WORLD TRADE  
ORGANIZATION  WT/TPR/M/229 
2 June 2010 
 (10-3034) 
Trade Policy Review Body 
28 and 30 April 2010  
 
 
 
TRADE POLICY REVIEW 
 
ALBANIA 
 
Record of the Meeting  
 
Chairperson:  H.E. Mr. Bozkurt Aran (Turkey) 
 
  Page 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF ALBANIA 5 
III. STATEMENT BY THE DISCUSSANT 10 
IV. STATEMENTS BY MEMBERS 14 V. REPLIES BY THE REPRESENTATIVE OF ALBANIA AND ADDITIONAL 
 COMMENTS  27 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 35 
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Albania are 
reproduced in document WT/TPR/M/229/Add.1 and will be available online at:  
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm.    WT/TPR/M/229 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Albania was held on 28 and 30 April 2010.  
The Chairperson H.E. Mr. Bozkurt Aran (Turkey) welcomed the delegation of Albania, headed by Mr. Enno Bozdo, Deputy Minister, Ministry of Ec onomy, Trade and Energy, and the discussant, H.E. 
Mr. István Major (Hungary).  
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures for the meeting.  The report by Albania was contained in document WT/TPR/G/229 
and that of the WTO Secretariat in WT/TPR/S/229. 
3. Questions by the following delegations had been  submitted in writing at least two weeks in 
advance and had been transmitted to the delegation of Albania:  Brazil, the United States, Turkey, 
Canada, the EU, and Japan. 
4. The following delegations had submitted written questions after the two-week deadline:  
Turkey (additional question), Mexico, the EU (additional questions), and Pakistan. 
5. The Chairperson noted that it was a very opport une moment to review, for the first time, the 
trade policies of Albania.  Albania had undertaken very substantial reforms since its accession to the 
WTO a decade ago.  Reforms had paid the way for an ongoing process of transformation from a 
centrally planned economy to one that was private sector driven, open to trade and investment, and 
strongly orientated towards closer European integration.   
6. Albania had experienced strong economic growth in the past few years, with the economy 
expanding at an annual average rate of almost 6% between 2002 and 2008.  Albania had also, so far, 
weathered the financial crisis with GDP growing by an estimated 4% in 2009.  Domestic economic 
activity had been preserved by fiscal stimulus and so lid consumer demand.  Inflation had been kept 
under control under the central Bank's inflation target policy. 
7. Since 2000, and as part of its programme of stru ctural reform towards the consolidation of a 
market economy, Albania had continued to privatize its state owned enterprises;  business registration 
and customs procedures had been streamlined.  Ther e had been a comprehensive overhaul of the tax 
system;  and legal and institutional reforms in the areas of contingency measures, competition policy, 
government procurement, and state aid, had been put in place.   
8. The reports by both Secretariat and the Gove rnment of Albania highlighted Albania's 
openness to trade and investment:  In the goods ar ea Albania's bound and applied tariffs were low, 
they are all ad valorem , and there were no tariff peaks;  there appeared to be few non-tariff barriers.  
Domestic production and exports were relativ ely undistorted by government support.   
9. In services, Albania had undertaken deep a nd wide-ranging WTO services commitments.  As 
a result, most service activities were widely liberalized and open to foreign investment.  The services sector was very dynamic and was by far the largest contributor to output.   
10. Foreign investment was open and well protected both by the constitution as well as specific 
legislation.  Foreign direct investment inflows had been very dynamic, increasing by 40% between 
2007 and 2008, and exceeding €2.6 billion in 2002-09;  of this amount, some 20% had been linked to 
privatizations of state-owned enterprises, while the rest represented increased capital in existing 
foreign investments, and new investments.   WT/TPR/M/229 
Page 4  
 
  11. In short, Albania had clearly made tremendous changes over a very short period of time.  In 
2009, Albania was classified by the World Bank's Doing Business Report as the second top reformer, on account of the sweeping changes introduced to its legislation and institutions.  He noted that all 
could benefit from hearing more from Albania about its experience in this process:  for example, on 
how had implementation of these reforms proceeded?  What had been the key transition challenges 
Albania had faced, and how did it intend to deal with  the challenges that rema in, for example, in the 
electricity sector?  More broadly, and looking fo rward, what were Albania's reform priorities?  WT/TPR/M/229 
 Page 5 
 
 
  II. OPENING STATEMENT BY THE RE PRESENTATIVE OF ALBANIA 
12. During the last decade the Government of Alba nia has been seriously committed in achieving 
progress and therefore I feel very proud of my count ry’s accomplishment. At the same time, I do also 
realize that many more challenges lay ahead of us and we are enthusiastic to commit ourselves in solving them out in order to maintain a stable and sound progress.   
13. We believe that the first Trade Policy Revi ew of Albania prepared by WTO offers a 
comprehensive and detailed report of Albania’s achi evements and progress in regard to international 
trade. Moreover, the WTO principles and its estab lished free trade transparency mechanism have 
allowed Albania as a Member to share its progress, experiences, and challenges with many other Member states for the sole purpose of establishing a free world trade regime.  
14. Albania’s membership to the WTO has contribut ed very significantly in improving the overall 
trade and economic development of the country. Our membership to the WTO has been an important 
first step for Albania toward establishing and impl ementing a system of trade policy which increases 
trade but at the same time allows for trade to fl ow smoothly, freely, fairly, and predictably.    
15. Distinguished participants of this meeting please allow me to briefly present on behalf of the 
Government of Albania some of our main achieveme nts for this last decade and our trade priorities 
for the near future. 
STRATEGIC OBJECTIVES 
16. Albania has officially gained memb ership into the WTO as of the 8
th of September 2000. As 
such, Albanian's trade policy has been guided during all these years by the WTO leading principles of 
trade fairness. Albania’s trade policy since membersh ip in the WTO has also been in accordance with 
the Albania's membership report in this Organi zation, results of the Uruguay Round for multilateral 
trade negotiations. Our commitment to free trade h as also been complemented by the preferential 
trade agreements Albania has estab lished with member states of the European Union, CEFTA, Turkey 
and EFTA States.  
17. The National Strategy for Development and Integration guarantees that trade policy will 
continue to be shaped and guided  by the principles of the WTO, an integral part of which is 
intensification of cooperation and meeting the ob jectives laid out by the Doha Round development 
agenda.  
18. Currently, a very important objective of Albani a is gaining membership into the European 
Union. This is not only the will of the Government bu t also the wish of Albanian citizens. Therefore, 
the Albanian Government is seriously committed to  become member of the European Union. The 
signing of the Stabilization and Association Agreement with the EU Member States has contributed a 
lot to our institutional, legislative and administ rative changes. During the last five years our 
legislation has been altered in such a way as to align it with the EU legislation. 
THE MAIN ACHIEVEMENTS OF THE ALBANI AN ECONOMY SINCE MEMBERSHIP IN 
WTO 
19. Since 2000 Albania’s economic growth rate has been one of the highest among the countries 
of South Eastern Europe. During the last decade Alba nia’s GDP has grown with an average of 6% per 
year which did peak to a stirring 8% in 2008. This solid growth has contributed to the increase of the GDP per capita from almost US$1,190 that was in 2000 to about US$4,085 in 2008.  The inflation rate has also been relatively low between 2-4%. WT/TPR/M/229 
Page 6  
 
  20. However, during 2009 Albania had a slowdown in its economic growth as a result of the 
global economic crisis. Nonetheless, during 2009 we  witnessed an increase of the economic activity 
by 5.3% and the real economic growth is anticipated to be at the level of 3.3%.  Therefore, Albania 
still remains among the few countries in Europe and the only one in South Eastern Europe with a 
positive economic growth for 2009. This growth  has been supported mainly by a satisfying 
performance of the service and agriculture sectors. 
21. Macroeconomic stability in Albania is also  supported by the positive continuous fiscal 
consolidation. Fiscal balance has improved by as a result of the sustainable increase of revenues and 
reduction of public expenditure. Thus, the total income  per share of the GDP has increased every year 
while the budget deficit holds a clear downward tr end, from about 8% in 2000 to 3.5% in 2007. 
Meanwhile, during 2008, as a result of the increased cap ital investment in 2009 is also supported by a 
high volume of public investment, around 10% of  GDP, of which 9% made by the central 
government, while budget deficit rose to levels of 5.5% of GDP.  
22. Unemployment decreased gradually with an aver age rate of about 0.7 percentage points per 
year, reaching 12.7% in 2008 from the 16.8% marked in 2000.  
23. The private sector is the main driver of th e economic growth, with a contribution of about 
85% of the GDP and providing over 80% of employm ent. The Albanian Government has undertaken 
a comprehensive regulatory reform in order to estab lish a friendly business climate. The core of these 
measures consists in the reduction of administrativ e burdens and costs for establishing and pursuing a 
business. Currently, Albania is among the countries with  the lowest fiscal fees in Europe, applying a 
flat tax regime of 10 % for individuals and corporates. 
24. Foreign direct investments during this decade ha ve grown constantly and reached 8% of GDP 
in 2008. In 2009 FDI reached about €700 million.  Foreign investments ar e guaranteed a national 
treatment, except for the ownership of agricultural la nd which is legislated by special laws. Foreign 
investors in Albania are highly protected and th is is witnessed by the Doing Business World Bank 
Report 2010 which ranks Albania 2
nd in the world for protecting investors’ needs. 
25. The Government policies during this decade have aimed at promoting the competitive 
advantage of Albanian products, increasing the i ndustrial production capaci ty, and promoting and 
supporting exports. 
26. During 2006-2009 important reforms have been undertaken in order to improve the business 
environment such as the establishment of the Na tional Registration Centre, establishment of the 
National Licensing Centre, e-procur ement, e-tax reform, etc. All the above-mentioned reforms have 
straightforwardly improved the ease of doing business in Albania. 
27. The National Registration Centre has enabled bus iness registration within one day at the cost 
of only 1 Euro. The licensing system has also been  transformed and 70% of all licenses, permits and 
authorizations are issued through a one stop s hop practice. Albania is among the few countries 
providing business registration and licensing with th e one stop shop practice on a national level. 
28. Public procurement procedures have also been completely transformed. Albania is among the 
few countries that apply 100% online e-procurement in the aim of guaranteeing transparency and efficacity of the public system. In addition, e- payment practice for the payment of taxes is now 
available almost to all businesses. 
29. Due to these reforms Albania was ranked the second among top ten reforming countries in the 
World Bank Doing Business Report in 2009. It is also worth mentioning that Albania’s 
competitiveness index for 2009 rose by almost 4 points compared with 2008.   WT/TPR/M/229 
 Page 7 
 
