WORLD TRADE  
ORGANIZATION  WT/MIN(09)/ST/135 
3 February 2010 
 (10-0534) 
MINISTERIAL CONFERENCE 
Seventh Session Geneva, 30 November - 2 December 2009 Original:   English 
 
  
FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
 
Statement Mr. Fatmir Besimi
 
Minister of Economy  
   Allow me at the beginning to express my gratitu de to the organizers for the realization of the 
Seventh Conference of the World Trade Organization and on my personal behalf  and on the behalf of 
the Government of the Republic of Macedonia to we lcome all present here at this important world 
event. This Conference is held after four year s and it is a good opportunity for a meeting of the 
Ministers responsible for trade and economy to discuss the actual world events and the current 
multilateral negations.    Especially, I would like to point out the moment  of its holding, when we are all witnesses of 
one of the biggest economic crisis that hit the world,  for which at present there are a lot of discussions 
and negotiations, analysis are made, solutions are s ought and all this, in a way, contributes to writing 
the world economic history.    The profile, dimension and the character of th is crisis deny and go  beyond all so far known 
theories and models, which could be used in order to explain the crisis, a nd thus finding measures for 
overcoming it. Hence, in a way, we are all in a ph ase when we learn from the crisis and seek solutions 
for overcoming it.    The world economic crisis has turned b ackwards the economic development of many 
countries, has reduced the economic growth, decrea sed the economic development, the scope of the 
trade flows and increased unemployment. At the same time, it confirmed the high degree of inter-
dependence of the countries in the contemporary wo rld. The theory that the global economic growth, 
above all thanks to the developing countries mark ets, would be separated from the world economy in 
the USA, has proven completely untrue. Instead, almo st all countries are hit by the crisis. It initially 
hit the financial sector of the developed countri es, but has very soon, led to exhaustion of the 
economic development and decrease of production in the developed and other countries in the world, 
thus getting the feature of global recession.     The influence of the global economic crisis on the economy in the Republic of Macedonia, as 
a small and open economy, is fully expected. Th e recession of the countries of the EURO-zone and 
the neighboring countries, which are our main trade pa rtners, has caused crisis in the real sector of 
Macedonian economy, especially in the metal processing and food sector, mainly by reduced orders and lower prices of metals on the world exchang es and other export product from Macedonia. This 
has caused a reduced economic activity, lower liqui dity and increase of the interest rates that 
additionally burdens the financi ng of business activities, especially the small and medium-sized 
enterprises.  
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   The effects of the crisis have had their influence on industry, financial sector, as well as the 
payment balance, through reduced export and delay of some of the foreign direct investments. The 
problems that the Republic of Mace donia has been facing with in the past years, in time of a world 
crisis have gain in intensity, a nd are related to the high rate of unemployment and trade deficit.  
 
 Having in mind the effects on the domestic econo my, the main challenges for the bearers of 
the economic policies, are the following:   • How to mitigate the effects of the crisis and at the same time not distort the market 
principles and provide help with measures that on long-term would mean increasing 
the competitiveness of the domestic economy, and  
  • How to finance the domestic economy in  conditions of reduced domestic demand and 
economic activity as a consequence of the reduction of external consumption.   
 
 The approach that provides most adequate so lutions is the cooperation among the bearers of 
economic policies, experts and business community . Based on the already established continuous 
dialog with the business community, from the end of  2008 until the third quarter of 2009, three 
packages of so called anti-cri ses measures have been enacted. 
  The first package of anti-crisis measures (N ovember 2008), consisted of ten measures for 
facilitating economy with estimated value of 300 million EUR and were directed to improving the 
liquidity of companies by facilitating, i.e. exempti ng the companies from certain  fees. Within the first 
package of anti-crisis measures were also the measures implemented on request of companies - 
customs facilitations for equipment, raw materials intended for production. This abolished the custom 
duty for about 500 tariff lines. 
 
