4.96.   However, according to some economic analyses, one matter that requires Montenegro's 
attention is the high concentration of its exports in low value -added sectors and revolve c hiefly 
around mining, which accounted for 48% of all exports in 2016. This is fraught with significant 
risks because it exposes trade to volatile commodity prices and competition from low -cost 
countries.  
Structural reforms  
4.97.   In view of this, my delegation wo uld like to congratulate Montenegro on implementing major 
structural and trade -related reforms aimed at spurring productivity growth – to address 
Montenegro's production diversification and international competitiveness challenges – in several WT/TPR/M/369  • Montenegro  
 
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  areas such a s public finance management, energy, transport and telecommunications, the 
business environment, the reduction of the informal economy, foreign trade and investment 
facilitation. Also noteworthy is Montenegro's modernization of the State Administration thr ough the 
establishment of an electronic government portal that operates as a single point of contact.  
WTO  
4.98.   As regards its obligations as a WTO Member, we are aware that Montenegro has submitted 
notifications in most areas. However, according to the Secretar iat report, at December  2017 
notifications were outstanding in the areas of agriculture, government procurement, import 
licensing, quantitative restrictions, and subsidies and countervailing measures. We therefore urge 
Montenegro to bring its notifications  up to date and thus comply with the commitments it made to 
this Organization.  
Accession of Montenegro to the EU  
4.99.   We are pleased to hear that significant progress has been made in Montenegro's 
EU accession process, which began in 2011, and we wish the count ry every success in its ongoing 
negotiations.  
Electronic commerce  
4.100.   We also commend the adoption in 2016 of the Strategy for Information Society 
Development 2016 -2020 aimed at increasing the share of e -commerce in total trade by 1.5% by 
2020. This may also h elp to create new opportunities for Montenegro in global trade.  
Telecommunications  
4.101.   We note also the Strategy for Information Society Development 2020, adopted in 2016, 
which seeks to encourage growth in ICTs by setting a number of strategic development priorities; 
we further note that since 2012 Montenegro has climbed 11  places in the  ITU ICT Development 
Index, where it now ranks 62nd out of 175  economies. According to the Montenegrin authorities, 
this improvement is attributed to measures taken to stimulate investment in the existing network 
infrastructure, and innovations in access technologies. We hope that these improvements will 
increase Montenegro's competitiveness and also contribute to the country's economic growth.  
Tourism services  
4.102.   Turning now to tourism: accommodation, catering and related activities accounted for 
22.1% of GDP and 14.6% of employment in 2016. We know that the main tourism products relate 
to coastal activities and that actions have been put in train to diversify them. Given that this sector 
is very important to Montenegro, we are pleased to hear that the country intends to encourage 
sustainable tourism through t he National Strategy for Sustainable Development up to 2030 in 
order to address the growing impact of climate change.  
Conclusion  
4.103.   To conclude, we would like to thank Montenegro for its replies to our questions and to wish 
the country every success in this r eview.  
UNITED  STATES  
4.104.   Montenegro has achieved many economic successes in recent years. Perhaps most 
importantly, is its accession to the WTO in 2012, and since then it has made many significant 
contributions to this Organization. Montenegro is, simply put, an outstanding "citizen " of this 
Organization. Its active participation across our committee structures, the willingness of its 
Permanent Representative to chair one of our working groups, and the seriousness with which 
Montenegro responds to inquiries fro m the United States and other Members are examples of how 
this Member has shown its dedication to our common work. Over this same time -period, 
Montenegro has become an accession candidate in negotiations with the European Union, another 
demonstration of it s commitment to trade liberalization and regional integration.  WT/TPR/M/369  • Montenegro  
 
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  4.105.   Montenegro conducted its WTO accession with dedication and enthusiasm, and in particular 
the United States commends Montenegro for additional undertakings in several plurilateral WTO 
agreement s, including the Trade in Civil Aircraft Agreement, the Information Technology 
Agreement and most recently its accession to the revised Government Procurement Agreement.   
4.106.   Montenegro has also demonstrated lea dership in trade facilitation. We recognize 
Montenegro 's early acceptance of the Trade Facilitation Agreement and its timely notif ications. We 
appreciated the inclusion of details regarding Montenegro 's National Committee for Trade 
Facilitation in its report, and we look forward to learning more about i ts Strategy on Trade 
Facilitation in the Trade Facilitation Committee as we work jointly with Montenegro to build that 
Committee .  
4.107.   We look forward to seeing Montenegro 's continued progress in reforming its business 
environment and reducing trade barriers. During the review period, Montenegro has implemented 
significant reforms in its trade policy regime, including promoting good regulatory practices, 
eliminating import quotas, reducing import licensing requirements and prohibitions, streamlining 
customs pro cedures, and reducing tariff and non -tariff barriers.  
4.108.   We would like to draw attention to the laudable efforts Montenegro has made to promote 
good regulatory practice, including the adoption and application of Regulatory Impact Assessments 
as well as the i ntriguing program referred to as "Guillotine Regulations " which we understand to be 
a very aptly named effort to eliminate and reduce bureaucracy and red tape. We also applaud 
similar efforts undertaken to build the capacity of the Montenegrin accreditatio n system and the 
expansion of conformity assessment bodies, which will improve investor and trader confidence in 
accessing Montenegro 's market. We support Montenegro 's continuing structural reforms, and look 
forward to further advancements that support  trade and economic growth.  
4.109.   Concerning intellectual property (IP) rights, Montenegro has taken a number of steps to 
align its IP law and regulations with the TRIPS Agreement. This is an important factor in further 
facilitating trade in IP -intensive goods and s ervices. We hope to obtain further updates and 
clarifications related to Montenegro 's amendments to and implementation of its copyrigh t and 
industrial property laws.  
4.110.   Today 's Trade Policy Review plays an important role in encouraging the dialogue between 
Montenegro and other WTO Members on issues that, if successfully addressed, would lead to 
expanded trade and greater pro sperity for Montenegro and its trading partners. During this review, 
we have posed a number of written questions aimed at facilitating a b etter understanding on 
issues related to Montenegro 's alignment of its tariffs with the EU; the standard -setting framework 
in relation to food; its intellectual property rights regime; and its investm ent policy and customs 
system.  
4.111.   We want to take this opportunity to thank Montenegro for its written responses to the 
questions w e raised. We are undertaking a comprehensive review of the responses in Washington.  
4.112.   We look forward to closer cooperation with Montenegro her e at the WTO, and bilaterally. 
We also  wish to take a moment to acknowledge Montenegro 's Ambassador, Zorica Maric -Dordevic 
for her close cooperation and collaboration with the United States, and for setting an incredibly 
high standar d of hard work and dedication.  
4.113.   We also look forward to contin uing to work with Montenegro and other Members to 
strengthen the global economy and the WTO. We hope that our discussions today will help 
Montenegro expand upon the considerable progress it has already made in its trade regime.  
THAILAND  
4.114.   In 2017, total tra de value between Thailand and Montenegro was US$2.12 million . 
Although the bilateral trade is still relatively small, there is trade potential that can be explored. 
For exports from Thailand, such potential may exist in prepared fish, iron, rubber, cotton,  paper, 
and staple fibers. While vessels and parts of machinery can be considered potential exports from 
Montenegro.  WT/TPR/M/369  • Montenegro  
 
