RESTRICTED  
  
WT/TPR/G/337  
23 March 2016  
(16-1654)  Page: 1/19  
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW 
REPORT BY 
ALBANIA  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Albania 
is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trad e Policy Review Body on Albania. WT/TPR/G/337 • Albania 
 
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  Table of Contents 
1   INTROD UCTION  .......................................................................................................... 4  
2   ECONOMIC ENVIRONMENT .......................................................................................... 5  
2.1   Macroeconomic stability .............................................................................................. 5  
2.1.1   Monetary poli cy and inflation .................................................................................... 5  
2.1.2   Fiscal policy ......................................................................................................... .. 6 
2.2   Structur al refo rms ..................................................................................................... 7 
2.2.1   Energy sector reform ............................................................................................... 7  
2.2.2   Administrative-T erritorial reform ............................................................................... 7  
2.2.3   Priv atisatio ns ........................................................................................................ . 8 
2.2.4   Justice sy stem reform ............................................................................................. 8  
2.2.5   Touris m reform  ...................................................................................................... 8  
2.3   Private sector development ......................................................................................... 8  
2.3.1   Doing Business reform ............................................................................................. 9  
2.3.2   Strategic investments .............................................................................................. 9  
2.3.3   Technology and economic development zones ............................................................. 9  
2.3.4   Business regist ration and licensing ........................................................................... 10 
2.3.5   Public-private dialogue ........................................................................................... 10 
3   TRADE POLICY DEVELOPMEN TS ................................................................................ 10  
3.1   Trad e Data ..............................................................................................................  10 
3.2   Trade policy making and coordination .......................................................................... 11 
3.2.1   Main trade policy advancement ................................................................................ 11 
3.2.1.1   Custom s procedures ............................................................................................ 11 
3.2.1.2   Sanitary and Phytosanitary Measures ..................................................................... 12 
3.2.1.3   Standardization .................................................................................................. 12 
3.2.1.4   Technical regula tion and accr editation .................................................................... 12 
3.2.1.5   Competition policy .............................................................................................. 13 
3.2.1.6   State Aid ...........................................................................................................  13 
3.2.1.7   Intellectual  Property Rights .................................................................................. 14 
3.2.2   Trade in g oods and se rvices .................................................................................... 14 
3.2.2.1   Trade in goods .................................................................................................... 14 
3.2.2.1.1   Agriculture ...................................................................................................... 14 
3.2.2.1.2   Industry .......................................................................................................... 15 
3.2.2.2   Trade in services ................................................................................................. 15 
3.2.2.2.1   Fina ncial sector ................................................................................................ 16 
3.2.2.3   Banking .............................................................................................................  16 
3.2.2.4   Non-banking ...................................................................................................... 17 
3.2.2.4.1   Electronic Communication .................................................................................. 17 
3.2.2.4.2   Postal Service .................................................................................................. 18 
3.2.3   Trade policy coordi nation and mo nitoring .................................................................. 18 WT/TPR/G/337 • Albania 
 
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  4   TRADE POLICY OBJECT IVES AND DEVE LOPMENT ...................................................... 18  
4.1   Participation in WTO negotiations ................................................................................ 18 
4.2   Albania's Accession Process to the European Union ........................................................ 19 
4.2.1   The National Plan for European Integration ................................................................ 19 
4.3   Regional integration .................................................................................................. 19 WT/TPR/G/337 • Albania 
 
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1  INTRODUCTION 
1.1.  Trade is an important contributor to the ec onomic growth of Albania. Since the First Trade 
Policy Review in 2010 progress can be reported in all aspects of trade policy. Albanian trade policy 
is inspired by WTO principles and rules and follows the dynamics in WTO structures. The trade 
policy objectives are motivated by the national economic needs and private sector development, 
while fully complying with international obligations and WTO trade law. Albanian Government is 
very committed to facilitate trade in order to maximize the benefits de riving from the tariff 
liberalization. WTO Trade Facilitation Agreement is ratified by the Albanian Parliament and preparations for public awareness and capacity building to allow smooth implementation are in 
progress. In addition, Albania is actively participating in the negotiations to facilitate trade within 
CEFTA. 
1.2.  Albania has free trade agreements with European Union, Western Balkan (CEFTA 2006), EFTA 
States and Turkey. These agreements have contributed to the diversification of export potentials, 
providing new opportunities to specialize and benefit from the comparative advantage in specific 
products. 
1.3.  The trade data indicate growth since the First Trade Policy Review of Albania in 2010. This 
growth is attributed to the liberal trade regime  and well-functioning of the free trade agreements. 
WTO membership preserved a stable trade regime for Albania contributing to a positive trend of foreign trade. Export of goods increased during 2010-2015, except 2015 that had a decrease. Import of goods has been fluctuating through the whole period of 2010-2015, reflecting the 
instability in our main trading partners Italy an d Greece. The performance of export during 2010-
2015 has contributed in shrinking the trade de ficit by 4.8% in 2015 compared to 2010.   
1.4.  Albanian's economy is moderately free as assessed by Heritage Foundation in the Economic 
Freedom Report 2016. Albania's overall ranking fo r 2016 (65.9 points) is above the global average 
and compared with the other Western Balkans countries, it is ranked as the second freer economy. Trade freedom ranking (87.6 points) is above the world average, reconfirming the liberal trade 
environment in Albania. Trade and investments policies are improved significantly and recorded in 
the 2016 report. 
1.5.  The economic activity in Albania has conti nued to grow in the first three quarters of 2015. 
The latest short-term indicators signal on-going moderate growth in GDP in the near term. Real 
GDP increased by 2.7% in the first three quarters  of 2015, supported mainly by improved activity 
in the construction and industrial sectors. The expected growth for 2015 is 2.75% with the 
objective to go over 4% in 2017-2018. Standard & Poor's Ratings Services raised its outlook for 
Albania from stable to positive, reconfirming the positive trends of the reforms implemented 
during the last years. The assessment of Standard & Poor highlights that the Government of Albania is moving forward with ambitious plans to shrink the country's deficit and reform the legal 
system, paving the road for the sustainable growth and good governance.  
1.6.  Albania is undertaking many structural reforms to boost economic growth and increase 
competitiveness. The administrative and territorial reform and the justice system reform are among the most radical reforms undertaken during  the reporting period. In addition, the battle 
against informality, started from September 2015, coupled with sound and prudential fiscal policy 
and safeguarding macroeconomic measures are fuel ling the economic activity growth. The reforms 
undertaken by the Government of Albania are recognised by international partners of Albania as 
crucial and the right approach to take.  
1.7.  On 24 June 2014 the Council of the European Union agreed to grant Albania the candidate 
status  recommending further development of reforms to open negotiations. Free Trade 
Agreements are implemented smoothly supportin g the diversification of Albanian export. WT/TPR/G/337 • Albania 
 