 
  30. Albania has also been very successful in the privatization process. From 2000, the vast 
majority of public economic activity has been priv atized. The most important developments in this 
regard are the privatization in the area of fixed a nd mobile telephony, in the distribution system of the 
energy sector, banking and insurance, and oil refine ry. Other important initiatives in this area include 
potential concession of the railway sector, ports, a nd water supply enterprises through management or 
concessionaire agreements.  
31. Albania has comprehensive and sound legisl ation in areas of competition, public 
procurement, market surveillance and consumer pr otection, and export control. All these measures 
were either non existing or at a very low level of development during at the time of the WTO 
accession.  
32. With regard to preferential trade, Albania has 4 preferential trade agreements with EU 
Member States, CEFTA, Turkey and EFTA States.  Our traditional trading partner is the EU, 
representing almost 67% of the Albanian trade volume, followed by CEFTA countries 8%, Turkey 5%, EFTA 2%;  other important partners for Alba nian trade are China, Ukraine, and Russia. 
33. During 2009, the world economic crisis affected trade exchanges of Albania by shrinking the 
indicators of Albania’s foreign trade. The trade of goods declined by almost 10%, while exports 
declined by 15% and imports 9%. The structure of import-export also changed last year. Thus, 
traditional exports to EU countries resulted in a decrease of 15%, while imports of goods from EU 
countries rose by 4%.  
34. Despite the above, during the first trimester of 2010 trade exchange is recovering and the 
trends are reaching their normal va lues, both in import and export. 
Trade in agriculture products 
35. Agriculture is an important component of Al banian’s economy. It makes up about 19% of 
Albanian’s GDP. The sector as a whole employs about  57% of the total number of employed persons 
in the country. The average real growth in agriculture  during the last five years is estimated to be 3-
3.5% per year.  
36. The agriculture policy aims at increasing the competitiveness and productivity of the sector to 
ensure better integration of the sector into the EU. Policies to promote investment in agriculture or 
agro-processing and provide technical  assistance and guidance to farmers will contribute to more 
sustainable management of agricultural land, incr eased living standards for farmers, food safety and 
improved agricultural marketing.   
Trade in non-agriculture products 
37. Albania has a very liberal trade regime for non agriculture products with very low bound 
rates. We have substantially reduced our MFN for non-agricultural products and as a result the 
average weighted tariff in 2009 was about 1.41%. 
38. The main goal of the industrial policy is to guide development of the industrial sector and 
encourage investment in high technology, growth an d competitiveness, modernization, diversification, 
and specialization in open markets. It also includes the promotion of a steady, dynamic and 
sustainable development of the industrial sector, improvement of productivity and competitiveness, 
product internationalization. WT/TPR/M/229 
Page 8  
 
  Trade in services 
39. The service sector has grown markedly over th e past few years and as of 2008 consisted of 
57% of GDP in 2008. Albania has a very libe ral trade in services regime and the Albanian 
Government is engaged to fully respect its co mmitment deriving from the General Agreement on 
Trade in Services. 
40. Over the last five years there has been si gnificant progress in the banking system as the 
government has implemented policies to strengthe n and consolidate the system.  In 2006, the 
Albanian Financial Supervisory Authority was estab lished. This is the supervisory and regulatory 
institution of insurance, securities and private pe nsion markets completing as such the legal and 
institutional framework for financial services. All ba nks in Albania are private and the considerable 
number of the banks in the market ensures competition and a high qua lity services rendered.  
Trade-related intellectual property rights (TRIPS) 
41. Albania has a comprehensive law in the field of industrial property rights which complies 
with the commitments under the Agreement of Tr ade-Related Intellectual Property Rights and full 
approximation with the acquis communautaire . A new copyright law is being drafted. Initiatives to 
strengthen the monitoring and surveillance capacities regarding to copyright protection are in the 
process of being developed and implemented.  
42. One example is the Strategy to Support the Protection of Intellectual and Industrial Property 
Rights against Counterfeiting and Piracy and other re lated instruments. The strategy would ensure a 
level of protection of intellectual property rights si milar to that of other developed countries and in 
compliance, or on par with protection offered in EU countries. 
DOHA ROUND OF TRADE NEGOTIATIONS AND THE ROLE OF ALBANIA 
43. We recognize the importance of the WTO as an  authority in regulating global trade and 
promoting global development.  The Doha Round of  Trade Negotiations has had a key role in the 
overall functioning of the multilateral trading system.  Albania gives great importance to this process. 
Albania is among the countries that believes in its benefits and fully supports the continuation and 
successful conclusion of this round of trade negotia tions. In particular we encourage and support the 
continuation of negotiations in NAMA, AGRI, trade in services and trade facilitation.  During this 
Round of Negotiations Albania partic ipated within the group RAM/SVE. 
44. Albania has made extensive market access co mmitments during its accession to WTO in the 
key areas of non-agriculture market access, agricu lture and services. We have taken considerable 
commitments and assumed many obligations during the accession and as a result Albania is among 
the most liberalized countries in the WTO. 
45. Albanian bound tariff overall average is 6.6% (i .e. non agriculture products, WTO definition, 
is 6% and agricultural products is 10%). Despite th is level of liberalization Albania continued to 
lower its MFN duties reaching an average weighted tariff of 2.08% in 2009. 
46. Albania has been seriously committed during the last years for designing and implementing a 
system of laws in the aim of tr ee trade. The institutional notificati on arrangements within the country 
have been strengthened allowing Albania to fu lly comply with almost all WTO notification 
requirements. The best examples are 100 notificatio ns to the Council of Trade in Services and 89 to 
the Council of Trade in Goods during 2007-2010.  WT/TPR/M/229 
 Page 9 
 
 
  47. Being aware of our commitments, obligations , and extensive level of liberalization the 
Government of Albania has engaged to achieve I belie ve it is important that Albania, along with other 
RAM countries, has the legitimate right to seek for a more flexible, and differential treatment in the 
Doha Round.   
48. I would like to bring to your attention Albani a’s strong commitment in complying with all of 
the obligations deriving from our WTO membersh ip and other obligations resulting from trade 
negotiations.  The Government of Albania is very  committed in having a transparent and predictable 
trade policy in full compliance with all of  the WTO guiding principles and rules.  WT/TPR/M/229 
Page 10  
 
  III. STATEMENT BY THE DISCUSSANT (H .E. Mr. István Major (Hungary)) 
Economic Transformation 
49. It has been a long way since Albania began to transform its economy from a centrally planned 
economy to a market economy in the early 1990s.  
50. Economic transformation in the formal Soviet bloc countries has been a huge task, since at 
the time when the transition began, there were no related experiences to draw upon except of a few 
earlier attempts at reform among the transition eco nomies: like in Yugoslavia in the 1950s, Hungary 
in 1968 or attempts by Mr. Gorbachev in the Soviet Union in the late 1990s.  
51. The economic transition in Albania has been esp ecially a difficult challenge as Albania had 
been the most severe Stalinist regime among the former Soviet type economies. This was an 
extremely heavy burden.  
52. Economic transformation policies were based to a large extent on liberalization, privatization, 
and opening of post socialist economies as well as the necessity of sustaining financial discipline.  
53. However, a market economy requires not only liberal laws and re gulations, but well 
functioning institutions and adequate market or iented attitude of econom ic operators, as well. 
Establishing appropriate laws a nd regulations is a relatively easy task compared to institution 
building, which is a much more longer and bur densome process. Changing the attitudes of the 
economic operators is a slow process; sometimes it takes a generation or so. 
54. As in the early 1990s the establishment of well- organized market structures and institutions 
could not happen from one day to another, the tr ansition process caused severe contraction and 
growing social stress, instead of sustained grow th. In Albania, for example, between 1990 and 1993 
the average annual rate of GDP contraction was 8.8%. 
55. Despite these immense difficulties, with its am bitious economic reform  program, Albania has 
succeeded in establishing a fully functioning market economy and creating macroeconomic stability. Albania is today a stable, relatively diversified and outward-oriented economy, well integrated into 
the regional and global market.  
56. Sound macroeconomic policies, an effective m onetary policy and a comprehensive tax reform 
have complemented the effect of trade liberalization and structural reform in recent years.  
57. As a result of these policies Albania had fast growth (5.8% on an an nual basis), modest 
inflation and decreasing unemployment during 2002- 08, the period under review. Per capita GDP in 
nominal terms more than doubled over this period. The effects of the global economic and financial 
crisis have not been too severe: despite the crisis  GDP grew at over 4% in the twelve months to 
September 2009. As a result of reform, the tax system  is relatively flat. Albania has made several 
steps to improve the business environment.  
58. Foreign investment regime is very open in Albania. Investment is permitted on the same 
terms to both foreign and domestic investors, the only exception being with respect to land ownership. 
59. Although it seems that the global economic and fi nancial crisis has not had severe impact on 
the Albanian economy, the Government is facing some  difficult challenges to t ackle the crisis. What 
concrete steps, measures the Government is taking to mitigate the effects of the crisis?  Could you 
please specify, what are the new initiatives of the Government, which aim to encourage production  WT/TPR/M/229 
 Page 11 
 
 
  and export by small and medium-sized enterprises?  What steps is the Government taking to further 
improve the business environment and to attract more investment? 
Trade Policy Regime 
60. Albania became member of the WTO on 8 September 2000. Albania is a signatory to the 
Information Technology Agreement; it has undert aken commitments on basic and value-added 
telecommunications services and committed to the regu latory principles in the Reference Paper, and it 
is negotiating accession to the Agreement on Government Procurement. 
61. A very significant part of Albania’s trade is covered by regional trade agreements, which it 
has signed with the CEFTA countries, the EU, Turkey and EFTA.  
62. Recently, a large number of trade-related reform s have been based on the preparations to 
become member of the European Union. The Stabilization and Asso ciation Agreement with the EU, 
which entered into force on 1 April 2009, contains  obligations on a range of political, trade, and 
economic issues. Albania submitted its appli cation for EU membership on 28 April 2009. 
63. Implementation of WTO rules and the adoption of the EU’s acquis communautaire  has been a 
major driving force for institutional and legal reform  in Albania. Albania has created an open trade 
and investment regime, which is characterized by low tariffs and few non-tariff barriers.  
64. In the process of institutional reform, however, fu rther steps are needed with respect to the 
implementation of laws and regulations, review and appeal processes. It is important to continue 
efforts towards developing a strong, effective, and transparent judicial system.  Could Albania provide 
further information, what actions the Government is undertaking in order to reform its judicial 
system? 
65. Customs procedures in Albania have been str eamlined: all customs procedures are processed 
through a centralized electronic system. However, ph ysical inspection rate at the border is still too 
high (20-25%).  Is the Government taking any acti ons to reduce the scope of  physical inspections by 
customs administration and to revise risk assessment at the border? 
66. According to the Albanian Customs Authorities transaction value of imported goods was the 
basis to determine customs value in some 80% of cases during 2009.1 According to the WTO 
Customs Valuation Agreement the use of minimum va lues is prohibited in customs valuation.  Are 
there any cases where Customs Authorities are still using minimum values in determining customs 
value? If yes, when can we expect Albani a to abolish the use of minimum values? 
67. Under the Albanian Customs Code (Article 104) , when a shipment consists of goods with 
different tariff classification and treatment and th is creates a considerable amount of work and 
expense, the customs authorities may decide that dut ies be paid over the entire load under the tariff 
classification of the goods that have the highest tariff rate.2 According to Article II of the GATT 1994 
Members can not apply higher tariff rate than the rate set out in a Member’s Schedule of Concessions.  Is Albania considering any changes to the legislatio n to bring its measures into conformity with its 
WTO obligations? 
68. Tariffs are relatively low in Albania: the average bound rate is 6.6%. The overall simple 
average applied MFN tariff was 5.2% in 2009. Near ly 40% of Albania's tariff lines are duty free, and 
                                                     