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  4.115.   Thailand welcomes Montenegro 's consistent efforts in spurring economic recovery and 
productivity growth by undertaking fiscal and trade -related structural reforms in several areas 
such as tax administration, competition policy, the labour market, public finance management, 
energy, and foreign trade and investment facilitation.  
4.116.   Thailand appreciates the openness of Montenegro 's economy to inter national trade and its 
aim to integrate into the world economy. These efforts are reflected in the high ratio of trade in 
goods and services to GDP, which was 103.4% in 2016. Montenegro 's efforts in improving the 
business environment by providing various i ncentive schemes in a non -discriminatory manner also 
deserve positive mention.  
4.117.   Since WTO accession, Montenegro has adopted constitutional amendments to reinforce 
judicial independence. Thailand commends Montenegro for undertaking commitments in 
government procurement and trade facilitation.  
4.118.   During the review period, trade facilitation developments in Montenegro included the 
ratification of the TFA in 2016, steps to implement an authorized economic operator scheme, and 
the establishment of a National Trade F acilitation Committee to address bottlenecks in this area.  
4.119.   Regarding customs valuation, we are pleased to learn that the transaction value was the 
most used method and no reference or minimum prices or fixed valuation schedules were used. In 
addition, we c ommend Montenegro 's commitments to ensuring predictable and stable market 
access conditions as all tariff lines are bound on an ad valorem basis.  
4.120.   In this review, Thailand submitted a set of questions covering the policies and measures of 
our interests such  as business zones, investments in agricultural farms, electronic communications 
for foreign -service providers, and privatization of state -owned enterprises. We thank Montenegro 
in advance for written responses.  
4.121.   In conclusion, we wish Montenegro a successf ul first Trade Policy Review.  
KINGDOM  OF SAUDI  ARABIA  
4.122.   Despite its small open economy largely driven by tourism and services and 
import -dependent, Montenegro has enjoyed high economic growth from -2.7% (in 2012) to 3% (in 
2017).  
4.123.   Montenegro is to be commende d for its great efforts to achieve sustainable economic 
growth through the implementation of the fiscal consolidation strategy, the development of the 
financial sector, labo ur market reforms, and business environment and governance.  
4.124.   The Secretariat and Government reports highlighted the structural reforms by Montenegro 
to promote diversification of production and productivity increase including many areas such as 
corporate governance, competition, taxation, energy, transport and communications, and 
facilitation of foreign investment.  
4.125.   The Secretariat 's report also highlighted changes and updates to the comprehensive 
regulatory and institutional framework in many areas to ensure compliance with future EU 
accession requirements such as sanitary and phytosani tary measures, intellectual property rights, 
promotion of small and medium -sized enterprises, research and development and improved 
competitiveness.  
4.126.   We also note with great attention that the Montenegro 's economy is transitioning to a 
market system. As of 2015, around 90% of Montenegrin state -owned companies have been 
privatized, including 100% of banking, telecommunications, and oil distribution.  
4.127.   The bilateral relations between the Kingdom of Saudi Arabia and Montenegro enjoy a 
stable and positive developm ent with the potential to increase and expand economic cooperation 
in tourism, industry, agriculture, construction services, IT, and trade and investment.  WT/TPR/M/369  • Montenegro  
 
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  4.128.   The Kingdom of Saudi Arabia has submitted some questions to Montenegro regarding 
economic growth plan s, banking regulations, FDI regime, and transportation, and will be happy to 
receive Montenegro replies to these questions.  
4.129.   To conclude, we wish the entire delegation of Montenegro a very successful Trade Policy 
Review.  
TURKEY  
4.130.   We observe with satisfaction that Montenegro continued to follow a liberal trade and 
investment policy during the review period. Also, significant reforms have been undertaken in 
terms of taxation, competition and labour market policies, as well as with respect to technical 
regulation s and standards, as part of the accession process of Montenegro to the EU. It is obvious 
that liberal and reform oriented trade and investment policies of Montenegro contributed 
significantly to the economic development of the country.  
4.131.   Despite some fluctua tions, a steady growth rate has been maintained, the inflation is under 
control, and the unemployment is in a decreasing trend. As a result, GDP per capita increased 
24% during the review period.  
4.132.   However, the lack of national currency and national monetary  policy negatively affects the 
competitiveness of the economy and complicates the adjustment of the balance of payments. 
Increasing current account deficit is a source of concern for the economy, as the exports of goods 
decreased more than 10% during the r eview period, while the imports increased 13%.  
4.133.   Having said that, we are confident that continuing reforms in the labour market prices, 
fiscal consolidation, improvement of investment protection regime, the ambitious incentive regime 
and the guiding strateg y for the manufacturing sector that have been adopted by the Government, 
will boost the competitiveness of the economy, develop the manufacturing sector and address the 
remaining challenges of the economy.  
4.134.   Montenegro is an important economic partner for Tu rkey in its region, thanks to its level of 
economic development and open trade and investment regime. The free trade agreement between 
Turkey and Montenegro dates back to 2010 and it has contributed considerably to develop our 
bilateral trade. We believe t hat the ratification of our bilateral investment treaty will give a further 
impetus to the bilateral economic relations.  
4.135.   As a specific issue, I would like to refer to the policy of Montenegro for accepting the 
equivalence of the conformity assessment docum ents issued by the EU notified bodies in terms of 
technical regulations, and remind Turkey 's expectation of recognition by Montenegro of the 
certificates issued by the notified bodies accredited by Turkish Accreditation Agency, as part of the 
Turkey -EU Cus toms Union and Turkey 's full transposition of the EU technical regulations in this 
framework.  
4.136.   To conclude, we would like to reiterate our satisfaction by the commitment of Montenegro 
to the multilateral rules -based trading system.  
4.137.   We look forward to develo p our cooperation with Montenegro both in bilateral and 
multilateral platforms, and we wish Montenegro a very successful trade policy review exercise.  
REPUBLIC  OF KOREA  
4.138.   Taking this opportunity, Korea would like to express its sincere appreciation to Monten egro 
and the Secretariat for the successful implementation of the on -line Q&A system. Korea, which 
voluntarily participated in the trial version of the on -line Q&A system, hopes that the system will 
be fully taken advantage of during future TPRs.  
4.139.   Since the  establishment of bilateral relations in 2006, Korea and Montenegro have 
developed a sound economic partnership. However, at the same time, I must say that the two 
countries still have much room for realizing the full potential of our economic cooperation.  As the 
Secretariat report points out, Montenegro 's trade under Regional Trade Agreements (RTAs) WT/TPR/M/369  • Montenegro  
 
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  account for more than 80% of total foreign trade. Should bilateral trade between Korea and 
Montenegro expand, it will go a long way towards helping Montenegro diversify its trading partners 
and achieving stable economic growth.  
4.140.   As the Secretariat report highlights, since its WTO accession in 2012, Montenegro has 
made an effort to integrate into the world economy. It is noteworthy that Montenegro has 
undertaken W TO commitments in government procurement and trade facilitation. At the same 
time, Montenegro is a member of five RTAs encompassing a total of 41 economies. Moreover, EU 
accession negotiations were launched in 2011 and are currently ongoing. Korea hopes th at the EU 
accession process may act as a stimulus for improving Montenegro 's trade policy instruments and 
trade and investment -related laws and regulations.  
4.141.   At this TPR, Korea submitted, albeit somewhat late, our written questions on tariff reform. 
We look  forward to receiving your view in due course.  
4.142.   I would like to conclude by once again expressing my appreciation to the delegation of 
Montenegro, and I wish the delegation every success for the TPR.  
INDIA  
4.143.   This is Montenegro 's first Trade Policy Review after accession to the WTO in 2012. We note 
from the Secretariat and Government reports that during the period of review the economy of 
Montenegro has grown at a fluctuating rate. The average growt h rate for the period from 
2012 2016 stood at 1.8% and in t he first two quarters of 2017 the economy witnessed a stronger 
growth of around 4.2% due to the rise in demand and investment. The challenges for Montenegro 
include mobilizing resources for public infrastructure, addressing unemployment, continuous labour 
market rigidities, current account deficit, substantial external debt and high dependence on 
imports. We commend the Government of Montenegro for the various measures it is taking to 
address these challenges which include strategies for fiscal consolidatio n, economic reform 
programmes – for strengthening infrastructure, focussing on projects in tourism and energy, tax 
reforms, structural reforms and focussing on investment policy to attract foreign investment.  
4.144.   India and Montenegro have traditionally shared close and friendly relations. The trade 
between both countries though modest has potential for growth in items like machinery, textiles, 
engineering goods, metals, agricultural products, automobiles and chemic als. Both countries are 
also exploring business opportunities with exchanges of business delegation and participation in 
trade fairs. There is also potential to promote investments of Indian companies in Montenegro 
especially in the areas of hospitality, t ourism, agriculture and infrastructure development including 
roads, power, renewable energy, etc.  
4.145.   For capacity building and human resources development, India is also regularly offering 
slots in various training institutions to professionals from Montenegr o under India 's Economic and 
Technical Cooperation programme.  
4.146.   To conclude, we look forward to working closely with the authorities of Montenegro for 
further expanding and harnessing the potential of our trade and investment ties for mutual 
benefit. We wish  the delegation of Montenegro a productive and successful TPR.  
SINGAPORE  
4.147.   Singapore enjoys good relations with Montenegro. We may both be small and far apart, yet 
our bilateral trade stood at US$4.03 million (S$5.3 million) last year. This shows that distan ce and 
size are not inherent barriers to building economic and trade links.  
4.148.   We note that the EU remains Montenegro 's largest and most important trading partner, 
and that many of Montenegro 's economic reforms are results of its efforts to align its legislat ion 
with the EU acquis and advance its EU accession goals. Notwithstanding the importance of the 
surrounding region to its economy, we look forward to more economic and trade engagements 
with Montenegro, as Montenegro becomes more integrated into the multi lateral trading system.  WT/TPR/M/369  • Montenegro  
 