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  2  ECONOMIC ENVIRONMENT 
2.1  Macroeconomic stability 2.1.  Before the global financial crisis, Alba nia was one of the fastest-growing economies in 
Europe, enjoying average annual real growth rates of 6%, accompanied by rapid reductions in 
poverty. After 2008 average growth halved and macroeconomic imbalances in the public and 
external sectors emerged. The country's growth suffered from the Eurozone crisis, in particular in neighbouring Italy and Greece. Exports, remittances , and to some extent foreign direct investment 
(FDI) fell and were the main channels of the exte rnal shocks on the economy. Growth reached its 
lowest rate of 1.4% in 2013, as consumption shrank, investments stagnated, and fiscal and financial vulnerabilities came to the fore. The increase in domestic demand supported by sound fiscal policies and structural reforms contributed to an increase up to 2.1% in 2014, due also to an 
increase in consumption and private investments.  
2.2.  The economic activity in Albania has conti nued to grow in 2015. Real GDP increased by 2.7% 
in the first three quarters of 2015, supported mainly  by improved activity in the construction and 
industrial sectors. The expected growth for 2015 is 2.75%. Growth in 2015 was held back by the 
fall in the agricultural production, which was dama ged by the flooding in the beginning of the year. 
Construction activity has been boosted by higher  public spending in infrastructure, improved 
liquidity due to arrears repayments and increased number of construction permits issued. On the 
other hand, industrial production growth slowed down  mainly on the back of falling oil prices in the 
international markets. The services sector continued to grow, but at a slower pace in reflection of the weak consumer demand. 
2.3.  Economic growth was supported by increa sed investments and improvement of the external 
trade position whilst private and government consumption has been falling. Investments have been a driver of the growth, benefitting from hi gher foreign direct investments, higher public 
spending and improved liquidity conditions of  the businesses due to arrears repayments. The 
investment activity was supported by construction investments and investments in machinery and equipment. Net exports deficit narrowed driven by the fall in imports of goods and services. This 
component gave a positive contribution to growth. 
2.4.  During November 2015, the total stock of bank loans recorded an increase of 2.2% compared 
with November 2014. The stock of loans in domestic currency increased by 2.7%, while the stock in foreign currency decreased by 5.7%. The low demand for loans continues to reflect the limited 
investment needs against the backdrop of spare production capacity and reluctance to take risk. 
The growth of non-performing loans is slowed, wh ile the implementation of the National Plan to 
reduce non-performing loans will help reduce credit risk. In terms of deposits, in November of 
2015 the total stock of bank deposits grew by 1.6% compared to November 2014.  
2.5.  The current deficit showed a narrowing trend in the first half of 2015. The widening of 
domestic savings, mostly private, was the main contributor to the correction of the current deficit. 
The registered deficit contracted by 30.5% year on year and it was valued at around 8.5% as a 
ratio to nominal GDP. In a sub-account disaggregation, the primary contribution to the contraction of the current account deficit was given by a lower net exports deficit and a higher surplus in the secondary income account. Net flows of the capital account reached €47.3 million this year, edging 
up from €2.4 million in the first half of last year. In the financial account, the net position 
registered an annual decrease in assets by 19%. The net flows in the capital and financial accounts combined, financed fully the registered current account deficit. Net foreign direct investments 
edged up by around 35% annually, due to intensified investment in the mining and oil industries. 
2.1.1  Monetary policy and inflation 2.6.  As defined in the Monetary Policy Docume nt (2015), the Bank of Albania (BoA) aims to 
achieve an average CPI inflation of 3% over the medium term. The monetary policy decision-
making process will be guided by the deviation of forecasted inflation from this objective, while striving to avoid excessive volatility in the real and financial sector. The exchange rate remains fully flexible and determined entirely by market forces. The BoA relies on indirect instruments to 
steer financial market interest rates and conducts its monetary policy through open market 
operations. This regime complements our price stability objective and supports our operational WT/TPR/G/337 • Albania 
 
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  framework for monetary policy. The BoA's primary tool for implementing monetary policy is the 
seven-day maturity reverse repurchase agreement (" reverse repo"), which also serves as its main 
open market operation. The BoA provides liquidity in the financial markets through reverse repos of one week to three months maturities. 
2.7.  Between 2010 and 2015, the average CPI in flation rate in Albania was 2.4%. Inflation has 
remained below the inflation target since 2012. The annual dynamics of the inflation rate have been volatile reflecting the sensitivity of the Alba nian economy to foreign shocks, the volatility of 
food prices (which represent 39% of the CPI bask et) and administered prices. The depreciation of 
the domestic currency in 2009, along with a new cycle of increases in administered prices and commodities prices in the international market, resu lted in rising inflation during 2010 (3.6%) and 
2011 (3.5%). Since 2012, inflation has been on the declining trend mainly due the widening of the 
negative output gap and more recently to the disinflationary pressures from abroad. Economic 
growth was 2.3% on average for the period under review, almost a third of the rate of growth 
prior to the financial crisis. Weak domestic demand was the driver behind the cyclical weakness of 
the economy amidst unfavourable external environment. The labour market was weak with 
employment falling by 1.4% on average and unemployment rate increasing to 16.3%. Annual 
inflation averaged to 1.6% in 2014 but it rose to 2% in 2015. On the other hand, oil prices 
declined while the other prices remain broadly unchanged. 
2.8.  Since 2011, the BoA has pursued an accommodative monetary policy, reducing its policy rate 
by a total of 350 basis points to address slack in the economy. Moreover, the monetary policy decisions of the BoA were accompanied with persistent liquidity injections and guidance on the 
future direction of monetary policy. The monetary policy has managed to control liquidity 
premiums and inflation, helping to reduce interest rates in the interbank market, in the government debt securities market, in the deposit market and in the Lek denominated loan 
market.  The monetary stimulus has been reflected in increased Lek lending to the economy. The 
share of Lek lending to total lending has increased to 40%. However, the average lending growth remains subdued, at around 2%, due to low de mand, as well as banks' risk aversion. 
2.1.2  Fiscal policy 
2.9.  A number of fiscal measures are introduced during 2010-2015, increasing the taxable base, 
simplifying the procedures and addressing problema tic aspects of certain sectors of the economy. 
The changes in the fiscal policy have positively impacted the business environment and 
contributed to the economic development of Alba nia. The main legislative changes during 2010-
2015 are part of the fiscal consolidation reform and consist of: 
 Introduction of the progressive personal income tax, providing zero tax for low level 
salaries, reducing the tax for medium level salaries and increasing the tax for high level 
salaries ("Law 102/2013 and Law 177/2013"). 
 The corporate income tax increased from 10% to 15% ("Law 177/2013"). The income 
tax for small business is 7.5% or 50% less than the normal corporate income tax.  
 The new law on VAT (Law 92/2014), into force from 1 January 2015, is harmonized 
with the respective EU acquis and aims to establish unified rules for VAT application. The objective of the law is to ensure fair competition and avoid any distortive practices 
in VAT application. 
 The local tax for small businesses is abolished and some other local taxes are 
restructured.  
 A new law on excise tax is in force from October 2012 and is in line with the respective 
EU Directive.  
 The income tax for small business, having yearly turnover up to lek 5 million is zero 
from 1 January 2016 and 5% (from 7.5% in force from 1 January 2014) for business 
having the yearly turnover lek 5-8 million. 
2.10.  The fiscal policy in the medium term will be strictly oriented toward fiscal consolidation.  In 
line with the current program with the IMF, Albania intends to pursue a steady pace of fiscal 
consolidation based on a sound strategy of broadening the tax base and strengthening tax WT/TPR/G/337 • Albania 
 