 
1 Secretariat’s Report page 33, para. 27. 
2 Secretariat’s Report page 31, para. 20. WT/TPR/M/229 
Page 12  
 
  no tariff peaks are present. Albania's average applied tariff is higher for agricultural products (8.8%), 
than non-agricultural products (4.2%). 
69. Concerning Albania's technical regulations and sanitary and phytosanitary measures no 
specific concerns have been raised by Members in the relevant WTO committees. 
70. As part of its program of structural reform , Albania has carried out a major privatization 
program, which has left few assets in the hands of the State.  Could Albania explain why the 
insurance and telecommunication sectors have been chosen as strategic sectors, where the government 
intends to further accelerate privatization?
3  Could the Delegation provide any additional information, 
including timetable, on how the privatization of remaining state-owned enterprises is progressing? 
71. Albania’s Law on State Aid determines the principles and procedures to authorize and 
monitor state aid. The law applies to all manufact uring and services activities; but it does not apply to 
agriculture.4 Could Albania explain the reason why the Law on State Aid does not apply to the 
agricultural sector? 
Trade Policies by Sector 
72. Agriculture is the main source of employment in Albania (in 2008 45% of the population 
were employed in farms), and still contributes a signif icant, albeit declining, share to GDP (18% in 
2008).   
73. Manufacturing accounted for 9% of GDP and 7% of employment in 2008.   
74. The services sector is by far the largest contributor to output in the Albanian economy. It 
accounted for 58% of GDP and 38% of total employme nt in 2008. Services also play an important 
role in Albanian trade. Albania has undertaken  GATS commitments in 111 out of the 160 services 
subsectors. 
75. Travel services are the main earner of forei gn currency for Albania, having generated some 
€1.2 billion in 2008, and resulting in a trade surplus of some €112 million, up from €80 million in 2007. Exports of travel services accounted for al most 70% of services exports in 2008, and almost 
two thirds of imports. What are the plans of the Government to further develop Albania’s tourism 
sector? Is there a national strategy to extend this sector? 
76. The telecommunications sector in Albania is largely liberalized.  
77. With regards to financial services sector, the banking system has so far proven itself robust in 
the face of the global financial crisis. None of th e 16 commercial banks opera ting in the country have 
failed or been provided with gove rnment support, and stress tests undertaken in 2008 indicated the 
system's resilience to various ri sks. The increasing part of non-performing loans, however, is of 
concern.  What measures have been undertaken by the Government to reduce the level of non-
performing loans? 
78. Concerning transport services, the modernization of Albania’s transport infrastructure is 
playing a central role in the Government’s strategy  to sustain trade, private sector development and 
boost investment. The strategy document for th e transport sector, the National Strategy for 
Development and Integration, foresees by 2013 to  complete the Durrës-Morine highway as well as 
highways running from the north to the south of th e country and from the east to the west; and to 
                                                     
 
3 Albania’s Report page 11, para. 38. 
4 Secretariat’s Report page 63, para. 141.  WT/TPR/M/229 
 Page 13 
 
 
  upgrade the infrastructure at Durrës Port.  How is the Government progressing in the implementation 
of its transport infrastructure development strategy ? Has the crisis had any impact on the fulfillment 
of this strategy including the 2013 deadline foreseen? 
79. To conclude, Albanian trade policy is increasi ngly oriented toward the global economy thanks 
to Albania’s WTO membership. With the help of its WTO membership Albania has strengthened its 
economy, fostered investment and economic grow th and has joined subregional and European 
integration processes. These efforts of Albania to date are truly admirable. WT/TPR/M/229 
Page 14  
 
  IV. STATEMENTS BY MEMBERS 
BRAZIL 
 
80. Brazil notes with satisfaction that, since its accession to the WTO in 2000, the Government of 
Albania has demonstrated strong commitment to the multilateral trading system.  We welcome 
particularly the ambitious programme of economic, legal and institutional re forms that transformed a 
centrally-planed Albania into a market oriented economy. 
81. We also highlight the significant achievements of the Albanian macroeconomic management 
and trade policy.  Among the results attained over th e period under review, it is worth mentioning that 
the country has sustained solid economic growth from 2002 to 2008, averaging almost 6% a year.  
This growth was driven by strong domestic dema nd and supported by significant foreign direct 
investment flows and remittances from workers abroad. 
82. Progress in the economic field has been closely followed by social indicators.  Per capita 
revenue has grown from US$1,400 in 2002 to an est imated US$4,000 in 2008, although it still 
remains relatively low compared with European standards.  Unemployment has decreased from 
16.8% in 2000 to 13% in 2008 and average salaries (excluding agriculture) have had an estimated 
growth of 9% per year. 
83. As a result of this sound macroeconomic policy,  the effect of the global economic crisis has 
not been as severe in Albania as elsewhere.  Brazil encourages Albania to continue on this path.   
84. Let me address some of Albania’ specific policies and challenges.  We note with interest that 
Albania is currently drafting a national strategy  on intellectual property for 2010-2015, aiming at 
making Albania IPR protection fully compliant w ith EU standards.  We acknowledge Albania’s 
strategic objectives of becoming an EU member we ur ge to make full use of the available flexibilities 
while drafting its new legislation so that a higher level of IPR protection will not hinder third parties 
and consumers’ rights or overburden the country’s scar ce resources.  It is our strong believe that IP 
should propel innovation not deteriorate. 
85. Regarding Albania’s long term challenges, despite considerab le efforts to reduce increasing 
fiscal balances and levels of public  debt as well as the low level of productivity in agriculture more 
needs to be done.  Having in mind that the rural sector employs half of the Albanian work force, 
measures to increase productivity may imply profound alterations in the long established structure of 
rural populations.  Brazil’s experience has shown that support to provide qualifications for the 
affected rural population will facilitate the transition process.  
86. Turning to the economic ties between Albania a nd Brazil, our main exports to Albania are 
beef, sugar, coffee and tea, while our main imports include aluminum and textiles.  Our bilateral trade 
has grown steadily from US$5 million in 2002 to US$51 million in 2008 and there is still plenty of 
room for improvement.  In July 2009, Albania has opened an Embassy in Brasilia and in 2010 we 
have been able to reciprocate.   
UNITED STATES 
87. Albania’s WTO membership – combined with its  EU aspirations – has been the principal 
driver for substantial positive political and economic reform over the last decad e, including increased 
transparency and predictability in policy making.  Privatizations of state-owned entities, general 
economic liberalization, regional economic integra tion and increased trade have led the way.    WT/TPR/M/229 
 Page 15 
 
 
  88. According to the Secretariat’s report, Alba nia has transitioned from a closed, centrally 
planned economy to a more modern open-market  economy, increasing the country’s competitiveness 
and hastening its integration into the regional and international economies.  Average economic growth 
from 2002-2008 was almost 6% per year, with GNI pe r capita more than tripling from $1,170 in 2000, 
to $3,840 in 2008.   
89. Albania’s reform efforts also have translated into a more competitive business environment.  
The World Bank’s “Doing Business” report ranked Albania at 82 in 2010, up seven points from 89 in 2009, putting Albania slightly behind Montenegro, but  ahead of several neighboring countries.  In 
terms of ease of trading across borders, accordi ng to the World Bank, Albania is in-line with 
neighboring Macedonia and Bosnia Herzegovina , and ahead of Hungary, Greece and Croatia. 
90. Albania’s growing economic success largely is du e to its regional economic integration and 
bilateral and multilateral free-trade agreements.  Alba nia is a signatory of the Central European Free 
Trade Agreement (CEFTA), and has signed free trade agreements with the Eu ropean Union, Turkey 
and the European Free Trade Association (EFTA), the latter of which currently is in the ratification 
process.  According to the Albanian Government’s report, EU countries are the principal destination 
for Albanian exports at around 80%, followed by  CEFTA countries, which account for approximately 
14% of Albanian exports.  
91. While Albania remains a net importer by a significant margin, Albanian exports have 
continued to make slow and steady progress, incr easing more than imports on average each year since 
the country joined the WTO, according to the Alba nian government submission.  Trade’s contribution 
to Albania’s GDP is increasing substantially. 
92. While overall U.S.-Albanian trade is relatively low,  it is quickly growing.  U.S. goods exports 
to Albania were $48 million in 2009, up 19% from 2008.  U.S. goods imports were $15 million, up 
27% from 2008.  Total two-way United States-Alba nian trade in goods was worth $63 million in 
2009.   
93. Albania also is a beneficiary of the U.S. Generalized System of Preferences (GSP) Program.  
The United States is particularly pleased to see Al banian businesses increasingly taking advantage of 
GSP opportunities.  The value of U.S. imports from Albania receiving GSP duty-free treatment jumped from $4,000 in 2000 to over a million dolla rs in 2009. The United States will continue to 
work with Albania to help its businesses take maximum advantage of Albania’s GSP status.   
94. The United States is convinced that the Albani an Government must continue the reform 
process to attract the investment – especially forei gn direct investment – the country needs to grow 
and diversify its nascent manufacturing sector.  This will require standardizing and uniformly 
applying modern business laws, improving transpar ency in business procedures, resolving property 
ownership disputes, restructuring the tax systems, and reducing corruption.  The Albanian government 
also needs to turn its attention to the structurally  weak energy and agricultural sectors – the latter of 
which is still the principal source of employment – and continue with priva tizations. Additionally, 
while Albania has demonstrated its commitment to  trade liberalization and economic reform, the 
United States still has concerns regarding several issues noted in the Secretariat and Government 
reports.  For example, we are seeking clarificati on on certain aspects of Albanian trade policies and 
legislation related to its EU accession, as well as Albanian Sanitary and Phytosanitary (SPS) measures 
and procedures, accession to the WTO Government  Procurement Agreement (GPA), and Albania’s 
regime to ensure the protection of intellectual property.  
95. With respect to the EU accession process, Albani a has committed to conforming to EU trade 
policies and technical regulations under the Stabili zation and Association Agreement (SAA), which 
went into effect April 1, 2009.  We are particular ly interested in hearing how Albania’s potential EU WT/TPR/M/229 
Page 16  
 