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  4.149.   Since acceding to the WTO in April 2012, Montenegro has made substantive efforts to 
integrate into the multilateral trading system. We commend Montenegro for its openness to trade, 
which stood at 103.4% of its GDP in 2016. Moreover,  Montenegro 's relatively low simple average 
MFN tariff rate of 5.1% and the limited gap between this and its bound rates (1.4% difference) 
offer a stable and predictable base for trade to grow. During this period, Montenegro also 
improved its rankings in t he World Bank 's Ease of Doing Business report from 56th place in 2012 to 
42nd place in 2018.  
4.150.   Montenegro has participated actively in the WTO, notably since establishing its Permanent 
Mission to the WTO in 2015. I would, in particular, like to express appre ciation for Ambassador and 
Permanent Representative Zorica Marić -Djordjević 's constructive and consistent contributions to 
our work, including as Chair of the Working Group on Trade and Transfer of Technology.  
4.151.   Montenegro 's commitment to the multilateral tr ading system is reflected in its ratification 
of the Trade Facilitation Agreement and submission of its Category "A" notification, and its 
acceptance of the Protocol Amending the TRIPS Agreement. We also appreciate Montenegro 's 
participation in the Governm ent Procurement Agreement (GPA) and the Information Technology 
Agreement (ITA). Moving forward, we encourage Montenegro to address its outstanding 
notifications, such as those related to SPS, TBT and import licensing.  
4.152.   We wish Montenegro a very successful first TPR.  
THE SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU  
4.153.   At the outset, I would like to congratulate you on your appointment as the Chair of this 
Body. We look forward to working with you, and you can be assured of our support and conf idence 
in your leadership.  
4.154.   Montenegro should be commended on the openness to international trade it has shown 
since acceding to the WTO in 2012. Its commitments in terms of market access for both goods and 
services are very comprehensive. For trade in good s, Montenegro has bound all tariff lines with an 
average rate at 6.4%; and the majority of its bindings are already in force. We expect 
implementation of the remaining commitments to be completed by 2022. As mentioned in the 
Secretariat report, the MFN rat es applied to some commodities appear to have exceeded their 
bound level in 2017. We are pleased to note, however, that the Montenegro has taken action to 
correct this situation.  
4.155.   As far as trade policy is concerned, we are encouraged by the fact that Monte negro is a 
strong advocate of the rules -based multilateral trading system, as embodied by the WTO. Since 
becoming a Member, Montenegro has shown its intention to engage strongly in the work of the 
WTO by joining the GPA, ITA2 and the Agreement on Trade in Civil Aircraft, as well as registering 
its acceptance of the TFA and the Protocol amending the TRIPS Agreement. Its voice has already 
been heard in several areas of WTO discussion, such as e -commerce, services, domestic 
regulation, investment facilitation,  MSMEs, and women 's empowerment, and we hope it will 
continue this level of constructive engagement into the future.   
4.156.   We are very sorry to have to say farewell to Ambassador Zorica Marić -Đorđević. My 
delegation has enjoyed working with her, and we wish he r all the very best in her future 
endeavours.  
4.157.   In conclusion, my delegation looks forward to strengthening our trade and economic 
relations with Montenegro in the years to come, and of course we wish Montenegro a very 
successful first trade policy review.  
BENIN 
4.158.   The delegation of Benin welcomes the efforts and achievements made by Montenegro since 
its accession to the WTO despite the difficulties it has encountered, largely as a result of the 
regional and international economic situation. The outcomes are re flected in Montenegro's control 
of inflation, estimated at an average of 2.4% between January and September  2017, and a WT/TPR/M/369  • Montenegro  
 
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  9.2%  reduction in the current account deficit. GDP growth was estimated at 4% in 2017 compared 
to 2.9% in 2016, a significant increase i n the Montenegrin economy.  
4.159.   The delegation of Benin is pleased that the resumption of growth in the European Union 
will have a positive impact on the state of the Montenegrin economy in the coming years.  
4.160.   This prospect combines with the various major reforms  delivered by the Government of 
Montenegro, such as the simplification of tax procedures and transparency in the performance of 
tax obligations, the establishment of an effective system to reduce the informal sector with a view 
to its complete elimination,  and the steady improvement in the business climate. All these reforms 
are supported by the judicial reform process, which has been one of the most important 
undertakings of the past decade.  
4.161.   The delegation of Benin will continue its cooperation with its Mo ntenegrin counterpart 
within the WTO negotiating bodies on matters of common interest.  
4.162.   We congratulate the Ambassador and Permanent Representative of Montenegro, 
Her Excellency Mrs  Zorica Marić -Đorđević, on her active involvement in the negotiating work at  
the WTO.  
4.163.   The delegation of Benin thanks the WTO Secretariat and the Government of Montenegro 
for their highly informative reports relating to the current trade policy review of Montenegro.  
4.164.   We wish Montenegro every success in its first trade policy review.  
ALBANIA  
4.165.   Albania would like to associate itself with the statement of the European Union.  
4.166.   At the outset, Albania would like to congratulate Montenegro as a country which, since its 
WTO accession, has adopted constitutional amendments to reinforce judicial independence, and 
has undertaken institutional and legislative reforms to combat corruption. These achievements are 
clearly demonstrated by the 2017 -2019 Economic Reform Program me, where trad e and 
trade -related policy objectives are focused on strengthenin g the competitiveness of service 
exports, diversifying goods exports and increasing value -added in export -orientated production.  
4.167.   We also recognize that during the reporting period, the average annual real growth rate of 
GDP was 1.8%, adding that the lack of diversification on the supply side has caused the high 
import dependence, which has reduced the growth rates of GDP. But, it is encouraging project that 
the Government expects the average GDP growth rate for the period 2018 -2020 to be 2.8%,  
4.168.   Albania is o f the hope that recent signs of the Montenegrin economic recovery will assist in 
ensuring the rise in employment throughout the coming years.  
4.169.   By its membership in  the WTO, Montenegro has liberalized its trade regime and successive 
cuts of customs rates hav e been implemented annually while the last cut is envisaged for year 
2022. It is to be appreciated the Montenegrin Government engagements to join the WTO 
plurilateral agreements, the Protocol amending the TRIPS Agreement as well as the regular 
submission o f notifications as one of the key instrument providing transparency of our  multilateral 
trading system.  
4.170.   Albania commends also the progress of Montenegro which is the first among other 
countries of Western Balkans to enter the EU negotiations under the so -called ''new approach ", 
and we wish Montenegro a successful negotiating process to finalize its EU membership. Regarding 
our common objectives – to join the EU – both countries are convinced this will further facilitate 
our overall economic and trade cooperation in benefits of our people. In this context, Albania 
wishes to congratulate Montenegro on its successful steps ahead to fulfil relevant Chapters of the 
Accession Agreement with EU, and we are very pleased to observe that Montenegro is taking 
positive and further steps to ensure its own membership to the EU.  WT/TPR/M/369  • Montenegro  
 
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  4.171.   In this framework, both G overnments will continue to support each other in particular on 
issues related to the administration in sharing our experience and developing strategies and 
capacities  for the needed engagements with the EU institutions.  
4.172.   In the bilateral front, Montenegro is our neighbo ur, and both countries have established 
strong and stable relationship. Trade cooperation is on the rise with implementation of the regional 
free trade a greement in goods under CEFTA Agreement, where Albania and Montenegro are part of 
and that continue to support diversification of our trade in 12 years of its existence. Among other 
CEFTA members, Albania and Montenegro remain committed to further strength ening economic 
ties. Our two Governments have signed the Agreement on E conomic Cooperation in 
November  2015 whose aim is to further explore potential opportunities for collaboration in 
industry, energy, agriculture, protection of the environment, tourism a nd transportation. In the 
WTO frame, Albania and Montenegro have ratified TFA which constitutes a strong signal for 
building more effective cooperation between customs and other appropriate authorities on 
facilitating movement of goods and cross -border coo peration.  
4.173.   In the framework of the Cross -Border Cooperation we believe that it is imperative that 
both parties coordinate, at the political and technical level, for listing, identifying and prioritizing 
some of the Cross -Border projects, in view to secure f unding and implementing them, to the 
mutual benefit. Albania pays great attention to different Cross -Border infrastructural projects with 
real impact to cross border communities that are being implemented by different Agencies. We 
would encourage the Monte negrin authorities for more efforts, regarding the fulfilment  of some 
infrastructural cross -border projects in its own territory.  
4.174.   Regarding this TPR, Alba nia encourages the Montenegrin G overnment undertaking further 
measures on strong investment activity i n particular on FDI inflows which will increase the 
available capital in the area of infrastructure, energy, tourism and agriculture. They surely will 
increase the potential for growth of the Montenegrin economy, whose effects will positively affect 
the ov erall economic activity in the medium and long term. The same encouragement is related to 
the area of tourism which is perceived as one of priorities for development where additional efforts 
are being made to further diversify the tourist product, so as to  overcome seasonal character of 
the destination. Further collaboration with neighbo uring countries such Albania is also in the good 
track.   
4.175.   As conclusion, Albania wishes to the Montenegrin Government a successful and productive 
Trade Policy Review, and we  are looking forward to continuing excellent and constructive 
engagement with the deleg ation of Montenegro in Geneva.  
SRI LANKA  
4.176.   We believe that the sound and persistent economic policies of the Government of 
Montenegro such as 2017 -2019 Economic Reform Pro gramme and Fiscal Consolidation Strategy 
will help the country to improve its economic status despite the current economic challenges the 
country faces. It is evident that the trade and trade -related structural reforms undertaken during 
the review period i n areas such as tax administration, competition policy, and the labour market 
has positively contributed towards achieving this target.  
4.177.   The openness of the Montenegrin economy to international trade and its aim to integrate 
into the world economy continue s to be reflected in its trade to GDP ratio. Montenegro places 
among one of the highest investment per capita economy in Europe. This has been resulted by low 
restrictions imposed on investors and availability of inc entive schemes applied in a 
non-discrimi natory manner. Its efforts to improve the business environment have been reflected in 
improved international rankings as well.  
4.178.   It is interesting to note that all the tariff lines in Montenegro 's tariff schedule are bound on 
ad valorem basis, ensuring more  transparency. Only around 10% of tariff lines are exceeding 
applied tariff of 10%. There is high predictability in the tariff regime as only a small gap exists 
between average applied and average bound rates. We believe that the Government of 
Montenegro w ill take necessary steps to rectify the situation of exceeded bound rates of  few tariff 
lines as recorded.  WT/TPR/M/369  • Montenegro  
 