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  administration and compliance, with the goal of lowering the public debt-to-GDP ratio to below 
64% by 2018, from around 72.6% expected for end 2015. 
2.11.  The fiscal consolidation is complemented with a radical reform against informality. From 
September 2015, the Government of Albania starte d the reform against informality aiming to 
formalize the economy and contribute to fair competition in the market. As a result of the reform, 
during 2015, 39,650 new businesses are registered, reflecting an increase of 137% compared with 2014. This reform helped also to formalize the em ployees not registered and therefore, by the end 
of 2015, 76,429 more employees have been register ed compared with the period preceding the 
start of the reform. This reform will contribute to reduce informality and consolidate fiscal sustainability of Albania, providing as such condition for fair competition and fewer impediments to trade. 
2.2  Structural reforms 
2.12.  Sustainable economic growth and increase of competitiveness has been at core of all 
reforms undertaken by the Government of Albania during these years. Open markets and liberal 
trade regimes have put the emphasis on the need to undertake deep structural reforms to boost 
economic growth, safeguard macroeconomic stabili ty and ensure sustainable development, with 
the ultimate objective, the increase of welfare and Albanian citizens' quality of life. The main 
structural reforms undertaken by Government of Albania consist in, among others, reforms in the 
energy sector, privatizations of state-owned companies, the administrative and territorial reform, and reforms in the tourism sector. 
2.2.1  Energy sector reform 
2.13.  The energy sector has recorded very po sitive developments. Many important legal and 
organizational transformations, investments and other structural efforts have been undertaken during the last years, contributing to a significant improvement of the financial situation in the 
Albanian Energy System, resulting in an in creased performance during 2014 and 2015. This 
performance is reflected in the reduction of loss es in the distribution system, increase of the 
receivables and improvement of the three state-owned companies' liquidity (KESH Sh.A., OST 
Sh.A. and OSHEE Sh.A.).  
2.14.  Reforms undertaken in the energy sector encompass: (i) the adoption of the Law 43/2015 
"On the Power Sector", in full compliance with European Union directives and the Third Energy Package for gas and electricity markets, (ii) the successful conclusion of negotiations with the 
Czech company, approved in Parliament on 30 July 2014, resolving the status of the Electricity 
Distribution Operator and the return of all shares in state-owned, (iii) the tariff reform in the power sector aiming to correct the distortions in energy market, (iv) the signing of the financial 
agreement (soft loan amounting to USD 150 million)  with World Bank, for the three state-owned 
companies of the power sector, to facilitate the "Power Sector Recovery" project implementation, (v) the adoption of Law No. 102/2015 "On natural gas sector", fully aligned with Directive 
2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common 
rules for the internal market in natural gas an d repealing Directive 2003/55/EC, as well as in 
accordance with Directive 2004/67/EC, (vi) and the adoption of Law No. 19/2015 amending Law 
No. 7746, dated 28 July 1993 "On Hydrocarbons (exploration and production)".  
2.2.2  Administrative -Territorial reform 
2.15.  The Administrative-Territorial Reform approved in 2015 has a key role in the creation of a 
suitable and supportive climate for the economic en vironment of Albanian cities and regions. The 
new territorial organisation consists in 61 municipalities. The Administrative-Territorial Reform will 
empower local and regional governments, in order to enhance their capability to provide high quality and timely services to citizens and increase their resource management efficiency, by 
decentralizing more functions and competencies and allocating them additional public funds. The 
61 new municipalities will have more opportunities to take part in international cooperation projects, absorb more donor funds and enjoy larger bargaining power vis-à-vis the central 
government, as well as a greater scope for inter-municipal cooperation. WT/TPR/G/337 • Albania 
 
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  2.16.  The Administrative-Territorial Reform will lead to enhance good governance at the local and 
regional level; efficient service delivery and effe ctive collection of tariffs and fees by local 
governments; greater ability to promote and encourage sustainable local economic development.  
2.2.3  Privatisations 
2.17.  Since 2010, there have been several amendments to the legal framework on privatizations, 
which have paved the way for the privatization of the state-owned insurance company INSIG Sh.A.. The privatisation process for INSIG ShA has not been completed yet and the privatisation 
procedures are expected to be finalised in the first semester of 2016. The privatization of 100% of 
the state-owned shares of the oil company Albpe trol Sh.A failed in 2012, because the winning 
Consortium failed to meet the legal contractual obligations. Currently, Albpetrol Sh.A is under restructuring process. 
2.18.  During 2013, 100% of the state-owned shares in two companies in the strategic sector 
operating respectively one and two hydropower plants ("HEC Ulez-Shkopet Sh.A." and "HEC 
Bistrica 1 dhe Bistrica 2 Sh.A.") were privatized. Furthermore, some assets and state-owned 
shares in some companies in the non-strategi c sectors were privatized during 2010-2015. The 
total revenues of the state from privatisations since 2010 amount to a value of USD 187.1 million, 
80% from privatisation of companies in the strategic sectors and 20% from privatisation of state-
owned shares in small and medium enterprises and other assets.  
2.2.4  Justice system reform 2.19.  The justice system reform is a priority for the Government of Albania, stemming from the 
needs to strengthen the rule of law, respond to  the economic and business needs and comply with 
European integration requirements. During 2015, the activity of Ministry of Justice was focused on 
the justice system reform development. The special parliamentary committee for the Justice 
System Reform started working with an analytical  document of the justice system in Albania. A 
High Level Experts Group, assisted by the Tec hnical Secretariat, drafted the Justice Reform 
Strategy and its Action Plan, thus completing the second phase of the functioning of the Special Parliamentary Committee for the Justice System  Reform. Based on the issues and concerns 
identified in the Analysis, the Strategy defines the general and specific objectives of the justice 
system reform and the necessary legal and constitu tional interventions for the attainment of these 
objectives. The Justice Reform Strategy and its Action Plan have been approved in principle by decision No. 15 dated 30 July 2015 of the Special Parliamentary Committee for the Justice System 
Reform and they serve as a roadmap for the third phase, which corresponds to the drafting of a 
package of legal and constitutional  amendments. The Action Plan consists of the detailed list of 
legal measures to be adopted in 2016. This reform process is being consulted closely with the 
Venice Commission.  
2.2.5  Tourism reform 2.20.  Tourism is a key channel through which Albania can achieve sustainable long-term growth 
while safeguarding the environment. The tourism in dustry has emerged as a significant contributor 
to growth with 3.5 million inbound tourists in 2014 and therefore has become a strategic sector for growth and employment. Albania has significan t endowments suited to tourism development 
across the whole country and with the potentials the tourism sector has for growth, a shift from 
the traditional and regional markets toward the EU and other high-income countries is required. 
2.21.  A new strategy on tourism is in the approval process. In addition, a new law No. 93/2015 on 
Tourism was approved on 27 July 2015. The law defines clear rules of operation and national 
standards for all tourism activities in order to  encourage and promote competitiveness in the 
sector, increase the quality of tourism services and consumer protection. Implementation of the 
law will be accompanied by the drafting of the re levant bylaws package during the first quarter of 
2016.  
2.3  Private sector development 2.22.  Business and Investment Development strategy 2014-2020, adopted in October 2014, sets 
the priority policies in the area of private se ctor development and ease of doing business. A WT/TPR/G/337 • Albania 
 