  candidacy and the Stabilization and Association Agreement (SAA) impact on Albania’s trade, 
including agricultural trade, with non-EU trading partners.  Furthermore, the United States is 
interested in knowing to what extent Albania has adopted or harmonized with EU technical and SPS 
regulations affecting imports, including whether Co dex, OIE and IPPC standards have been taken 
fully into account.  
96. Separately, the Secretariat notes that, in most  instances, Albania has not applied the WTO 
recommendation for a  60-day period for comments following SPS notifications.  Of Albania’s 125 
SPS notifications, only 2 notifications allowed for a 60-day comment period before the measures went 
into force.  The United States is interested in learning about the steps the government is taking to 
ensure that Albania provides fo r a 60-day comment period and also what actions the Albanian 
authorities are taking to improve the timeliness and transparency of its SPS notifications. 
97. Furthermore, the United States would like clar ification regarding new developments in 
Albania’s IPR regime.  The Governme nt has indicated that it is currently drafting a National Strategy 
on Intellectual Property (NSIPR) in order to be fu lly compliant with EU standards.  We would 
appreciate an explanation of this strategy in  light of Albania’s WTO TRIPS obligations. 
98. Additionally, the Secretariat reported that, at  the end of 2009, Albanian authorities were 
attempting to finalize the drafting of a new Law on Copyright and Related Rights.  The United States 
looks forward to Albania’s response to our questions  in this regard including whether the draft has 
been finalized and how the proposed legislation will relate to certain provisions of the Berne 
Convention. 
99. In closing, the United States believes that Al bania’s pursuit of greater regional and Euro-
Atlantic integration – namely embarking on the EU accession process and promoting increased 
economic and political ties in the region and with the United States – have led to positive developments and demonstrate Alba nia's commitment to a modern democracy with a market-oriented 
economy. The United States supports Albania’s EU accession, as it did Albania’s pursuit of WTO membership.    
100. Cooperation in the WTO is an important element of our partnership with Albania.  We are 
pleased to acknowledge Albania’s active participation in the WTO and to recognize that its open trade 
regime is underpinned by its extensive WTO comm itments.  The relatively low level of Albania’s 
applied and bound tariffs, its non-relia nce on customs duties for government revenue, and the fact that 
Albania has taken GATS commitments in 111 of th e 160 services subsectors have all contributed to 
Albania’s economic reform.  They provide the co nditions that allow for trade’s contribution to 
Albania’s GDP to continue to rise.  With this in mind, we would like to take this opportunity to urge 
Albania to take the steps necessary to reactivat e negotiations for accession to the WTO Government 
Procurement Agreement. 
101. The United States fully supports Albania’s c ontinued progress and wishes the Albanian 
government a successful journey toward regional and Euro-Atlantic integration. As always, we look 
forward to continuing our work with Albania’s g overnment and our WTO partners to strengthen and 
build on the WTO’s rules-based system and to ach ieve a strong market-opening conclusion to the 
Doha Round. 
TURKEY 
102. Turkey has excellent bilateral political and econom ic relations and deep rooted historical ties 
with Albania.  WT/TPR/M/229 
 Page 17 
 
 
  103. The cooperation between the two countries is divers ified from trade to education.  We have a 
number of bilateral agreements in place.  There have  been constant, almost annual, President and/or 
Prime Minister’s visits between our countries.  Turk ey has always considered Albania as an important 
partner in the Southeastern Europe, and we are wi lling to further improve our trade and economic 
relations. 
104. In terms of trade relations, Turkey is among th e top five trade partners for Albania with a 
trade volume of almost US$280 million.  The free tr ade agreement has been a main reason behind this 
level of trade. 
105. Furthermore, as a result of comprehensive re forms undertaken by Albania, the Turkish 
companies have become the third biggest foreign i nvestor in Albania.  There are more than 80 
companies active in a number of sectors.  Our total investment reached US$650 million.  They have 
been among the significant service providers in a number of fields like banking, telecom and construction. 
106. The total amount of construction services pr ovided by the Turkish companies reached 
US$750 million.  They have become the first privat e health care providers, by establishing hospitals 
in Albania.  In light of the economic reforms in Al bania, we will continue to encourage the Turkish 
companies to explore new opportunities to invest in the Albanian economy. 
107. Since its accession in 2000, Albania’s trade and economic environment has undergone 
substantial change, and it has ach ieved a remarkable economic progr ess with almost 5% growth over 
the last decade.  Even during the crisis in 2009, th e economy seems not to be affected in a major way.  
This shows that it has managed to establish a solid market economy. 
108. Albania has managed successfully the process of  structural change from an economy based on 
agriculture to the one based on services.  Neverthele ss, it seems that completing this change has still 
been a priority. 
109. Similarly, the significance attached to the ac tivities of the Competition Board also indicates 
that the Albania is moving fast towards a more advanced stage of economic development towards a 
better functioning market economy. 
110. While Albania improves its implementation reco rd, it also continues the economic reforms 
aiming to further reform its business environment as well.  It is ranked second in the World Bank’s Doing Business Report in terms of fastest reforming economies in 2009. 
111. Of course, as in any country, there are certa in challenges awaiting Albanian economy, like 
addressing the fiscal imbalances, agricultural sector’s problems, power shortages or improving the 
business environment. 
112. Nevertheless, overall, the Albani an economy is on the right track, and we believe that it will 
complete the reform process and accordingly, achieve  its target of becoming a member of the EU in 
the future.  The consistent efforts by the Albanian  Government to harmonize its legislation with the 
EU in various areas will further help improve the trade environment as well. 
113. From a trade policy perspective, Albania clearly has a liberal trade regime, with a simple and 
low tariff structure.  It is worth mentioning that Al bania has not resorted to any restrictive measures 
during the economic crisis.  In fact, the openness is further strengthened with the Albanian policy of 
ensuring transparency with regard to its trade regi me by complying with the notification requirements. WT/TPR/M/229 
Page 18  
 
  114. In conclusion, we commend the Albanian e fforts to address the development challenges 
through an open and liberal trade and business envi ronment.  We are ready to support this process in 
any way we can. 
CANADA 
115. Let me begin by pointing to Albania's achieveme nts in the framework of its transition to a 
market economy and its ever-incre asing integration in world and regional economies, particularly 
Europe.  Albania was one of the last countries in Central and Eastern Europe to liberalize its economy - not an easy transition.  However, Albania's economy has grown faster over the last five years than most of the other economies in the region.  
116. Albania’s resource base of significant oil reser ves and commercially exploitable quantities of 
gas, coal, iron and copper will likely continue attr acting foreign investment given the global demand 
for resources, and form the foundation of further expansion of the economy in the coming years.  
117. Against this background of ongoing liberaliza tion and economic growth , Canada’s economic 
relations with Albania have expanded significantl y, albeit from a modest base. Our merchandise 
exports to Albania reached $21.5 million Cdn ($19.6  million US$) in 2009 and imports from Albania 
have nearly tripled since 2005. Canadian compan ies also have large i nvestments in Albania, 
particularly in the energy sector.   
118. Canada supports Albania’s efforts to reform public administration, improve the judicial 
system and eliminate corruption. We welcome Alba nia’s membership in the North Atlantic Treaty 
Organization (NATO), and applaud its ongoing e fforts for full Euro-Atlantic integration.  
119. Canada congratulates Albania for its commitment to the principles of the WTO and its active 
participation as a WTO member.  Its trade libera lisation policies and accep tance of market economy 
principles have helped create a much more open, market-driven economy, which is becoming increasingly integrated at the regional and multilate ral levels and a welcoming business environment 
that is favourable to foreign investment.  
120. In closing, Canada strongly encourages Al bania to maintain its commitment to the 
multilateral trading system and hold firm to continui ng structural reforms and liberalization of its 
trade and investment regimes which have resulte d in the country’s strong economic performance in 
recent years. 
EUROPEAN UNION 
121. The European Union is pleased to participate in this review as Albania's first trade partner. 
Annual growth in bilateral trade has been in do uble-digits over the last decade. In 2008, we 
exchanged goods worth a record €2.7 billion. Overa ll, bilateral trade held up relatively well through 
the crisis, though Albanian exports did record a drop of some 5% in 2009 from the peak of the 
previous year. Still, some 80% of all Albanian exports  have the EU as their de stination. This reflects 
not least the favourable access to the EU ma rket that Albania has been enjoying.  
122. In 2000, in an effort to foster political st ability and economic progress, the European Union 
granted unlimited duty-free access to the EU market fo r nearly all products originating in the Western 
Balkans, including Albania.   
123. In 2006 we reached a milestone in our bilate ral engagement with the signature of the 
Stabilisation and Association Agreement. The agre ement entered into for ce in April last year, 
however, the gradual implementation of a free trade area in goods by 2011 had already been in  WT/TPR/M/229 
 Page 19 
 
 
  progress on an interim basis since December 2006. Fu rther trade-related provisions concern services, 
investment and government procurement as well  as legislative approximation in the areas of 
competition, intellectual property rights and standa rds. The Stabilisation and Association Agreement 
lays the ground for Albania’s deepening integratio n with the EU, including prospective accession. A 
review of Albania’s recent application for membership is currently ongoing. 
124. Accession to the WTO has provided an anchor for extensive liberalisation and we praise 
Albania for its committed approach to membership  and its obligations. Its exemplary record of 
notifications is another noteworthy demonstration of this approach. 
125. We are pleased that our bilateral cooperation has provided an additional driver for legislative, 
policy and capacity improvements. We are committed to further supporting Albania’s reform effort by 
backing obligations with financial and technical assistance, which has been steadily increasing in 
recent years. This year Albania will benefit from €83 million for national projects, as well as from an additional €10 million devoted to cross-border cooper ation. Examples of recent trade policy-related 
activities financed with EU funds include moderni sation and simplification of customs procedures and 
capacity-building for IRP enforcement. Improving tran sport and other infrastructure has also been a 
major priority. 
126. The overhaul of the economic and trade regime since early 1990s has yielded positive results 
in terms of growth, improved welfare and reduced unemployment. To sustain and extrapolate these 
achievements and reach high levels of socio-ec onomic development the active pace of adaptation 
must be continued. We would like to offer a handf ul of comments and flag some trade-related areas 
which we encourage Albania to put high on its future reform agenda. 
127. At the macroeconomic level, tax reform to da te has been effective in increasing government 
revenues. But in order to balance public finance and contain the growing public debt it will need to be 
continued and complemented with other measures , including on the expenditure side. Ensuring 
competitive access to government procurement is one such measure, which would benefit trade at the 
same time. It is a win-win solution that is alread y captured in Albanian legislation, but requires a 
further implementation effort.  
128. We would like to make a similar recommendation with regard to intellectual property rights 
where laws conforming to a high level of protectio n are in place but effective implementation and 
enforcement on the ground remain an issue. We invite  Albania to comment on its strategy to close this 
gap and the envisaged timeline for the next steps. 
129. Our exporters have also voiced concern that the Albanian customs authority sometimes still 
resorts to minimum values to calculate the amount of  import duties. As this is not permitted under the 
WTO Customs Valuation Agreement and indeed not under the Albanian Customs Code, what steps is 
Albania taking and when can we expect this practice to be fully abolished? 
130. Overall, while Albania may have a comparativ e advantage in services, the growth and export 
potential of agricultural and manufacturing sector s should not be overlooke d, even though major 
investments will be required to step up their competitiveness and product quality. One necessary 
course of action for Albania in this regard, for in stance will be to further augment its food safety 
legislation and its implementation.  WT/TPR/M/229 
Page 20  
 