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  4.179.   The bilateral trade between Montenegro and Sri Lanka stands at a very moderate level, but 
with an increasing phase. The trade has always being in fav our of Sri Lanka. Both countries share 
common economic challenges such as higher debt to GDP ratio, trade and fiscal deficit and 
internati onal competitiveness challenges . On the other hand both Montenegro and Sri Lanka are 
blessed with natural beauty which  attracts a significant number of tourists every year. It is 
interesting to note that Montenegro attracts each year three times as many visitors as 
Montenegro 's total population.  
4.180.   In the multilateral front, my delegation appreciates Montenegro 's highly val ued 
contribution to the multilateral trading system and its active engagement in the negotiations in the 
WTO since its accession to the WTO in 2012. Montenegro has undertaken commitments under the 
Trade Facilitation Agreement and the Government Procurement  Agreement reaffirming its 
commitment to the multilateralism. It is interesting to note that most of the TFA provisions have 
been implemented by the time the Agreement came into effect.  
4.181.   In concluding, my delegation appreciates Montenegro 's highly valued c ontribution to the 
multilateral trading system and its active engagement in the negotiations in the WTO. The dynamic 
and the vibrant role played by Ambassador Zorica Marić -Đorđević in proactively engaging in 
ongoing activities of WTO, including with her le adership to certain subsidiary bodies of this 
organization, is highly admirable.  
4.182.   In concluding, let me thank both the WTO Secretariat and the Government of Montenegro 
for the productive reports made available well in advance to this meeting. My appreciatio n is also 
goes to the discussant , H.E. Mr. Peter Matt of Liechtenstein,  for his analytical presentation on this 
trade policy review.  
EL SALVADOR  
4.183.   El Salvador considers it an honour to take part in this first exercise in transparency for 
Montenegro. Like El  Salvador, Montenegro is a small country covering an area of nearly 
14,000  km2; it also has a small, open economy undergoing transition to a market economy that is 
service -oriented and dependent on imports. We therefore identify fully with the challenges facing 
the country in becoming integrated into global trade flows and providing better standards of living 
for its citizens.  
4.184.   Turning to the matter at hand, as stated in the Secretariat report, Montenegro has been on 
a fluctuating growth path since its acce ssion to the WTO in April  2012.  
4.185.   During the review period, Montenegro's annual GDP growth ranged from -2.7% (in 2012) 
to 3.5% (in 2013), averaging 1.8% annually for the period 2012 -2016, a significant slowdown 
compared to the 3.4% recorded between 2001 and 2011.  
4.186.   Against this adverse background we acknowledge the efforts that the Government of 
Montenegro is making through a number of reforms to spur economic recovery, including a 
Fiscal  Consolidation Plan (December  2016), a Fiscal Consolidation Strategy (June  2017), and a 
2017-2019 Economic Reform Programme.  
4.187.   Similarly we note the ambitious programme of reforms implemented by the Government 
and aimed at spurring productivity growth in areas such as public finance management, energy, 
transport and telecommunicat ions, the business environment, the reduction of the informal 
economy, foreign trade and investment facilitation.  
4.188.   In addition to its dependence on the European market, like most small countries 
Montenegro is experiencing difficulties linked to production d iversification and international 
competitiveness.  
4.189.   At the multilateral level, since its accession to the WTO Montenegro has participated 
actively in the work of this Organization, as illustrated by its commitments relating to government 
procurement, trade f acilitation and under the TRIPS Agreement.  WT/TPR/M/369  • Montenegro  
 
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  4.190.   It should also be noted that Montenegro takes an active part in various initiatives that aim 
to discuss matters of current global concern that are relevant to this Organization.  
4.191.   I would like to highlight the contribution by my esteemed friend, Ambassador Zorica, to 
ensure that this Organization and Geneva in general now provide us with various platforms where 
we can discuss aspects relating to gender equality and how to encourage women's participation in 
world  trade.  
4.192.   Bilateral trade between El  Salvador and Montenegro is currently modest, however the 
Salvadoran authorities are studying the opportunities that Montenegro can provide as a gateway to 
the other Balkan countries, and therefore we hope that trade betwe en us can be enhanced and 
extended in the near future.  
4.193.   It only remains for me to wish Montenegro every success in this trade policy review.  
GUATEMALA  
4.194.   Among the positive measures taken during the review period, we note the momentum in 
various production sec tors, especially those relating to services and tourism, that generated 
labour  market growth and did a great deal to reduce unemployment.  
4.195.   One point of note in the trade policy review report of Montenegro concerns the tax system 
based on the principle of se lf-assessment where taxpayers, whether natural or legal persons, are 
responsible for calculating and declaring their tax liabilities. The system is competitive and the 
application of special reliefs makes Montenegro an attractive country for investment. To gether with 
the 2020 tax calendar, the system has become stable and efficient, avoiding abrupt changes in 
tax liabilities.  
4.196.   Another noteworthy area concerns the legislative processes whereby various laws on trade 
and investment have been enacted, generating  new business environments and production chains 
that enhance Montenegro's economic growth and give it a better position on the world trade index.  
4.197.   The implementation of the 2011 -2015 Strategy for Development of SMEs achieved its 
objective of improving the business climate by generating stable measures and establishing 
public -private partnerships that enhanced openness to new markets and the promotion of business 
initiatives.  
4.198.   The Government of Montenegro is seeking in the near future to implement electronic 
government that will facilitate access to various administrative procedures and will generate tools 
to streamline the provision of administrative services, with more efficient results. This is indeed 
the case for the Law on Business Organizations, which ai ms to achieve business registration in a 
short timeframe using a rapid, straightforward process.  
4.199.   On judicial matters we note the implementation by Montenegro of its Strategy for the 
Reform of the Judiciary 2014 -2018, whose key aim is to provide judicial bo dies with guidelines for 
performing their duties more efficiently.  
4.200.   In 2012 the Government of Montenegro launched its Intellectual Property Strategy to 
strengthen the use of intellectual property systems as an economic asset and development 
component; and t o establish tools that foster creativity and innovation as well as the appropriate 
enforcement of intellectual property rights. The country made various legislative changes in this 
area in order to comply with its commitments under the WTO Agreements.  
4.201.   To c onclude, we wish the delegation of Montenegro every success in this first 
trade  policy  review.  
PAKISTAN  
4.202.   At the outset, Chair, we would like to congratulate you on your appointment to this 
important assignment and wish you all the best in your future effort s.  WT/TPR/M/369  • Montenegro  
 