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  simple, transparent and predictable regime for private sector development is in place, aiming to 
create favourable conditions for investors, contribute to the increase of competitiveness and ensure solid economic growth.  
2.3.1  Doing Business reform 
2.23.  Ease of Doing Business and elimination of unnecessary procedural requirements outlines the 
main reform measures undertaken by the Governme nt of Albania during the last years. After the 
stagnation in the ease of Doing Business (World Bank Doing Business Reports 2010-2013), the 
Government of Albania showed commitment and dedication to this agenda and reached for the 
first time in 2014 the best ranking, 68
th place, in the WB Doing Business Report 2015. By virtue of 
the Prime Minister's Order No. 30 of 30 January 2014, an Inter-institutional high level Working 
Group, chaired by the Minister of Economic De velopment, Tourism, Trade and Entrepreneurship 
was established to implement the reforms and consta ntly monitor the results. The National Action 
Plan for the ease of doing business was approved by virtue of Decision of the Council of Ministers (DCM) No. 591 of 10 September 2014. WB Doing Business report 2016 ranked Albania at the 97
th 
place out of 189 economies, having deterioration in the ranking mainly due to the temporary 
negative impact of the administrative and territorial reform and the new platform for construction permits, taking the control over the territory to impede illegal construction to emerge further. 
Many efforts are invested in many areas such as starting a business, paying taxes, property 
registration, energy reform, legal reform, and access to finance, reforms that will impact positively the ranking in the upcoming WB report 2017. A new Action Plan 2016-2019 to improve business 
environment and consolidate results already achieved is in progress. The new Action Plan will be 
finalised within the first quarter of 2016 and monitored regularly. 
2.24.  Four important laws covering economic zones, strategic investment, concessions and PPPs 
and tourism were approved during 2015, providin g a new momentum and philosophy in attracting 
new investment.  
2.3.2  Strategic investments 2.25.  Law No. 55/2015, dated 28 May 2015 "On strategic investments in the Republic of Albania" 
("Law 55/2015") lays down the rules and procedures to be implemented by the government bodies 
during the examination of strategic investments and the support/ services provided to strategic national and/ or foreign investors. Law 55/2015 defines as strategic sectors the following: energy and mining, transport, infrastructure, electronic communications and urban waste, tourism, 
agriculture and fisheries, technology and economic  development zones, high priority development 
zones. It stipulates for each strategic sector, the minimum investment capital required in order to be recognised as a strategic investment. It establishes the Strategic Investment Committee, 
chaired by the Prime Minister, responsible for mo nitoring the "single window" for services to 
strategic investors, the performance of strategic investments, approves the support measures for a strategic investment and the projects considered as "potentially strategic investments". The 
Albanian Investment Development Agency (AIDA) will serve as the single window for strategic 
investors and provide technical support to the Strategic Investment Committee. The new law aims at providing fast track procedures, land consolidation, supporting programs for strategic investors, assistive infrastructure and use of public assets for strategic investment project execution. 
2.3.3  Technology and economic development zones 
2.26.  Law No. 54/2015, dated 28 May 2015 "On some amendments and addenda to Law No. 
9789, dated 19 July 2007 "On the creation and func tioning of economic zones" provides that 
"technology and economic development zones" will substitute the "economic zones", "free zones" 
and "industrial parks". The "technology and economic development zone" is a separate territory, a defined piece of land or buildings and other immovable facilities, developed according to a general 
plan and equipped with the necessary infrastructure for the production, industrial development, 
trade and services. With regard to the fiscal regime, the technology and economic development zones are considered as separate from the cust om territory of the Republic of Albania. The 
developer and the operator in a technology and economic development zone pays only 50% of 
company tax for the first 5 years. Albanian goods are supplied to the zone as VAT free. The 
developer and operators are excluded from the prop erty tax for the first 5 years of their activity. 
The expenses for wages and social and health insurance contributions are recognised at 150% of WT/TPR/G/337 • Albania 
 
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  their value for the first year of the activity. The costs of trainings and R&D are calculated as 
deductible expenses at double of their value for the first ten years of activity.  
2.3.4  Business registration and licensing 2.27.  Business registration and business licensing are offered through one-stop shop, respectively 
the National Registration Centre (NRC) and the National Licensing Centre (NLC). The services 
offered through both centres improved consider ably the market entry for SME's. The online 
registration is fully operational from the first quarter of 2015 and the testing of e-licensing for 
some category of licences is ongoing. The Nati onal Business Centre (NBC), as a merger between 
NRC and NLC was established by Law No. 131, dated 26 November 2015, providing a one-stop shop for business registration and licensing. NBC will  be fully operational within the first quarter of 
2016 and provides many services to business, among others unified application for registration 
and licencing throughout the country, unified advi sory services, reduced formalities and fees for 
the services, full application of e-registration and phased application of e-licencing within 2016.  
2.28.  Aiming at simplifying administrative proc edures for businesses, the Government of Albania 
has started a radical reform of deregulation. The review of authorisations issued by central 
institutions was finalized in 2015 and recommendations were provided for five main areas (agriculture and food, health, industry and en ergy, finance and customs). After consecutive 
consultations, the legal changes are expected to be implemented during the first half of 2016. The 
expected results are the elimination of up to 10 authorisations and streamline other 20. In addition, the review of all licences and permits issued by central institutions will start shortly with the objective to eliminate all unnecessary licences and permits. 
2.3.5  Public-private dialogue 
2.29.  The Government of Albania considers the consultation with the private sector as a 
precondition for better policies and a reflection  of the country's economic needs and business 
requests. Any legislative change is consulted in advance, with 60 days mandatory time limits for 
consultations. In addition, online consultations ar e held and new laws and regulations are regularly 
published in the official websites of the proponent ministries.  
2.30.  The National Economic Council, chaired by  the Prime Minister, was established by Law No. 
57/2014, dated 5 June 2014 "On the setting up and functioning of the National Economic Council". This council serves as a single advice/consultative structure and forum to consultation new reforms and policies. The meetings of the Council are regu larly attended by the Minister responsible for 
economy (acting also as vice-chairman), the minister responsible for finance, the Governor of the 
Bank of Albania, national and foreign owned companies, business organisations, financial organisations and academia, as well as other entities that may be invited to attend on case-by-
case basis. The Secretariat of the Council is head ed by the private sector and is responsible to 
prepare the meetings and follow up the implementa tion of the initiatives and policies presented. 
2.31.  With a particular focus on investors, the Investment Council, established by the DCM No. 
294, dated 8 April 2015, with the support of EBRD , aims to intensify the dialogue between the 
government and the private sector, improve the business climate and promote good governance. 
The Investment Council was launched in April 2015 and has already held 4 meetings during 2015. The Investment Council is mainly focused on investor needs to address sectorial concerns or 
impediments deriving from the sectorial administrative procedures.  
3  TRADE POLICY DEVELOPMENTS 3.1  Trade Data 
3.1.  The trade data indicate growth since the First Trade Policy Review of Albania in 2010. This 
growth is attributed to the liberal trade regime  and well-functioning of the free trade agreements. 
WTO membership preserved a stable trade regime for Albania contributing to a positive trend of 
foreign trade. Export of goods increased during 2010-2015, except 2015 that had a decrease. 
Import of goods has been fluctuating through the whole period of 2010-2015, reflecting the instability in our main trading partners Italy an d Greece. The performance of export during 2010-
2015 has contributed in shrinking the trade de ficit by 4.8% in 2015 compared to 2010.   WT/TPR/G/337 • Albania 
 