 In the second package of an ti-crisis measures (March 2009), an investment program with 
infrastructure projects in the field of energy, tr ansport, environment, education and culture was 
promoted. The total amount of investments is about  8 billion EUR, which would be realized in the 
upcoming 6-8 years with state investments, private investments or public-private partnership. The aim 
of this is to more easily handle the global crisis  in the period to come and continuation of the 
investment cycle, thus mitigating the effects of the reduced external consumption of the domestic 
economy.    The third package of anti-crisis measures (May  2009) includes about 70 measures that relate 
to three segments: first, the rebalancing of the Budg et for 2009, which is due to the creation of fiscal 
policy that, by increasing productive investment that  also include public investment, is aimed at 
efficient stimulation of the expected slow-dow n of the economic activities caused by the crisis; 
second, credit support of companies, through a credit  line from the European Investment Bank (100 
million EUR); and third, other measures for reducing the barriers and costs for doing business of companies, i.e. package of measure s that is related to simplifying the customs procedures and faster 
flow of goods at the borders. 
 
 However, I would like to go back to the pos itioning of the Republic of Macedonia in the 
world economy. An indicator of its opening is the hi gh percentage of participation of the export and 
import in the GDP (over 100% of GDP). In the last year, over 80% of the total foreign trade exchange of the Republic of Macedonia with the world is pe rformed with the countries with which we have 
Free Trade Agreements, where 96% of export and 70% of import is done with the same countries. 
Here, I would like to mention the CEFTA 2006 agreem ent, as a significant contribution for promoting 
the trade of the countries from the region, wh ere accession countries are WTO member states and 
states that are in process of WTO accession, which is done in accordance to the rules and principles of  WT/MIN(09)/ST/135 
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  WTO. Also, we fully support countries from our region: Serbia, Montenegro and Bosnia and 
Herzegovina, as soon as possible to become members of WTO.   The Republic of Macedonia became a WTO member  state in accordance to the rules of the 
DDA, has opened its market of goods and services and still fulfills the commitments of its 
membership. It is in the group of Very R ecently Acceded Members and it was exempted from 
obligations for further liberalization. Therefore,  the Republic of Macedonia supports the efforts for 
enhancing the negotiation process and its successful completion. With this round of negotiations, 
beside trade liberalization, conditions will be cr eated for stable business environment, preventing 
measures that would distort trade and giving a chan ce for accelerated development of the developing 
and the least developed countries.  
  The WTO Director General, Mr. Lamy, in one of his speeches has pointed out that: “Open economies will be in a better position for faster re covery when the world economic crisis ends”. 
However, the reduction of the scope of trade, as  a result of the world economic situation, has 
decreased the confidence in opening the trade and th e existence of the international trading system. 
Some countries in order to protect the domestic goods and services, started introducing protectionism 
measures. These measures restrict trade exchange and are part of the reasons for reduction of the scope of world trade. The transparency of the mu ltilateral system was confirmed by the introduction 
of notification procedures and monitoring the introduced protectionism measures by the WTO 
member states.  
 
 According to the data that are at disposal of this organization, the app lication of protectionism 
measures is not to such an extent as it was expect ed. The open economies, where the biggest part of 
trade is done freely, such as the Republic of Mace donia, have not introduced protectionism measures. 
The crisis is a good test for the degree of opening  of economies and the way they would revitalize 
when the world economic crisis ends.   
  Regardless of the first positive signs for recovery of the world economy, it still needs an additional impulse for overcoming the crisis. I’m co nvinced that the decision of the WTO General 
Council for holding this Conference comes at the right moment, especially after the support obtained 
from the leaders of the G20 Summit in Pittsburg,  for intensifying the negotiations and their 
finalization in 2010.   
  I would like to point out that the determined principle of organizing the Conference “Full participation, inclusion and transparency”, shou ld be applied also in the current multilateral 
negotiations. The success of this round of multilate ral negotiations is necessary for strengthening the 
multilateral trade system, which would be for the benefit of all participants. 
  
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