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  4.203.   Pakistan recognized Montenegro as an independent state in 2006 and the two countries 
enjoy cordial bilateral relations. Existing trade potential between the two countries is largely left 
unexploited.  
4.204.   Pakistan is pleased to note that since its WTO acces sion in April 2012, Montenegro 's 
economy has been on a growth path as demonstrated by its different economic indicators. During 
the review period, Montenegro 's annual GDP growth ranged from -2.7% in 2012 to 3.5% in 2013; 
its annual average growth rate for the period 2012 -16 stood at 1.8%. Consumer price inflation 
dropped from a peak of 4.1% in 2012 to 1.5% in 2015, the unemploymen t rate declined 
progressively.  
4.205.   During the review period, some trade and trade -related structural reforms were 
undertaken in areas  such as tax administration, competition policy, and the labo ur market. Gross 
external debt dropped from 155.9% of GDP in 2012 to 152.1% in 2015. Foreign exchange 
reserves have increased steadily. The openness of the Montenegrin economy to international tr ade 
is reflected in the ratio of its trade in goods and services to GDP, which was 103.4% in 2016.  
4.206.   Pakistan is very appreciative of the fact that Montenegro is open to FDI; its only FDI 
restrictions relate to the ownership of land and assets within one kil ometer of the border and 
agricultural land. It actively encourages investment through various incentive schemes which are 
applied in a non -discriminatory manner. Efforts to improve the business environment have been 
reflected in improved international rank ings.  
4.207.   Since joining the WTO, Montenegro has undertaken commitments in government 
procurement and trade facilitation; it also accepted the Protocol Amending the TRIPS Agreement. 
Montenegro has never been involved in a WTO dispute settlement case either as complainant, 
respondent or third party.  
4.208.   Although most tariff lines are ad valorem, tariff 's complexity increased as a result of its EU 
alignment and in 2017 it involved a multiplicity of rates. The simple average MFN applied tariff rate 
dropped slightly from 6% in 2012 to 5.1% in 2017.  
4.209.   During the review period, trade facilitation developments included steps to implement an 
authorized economic operator scheme, the establishment of a National Trade Facilitation 
Committee to address bottlenecks in this area.  
4.210.   Montenegro 's intellectual property rights legislation has been strengthened with wide -
ranging and comprehensive amendments or new laws. During the review period, several legislative 
and institutional changes were undertaken under the competition policy and consumer protection 
framework.  
4.211.   It is commendable that nearly 70% of Montenegro 's territor y is covered by forests or forest 
land and in recent years reforestation has occurred as farmers have abandoned agricultural land.  
4.212.   Montenegro 's energy production comes from hydro -electricity, coal and fuelwoods. To meet 
domestic demand, it imports around 10%-15% of its energy needs.  
4.213.   In 2016, the GDP share of manufacturing in the economy was 4.6% and the sector 
accounted for 6.3% of the total number of employed persons. Manufactu ring production is 
dominated by  pharmaceutical products and preparations; basi c metals and metal products; food 
products, beverages and tobacco; other non -metallic mineral products; machines and equipment, 
and wood and cork products. Its main exports are iron and steel bars and rods; medicines; and 
certain machinery and transport eq uipment.  
4.214.   Services account for more than 70% of economic activity. Montenegro has undertaken 
GATS commitments in all of the 12 sector groups listed in the Services Sector Classification List 
and in over 80% of its subsectors. Montenegro 's banking and insur ance sectors are open to foreign 
investment. The telecommunications sector is fully privately owned.  
4.215.   Tourism remains one of Montenegro 's main economic activities as well as serving as a 
stimulus to other sectors. There are no FDI restrictions on any type of tourism accommodation in WT/TPR/M/369  • Montenegro  
 
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  Montenegro, and no nationality requirements applied to tourist service providers. Various 
incentives are offered, particularly to stimulate investment in high quality facilities. Montenegro 's 
growth is likely to accelerate in th e near future, driven largely by highway construction spending 
and tourism and energy investments, as well as related higher consumption.  
4.216.   We appreciate the very active role of Montenegro in FEDS (Friends of Ecommerce for 
Development), of which we are also  a Member, and also the role of Ambassador of Montenegro to 
the WTO, Ms. Zorica Maric Djordjević in upholding of the multilateral trading system and in trying 
to achieve consensus on difficult issues.  
4.217.   In the end , we want to wish Montenegro a very successf ul and fruitful TPR.  
GEORGIA  
4.218.   Since its accession in 2012, Montenegro has experienced fluctuating growth path , and a 
number of actions and economic reforms were put in place to tackle the existing economic 
challenges.  
4.219.   Despite all the current economic hards hips and vulnerabilities preconditioned by high 
import dependence, increased unemployment rate, rising public debt and other downside 
circumstances, Montenegro in recent years managed to maintain its annual average growth rate at 
1.8%. Georgia commends Mon tenegro 's path for reforms, adopted program mes and strategies like 
the 2017-2019 Economic Reform Program me.   
4.220.   Georgia and Montenegro established diplomatic relations in 2007. The two countries share 
the same values and aspirations with respect to full inte gration to the EU structures. Montenegro is 
a valuable partner and we wish Montenegro all the success in its endeavours.  
4.221.   Georgia and Montenegro do not demonstrate distinguished relations in terms of trade and 
economic activities. Our countries are enjoying  modest bilateral trade. Georgia 's sole export to 
Montenegro is hazelnut.  
4.222.   Considering the existing economic environment, Georgia expresses its readiness to widen 
economic re lations between the two S tates in terms of enhanced import and export activities a nd 
other trade related arrangements  by introducing new initiatives and program mes. 
4.223.   It is important to note that tourism remains a main economic sphere  for both Montenegro 
and Georgia. Georgia encourages mutual diversified efforts to offer various incentive s to stimulate 
investment in tourism sector in both countries.  
4.224.   To conclude, Georgia once again expresses the gratitude for the comprehensive report s 
and wishes Montenegro a successful review.  
RUSSIAN  FEDERATION  
4.225.   Accession to the WTO in 2012 was a landmark for both Montenegro and the WTO. On the 
part of Montenegro, it implied wide -ranging reforms. For the WTO it represented a big step 
towards universality. We observe with interest how Podgorica is coping with the challenges of 
implementing structural reform measures aimed at diversification of national economy.  
4.226.   The Russian Federation and Montenegro have a long history of diplomatic, trade and 
economic relations. On 10 June 2006, the Russian Federation was the first country in the world to 
recognize Montenegro  as a sovereign State.  
4.227.   Russia 's exports to Montenegro in 2017 amounted to US11.4 million. We export raw 
aluminium (47.6%), tobacco products (13%), oil products (13%) and articles of stone (40.5%).  
4.228.   During this TPR, the Russian delegation has not addressed a ny written questions to 
Montenegro. However, I would like to draw the attention of Members to a number of issues.  WT/TPR/M/369  • Montenegro  
 
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  4.229.   First, to our regret, our bilateral trade in goods has dropped significantly after Podgorica 
joined EU unilateral measures against Russia. Las t year, our total trade turnover declined by 
38.5% compared to 2016. We remain deeply concerned with a number of trade restrictive 
measures imposed by Montenegro against the Russian Federation due to non -economic reasons. 
In this respect, we would like to express our regrets and disappointment with the escalating of 
anti-Russian political rhetoric of Podgorica, which brings nothing but harm to both sides including 
mutual economic, trade and investment losses. The Russian Federation reiterates its request to  
Montenegro to bring its measures in line with the commitments under the WTO Agreements and to 
terminate all unfounded restrictive measures immediately.  
4.230.   Second, in April 2017, Rospotrebnadzor suspended the import of alcoholic products from 
one Montenegrin enterprise, namely "13JUL.PLANTAZE " AD, into the territory of the Russian 
Federation. Based on the results of the conducted research, it was established that the products of 
this enterprise contained pesticides , plasticizers and other additives. Since that  time, we have not 
obtained information from Montenegro on the actions to identify the causes of contamination of 
alcoholic products imported to the Russian market.  
4.231.   Third, the institutional basis for our bilateral cooperation is the Intergovernmental Russi a-
Montenegro Committee on Trade, Economic and Scientific Cooperation. However, since the 
parliamentary elections in October 2016, Podgorica has not yet appointed a co -chair of this 
Committee. As a result, our bilateral contacts were put on hold.  
4.232.   Lastly, a number of large energy companies from Russia are interested in expanding 
bilateral cooperation with Montenegro in the electric power industry. However, their initiatives do 
not find understanding in Podgorica.  
4.233.   One of a few areas where we have positive dyna mics is tourism. According to Montenegro 's 
data, the number of Russian tourists having visited this country in 2017 amounted to almost 350 
thousand.  
4.234.   We would like to flag our intention to continue the dialogue with Montenegro on the issues 
mentioned above.  
4.235.   In conclusion, I thank the delegation of Montenegro, the Secretariat and, of course, our 
esteemed discussant, for their hard work done so far. We wish Montenegro a successful trade 
policy review.  
JORDAN  
4.236.   We congratulate Montenegro for the recent economic r eforms which led to higher economic 
growth rates especially in the year 2017, increased investments, and continuous improvement to 
its competitive business environment that will enhance further integration into the global 
economy.  
4.237.   We comment Montenegro 's commitment towards its WTO obligations, and its constructive 
role in the efforts to strengthen the multilateral trading system.  
4.238.   Finally, we wish Montenegro all prosperity and a successful Trade Policy Review.  
MR. GORAN  ŠĆEPANOVIĆ  (HEAD  OF DELEGATION)   
4.239.   Very briefly, I would like to thank first of all Ambassador Matt for his discussion and to 
thank him for all his comments that have been very positive. Of course, from what we heard we 
will turn back on Friday in our expression for this TPR. Thank you very much.  
  WT/TPR/M/369  • Montenegro  
 