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  3.2.  The most exported products in 2015 are manufactured products with 59.6 %, minerals fuels 
and lubricants with 18.5 %, crude materials with  9.1 %, etc. During the 2010-2015 the export of 
food and beverage increased more compared to other products reconfirming the policies and reforms undertaken in the agriculture sector. The share of food and beverages in the total value of 
exports increased from 4.5% in 2010 to 6.8 % in 2015. Although with less growth, other products, 
like transport machinery and equipment, chemical  products, etc. have improved their position 
compared to 2010.  
3.3.  The import of products during 2010-2015 is more diversified. The most imported products in 
2015 are manufactured products with 36.7%, transport machinery and equipment with 20.9 %, food, beverage and tobacco with 16.3% and chemic al products with 11.8%, etc. The import of 
machinery and equipment increased more, as share of the total value of import, from 18.7% in 
2010 to 20.9 % in 2015, reconfirming new investments and policies to additionally facilitate 
market entry requirements for new technology and investment. 
3.4.  During the period of 2010-2015 the export, in absolute terms, to Italy, Greece, Kosovo and 
Malta increased significantly. Compared to six years ago, a map of Albanian exports has 
considerably diversified. From 2010, Kosovo is the second most important exporting market for Albania, a place that traditionally was of Greec e. Thus, Kosovo represents 8.6% of the total 
exports of Albania in 2015 compared to 6% in 2010. This is a direct reflection of the liberalization 
of trade with Kosovo form 2007 and the trade fa cilitation agreement signed between the two 
countries from 2014. In addition, although EU rema ins the main trading partner for Albania, CEFTA 
countries are becoming more important in export due to the free trade agreement with Western 
Balkans, in force from 2007.  
3.5.  During the period of 2010-2015 import suffered from a fluctuating trend. Italy is the leading 
partner in import, having an increasing up to 2013, decreasing in 2014 and increasing again in 
2015. Same patterns of import had China, Turkey, Greece, etc. 
3.2  Trade policy making and coordination 3.2.1  Main trade policy advancement 
3.6.  From the First Trade Policy Review, Albanian Trade Policy has followed a liberal approach in 
policy making, reducing additionally tariffs while paying attention to trade facilitation. The MFN tariff is amended through many legislative changes. Since 2010, five laws have been approved, reducing the level of MFN for specific goods. Due to continuous tariff reduction, both MFN and the 
preferential tariffs, the average applied tariff is reduced from 1.76% in 2010 to 1.34% in 2015. 
The import tariffs applied by Albania are low, with a maximum of 15%; with approximately 49% of all tariff lines having MFN rate at 0% and 18% of all tariff lines having MFN rate at 2%. Some 
differences between MFN rate and the bound rate for few tariff lines are identified. This difference 
is due to the correlations and changes in the tariff classification and legislative changes to make MFN level fully compliant with the WTO re spective bound rate are in process. 
3.7.  Albania is signatory of the Regional Conven tion on pan-Euro-Mediterranean preferential rules 
of origin (PEM Convention) which has been in force since 1 May 2012. Albania has already made linkages of PEM Convention with CEFTA Parties and EU. The linkage with Turkey is in process while 
with EFTA States haven't started yet. Starting from 1 February 2016, the SAP+ will be applicable 
among Albania, Serbia, EU and EFTA.  
3.8.  Albania has fully liberalized its trade in agriculture with Western Balkan countries under the 
CEFTA 2006 Agreement. Tariff liberalization is balanced with other reforms to facilitate trade and 
abolish unnecessary and trade distortive measures . Albania has maintained a very liberal trade 
regime, transparent and predictable, refraining any initiative or policy that constitutes a barrier to trade.  
3.2.1.1  Customs procedures 
3.9.  Many developments are made to facilitate trade, with a particular focus on customs 
procedures. Albanian legislation on AEO is functi onal. The new Customs Code of the Republic of 
Albania approved by virtue of Law No. 102/2 014, dated 31 July 2014 and its implementing WT/TPR/G/337 • Albania 
 
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  provisions include the legal provisions for AEO and the simplified export and import procedures, 
which entered into force on 1 January 2015, partially harmonizing the EU Regulations in this matter. The simplified procedures for clearance at importers' premises are in force in accordance with DCM No. 366, dated 30 April 2015 "On some am endments and additions to the DCM No. 205, 
dated 13 April 1999 "On implementing provisions of  Customs Code". These provisions are aligned 
with EU Regulation No. 2454/93. In addition, with in the CEFTA context, the Strategy on AEO was 
approved by the CEFTA Joint Committee in 2014. The action plan of controls based on risk 
management for agriculture products was introduced during 2015. Risk management in customs is 
fully operational since 2006. 
3.10.  Procedures of customs valuation of the goods, provided in the Customs Code and its 
implementing provisions, comply with the requir ements of the WTO Agreement (GATT Article 7). 
In accordance with the Customs Code, customs valuation is done based on six methods, where 
transaction value leads. The use of transaction value for valuation purposes has increased from 86% in 2011 to 89% in 2015.  
3.2.1.2  Sanitary and Phytosanitary Measures 
3.11.  Since 2010, Albania has adopted several laws, regulations and decisions in the field of 
veterinary, food safety and plant protection. Thus, Law No. 10465, dated 29 September 2011 "On 
Veterinary Service in the Republic of Albania", Law No. 9863, dated 28 January 2008 "On Food", 
as amended and Law No. 9362, dated 24 March 2005 "On Plant Protection Services", as amended 
are in force. Laws and regulations adopted are eith er fully or partially approximated with Chapter 
12 "Policies of food safety, veterinary and phytosanitary" of the European legislation. Albania has 
notified in the SPS Committee of WTO all laws an d regulations implemented and administered by 
the Agreement on Sanitary and Phytosanitary Measures.  
3.12.  Legislation on SPS is implemented by the respective structures under the Ministry of 
Agriculture, Rural Development and Water Administration, the National Food Authority and the 
Agriculture Directorates. There are 13 Border Inspec tion Points under the National Food Authority. 
The inspection procedures of BIPs are in conformity with the Albanian legislation, which is in the 
alignment process with the EU acquis.  
3.2.1.3  Standardization 3.13.  There is a good progress in the area of st andardization since 2010. Many legislative changes 
occurred during 2010-2015, focused on (i) Establis hing and functioning of the Managing Board of 
General Directorate of Standardisation – A managing body composed by stakeholders in this field, 
(ii) extended responsibilities with regard to telecommunications as published by European Institution for Telecommunication Standards (ETSI), (iii) improving the processes related to public 
inquiry, adoption, notification and publication of Albanian Standards, etc.  
3.14.  During the reporting period, Albania has signed several cooperation agreements in the field 
of standardization with Kosovo, Macedonia, Mont enegro, Turkey, Croatia, Bosnia Herzegovina, 
Russia and Czech Republic. 
3.15.  The percentage of standard adoption as Albanian standards in respect to their origin is: 
98% European (CEN&CENELEC) standards; 60% Eu ropean (ETSI) standards; 25% International 
(ISO&IEC) standards; no purely Albanian standards were approved during the reporting period. 
The adoptions are made by cover page method and without deviations from the original text of 
standards. All adopted standards are noti fied to CEN&CENELEC Management Centre. 
3.2.1.4  Technical regulation and accreditation 
3.16.  During the reporting period, solid progress is noted in the area of technical regulations. 17 
technical regulations for 17 groups of products transposing the relevant New & Old Approach directives are approved. In addition, the Market Surveillance Inspectorate was established very 
recently, by virtue of DCM No. 36, dated 20 Janua ry 2016. The Market Surveillance Inspectorate 
will be responsible for the enforcement of product legislation under remit of MEDTTE, intellectual property rights and tourism legislation.  WT/TPR/G/337 • Albania 
 
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  3.17.  In the area of accreditation, the General Directorate of Accreditation (DPA) is the sole 
accreditation body in Albania. It operates according to Law No. 116/2014, dated 11 September 
2014 " On accreditation of conformity assessment bodi es in the Republic of Albania", which is fully 
in line with requirements of EU Regulation  No. 765/2008 "Setting out the requirements for 
accreditation and market surveillance relating to the marketing of products".  
3.18.  In 2014, DPA extended its scope of activity  with the accreditation of medical laboratories 
and personnel certification bodies. In 2015, DPA provided the accreditation to one calibration 
laboratory. Actually, DPA provides the accreditation services to testing, medical and calibration 
laboratories, management system, product and personnel certification bodies, inspection bodies. The accreditation is based on harmonized standards, legislation in force and EA, ILAC and IAF document.  
3.19.  DPA applied in January 2015 for full membership in the European cooperation for 
Accreditation (EA). After the checking of the technical documentation, in May 2015, DPA became a full member of EA. DPA is associate member of ILAC and accreditation body member in IAF. In 
2008, DPA applied for being signatory member of EA-MLA in testing. In 2010, EA has performed 
the pre-evaluation process, while in February 2015,  EA performed the peer evaluation. In October 
2015, DPA became signatory member of EA-MLA for testing. It has applied for EA-MLA in 
certification and inspection in July 2015. DPA ha s the intention to apply soon for EA-MLA in 
calibration field.  
3.20.  A big progress was highlighted relating to number of accredited bodies. In 2010, the 
number of accredited conformity assessment bo dies was 17, while currently, there are 42 
accredited bodies (23 testing laboratories, 1 medical laboratory, 1 calibrati on laboratory, 3 
management system certification bodies, 3 personnel certification bodies and 11 inspection bodies).  
3.2.1.5  Competition policy 
3.21.  The Competition Authority is a public institution, independent in the decision-making and 
exercise of its competences, responsible for the pr otection of free and effective competition in the 
market through the monitoring and investigation procedures, in accordance with the provisions of 
Law No. 9121, dated 28 July 2003 "On Competition Protection" ("Law 9121/2003"). 
3.22.  Law 9121/2003 was amended in 2010 to improve the application in practice of the legal 
provisions, as well as to further align the Albanian legal framework with the acquis communautaire  
in the field. These legal amendments fully aligned the Albanian legal framework with the Treaty of 
the European Union, presented a new level of fines, foresaw the block exemption of certain categories of prohibited agreements, the rules in  relation to agreements of minor importance ( de 
Minimis ).  
3.23.  Since 2010, the Commission of the Albanian Competition Authority has issued 258 decisions 
in total, among which 46 decisions related to the control of concentrations; 10 decisions related to 
abuse of dominance cases; 14 decisions related to prohibited agreements; 3 decisions on the 
exemption from a prohibited agreement; 23 decisions on the approval of different sublegal acts in 
the area of competition (mainly regulations and guidelines); 20 decisions related to recommendations towards public institutions in relation to competition concerns; 14 decisions 
related to administrative sanctions towards undertakings for anti-competitive behaviour; 1 
decision related to the placement of interim meas ures and 1 decision related to the placement of 
conditions and obligations. 
3.2.1.6  State Aid 
3.24.  The legal framework in the field of stat e aid consists of Law No. 9374, dated 21 April 2005 
"On State Aid", amended by Law No. 10183, date d 29 October 2009 ("Law 9374/2005"), and three 
implementing regulations, approv ed by the Council of Ministers. 
3.25.  Currently, Law 9374/2005 is being amended in order to improve the state aid legislation, to 
further align it with the acquis communautaire , to reflect in the domestic legislation the several WT/TPR/G/337 • Albania 
 