  JAPAN 
131. I would like to begin with the economic policy and environment in Albania. The Albanian 
economy remains relatively solid, in spite of the globa l economic crisis. According to the Secretariat’s 
report, the annual real GDP growth is expected to be over 4% with an inflation rate of 3.5% in 2009.  
132. The main driver of the economy is the services  sector, which has been developing rapidly and 
which accounts for 57.6% in 2008. While the share of  the agriculture in GDP has been decreasing and 
was 18% in 2008, it still accounted for 45% of the total employment.  
133. Japan notes the importance of the services sector  for Albania’s economic growth, as well as 
the necessity for improvement in efficiency and fo r the modernization of farming. Japan hopes that 
Albania will continue its economic growth driven  by the policy measures taken by the Albanian 
government.  
134. As for trade and investment policies, Japan appreciates that Albania developed and still 
maintains a very open investment regime with onl y few sectors excluding foreign investment, as well 
as relatively low tariff rates and simple tariff system.  
135. The privatization of state owned companies, su ch as the power distribution system operator, 
OSSH, and the Albanian Refining and Marketing Oil (ARMO) attracted some foreign investments in 
2008. The Secretariat’s report states that further pr ivatization is also planned. Japan welcomes the 
continuous effort for privatization.  
136. We also note the introduction of the electronic procurement system, e-tax system, and 
national registration center, which are now well func tioning and has resulted in the reduction of cost 
for the government and business.  
137. Japan hopes that Albania will continue to mainta in its open investment regime and implement 
further policies which encourage foreign invest ment and participation into its market.  
138. Having said that, we would like to draw the atte ntion to a specific issue reported to us by 
businesses operating in Albania. Albania has adopted a legislation to revise its revenue stamp system 
for tobacco. We are concerned by the comm unication between the government, businesses and 
consumers in introducing such change, as this le gislative change would normally affect them. We 
have expressed our request on this issue throug h the embassy. We understand the implementation of 
the law is still underway, and our concerns re main. Japan encourages Albania to improve the 
transparency of the process for its tax policy form ulation and implementation, in order to ensure 
predictability for businesses and consumers. 
139. In conclusion, Japan would like to reiterate its hope that Albania will continue its efforts to 
promote and liberalize its economy and trade.  
MEXICO 
140. Like the delegations that preceded me, I would like to highlight the excellent performance of 
the Albanian economy between 2002 and 2009, with an  average annual growth rate of 5.8 per cent 
thanks to major reform programmes which enab led the country to achieve economic stability, 
transforming what had been a closed economy into  a market economy driven by the private sector. 
141. Similarly, it should be emphasized that Albania's liberalization policies in the areas of both 
trade and investment have enabled the country to achieve sustained growth in recent years 
accompanied by increased transparency, predicta bility and coherence in policy formulation.  WT/TPR/M/229 
 Page 21 
 
 
  142. Thanks to sound macroeconomic policies, Al bania has suffered less from the economic and 
financial crisis, and has been able to continue its respectable growth and to handle requests for 
withdrawal of bank deposits without posing any strain on the system. 
143. We commend Albania for the ambitious and expe ditious measures applied in connection with 
its accession to the WTO and which it expects to con tinue applying in view of its wish to join the 
European Union in 2014.  However, we agree with th e view that it needs to continue its reforms and 
to strengthen the judicial system and its appeals pr ocedures to ensure that the laws recently introduced 
are properly implemented.  We also agree on the n eed to strengthen the agriculture and energy sectors 
given their structural weakness and the amount of employment that they both generate. 
144. In view of Albania's economic dependence on remittances from Albani ans living abroad and 
the income from recent privatizations, the challenge  facing Albania is to find other sources of income 
to reduce its budgetary imbalances, pursue its re forms and foster growth and development. 
145. It is vital for Albania to modernize its agricu lture and make it more efficient in order to 
reduce its dependence on food imports which unques tionably increase the risk posed by external 
shocks and commodity price fluctuations. 
146. As regards tariffs, the report states that Albani a has an open trade regime that is not reliant on 
customs duties.  It had an average applied MFN duty of 5.2 per cent in 2009, and an average bound tariff of 6.6 per cent.  The report also highlight s the streamlining of customs procedures and the 
computerization of government procurement procedur es and transactions, factors which, in addition to 
enhancing competition and reducing costs, are bound to increase transparency and predictability. 
147. We congratulate Albania on its active participa tion in the WTO and its compliance with its 
notification requirements. 
PAKISTAN 
148. First of all, I would like to congratulate Albania for achieving a solid growth rate of 5.8% 
between 2002-09, which is indeed extraordinary give n the internal constraints and external economic 
scenario. Accordingly, among other positive indicators, it is not surprising to note that the World 
Bank ranked Albania 2
nd among the top 10 reformers in its Doing Business 2009 Report. While per 
capita GDP more than doubled during the period, its improvement in HDI indicators is highly laudable. Albania has reflected an all-round comp rehensive performance in nearly every field, 
including fiscal and monetary policies as reflected in reduction of government debt, increase in tax revenue, reducing unemployment and keeping infla tion low, along with a successful privatisation 
programme and a solid competition policy. While other countries experience tremendous problems in 
improving the macroeconomic balance, Albania stands out by depicting an increase in the tax revenue 
from 21% of GDP to 26% while on the other hand  reducing government expenditure from 31% of 
GDP to 28% in 2005. It is also noteworthy that Al bania simplified its taxation system remarkably by 
reducing the number of indirect taxes from 23 to 7.  While going through the Report, one cannot help 
notice that the Albanian economy is indeed in good hands.  
149. Albania now fully conforms to the WTO regime and is making progressive efforts at bilateral 
and regional integration, as it has concluded agre ements with CEFTA, EU, Turkey and EFTA besides 
being a signatory to the ITA and negotiating accession to the GPA. It also has 24 economic cooperation agreements, 37 b ilateral investment promotion agreem ents and 11 bilateral agreements on 
customs assistance, while also benefiting from GSP schemes of Canada, Japan, Norway, Switzerland and the U.S. while it also receives wholesome Aid for Trade. All tariffs lines are bound alongside the 
use of only ad valorem tariffs and absence of MFN ta riff quotas. Also of note is the fact that Albania 
does not have tariff peaks although its higher tariff fo r agricultural products is incongruous with its WT/TPR/M/229 
Page 22  
 
  otherwise liberal policies. Albania does not make use of trade remedy laws. The country employs a 
modern centralized electronic system for customs clearance while using 8 different customs regimes. Albania's economy continues to grow, yet the country  is still one of the poorest in Europe, hampered 
by a large informal economy and an inadequate en ergy and transportation infrastructure - although it 
has recently adopted a fiscal reform package aimed at reducing the large gray economy and attracting 
foreign investment. 
150. The country runs a relatively large domestic sav ings-investment gap while its current account 
deficit, largely masked by remittances and privati sation proceeds, is also a source of concern which 
jumped from 5.7% in 2004 to 14.9% in 2008. There is a need to control the general government deficit which peaked at 7.9% in 2008. The country cannot afford to neglect the agricultural sector 
which provides employment to 45% population, at the expense of other sectors. The agricultural 
sector, which accounts for over half of employment but only about one-fifth of GDP, is limited primarily to small family operations and subsiste nce farming because of lack of modern equipment, 
unclear property rights, and the prevalence of small, inefficient plots of land.  
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU  
151. We must congratulate Albania on its impressive economic growth achieved from 2002 to 
2008, which averaged 5.8% annually and resulted in more than doubling the per capita GDP in 
nominal terms over the period. Even at the height of the global financial crisis, it still managed to 
maintain GDP growth of more than 4% for the 12 months to September 2009. It is evident that the 
extensive programme of economic, legal and institutional reform a dopted by Albania in the past 
decade has transformed it from a closed, centrally-p lanned economy, to a liberal, market-oriented and 
private-sector driven economy. In fact, not surp risingly, in the World Bank’s Doing Business 2009 
Report, Albania was ranked second among the top ten reformers in the world. 
152. Albania’s business environment has been improvi ng rapidly. With a centralized electronic 
system its customs procedures have been streamlined and are less time-consuming. We have also noticed that its tariffs are rela tively low, with a 6.6% average bound rate and a 5.2% overall average 
applied MFN rate in 2009. Also, very few non-ta riff measures have been applied. Although the 
agriculture sector’s contribution to GDP is decreasi ng, it still remains the main source of employment 
in Albania. Yet, there is no tariff protection, gov ernment support is low and there is a complete 
absence of export subsidies in th e agriculture sector. All these factors reflect Albania’s strong and 
positive intent to become integrated into the multilateral trading system.  
153. I just want to say a quick word, on something unusual we have noticed concerning Albania’s 
SPS notifications. According to the Report by the S ecretariat, Albania has an impressive record of 
making timely notifications. However, it was interest ing for us to discover that out of the 125 SPS 
notifications by Albania to the WTO, 113 of them, or more than 90%, have been “emergencies”, and 
only 12 have been “regular” ones. It would surely be more normal for these numbers to be the other 
way round. In other words, we would expect “e mergency” SPS measures to be the exception rather 
than the rule. Therefore, we wonder if Albania woul d like to re-visit these “emergency” notifications - 
especially the review mechanism before and after the emergency measure, and the impact on trading 
partners - and provide us with  its views on the subject.   
154. The total value of two-way trade between us has been increasing steadily the recent past, from 
137 thousand U.S. dollars in 2000, to over 5 milli on U.S. dollars in 2009. We look forward to 
expanding trade between us in the future, esp ecially in sectors that are complementary.  
155. Albania is an observer to the WTO Agreemen t on Government Procurement, having applied 
for accession to the Agreement in 2001. As a new signatory to the GPA ourselves, my delegation  WT/TPR/M/229 
 Page 23 
 