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  5  REPL IES BY THE REPRESENT ATIVE OF MONTENEGRO  AND ADDITIONAL COMME NTS 
5.1.  Let me express our sincere appreciation for your participation in the first trade policy review 
of Montenegro, thank you for your valuable comments and questions we have received. The 
question s have showe d that both, Secretariat 's and r eport of the Government of Montenegro were 
examined with an attention, and that the main messages we wanted to convey are well received.  
5.2.  We appreciate the interest of Members to take part in the TPR of Montenegr o. We understand 
some of the comments as the willingness to make an additional effort towards engaging in a 
constructive dialog in order to improve the bilateral relations. As we expressed during our 
TPR review, Montenegro has been and will always be open to cooperate with all the coun tries in 
line with the WTO rule -based multilateral trading system to which Montenegro is fully committed.  
5.3.  Our particular appreciation goes to Permanent Representative of Liechtenstein  Ambassador 
Peter Matt, who in a comprehen sive way, examined the reports and gave thorough remarks on our 
trade policies and economy. I would like also to t hank Mr. Willy  Alfaro and his team as we together 
made this review to be  a success. Also, we thank our R epresentative in the WTO for her 
commi tted work.  
5.4.  We will take into consideration all the issues that were raised by the Member S tates.  
5.5.  I would like to thank you for acknowledging the efforts we undertook in implementing 
reforms on our path to the European Union.  
5.6.  We have noted all t he written  questions raised by Member S tates and my colleagues from the 
Montenegrin delegation made efforts and answered all written questions during the course of this 
TPR process. We have also systematized the remarks mentioned by particular Member on 
Wednesday an d want to high light some positive advancement  as recognized through their 
statements.  
Economic challenges and structural reforms  
5.7.  Several Members praised the efforts Montenegro has taken to reform and modernize its tax 
administration. Amendments to the legal framework were introduced in order to clarify the role of 
tax and customs administration in revenue collection, simplification of tax procedures, 
strengthening of internal control of tax administration and integrity of tax officials, and improving 
tax collection. Montenegro has established a stable and predictable tax system, where for certain 
taxes a tax calendar is established b y 2020, so that in the mentioned period there will be no 
further increase in the rates, other than the tax rates already determined in advance by the tax 
calendar. In the forthcoming period, the main strategy will be to improve the legal framework for 
the suppression of the informal sector. To this end, concrete projects have been launched and one 
of the most important projects is the "Modernization of Tax Administration " financed from the 
World Bank loan. The realization of the Project has begun in January  2018.  
5.8.  Members also commended Montenegro for privatizing more than 90% of the state -owned 
companies or companies with the majority of state ownership, including 100% of privatization in 
the banking sector, telecommunications and oil distribution. Most of t he companies that have not 
been privatized for the time being are of the strategic relevance for the Montenegrin economy in 
the energy, transport and tourism sectors.  
5.9.  Members also supported the Montenegrin efforts to reduce public debt.  
5.10.   A Member was inte rested in Montenegro 's intentions to generate greater labour -market 
flexibility and encourage formal employment. I would like to note that the amendments to the 
relevant Law are underway. The amendments to the Law are drafted in cooperation with all 
import ant stakeholders, including the representatives of private sector, and are expected to 
strengthen the competitiveness of the Montenegrin economy. Its adoption by the Government is 
envisaged for the end of June 2018.  WT/TPR/M/369  • Montenegro  
 
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  Trade policy objectives   
5.11.   We wer e please d to see that M embers unanimously recognized Montenegrin efforts to 
contribute to the multilateral trading system. Members commended our efforts to join plurilateral 
agreements, early acceptance of the TFA and leadership in initiatives such as women 's econ omic 
empowerment.  
5.12.   A Member was interested in MFN tariffs of Montenegro. As one of the most recently acceded 
WTO Members, Montenegro bound all tariffs on an ad valorem  rate basis. Moreover, the market 
access in goods is one of the most liberalized in the WT O with the average final bound rate (by 
2022) at the level of 5.1%, while the trade under preferential terms is conducted with historical 
trading partners, i.e. neighbouring countries.   
5.13.   Many M embers noted that certain notifications are pending. I would like to note that 50 SPS 
notifications were submitted to the WTO Secretariat. When it comes to the transparency procedure 
and notification of technica l regulations arising from the a greement on TBT, preparation of 
relevant notifications is in progress, and  those will be sent to the WTO shortly. At the end of 
December of 2017, Montenegro submitted the first notification for Domestic Support for 2013, and 
it has been adopted at the regular meeting of the WTO Committe e on Agriculture on 
20 February  2018. Start ing from 2017 , the Statistical Office is producing data necessary to report 
AMS. Notifications on Import Licensing and Subsidies are in the final stage of preparation. As two 
mentioned areas are under the responsibility of several institutions, their final ization requires 
inter-sectoral coordination and cooperation.  
Foreign investment and business environment  
5.14.   Members were interested in FDIs and in availability of foreign investors to the incentives. 
The Decree on Direct Investment Incentives is being appli ed continuously since 2015. The 
Secretariat for Development Projects published three public notices for participation in the 
procedure of award of financial incentives for encouraging investmen ts, as follows: 1 July 2015, 
11 March 2016 and 3  March 2017. Bo th Montenegrin and foreign legal entities can apply for 
investment incentives but only legal entities with registered office in Montenegro can be recipients 
of investment incentives.  
Tariffs and Trade facilitation  
5.15.   Several M embers mentioned the issue of imp lementing the commitments undertaken by the 
Schedule of Concessions, in particular with regard to the applied rates exceeding the final bound 
rates. I would like to explain that in August 2017, competent national authorities took a 
comprehensive analysis o f the Schedule. This was done as a result of the WTO 's request for 
approval of the Tran sposed Schedule of Concessions  from HS 2007 to HS 2012, which was 
prepared by the WTO Secretariat. Since the consent was granted to the Transposed Schedule of 
Concession s, the actions have been taken for the full alignment of all HS items with  the mentioned 
Schedule. These actions include harmonization of those 56 HS items that are i dentified in the 
Secretariat 's report. The before mentioned was reflected in the national Decree on customs tariffs 
for 2018 , which is in application from 1 January  2018.  
5.16.   Members were also interested in the trade facilitation reforms. As envisaged by the newly 
adopted Trade Facilitation Strategy by 31 December 2022, Montenegro will eliminate cross-border 
administrative inefficiencies affecting its competitiveness, thus reducing the time for import, exp ort 
and transit of goods by 50%  and the accompanying costs by 20%. The operational goals are 
focused on improving transparency and access to inf ormation; harmonization and rationalization of 
formalities, documentation and fees; implementation of simplified and expedited procedures for 
clearance of goods; improving cooperation and increasing the effectiveness of border controls; and 
extension of au tomatic processing and electronic data exchange.  
Import licensing  
5.17.   A Member was interested in the fees for import licences for medicines, medical devices, 
drugs and psychotropic substances, which are based on the merchandise value. The Agency for 
Medical D evices confirmed that after the adoption of the new Law on Medicines (which is planned WT/TPR/M/369  • Montenegro  
 