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  changes of EU legislation in the field of stat e aid, and the recommendations of the European 
Commission's progress reports for state aid control in Albania. 
3.2.1.7  Intellectual Property Rights 3.26.  The main policy document on IPR is the National Strategy of Intellectual Property (NSIP). 
The inter-institutional working group for drafting a new strategy of intellectual property rights 
(2016-2020) was established by virtue of Prim e Minister's order No. 112, dated 26 August 2015. 
The new strategy shall be finalised within the fi rst half of 2016, as a follow up of the current 
strategy which ended in late 2015. The National St rategy on Intellectual Property (2016-2020) is a 
political document that clearly defines the strategic objectives and measures for achieving them by stimulating the development of a gradual process of strengthening the entire system of intellectual property. 
3.27.  Copyright in Albania is mainly protected by Law No. 9380, dated 28 April 2005 "On 
copyright and other related rights", as well as by other sub-legal acts pursuant to this law. Copyright policies and initiatives were taken in compliance with the Action Plan provided by the 
National Strategy on Enforcement of Intellectua l Property Rights 2010 – 2015. A new draft law on 
copyright was approved by the Council of Ministers in September 2015, and consultation within the parliamentary Commissions has already started. Particular attention is given to the monitoring of 
IP rights in the market. Since April 2015, there are four collective management agencies of 
copyright and related rights functioning. In a ddition, public awareness campaigns have been 
regularly carried out. 
3.28.  In the area of patents and trademarks, Albania has approximated its law with the EU 
legislation. The latest legislative changes are Law No. 55/2014, dated 24 June 2014 "On 
amendments to Law No. 9947, dated 7 July 2008 "O n Industrial Property", and Law No. 66/2014, 
dated 24 July 2014 "On amendments and addenda to Law No. 8488, dated 13 May 1999 "On the 
Protection of Topographies of Integrated Circui ts". Albania is a member of all international 
agreements, a member of the European Patent Organisa tion and a member of World Intellectual 
Property Organisation. The applications for trademarks, patents, industrial designs and 
geographical indications increased in 2015 by 19% compared to 2014 and 36.3% compared to 
2013. Patents grew by 27% compared to 2014 and 52% compared to 2013. 
3.29.  During 2010-2015 good progress was achieved in the enforcement and institutional 
cooperation with regard to IP rights. During this period the customs system has based its 
protection of IP rights on the Implementing  Provisions, article 118-120 of DCM No. 547, dated 
1 May 2008, "On some amendments and additions in the DCM No. 205, dated 13 April 1999 "On implementing provisions of Customs Code", as am ended. These legislative changes have partially 
approximated EU Regulations No. 1383/2003 and No. 1891/2004.  
3.30.  The customs authorities had five requests in 2010 from the IP rights holders to proceed 
against IP infringement cases, while in 2015, the number of applications reached 117, showing the 
effectiveness of the enforcement.  
3.2.2  Trade in goods and services 3.2.2.1  Trade in goods 3.2.2.1.1  Agriculture 
3.31.  Agriculture continues to be an important contributor for growth, having considerable share 
in the Albanian economy, contributing by abou t 20% to the GDP. During 2010-2015, agriculture 
has undergone important development. The objectives in agriculture consist in: (a) increasing 
productivity and competitiveness of agriculture, (b) improving standards and ensuring food safety, 
(c) production specialization in the sectors of ve getables, viticulture, fruit growing and livestock, 
(d) improvement of marketing network, and (e) comple tion of food safety standards, remain at the 
core of efforts for Albanian agricultural structures. 
3.32.  Policies for agriculture and rural development are in compliance with the Strategy for 
Agriculture and Rural Development in Albania 2014- 2020, following the strategic initiatives of the WT/TPR/G/337 • Albania 
 
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  previous Strategy of Agriculture and Food 200 7-2013 and the Strategy for Rural Development 
2007-2013. 
3.33.  The goal of the sectorial policies is the development of a sustainable and competitive 
agriculture and agro – processing sector, to promote a balanced economic development in rural 
areas, paving the way towards the integration of the agricultural sector and food processing in the 
EU, as a basis for growth, improvement of living  standards and poverty reduction in the rural 
areas. To achieve this goal during 2010-2015, domestic financial support to agriculture is 
increased, complying with WTO Agreement on Agriculture. Since 2014, the national support 
schemes are redesigned, including schemes aimed at  improving the technologies of cultivation, 
support in investment capacities, processing lines, etc. 
3.34.  In addition to the national support sche mes, IPARD-Like Programme, through co-financing 
program with the EU, has started since 2012. The total budget is of €8.6 million, of which €6.2 
million is financed by EU and €2.4 million from the State budget. The project supports investments 
in Agriculture Holdings and investments in the Processing and Marketing of Agricultural and Fishery 
Products. 
3.35.  During 2010-2015, exports of agriculture products have increased, especially the exports of 
fresh fruits and vegetables. This increase is mainly because of investments' increase and natural 
advantage Albania has in the region (favourable weather conditions, which enable an early 
production season). For the period 2010-2015, the export-import ratio improved, from 1 to 8.8 in 
2010 to 1 to 4.1 in 2015. 
3.36.  The policy for agriculture and rural development encompasses: 
 Rural development policy , designed to address the needs for agriculture and rural 
development in Albania, to improve their economic performance and living conditions in rural areas, to prepare these sectors for fu ture EU membership. IPARD II is the main 
instrument for funding rural development policy in Albania.  
 Consolidation of the Domestic support scheme; the focus is mainly the financial 
support to farmers, support for investments in rural infrastructure (water supply, irrigation, 
drainage and roads) and other interventions. Support for farmers is provided through annual 
support schemes and sectors that have been supported, particularly: (i) fruits, nuts, olives and vines, vegetables, milk, organic products , cultivation of medicinal plants, snails 
breeding; (ii) promotion of rural credits in agro-processing and mechanization of agriculture 
through interest rate subsidy; (iii) investment in capacity building for storage and collection, 
processing lines, etc. 
 Institutional development, implementa tion and enforcement of regulatory 
requirements of the EU , in order to complete the harmoniz ation of policies and regulatory 
requirements of the EU. The process of approxim ation of national legislation and policy with 
the EU acquis and further development of institutions for its implementation.  
3.2.2.1.2  Industry 
3.37.  Industrial policy is in the process of mainstreaming in other sectorial policies, with a view to 
contribute to the competitiveness and growth. A draft Strategic Paper on the Development of Non-
food Industry 2016–2025
 is prepared and is currently being consulted with different stakeholders, 
including private sector and business associations and academia. The approval of the document is 
expected within 2016. 
3.2.2.2  Trade in services 
3.38.  International trade in services has recorded a positive balance or surplus for nine 
consecutive years (2007-2015). Export of services represents approximately 18% of GDP, whereas 
the average share of imports of services to GDP in the period 2010-2014 was close to 16%. 
Imports of services are about half the value of imports of goods whereas exports of services are 
almost equal in value to the imports of goods. In 2015, on the exports side, processing services 
made up about 12% of total export receipts, trav el services around 70%, transport services 8% WT/TPR/G/337 • Albania 
 