 
  would encourage Albania to persevere with its acce ssion process so that it ma y eventually enjoy the 
considerable opportunities and benefits that me mbership can bring in the future.      
156. Being one of our Group of Recently Acceded Me mbers (RAMs) as well, Albania has already 
undertaken extensive market access  commitments at the time of its WTO accession. My delegation 
would continue to work with Albania and the ot her members of  RAMs to make our collective 
influence felt in the final stage of the Doha negotiations.  
157. In conclusion, we welcome Albania’s continuing  structural reforms and investment in its 
infrastructure, in order to further improve the business environment and enhance productivity. We 
also look forward to it making further improvement s, in areas such as the modernization of its 
agriculture, strengthening of the judicial system and diversification of its trad ing partners beyond just 
the traditional ones within the region.  
CHINA 
158. China is glad  to learn that Albania has achieved strong economic performance with an 
average growth rate of 6% annually over the last  decade.  As a result, per capita GDP almost 
quadrupled and reached US$ 4,085 in 2008.  What seems more commendable is that Albania has at 
the same time managed to keep its inflation relativ ely low.  As an example, the Government Report 
cited the 2009 inflation rate as being 2.2%.  Of c ourse, like any other economy, Albania suffered from 
the global financial and economic crisis in 2009.  But unlike most other economies, Albania’s real 
GDP still grew by 4%.  Through this review, we w ill look with interest to  the successful policies 
supporting accomplishments. 
159. On trade policies and practices, as a fellow recently-acceded WTO Member, Albania has an 
open trade regime and has bound its tariff at 6.6%.  The applied rate is even lower.  In services, 
Albania has made commitments in 111 subsectors.  Albania applies few non-tariff measures.  Customs procedures have been streamlined.  And as the Secretariat Report noted, Albania has an impressive record of making timely notifications.  Ta kint this opportunity, we would like to echo the 
appeals just repeated by the Deputy Minister on behalf of RAMs regarding the Doha Development 
Agenda. 
160. Now let me turn to the bilateral front.  Albani a is one of the countries that have the longest 
trading relations with China.  The Joint Co mmittee in Economic and T echnical Cooperation was 
established in November 1989.  The sixth and the most recent meeting of the Joint Committee was held in Tirana in June 2008.  In recent years, trad e growth has been fast, stable and persistent.  In 
2008, bilateral trade amounted to US$282 million, an increase of 82.7% year on year.  Affected by the 
global crisis, the 2009 figures went down slightly to 208 million.  But starting this year, recovery has 
already emerged.  The first two months saw bila teral trade rising to US$39.16 million, up by 38% 
over the last year.  We are confident to further enhance bilateral economic and trade cooperation on 
this solid basis. 
INDIA 
161. In the recent years, Albania on trade and inv estment front has scored many successes and it 
deserves our appreciation and support. Just to me ntion a few:  enormous progress in the area of 
economic, trade and investment reforms;  positive  economic growth during 2000-2009 (one of the 
highest ones among all the region countries);  high GDP growth rates accompanied by a massive reduction in poverty;  inflationary pressures have been kept under control;  macroeconomic stability is 
supported by a continuous fiscal consolidation.   WT/TPR/M/229 
Page 24  
 
  162. Albania has fulfilled all obligations and commitment deriving from the WTO accession 
within its transitional period that ended in 2009. These are major achievements for any country in such a short span of time. 
163. However, as some others have commented we te nd agree that Albania will have to manage 
“Dual economy”, and the sustained future growth  will hinge on overcoming bottlenecks in certain 
sectors, particularly electricity, where shorta ges have to some extent hindered growth. 
164. India and Albania enjoy cordial and friendly re lations. Our bilateral trade at present though 
modest is steadily growing and is dominated on the Indian side by export of pharmaceuticals.  India 
also offers scholarships annually to Albania for tr aining in India. A number of Albanian diplomats 
have been trained at the Foreign Service Institute in New Delhi. 
REPUBLIC OF KOREA 
165. Since its inception in the late 1980s, trade policy reviews under this house have served 
Members by assisting the “smooth functioning of the multilateral trading system by achieving greater transparency in, and understanding of, the trade po licies and practices of Members”.  To the Member 
subject to review, it provides an opportunity to gath er and reflect upon its po licy actions and measures 
taken during the period under review.  For the other Members, it provides an opportunity to 
collectively appreciate, evaluate, and where possibl e, provide pertinent advice to the Member under 
review for further reflection and possible implementation. 
166. In this context, from the outset this delega tion would like to wish Albania a successful TPR, 
and hope that it will approach this TPR with the goa l of taking a step back and reviewing its efforts 
and achievements, and take some time to reflect upon what other measures could be implemented in 
the future to further develop its economy. 
167. In reviewing the reports, my delegation notes and extends its appreciations to Albania for its 
achievements over the past two decades.  We not e the extensive program of economic, legal and 
institutional reforms undertaken, transforming itsel f from a closed centrally planned economy to a 
market oriented and private sector driven economy of today. 
168. We also note the solid economic growth ove r the period under review, during which per 
capita GDP more than doubled and unemployment  decreased under sound macroeconomic policies. 
169. However, we also note future challenges which lie  ahead.  In particular, with the expected job 
losses in the agriculture sector as reform measures are introduced in  the coming years, job creation 
should take place in the services and manufacturing sectors to absorb those who are displaced.  On 
this issue, we would be interested to be better ac quainted with Albania’s plans to handle this issue. 
170. With regards to Albania’s FDI regime, we note through the Secretariat Report and the 
Government Report that same treatm ent is provided to domestic and fo reign investors.  However there 
is one exception to this principle, in land ownership.  Unfortunately, neither of the two reports provide 
an explanation for this exception, and whether a lternatives such as long term leases are provided to 
investors in light of this restriction.  Furthermore, in light of Albania’s goal to join the EU in the near 
future, we are of the view that ch anges to this limitation will be unavoidable.  In this context, we 
would appreciate an explanation on the land ownership regulations of Albania, what alternatives such 
as long-term leases are in place for foreign investors,  and what changes to this limitation are foreseen 
in the future. 
171. As for bilateral relations, Korea and Albania’s re lations are in its infancy, but growing at a 
steady pace.  Bilateral trade figure have fallen si nce the peak levels of 2008;  however we are  WT/TPR/M/229 
 Page 25 
 
 
  confident that with the global economy on course to recovery, bilateral trade and bilateral investment 
activities will be spurred in the near future. 
CROATIA 
172. This Trade Policy Review is conducted only a month after the first Trade Policy Review of 
Croatia.  This is not just a coincidence.  Our tw o countries became Members of the WTO in 2000 with 
only three month’s differen ce between.  Both countries are very ac tive members of the RAMs (Recently 
Acceded Countries) and share similar experiences and thoughts towards many of the WTO issues as 
well as towards the DDA negotiations. 
173. The economic cooperation of our two countries is constantly improving but  still behind the level 
of excellent political relations.  On both sides the new initiatives and exchange of delegations on the 
highest level contribute to impr ovement and strengthening of tr ade relations a nd overall economic 
cooperation between Croatia and Albania.  The stro ng impetus to boost of these relations was given 
through the CEFTA 2006 framework. 
174. On the bilateral side, all the agreements in the field of economy, as from the Agreement on 
Trade and Economic Cooperation to the Free Trade Agreement replaced later by CEFTA 2006, have 
been signed.  Some other agreements in wider econo mic area have been concluded and provide a legal 
framework in which cooperation between Croatian an d Albanian business s ubjects may develop and 
strengthen.  The increase in commodity exchange vol ume between the two countri es has been registered 
last year and ever higher interest of companies for this market. 
175. In order to succeed in strengthening of bilatera l economic cooperation, we  consider important to 
improve traffic connections, through the better c onnectedness between ports, resumption of direct 
airlines, establishment of road and railway direction alongside the Adriat ic coast, better cooperation in 
the field of agriculture, pharmace utical industry, tourism, tele communication and communication and 
energy. 
176. In 2009, the total commodity exchange between th e two countries register ed a decrease of 16% 
as compared to the same period of 2008 due to the economic and financial crises  that influenced trade 
between the two countries.  These crises had a nega tive impact on both economies but as it was pointed 
out in the Secretariat Report, evidence suggests that the effects in Albania have not been too severe, with realised GDP growth of 4% in the 12 months till September 2009. 
177. We congratulate Albania for ac hieving solid economic growth over 2002-2008, averaging 5.8% 
per year.  The process of transformation of Albani a to a liberal and market economy is more than 
evident in figures that read of th e four times growth of the GDP per capita in 2000-2008, as well as four 
times growth of trade of goods  volume in the same period. 
178. We have noticed in both Reports that Albania has fulfilled all the notifications’ obligations and 
has an impressive record of maki ng timely notifications, particularly evident in the area of services. 
179. We all know how important the transparency mechanism under which this trade policy review 
is maintaining is, not less important are notifications  – the primary instrument for ensuring transparency 
in the multilateral trading system. 
180. It is also important to notice that the whole strategy of the Albania trade policy was based on 
Albania’s member ship in the WTO and further complement ed by the SAA with the EU, CEFTA 2006, 
Agreement with EFTA States and Turkey.  WT/TPR/M/229 
Page 26  
 