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  for 2018) , the price list will be changed to include a new fixed import tariff system, i.e. the import 
fee will be fixed, regardless of merchandise value and of the numb er of different medicines.  
5.18.   Montenegro is fully aware of the undertaken commitment to ensure that all fees and 
charges for services applied in connection with importation and exportation would be applied in 
conformity with the WTO Agreement, including Arti cles VIII and X of the GATT 1994 and confirms 
that there are no other services rendered depending on the merchandise value.  
Standards and technical regulations  
5.19.   A Member commended  the expansion of the conformity assessment  bodies, which will 
improve investors ' and traders ' confidence in accessing Montenegro 's market. In the areas covered 
by the TBT agreement, Montenegro will continue with a positive trends regarding the adoption of 
technical regulations, adoption of MEST st andards based on international and regional (European 
standards), number of accredited conformity assessment bodies. Harmonization with international 
standards is crucial for the economy to achieve "smart " growth through increased competitiveness 
and attra ction of foreign direct investment. Full harmonization of technical regulations and 
standards would contribute to simplified procedures and better business access to domestic and 
foreign markets. Also, Montenegro will continue with providing support for co nformity assessment 
accreditation and increasing of MSMEs competitiveness through harmonization of product -related 
international standards.  
SPS 
5.20.   When it comes to  the implementation of the SPS Agreement, we would like to note that 
Montenegro is in the EU int egration  process and in the process of legisla tive transposition. 
Therefore , it can happen that due to the accession  obligations some measures  which result from 
harmonization  with relevant EU legislation might seem  stricter.  
Government procurement  
5.21.   Members  enquired  about the plans to establish the electronic public procurement system. 
Montenegro launched the activities on establishing this system through the project IPA 2014, with 
the value of €1.65 million. The selection of the most appropriate bidder to e stablish the electronic 
public procurement system  is expected in the second half of 2018.  
Competition policy  
5.22.   Members were also interested in the competition policy. The Agency for Protection of 
Competition was established in 2012. The Agency independentl y performs tasks within the scope 
of its competencies and its d ecisions are final. The future activities of the Agency will be focused 
on further strengthening  of the capacities through projects of technical assistance - training of 
existing and new Agency 's staff, in particular as regards conducting inspections on spot (dawn 
raids)  and r aising  awareness activities . Particular attention should be paid to the work of the 
judicial authorities, with an emphasis on continuous training for judges of the Administ rative and 
in particular of the misdemeanour  courts in this area . The implementati on of the EBRD/ IDLO 
project to strengthen the capacity of the Agency for Protection of Competition, funded by the 
EBRD, has officially started in March 2018.  
Intellectual pro perty rights  
5.23.   Members expressed interest in main developments in the IP legislative framework. The main 
novelty introduced in the new Patent Law is related to the evidence of patentability. Namely, the 
holder of the patent is to submit the written evidence  before expiration of the ninth year of the 
patent, proving that the invention protected by the patent meets the requirements of novelty, 
inventive step and industrial applicability.  
5.24.   This law as a novelty also provides issuing of the compulsory licenses for the patents related 
to manufacturing of the pharmaceutical products for export to countries with public health 
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  5.25.   Amendments to the Law on Trademarks and the Law on Legal Protection of Industrial 
Design improved the enforcement of rights in thi s regard.  
Agriculture, fisheries, and forestry  
5.26.   Annual national support through measures of the Agro budget has continued. The amount of 
support in the period 2012 -2017 has increased and it has been harmonized with the WTO 
Agreement on Agriculture. Monteneg ro will continue to invest in fishery sector in order to 
strengthen current fishing fleet, but not to the level which can lead to the overcapacity and 
overfishing, and with a great awareness of the significance of sustainable fisheries and 
conservation of marine resources.  
5.27.   Forestry is important for Montenegro, especially in rural areas where the population in large 
numbers depend in some way on this natural resource. Montenegro has introduced export licenses 
on raw materials or wood of a lower l evel of pro cessing, in order to  preserve the stability of the 
supply of raw materials to the processing sector as well as to control the preservation of the forest 
fund, combat illegal harvesting, control the implementation of the cutting in line with the cutting 
plan. 
Energy  
5.28.   Finally, we received several energy -related questions. Montenegro in the past decade has 
gone through a transition period , and therefore there are significant changes in the energy sector. 
With the establishment of Energy Community, the EU has ex panded its internal energy market to 
South -Eastern Europe and opened the possibility of expanding to all those who express interest. 
With the amendments to the Law on Energy the provisions from the Second and Third Energy 
package have been transposed there by guarantying the investors with favourable conditions for 
their investments in the field of energy.  
5.29.   I would also like to use this opportunity to thank all Members who have supported us and 
provided technical assistance. Their help was instrumental in ach ieving the fulfilment of obligations 
from the WTO Agreement.  
5.30.   Thank you Mr. Chairman.  
DISCUSSANT  
5.31.   I'd like to thank the distinguished delegation from Montenegro led by Director General 
Goran  Šćepanović, for the hard work you put into this 1st Trade Policy Review of Montenegro and 
for the comprehensive answers you provided to the questions submitted by Members in writing as 
well as during Day 1 of this TPR. My special appreciation in this regard also goes Ambassador 
Zorica Marić, Permanent Repr esentative of Montenegro to the WTO. The open and constructive 
approach of Montenegro throughout the TPR has allowed for a fruitful and enriching dialogue 
within this Body.  
5.32.   In general terms , Members commended Montenegro for its open economy. They, however,  
also noted that it is few diversified and, due to the size of the country, heavily import dependent 
making it vulne rable to external shocks. Some M embers drew attention to the fact that 
Montenegrin exports are often of low value added like mining and also stressed the need to 
increase this value added. Members also welcomed the progress achieved by Montenegro during 
the review period to diversify its economy and encouraged it to continue structural reforms in this 
regard. They also noted Montenegro 's high ratio of trade in goods and services to the GDP 
amounting to 103.2% as sign for the openness of its economy. Members welcomed the fiscal 
consolidation strategy of Montenegro being implemented as of 2017  and also showing positive 
results as we have heard . Delegations referred to tourism as one of the key drivers for economic 
growth and commended Montenegro for pursing a sustainable tourism. They also noted the 
important role FDI was playing to boost economic growth in the country.  
5.33.   Most M embers furth ermore commended Montenegro with good reason for its strong 
commi tment to and support of a rules -based multilateral trading system as embodied in the WTO 
and for its strong engagement both in the regular work of WTO committees as well as in WT/TPR/M/369  • Montenegro  
 
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  negotiations. Members also commended Montenegro for undertaking broad commitments upon 
accession to the WTO. Members  in this regard also rightly  applauded Ambassador Zorica Marić for 
her outstanding engagement and  constructive work within this Organiz ation. Many delegati ons 
specifically mentioned Montenegro 's important contribution to the promotion of gender and trade 
and to the empowerment of  women. Members also noted Montenegro 's timely ratification of the 
Trade Facilitation Agreement and welcomed the establishment of t he "National Committee for 
Trade Facilitation " and further implementation measures  taken by Montenegro .  
5.34.   Several delegations raised concerns about outstanding notifications in areas like agriculture, 
TBT and SPS and encouraged Montenegro to submit these no tifications as soon as possible. In his 
introductory statement Director General Goran Šćepanović stated that Montenegro was aware of 
this and assured that the outstanding notifications would be submitted shortly  and preparations 
are well under  way.  
5.35.   Monte negro was applauded by several M embers for having bound all tariffs ad valorem . It 
was also commended for having its average applied MFN rates only marginally exceeded by 
average bound rates. Delegations noted that this provided for transparency and predict ability. 
Some delegations , however , noted the increased complexity of tariffs due the EU alignment. 
Members also welcomed that Montenegro addressed the issue of some applied MFN rates 
exceeding bound rates by early 2018.  
5.36.   Many M embers referred to Montenegro 's EU accession process as a main driver for 
legislative and economic reforms and congratulated the country for its pioneering role in the region 
as it is rightly considered as the most advanced country in this regard.  
5.37.   Members also noted Montene gro's progress achieved in competitiveness and creating an 
enabling framework for investment and business. They also referred to improvements achieved in 
respective international rankings. Members highlighted several areas where Montenegro undertook 
signif icant reforms like customs procedure, taxation, competition law, intellectual pr operty rights, 
moderniz ation of the public administration and e -government, just to name a few. Some M embers 
also encouraged Montenegro to continue its labour market reforms. S everal delegations 
commended Montenegro for strengthening the independence of the judiciary. They also noted that 
further efforts are needed.  
5.38.   To sum up,  it is fair to say that Montenegro was rightly praised for its strong commitment to 
the multilateral tr ading system and for the cons tructive role it played in the O rganization. With 
good reason , Montenegro was also commended for the transformati on it achieved since the 1990 s. 
The accession process to the EU has been and continues to be one of the main drive rs for reforms 
in many areas. Many challenges , of course,  still lie ahead of Montenegro in its pursuit of EU 
membership. But I am convinced that the country is well under way and I wish Montenegro a lot of 
success in its future endeavours.  
5.39.   Finally I would like to congratulate the delegation of Montenegro for the great work in this 
TPR, and thank you for the honour of having me as the discussant.  
5.40.   Before concluding, on a personal note, I would like to express my sincere appreciation to my 
dear friend, Zorica,  it was a privilege and very inspiring to work with you. You have made an 
important contribution to the WTO and to Geneva international beyond the WTO. I would also like 
to thank you for your friendship and wish you all the best for your future endeavours.  
5.41.   I thank you for your attention.  
EUROPEAN  UNION  
5.42.   The EU would like to thank the delegation of Montenegro for providing very comprehensive 
replies to our advance questions as well as for the additional information this morning addressing 
the issues we and some other Members raised on the first day. We do not have any follow -up 
questions.  
5.43.   The EU again welcomes all the reforms already carried out by Montenegro and we 
encourage the country to continue on this path. As mentioned on the first day, the Commission 's WT/TPR/M/369  • Montenegro  
 