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  and other services around 11%. On the imports side, travel services accounted for about 75% of 
expenditures, transport services for 11% and other services for 13% of total services imports. Around half of the non-residents travelling to Albania come from Kosovo; one third of the total number of visitors are Albanian immigrants living abroad and the remaining part are visitors from 
other countries such as Czech Republic, Poland, Hungary, Russian Federation, Italy, Greece etc.. 
Main destinations for residents travelling abroad are Turkey, Greece and other European countries. On the inflows side (exports), the data indicate a higher number of travellers, a shorter duration of 
stay and lower average daily expenditures compared to the indicators calculated for travel 
expenditures abroad (imports).  
3.2.2.2.1  Financial sector 3.39.  Within a 5-year-period starting from 2010, the share of banks` assets has been declining as 
a result of the expansion of other segments of th e market. The remaining structure of the financial 
system is represented by 11 insurance companies and 1 reinsurance company, 3 companies that manage private pension funds, two investment f unds, 26 non-bank financial institutions and 106 
savings and credit unions, part of the two financ ial unions. In 2010, the share of the non-banking 
financial sector was 6%. The non-bank financial sector had its fastest growth in 2012, when Raiffeisen Bank established the first investment fund. This period coincided with the decision of 
this bank to reduce exposure to the Albanian public debt. Currently, the non-bank financial sector 
constitutes 10% of the financial system`s assets. 
3.2.2.3  Banking 3.40.  A stable financial system is important for safeguarding macroeconomic stability, for 
ensuring the transmission of the monetary policy and for deepening the financial intermediation. 
Bank of Albania designs macro prudential policy fo r the entire financial system, with the objective 
of promoting the financial system stability and its contribution to economic growth. 
3.41.  The financial system in Albania is concentrated and dominated by the banking sector. There 
are 16 banks in the country, 13 of which are fore ign-owned banks and 3 of which are Albanian. 
None of them functions as a branch. Banks repres ent 90% of the total financial system's assets 
and, their assets about 93% of the country's GDP for 2015. There are four major banks in the 
Albanian banking sector, with foreign capital from Turkey, Austria, Italy and also domestic capital. These banks represent 70% of the total banking se ctor's assets and deposits and 63% of lending 
activity. 
3.42.  Financial intermediation in Albania, estimate d as the ratio of financial system assets to GDP, 
was 102.8% in 2015. Banking sector assets in a 5-year time period (2010-2015) increased on average by 8%. Lending activity was recovered si gnificantly during 2015, driven by favourable 
interest rates for domestic currency. On average, credit has expanded by 6% annually since 2010.  
3.43.  This positive trend mainly reflects the easing of credit standards by banks. This 
development has been aided by an anticipated sharp improvement in bank's asset quality, 
supported by the clearance of accumulated arrears and the obligatory write-off of loans held in 
"loss" category for more than 3 years. In March 2013, capital requirements for banks that increase 
credit by 4-10% were reduced and disincentives for banks that hold funds overseas were introduced. Moreover, at the end of 2013 and in early 2014, write-offs were facilitated, and 
collateral enforcement was simplified.  
3.44.  The banking activity continued to be fundamentally financed by deposits, which accounted 
for about 83% of total assets. The loan-to-depo sit ratio is around 55%. The deposits volume 
increased on average by 9% in these five years,  driven mainly by foreign currency deposits. The 
latter expanded by 11.4% on average, compared with those in domestic currency that averaged a 7% annual growth. Dependence of the banking sect or on external sources of funding is very 
limited. The banking sector's net position to non-residents remained considerably on the crediting 
side, and continued to increase during the period. Borrowing from parent banking groups fell. The liquidity position of the banking system remained strong. The banking sector exposure to liquidity 
risk was low. Liquidity ratios (liquid assets to short-term liabilities), both in lek and in foreign 
currency, are above the minimum regulatory ratios.  WT/TPR/G/337 • Albania 
 
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  3.2.2.4  Non-banking 
3.45.  Currently, in the Albanian insurance mark et operate 10 insurance companies, of which 7 
non-life insurance companies, 2 life insurance companies and one life and non-life insurance company. In 2012, a new non-life insurance company was licensed, while in 2014, there was a 
decrease of the number of insurance companies from 11 to 10, following the merger of two 
insurance companies. The insurance market in the past five years has continuously increased. From 2010 to 2016, the insurance market has experi enced an increase of 12.37% in relation to 
the average gross written premiums. During the past 5 years, in structure the market continued to 
be oriented towards the non-life insurance. 
3.46.  The year 2011 marked an important development in the pension market. The newly licensed 
voluntary pension funds, in accordance with the new Law No. 10197, dated 10 December 2009 
"On voluntary pension funds" started the operation. Currently in the market operate three 
management companies of voluntary pension funds and 3 banks as depositories of these pension funds. Data analysis of the voluntary private pension market as of 30 September 2015 shows a 
total of net assets of lek 837.1 million (in comparison with lek 155 million for the year 2011). The 
number of members in the three pension funds operating at the end of 30 September 2015 was 11,227 members (in comparison with 6,295 members for the year 2011). 
3.47.  The most developed segment of the securities market for the last five years has remained 
the investment funds market followed by the gove rnment securities retail market. The volume of 
secondary market of Government securities during the period January-September 2015 was dominated by transactions in short-term instruments (T-Bills) at 73.11% (in comparison with 
87.2% for the year 2010). The remaining part was long-term instruments (notes and bonds) at 
26.89% (in comparison with 12.8% for the year 2010).  
3.48.  In terms of number of transactions, 84.9% (compared to 98.7% for the year 2010) of all 
transactions in the secondary market of government securities belonged to transactions with 
bonds. The investment funds industry in Albania st arted in the beginning of the year 2012 and in 
the last three years, 2013, 2014 and 2015, the invest ment fund market, both in Albanian Lek (lek) 
and in Euros, has continued its expansion, becoming the second largest market in terms of assets 
after the banking sector. During 2012-2014 the market of investment funds represented 43.2% of the weight of the markets supervised by the AFSA in 2012, 69.1% in 2013 and 71.6% in 2014, or 
1.2% of the GDP in 2012, 3.7% of the GDP in 20 13 and 4.6% of the GDP in 2014. Currently, in 
the market of investment funds operate two funds, Raiffeisen Investment Fund Prestige' and 
'Raiffeisen Invest Euro Fund', whose activity be gan in 2012, and in nearly 3 years they increased 
significantly in terms of value of the assets they manage and the number of their investors. 
3.49.  During the period under review, many legi slative changes occurred to further improve the 
supervision of the non-banking financial services.  
3.2.2.4.1  Electronic Communication 
3.50.  The electronic communications sector in th e Republic of Albania is regulated by Law No. 
9918, dated 19 May 2008 "On Electronic Communications in the Republic of Albania", amended by law No. 102/2012 ("Law 9918/2008"), and it is one of the most liberalised sectors. Albanian legislation in this field aims to eliminate the barriers for new entries in the market, to promote the 
free and efficient competition in the internal mark et, and protect the consumers. The adoption of 
Law 9918/2008 marked an important step towards the full liberalization of the electronic 
communications market. The amendments approved  by law No. 102/2012, made possible further 
liberalization towards the access to spectrum freque ncies based on technology-neutrality principle.  
3.51.  The National Broadband Plan, a strategic document on the infrastructure and broadband 
services development, was approved in 2013. The National Broadband Plan has been amended by 
DCM No. 300 dated 8 April 2015, aiming to accelerate the provision of 4G/LTE services by 
removing the technical limitations on the spectrum use and through re-shuffling of spectrum frequencies. 
3.52.  During 2010–2015 the competition in the electronic communication market has been 
increased. Currently, there are 4 mobile operators, 79 alternative fixed telephony operators and WT/TPR/G/337 • Albania 
 