  181. In addition, Croatia would like to express support to Albania in the process of becoming a EU 
member.  We hope that the process of preparing th e answers to the questionnaire Albania started in 
December 2009 would enable it the status of a candi date country and will fac ilitate the process of 
acceding to the EU. 
FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
182. Albania is a neighbouring country of the Republi c of Macedonia and as neighbouring countries 
we have very similar strategy objectives related to regi onal integration in all fiel ds and integration to the 
European Union.  Our bilateral economic relations benefit from the participation in the CEFTA 2006 
which is essential for regional in tegration for the Republic of Mace donia and Albania and five other 
partners in the region.  This Agreement has to en sure further development in trade and cooperation 
among the parties by liberalisation of trade and harmon isation of technical and other regulations.  As a 
result of this we would like to underline the consid erable potential for trade development between our 
two countries. 
183. Trade between the Republic of Mace donia and Albania continues to be at a modest level, it has 
grown in the recent years.  Our exports to Albania rose from US$15.3 million in 2003 to US$106.8 
million in 2008 and imports from Albania increased  from US$3.9 million in 2003 to US$35.5 million in 
2008.   
184. We note that Albania has been ac tive and participated in many activities related to the Doha 
Agenda and negotiations such as in the areas of ru les, trade and services, tr ade facilitation, NAMA and 
other areas.  This active partic ipation demonstrates that Albania has interest for the successful 
conclusion of the Doha Round Negotiati ons and to the strengthening of th e multilateral trading system.  
Also I would like to emphasize that Albania’s great economy achievements in the review period as the 
economy growth rate has been one of th e highest ones among all in the region. 
185. The Republic of Macedonia will continue to wo rk with Albania in upgrading and strengthening 
its cooperation for the benefit of both countries.  We have to salute the tremendous results in the 
transformation of the country’s economy in 20 year s and now a very free and modern economy market 
which has established, based on WTO regulations and of course in the regional based on other 
agreements. 
186. In the end, I would like to pose one question to the Albanian delegation which is posed all to us 
in the region, because it was said that Albania has tr ade exchange with almost all the EU countries about 
70%.  And as a second characterist ic that Albania has overcome the problems which every country has 
within the global crisis context.  But having in mind that in the region now we have one very important 
country, Greece, which is passing ve ry severe crisis, and also havi ng in mind that Albania has a big 
number of workers there and has impact in this se nse, I would like to make a question, does Albania 
expect an impact of this local cris is in this context although it is not re lated almost to trade but of course 
to their economy as a whole.    WT/TPR/M/229 
 Page 27 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF ALBANIA AND ADDITIONAL 
COMMENTS 
187. My statement is organized in three parts, as su mmarized by the Secretariat, on the main points 
contained in the advance questions.  
188. The Albanian economy has been growing in a steady pace in the last decade.  The services 
sector was the main contributor in the economic growth contributing to the increase of total 
employment.  Albania recognizes that domestic demand grew faster compared to production and thus 
the current account deficit worsened considerably in 2008 and 2009, amounting to almost 16% of the 
GDP. 
189. The expansionary monetary policy and the count er-cyclical fiscal policy lessened the impact 
of the crises on the real economy.  The fiscal polic y stimulated the aggregate demand, through higher 
current and capital expenditures, resulting in highe r fiscal deficit around 7% of GDP.  The financing 
sources were mainly privatization receipts and fore ign loans.  For 2010, the primary objective is to 
return on the path of macroeconomic stabilization, targeting fiscal deficit to 4% of GDP, with the 
objective to lowering it to 3% of GDP in 2012. 
190. Increase of country’s competitiveness, attracti on of foreign investments, promotion and 
ensure of the sustainable economic development are the main reasons for choice of strategic sectors to 
foster economic growth. 
191. Services sector is expected to continue to be  the most important contributor of the real 
economic growth and job creation in the coming years.   Tourism, as the main potential source of the 
growth, is supported by the public po licies with regard to infrastructure.  The development in tourism 
will give a positive impact to the other subsectors such  as trade, transport, hotels and restaurants.  The 
tourism sector development will be implemented ba sed on the sectoral strategy, compliant with the 
objectives of the National Strategy for Development and Integration.  Job creation in the services 
sectors is further supported by the Government through policies promoting vocational training and 
professional qualifications. 
192. Many legislative changes in the judicial syst em are in process aiming to increase the judicial 
independence.  A sectoral strategy on Justice that  will serve as a guideline for all future steps 
regarding the justice area is being prepared. 
193. Some Members raised concerns of the impact  on Albania’s trade with non-EU members due 
to the harmonization with EU laws, in particular TB T.  Albania is at a lower level of development 
compared to many WTO Members. The first to be impacted from the harmonization is our producers 
and therefore Albania is very careful in this regard .  However, our belief is that the alignment will 
serve to improve the products qua lity and increase competition.  As stated by the Deputy Minister 
Membership to EU is our strategic goal and we w ill follow any initiative to comply with the accession 
requirements without underestimating our other trading partners.  We are trustful that the trade 
openness Albania assumed during the accession is gua rantee for further strengthening of trade 
between Albania and WTO Members. 
194. The membership to the EU is the strategi c goal and we have put in place all necessary 
instruments to ensure the full implementation of Stabilization Association Agreement (SAA) 
requirements.  Thus a National Plan for SAA impl ementation is adopted allowing us to advance in 
strategic and systematic way the approximation with the EU acquis communautaire . 
195. Regarding the concerns raised by Members on cu stoms issues we have to say that Albania has 
improved considerably the customs legislation and has an advanced, central electronic system for WT/TPR/M/229 
Page 28  
 
  customs clearance.  Practices in customs are ba sed on the WTO guiding principles, WCO rules and 
recommendations and Albania is committed to continue in this path. 
196. Albania has managed to decrease the percentage  of controlled goods (red channel) from 25% 
in 2008 to 16% in 2009.  However, Albania clarifies that this percentage reflects the total percentage 
of physical controls effectuated both in borders  and inland customs houses.  The objective for 2010 is 
to have maximum 12% inspections.  This obj ective will be met by ensuring an effective 
implementation of the risk assessment, by improving the existing risk profiles and creating more focused new risk profiles in order to fa cilitate trade and combat illegal traffic. 
197. With regard to comments and remarks made fo r Article 104 of the Albanian Customs Code, 
Albania confirms that this practice is compliant w ith international practices and has not been changed 
after Albanian accession to the WTO.  In addition Albanian Customs Administration is now in the 
process of drafting the new Customs Code in accord ance with the Modernized Customs Codes of the 
EU. 
198. Valuation of goods for customs purposes is anot her issues raised by Members.  Customs 
valuation provisions are in full compliance with  WTO requirements (GATT Agreement, Article 7). 
199. Valuation of goods for customs purposes is not done through minimum prices.  The basic 
valuation method for customs clearance  is the transaction value method,  as stipulated in Article 34 of 
the ACC.  If the definition of customs value of goo ds cannot be made based on the first method, then 
alternative customs valuations can be applied, li ke identical goods, similar goods, calculated value, 
available data file, complaint with the or5der stipulated by the law. 
200. The last method for the valuation of goods is th at of “Available Data”.  Available data are 
those that are obtained from reliable sources such as “Reuters”, “Platts”, “Metal Bulletin”, “Tec-Doc”, 
“Quattrorouote”, “London MetalExchange”, etc. 
201. The use of the “Available Data”, as a method of valuation of the imported goods, has 
consistently been characterized by a decline, although the problem of under-invoicing remains still 
present.  The under-invoicing practice is a phenome non encountered even with the countries Albania 
has bilateral agreements on customs cooperation.  Anyhow, we are pleased to confirm that these cases 
have been decreasing due to the deterrent  effect that these agreements have. 
202. One Member raised concern on the application of excise tax.  Albania does not discriminate 
on the application of excise tax on alcohol a nd alcohol sub-products, between imported and 
domestically produced goods.  According to the curre nt tax legislation, the application of excise on 
alcohol beverages follows the same rule as in th e other countries (including some EU countries). 
203. With regard to the fiscal stamp system on some of the excisable goods, such as tobacco 
products, we confirm that there is no change in th e current rules and procedures in relation to the 
fiscal stamp application for tobacco products. 
204. Albania does not apply any import prohibition or  quantitative restrictions on imports.  In 
addition, licensing regime is very liberal and it is applied only to ensure products safety and 
consumers health.  Licensing require ments respect the principles of transparency, proportionality and 
non-discrimination. 
205. We have established maximum residue limits for food of animal origin.  The maximum 
residue limits allowed are the same as those allowe d in the EU countries.  We also have adopted a 
National Monitoring Plan to ensure better control in relation to MRL.  WT/TPR/M/229 
 Page 29 
 
 
  206. Albania is in the process of preparing the legi slation regarding the plant protection products.  
This legislation is being prepared by approaching the EU legislation and it will be notified in WTO 
compliant with respective notification requirements.   In the meantime we are working for setting up 
the control infrastructure of PPP. 
207. As it was highlighted by Members, Albania do es not make any use of anti-dumping rules and 
safeguards measures.  
208. In the field of free movement of goods and harmonization of TBT regulations with the EU, 
Albania has progressed considerably.  The alignment of TBT aims at ensuring that Albanian products 
are competitive in the European ma rket as the main destination of our  exports.  In addition, Albania 
has strengthened the quality infrastructure by aligni ng the legislation in the area of standardization, 
accreditation and conformity assessment with the EU standards. 
209. Albania has a new structure for the notification of SPS measures.  Compliant with the new lay 
on standardization the SPS notification institution is the Ministry of Agricultu re, Food and Consumer 
Protection.  In order to fulfil all WTO requirements for notification of SPS measures there have been taken several measures with regard to strengtheni ng of the institutional capacities.  These measures 
will improve timeliness and transparency of Albania’s WTO SPS notifications. 
210. Albania acknowledges the need to comply with the transparency principle and ensure the 
timely implementation of TBT and SPS measures.  Although we are aware that in some cases the 60 days rule is not respected we confirm the willi ngness and commitment to comply with any request 
from any WTO Member to amend the new TBT/SPS measures notified accordingly.  We would like to reiterate that the internal pro cedures do allow that for any objecti on or remark to specific legislation 
or measure made by any WTO Member we can include  suggestions immediately.  However, to date 
we have had no remarks or requests from any WTO Member for our notifications in SPS or TBT. 
211. Some Members asked for business environment, FDI attraction and export promotion.  The 
private sector is the main driver of the economic gr owth, with a contribution of about 85% of the GDP 
and providing over 80% of employment.  The Albani an Government has undertaken a comprehensive 
regulatory reform in order to establish a friendl y business climate.  The core of these measures 
consists in the reduction of admi nistrative burdens and costs for est ablishing and pursuing a business. 
212. Thus, the establishment of the National Registra tion Centre, the establishment of the National 
Licensing Centre, e-procurement, tax reforms, a nd e-tax are very important reforms to improve 
business climate. 
213. Business registration is carried out within one da y at the cost of only one euro.  The licensing 
system has also been transformed and 70% of al l licenses, permits and authorizations are issued 
through a one stop shop practice.  In addition, public procurement procedures have also been 
completely transformed.  Albania applies 100% on line public procurement in the aim of guaranteeing 
transparency.  Due to these reforms Albania was ranked the second among top ten reforming countries in the World Bank Doing Business Report in 2009. 
214. Improving export competitiveness is one of the main objectives to boost economic 
development and foster trade.  Thus, a competitiveness Fund, export credit Guarantee fund are established.  Furthermore, TAM/BUS program in Albania, Competitive Enterprise Development project, IPA 2007 SME project, etc. are very important instruments supporting Albania in implementing export promotion policies and as a r esult to improve the quality of the products. 
215. Great importance was given by Members to the en ergy sector development.  To date Albania 
has solved the problems related to the energy supply.  Albania has approved the Energy Market WT/TPR/M/229 
Page 30  
 