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  strategy for the Western Balkans published last February has re -confirmed the EU accession 
perspectives for Montenegro and recognized it as a frontrunner in this process.  
5.44.   The EU would like to thank again Montenegro for having accepted to test the WTO 
Secretariat 's pilot electronic database for questions and answers, which we also tried out . 
5.45.   In conclusion, t he EU congratulates Montenegro on successful conclusion of its first Trade 
Policy Review.  
UNITED  STATES  
5.46.   We would first like to express our appreciatio n to Director General Šćepanović for his 
presentation today, and his efforts to address the issues and concerns raised by Members during 
this review. We also acknowledge the valu able contributions made by the d iscussant, Ambassador 
Matt, which provides us with instructive context for the trade policy regime and economic reform 
efforts of Montenegro.  
5.47.   We also want to take the opportunity to recognize and thank the members of the 
Montenegrin delegation who have invested countless hours in preparing for this re view, and 
responding to Member 's advance questions and those raised during day one. This review could not 
have been a success w ithout your dedication and efforts.  
5.48.   During the presentation provided today by the Director General , we have heard the serious 
manner in which Montenegro has listened to the views Members expressed during this review, and 
provided useful and substantive responses to issues and concerns raised. For us, this isn 't 
surprising and further confirms Montenegro 's strong commitment to the in stitution . 
5.49.   The United States as well as other Members highlighted Montenegrin efforts in the area of 
trade facilitati on and in implementing the TFA. Montenegro has been an active M ember of the TF 
Committee and we want to express our desire to continue to w orking closely with you in the 
Committee, and  we do  hope that Montenegro will continue to share its implementation experiences 
with Members  because those have been invaluable from our perspective . 
5.50.   We note that, during the review, a number of M embers raised issues related to notifications 
and requested additional focus be given by Montenegro to ensuring that it is up to date with 
notification obligations, we appreciate hearing today that those views have been taken on board. 
We look forward to w orking with Montenegro as they seek to address the notification concerns.  
5.51.   We appreciate the thoughtful and comprehensive responses to our advance written 
questi ons. We have submitted two additional follow up questions.  First, we are seeking clarification 
on SPS notifications and some discrepancies we see between the written responses from 
Montenegro and  what it is included in  the SPS IMS system , which does not reflect the 
50 notificatio ns that Montenegro has cited. We have also submitted a question to seek  additional 
clarification on the meaning of a "conscientious person " in the conte xt of copyright infringement. 
We look forward to receiving those responses.  
5.52.   In conclusion, I would also  like to express, personally and also on behalf of the entire U.S. 
Mission, our sincerest appreciation to Ambassador Maric, for her close collaboration, cooperation 
and kindness that she has extended to us and we  have enjoyed from her during her tenure here.  
5.53.   Director General, we congratulate you and your delegation on a succes sful first Trade Policy 
Review and we look forward to hearing of your contin ued success in your next review . 
MR. GORAN  ŠĆEPANOVIĆ  (HEAD  OF DELEGATION)  
5.54.   On behalf of the Montenegrin delegation , I would like to reiterate my appreciation to you, 
Chair, Discussant and to thank the Secretariat, all Members that have raised questions and have 
shown interest for the Montenegrin TPR which was a very constructive and useful experience for 
us. WT/TPR/M/369  • Montenegro  
 
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  5.55.   I also wou ld like to thank all my colleagues from Montenegro who work ed hard during the 
previous year in order to complete this process in a satisfactory manner.  
5.56.   Being the first country to use the WTO Secretariat 's pilot electronic platform for questions 
and answers , we have the pleasure to express our satisfaction with such an advance d means of 
communication which has made our work easier and more efficient. Other delegations stand ready 
in sharing experience on how to use this platform. Thank you.  
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  6  CONCLUDING REMARKS BY THE CHAIR PERSON  
6.1.  The first Trade Policy Review of Montenegro has offered us a good opportunity to deepen our 
understanding of recent developments in, and challenges to, its trade, economic, and investment 
policies. Since its accession in 2012, Mo ntenegro 's initiatives to integrate into the multilateral 
trading system have been greatly appreciated. Indeed, the more than 195 advance written 
questions submitted by 17 Members and the 28 delegations that took the floor during the first day 
underline th e importance attached to Montenegro 's trade and investment policies and practices.  
6.2.  I would like to thank the Montenegrin delegation, led by the Director General  of the  Ministry 
of Economy , Mr. Goran Šćepanović . Also, I would like to thank our discussant Ambassador Peter 
Matt of Liechtenstein for his insightful remarks, and all the delegations that took the floor for their 
valuable contributions to this Review.  
6.3.  Despite its small size and the related limitations and vulnerabilities, Montenegro has 
managed to maintain strong, albeit fluctuating, growth s ince its WTO accession . Members  
commended Montenegro for its openness to trade and investment and performance -boosting 
trade -related reforms, including the 2017 -19 Economic Reform Programme  and the fiscal 
consolidation strategy. Montenegro 's use of the euro as its national currency provided stability to 
its economy but could also be a challenge for its monetary policy and competitiveness .  
6.4.  Montenegro was praised for its efforts to strengthen the environment fo r business and 
investment, including: judicial reforms, non -discriminatory incentive schemes, measures to tackle 
corruption, and the rule of law and its regulatory framework. Some Members encouraged 
Montenegro to continue to address persisting structural i mbalances and market rigidities , 
concentration of exports on low value products and informal activities, all of which inhibit its 
potential.  
6.5.  Efforts to diversify the economy, including by promoting services, were an important element 
in reducing the vulne rability of the economy to external shocks. Consequently, to support trade 
and economic growth, Members urged Montenegro to continue with productivity -related and 
foreign investment -attracting structural reforms in several areas.  
6.6.  Montenegro has remained c ommitted to the rules -based multilateral trading system while 
expanding its participation in RTAs. Members welcomed Montenegro 's wide -ranging action taken to 
align itself with WTO principles and the EU acquis communautaire  in several areas.  They took note 
of progress in accession negotiations to the EU, which has been the driving force behind many of 
the recent reforms. Members commended Montenegro for its extensive commitments undertaken 
upon WTO accession as well as ratification of the Trade Facilitation Agreement (TFA), becoming a 
participant in the revised GPA, participating in the expansion of the ITA, and accepting the Protocol 
Amending the TRIPS Agreement.  
6.7.  The active engagement of Montenegro in the WTO was also appreciated. Members referred in 
partic ular to Montenegro 's contribution to work in the areas of e -commerce, services, domestic 
regulation, investment facilitation, MSMEs and women 's empowerment . Some Members 
encouraged Montenegro to improve its WTO notifications record in certain areas and too k note of 
Montenegro 's stated commitment to submit pending notifications shortly.  
6.8.  Members welcomed Montenegro 's trade facilitation strategy and expressed interest in the 
steps undertaken to implement the WTO TFA in order to strengthen competitiveness.  They 
appreciated the predictability of Montenegro 's tariff regime , as bindings were set on an ad valorem  
basis, and the limited gap between applied and bound rates; nevertheless, they noted that the 
tariff had become  more complex due to its EU alignment a nd there were some  concerns about 
tariff binding observance. Some Members commended changes , such as streamlining customs 
procedures, the elimination of import quotas, the reduction in import licensing requirements and 
prohibitions, and  reforms to  the gove rnment procurement regime. Some concerns were expressed , 
and more information was sought on certain food standards and SPS requirements as well as 
trade -related aspects o f intellectual property rights.  
6.9.  Some Members saw opportunities for sustainable develop ment in the agricultural and 
fisheries sectors and increasing the value added for goods. Montenegro was also encouraged to WT/TPR/M/369  • Montenegro  
 
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  improve market access for agricultural products. It was suggested that, although the financial 
services sector has been fully privati zed, Montenegro should modernize and improve access to 
these services which would also benefit other sectors. Members noted with interest reforms under 
way in the areas of energy, transport and telecommunications. Members also referred to the 
increasing se rvice-orientation of the economy, which now accounts for over 70% of economic 
activity. Some were interested in hearing more about strategies to sustainably develop and 
diversify the tourism sector, a pillar of the economy.  
6.10.   The above are some of the key is sues that had emerged in our discussion. I hope that the 
Montenegrin delegation will take into account and further reflect on the many constructive 
comments, both broad and detailed, that it has received during this Review. Finally, I would like to 
thank a ll those that participated in our discussion, and I look forward to receiving the answers 
from Montenegro to any outstanding questions within the next month, at which point the Review 
will be successfully concluded.  
__________