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  130 internet service providers. The mobile penetration is over 100%. In 2015, the mobile 
broadband services based on 3G and 4G are pr ovided in the market, while in 2010 the mobile 
Internet was provided in GPRS and EDGE. The 4G/LTE services have been commercially launched in September 2015. The number of fixed broadband subscriptions was increased from 120.000 in 
2010 to 228.000 in the middle of 2015, while the number of mobile broadband users is over 1 
million.  
3.2.2.4.2  Postal Service  
3.53.  Postal services in Albania are regulated by Law No. 46/2015 "On postal services in the 
Republic of Albania", approved in May 2015. The adoption of the new law marked an important 
step towards full liberalization of the postal market. The legal framework on postal sector aims to promote free and effective competition in the mark et, to ensure financing of the universal service 
in order to guarantee the provision of the univers al postal services and protect the consumers. 
3.2.3  Trade policy coordination and monitoring 3.54.  In response to the needs for trade policy coordination and monitoring, the establishment of 
the National Committee for Trade Policy Coordination and Facilitation is in progress. The 
Committee is expected to be functional within th e first half of 2016 and will be chaired by the 
Minister responsible for trade policy. The Committee will be composed by representatives from all 
institutions involved in trade policy making and facilitation and from the private sector. The main 
proposed functions are: (i) coordination of trade policy-making at the national level (ii) consultation of trade policy with the business community, (iii) proposal of measures to facilitate trade, (iv) permanent monitoring of trade policy.  
3.55.  This Committee will have two fold purp oses (1) respond to the commitment of WTO Trade 
Facilitation Agreement and (2) respond to the needs to strengthen the administrative capacities in trade policy.  
4  TRADE POLICY OBJECTIVES AND DEVELOPMENT 
4.1  Participation in WTO negotiations 4.1.  Albania follows the development in WTO an d participates through the Permanent Mission of 
Albania to Geneva in different meeting. Albania notifies regularly in WTO all measures falling under 
TBT and SPS, complying with the transparency go verning principle of WTO. The National Enquiry 
Points for TBT and SPS, established in accordan ce with the provisions of the Agreement on 
Technical Barriers to Trade and the Agreement on the Application of Sanitary and Phytosanitary 
Measures, notify in advance new legislative acts.   
4.2.  Since January 2010, 38 notifications on draft technical regulations with an impact on trade 
have been notified by TBT Enquiry Point. In addi tion, notifications of six monthly standards work-
programme are regularly notified to ISO/IEC Secretariat. In the field of SPS, since 2010, 62 
regular and emergency notifications, the later compliant with OIE notifications, have been notified. The Ministry in charge for trade policy regularly submits all other notifications to the WTO 
Secretariat.  
4.3.  With regard to the negotiations in the Information Technology Agreement in WTO, Albania 
has co-sponsored the proposal of EU and has supported the declaration and list of products proposed to be covered by this agreement.  
4.4.  With regard to the accession to GPA, foll owing the request from the GPA Committee, Albania 
has already replied officially in July 2015 on its intention not to accede to GPA at this moment. The process of harmonization of the national legislation with EU acquis in all areas is a priority and thus 
public administration capacities are dedicated to this process. Therefore, any process of accession 
to GPA at this stage would result difficult and very demanding for Albania. 
4.5.  WTO Trade Facilitation Agreement was ratifi ed by the Parliament on 4 February 2016 and the 
acceptance document is in the preparation phase. Albania has already notified the A commitments 
and is preparing the B and C commitments. WT/TPR/G/337 • Albania 
 
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  4.2  Albania's Accession Process to the European Union 
4.6.  Accession to the European Union (EU) is one of the strategic objectives of the Albanian 
Government. This aim can be achieved only throug h the full implementation of the Stabilisation 
and Association Agreement (SAA) and the fulfilment of the Copenhagen requirements, as 
preconditions for accession to the EU. The SAA was signed in 2006 and entered into force on 
1 April 2009 marking an important moment towards the EU Integration process.  
4.2.1  The National Plan for European Integration  
4.7.  Since 2006, the Government of Albania drafts  a special Plan for the implementation of the 
SAA. The National Plan for European Integratio n (NPEI) 2016-2020 was adopted in January 2016. 
This plan involves long and medium term  measures extending up to 2020, with a view to 
completely approximate the national legislation with acquis  of EU and for all the sectors, comply 
with the standards laid down in the chapters of the acquis .  
4.8.  In October 2013, the European Commission in its document over "Enlargement Strategy and 
Main Challenges 2013- 2014" declared that Albania had met all conditions and recommended the 
granting of the candidate country. Albania worked extensively on five key priorities: (i) reform and 
de-politicisation of public administration, (ii) strengthening the independence, efficiency and accountability of the judiciary, (iii) strengthening the fight against corruption, including a series of 
investigations and punishments, (iv) strengthening the fight against organised crime, including a 
series of investigations and punishments (v) strengthening the protection of human rights, including Roma and anti- discrimination policies  and the protection of property rights.  
4.9.  On 24 June 2014, the Council  of the European  Union agreed to grant Albania the  candidate 
status, recommending further development of reforms to open negotiations. For this purpose, the 
Government of Albania drafted the Roadmap for the fulfilment of five key priorities, which was adopted by the DCM No. 330, dated 28 May 2014. The Roadmap was then replaced in 2016 with a 
Short-Term Action Plan, to address the short te rms recommendations of the 2015 EC Report on 
Albania aiming to open the accession negotiations in 2016. 
4.3  Regional integration 
4.10.  Albania is very committed to the regional cooperation, in particular with the countries of 
Western Balkans and Turkey.  
4.11.  In the framework of CEFTA 2006 agreement, Albania plays an active and constructive role, 
proving the importance the regional cooperation has for trade and economic advancement of the 
country. Currently Albania is engaged in the ne gotiations of the services trade and Trade 
Facilitation within CEFTA. Trade with Western Balkans is fully liberalized providing a full free trade zone for Albania. In addition, Albania is an active country in all CEFTA structures showing 
commitment and political will to the regional cooperation and development. Trade potentials are 
below the potentials though and therefore Albania is focused to diversify its export potentials. 
4.12.  Kosovo is a strategic economic and political partner for Albania. In January 2014, Albania 
and Kosovo signed the agreement on trade facilita tion, followed in March 2015 with the signing of 
the implementing protocol on trade facilitation. Pr ogress is noted in areas of customs cooperation, 
technical regulation, standardizations and accreditation, while the cooperation in the field of SPS remains a challenge. In addition, elimination of trade barriers with Kosovo has been the primary 
focus during 2014-2015. Bilateral consultation for trade barriers are held during the whole 2015. 
4.13.  Implementation of FTA with Turkey  and EFTA States progresses smoothly. 
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