  Model, compliant with the European Energy Treaty.  Import-export regime of electrical energy is 
completely liberalized.  Several reforms have been undertaken during last year restructuring the 
Albanian Electrical Corporation in three main pilla rs:  generation, transmission and distribution.  For 
the generation public private part nership and investment through private concession improved the 
condition in this sector and offe r better supply of electrical energy.  A lot of investments in 
interconnection lines are invested by Albania thro ugh loans and credits.  Distribution of electrical 
energy was recently privatised and we are confiden t it will improve the efficiency in this sector.  
Diversification of electrical energy production is  getting high importance focusing a lot on renewable 
energy.  To date Albania exports a considerable am ount of electrical energy.  We are trustful that 
energy is not a concern for foreign investors in Albania any longer. 
216. As noted by Members, Albania has been successf ul in the privatization process.  Improving 
the efficiency and management of public undertakings  was the main driving reason for privatization.  
Privatizations in process are the insurance comp anies INSIG and AIBPETROL, dealing in the fuel 
sector.  These two privatizations are foreseen to be  finalized within 2010.  Albania anticipates no 
other strategic privatization for the moment. 
217. Some Members asked clarifications with rega rd to the Albanian accession to GPA.  The 
Government of Albania is committed to comply w ith all its obligations and commitments deriving 
from WTO accession.  We have in formed the Chair of the GPA Committee on our position with 
regard to GPA accession. 
218. As the new GPA text is still only provisiona l and negotiations on coverage among the GPA 
parties are still ongoing it is very difficult for an  observer and future party to commit itself to 
something which has not been yet formally finaliz ed.  In our understanding we will have a clearer 
view on our future obligations only af ter this review process is finalized. 
219. Competition policy in Albania stipulates the rules and procedures to ensure fair play in the 
market.  Questions were raised for monopoly in electrical energy sector and telecommunications.  In this regard, in electrical energy sector, transmi ssion is public monopoly while the generation and 
distribution are liberalized.  Meanwhile, the teleco mmunication sector is fully liberalised.  A new law 
on electronic communications has eliminated the barri ers of entry for undertakings wishing to offer 
services in this field.  The right for every undert aking to offer network and electronic communication 
services which does not require limited resources is based on general authorisation regime.  For the limited resources, such as frequencies and numbe r the licensing is made through objective, 
transparent, proportional and non-discriminating pro cedures.  The right to use frequencies shall be 
restricted only when this is conditioned by insufficiency of frequencies. 
220. In the IPR area there has been considerable progress.  Albanian law on industrial property 
rights is fully compliant with TRIPS requirements.   In the meantime, a new law on copyright and 
related rights is under preparation.   The law is being compiled in harmony with international norms 
defined in international treaties, directives of th e EU and TRIPS Agreement.  Our objective is to 
finalize it within the end of this year. 
221. Further clarifications for the National Strategy  of Intellectual Property Rights are requested.  
The work for the development of a new national strate gy is underway and the objective is to finalize it 
within May this year.  The scope of the National Strate gy is to ensure a level of protection of IP rights 
which is similar to that of the EU countries.  Such goal will be in accordance with SAA, and the 
TRIPS Agreement.  Its implementation is foreseen to  star from June 2010 and we believe that by June 
2015 all recommendations will be implemented. 
222. Regarding the GI, the criteria used for the registration are established by the Law on 
Industrial Property, Part V and other related provisions.  WT/TPR/M/229 
 Page 31 
 
 
  223. Related to the use of compulsory licences, provi sions are stipulated in the Law on Industrial 
Property.  Albania has already notified the Law on the Accession of the Republic of Albania the 
amendment of TRIPS”.  However, these provisions have not been implemented yet because of the lack of related cases. 
224. With regard to the cost of implementing EU directives in IPR, the cost of implementation 
includes the cost of harmonization and the cost of  establishing the necessary administrative capacity.  
We cannot estimate the implementing cost of the EU directives for the moment in the IP enforcement 
area. 
225. Members underlined the importance of agri culture sector and the high need for sector 
restructuring.  The agriculture sect or has increased by 3 to 3.5% per year.  The decline of agriculture 
as a share of GDP is not an evidence of the shrinking  of the sector itself.  Because other sectors, in 
particular service, construction, etc. have grown fast er than agriculture, the structure of GDP changed.  
Future reforms will focus on (i) assistance to fa rmers to increase farm productivity and their 
integration into the local market;  (i) diversifi cation and development of rural economic activities;  
and (iii) increase capacities to implement reforms. 
226. Some Members raised concerns about land ow nership as a restriction to FDI.  Albania 
confirms that its legislation is compliant with WTO commitments and obligations in this regard.  
There are no restrictions with regard to purchase and lease of non-agricultural land while agriculture 
land is not allowed to be purchased or leased by foreigners.  This restriction will be removed in 
accordance with the SAA provisions, many with in a transitional period of seven years. 
227. As recognised by many Members, Albania h as assumed wide commitments in GATS.  Our 
trade in services market is almost totally liberalized  and any further liberalization in the service sector 
would be a burden for Albania.  Trade in servi ces is guided by GATS and Albania is not negotiating 
any bilateral agreement for trade in services with any country. 
228. With regard to the postal ser vice market access, not reserved postal service is liberalized.  The 
reserved area is offered the Albanian Post, which is a public operator.  The latest development on 
2009, separate policymaking functions from regulatory ones, passing the postal service’s regulatory 
functions to the National Agency for Electronic and Postal Communication. 
229. With regard to the financial services sector Albania is fully compliant with its WTO 
commitments.  To date, the banking system is co mpletely private and the considerable number of 
banks in the market ensures a better comp etition and high quality of services rendered. 
230. In accordance with the national legal framework  licensing requirements for banks are based 
on the principles of transparency, proportionality a nd, non-discrimination.  A dditional requirements in 
force from 2009 ain to support the introduction into the market of the sound and stable banking entities led by experienced shareholders.  The banking industry should be managed with responsibility 
– with special attention to risks asse ssments and capitals and liquidities cr isis situations in the light of 
the last crisis – should develop under free competitiveness conditions and should support the 
developments of the domestic economy.  These a dditional requirements create the legal structure for 
this to happen. 
231. One Member asked on the non-performing loans.  In this respect, the ratio of non-performing 
loans to the total loans, the ratio increased from 8.7% in June 2009 to 10.5% by the end of the year.  
From the second half of 2008 and onwards, the Bank of Albania has taken different measures such as 
increasing the number of on-site “ad hoc” examinati ons in banks;  strengthened the monitoring of 
financial reports from banks and from the credit regi stry;  improved stress-tests (both sensitivity and 
scenario analysis);  asked banks to strengthen their credit risk units;  urged banks to maintain lending WT/TPR/M/229 
Page 32  
 
  to the economy, in particular for the domestic currenc y, where there are plenty of resources;  asked 
banks to gradually diversify their loan portfo lio, towards small and medium-term business entities. 
232. For legal profession, the legal framework provi des that a foreign citizen may exercise the 
legal profession in Albania if he or she meets the requirements which are equal to those imposed to Albanians. 
233. This statement tried to summarize some of the questions and issues raised by Members.  
Detailed information for every question or issue raised by Members is provided in the written 
answers. 
234. This brings me to the end of my statement.   During the first day of our TPR, our Deputy 
Minister emphasized that the WTO has been an impor tant first step for Albania towards establishing 
and implementing a system of trade policy which increases trade but at the same time allows for trade 
to flow smoothly, freely, fairly, and predictably. 
235. The first Trade Policy Review was a very important exercise for Albania for sharing with 
WTO Members the achievement and the progress of Albania since its accession, its strong 
commitments to the WTO, which h as contributed very significantly in further liberalization of trade 
and in an open investment regime, improvement of  the business environment, consolidation of the 
market economy strongly oriented towards closer European integration and to the global economy. 
236. We believe as well on the significance of this examination, for providing Members with 
further details and explanations about different aspect of the Alba nian economy and for giving more 
confidence and credibility to our traditional and new trade partners. 
237. Members’ questions, interventions and cons tructive comments are highly appreciated by 
Albania, and we assure you that we will pay special  attention to all issues that you raised in a 
constructive manner. 
DISCUSSANT 
238. I would like to thank the delegation of Albani a for its comprehensive answers to questions 
and comments raised by Members during Albani a’s Trade Policy Review. The quality and 
completeness of Albania’s answers demonstrates its commitment to the multilateral trading system and to the transparency in tr ade policy for which the Trade Po licy Review Mechanism has been 
created. 
239. Albania has been much praised by members for its far going economic reforms and pragmatic 
economic policy. In the view of members, Albani a is today an outward-oriented, stable market 
economy, open to trade and investment. As a result of these policies Albania had fast growth (5.8% on an annual basis), modest inflation and decrea sing unemployment during 2002-08. Per capita GDP 
in nominal terms more than doubled over this pe riod. Members considered that due to its sound 
macroeconomic and effective moneta ry policy Albania has been resistant to external shocks, which 
has been demonstrated by the fact, that effects of the current global economic and financial crisis have 
not been too severe in the country. Members praised th e fact that the Government has not resorted to 
protectionist measures during the crisis. 
240. Members pointed out to the comparative adva ntage of Albania in the services sector, in 
particular in the tourism services, and stressed th e importance to restructure the agricultural and 
energy sector and to increase the comp etitiveness of the manufacturing industry.  WT/TPR/M/229 
 Page 33 
 
 
  241. In the agriculture sector, which employs nearly 50% of the population, the farm land is 
fragmented. The need has been underlined by me mbers to diversify the farm production, modernize 
the rural sector and to strengthen the food safety sy stem. The modernization of the rural system would 
improve both the food security and the exte rnal financial balance of the country. 
242. The energy sector has been highlighted by memb ers as one key infrastructural challenge that 
Albania is facing. On the supply side there are physical limitations and power-outages have been 
frequent. Members underlined the need to restruct ure the energy system and to develop a more 
efficient, competitive and reliable energy  sector with the help of investment. 
243. Members appreciated Albania’s commitment to wards its WTO obligations. This has been 
demonstrated for example by the very high track record of submitting numerous notifications in the 
relevant bodies of the WTO. Albania’s active role in  the current round of trade negotiations and in the 
Group of the Recently Acceded Members (RAMs) has been underlined by members, as well. 
244. Members praised Albania’s open trade policy regime, the improvement of the business 
environment, its low average bound tariff rates and the lack of tariff peaks. Members appreciated that 
Albania has not taken any anti-dumping, count ervailing or safeguard measure to date. 
245. In the field of TBT, SPS and IP protection several member complimented Albania on the 
adapted laws, regulations and the establishment of  the relevant institutions. However, members 
underlined the need for further efforts in implem enting these regulations and developing a strong, 
effective, and transparent judicial system. 
CROATIA 
 246. We may only compliment Albania for the im pressive progress achieved since its WTO 
accession.  We are convinced that this was an excellent exercise that would help both Albania and 
WTO Members, meaning that Albania could furthe r do improvements of its trade policy, and the 
WTO Members, among them future investors, to have a better insight into Albania’s trade policy.  We 
therefore congratulate Albania for its first and successful TPR.  As mentioned in our statement the 
first day, we wish and hope that our bilateral tr ade and economic relations would improve and follow 
the already excellent political relations. 
247. Finally we reiterate our full support to Alba nia in strengthening regional economical and 
political cooperation and its Eu ropean integration process. 
EUROPEAN UNION 
248. The EU would like to thank the delegation of Albania for the comprehensive replies to our 
questions and we would also like to express our sp ecial thanks for replying our additional questions 
and comments that came after the deadline.  Also we would like to thank Albania for the additional 
useful clarifications  provided today in the closing statement. 
249. At the moment we do not have any additional or follow-up questions, so to conclude we 
would like to thank you again for the very cons tructive participation on your first Trade Policy 
Review and we hope that it has been a useful exer cise that will contribute to your internal policy 
assessment and will have to continue the ongoing  reforms and economic development and in the 
integration with the EU.  WT/TPR/M/229 
Page 34  
 
  UNITED STATES 
250. We do not have any follow-up questions to raise.   We would like just to note that we found 
the written responses to our questions be very th orough and we appreciate the additional details 
provided today, particularly related to  the SPS notifications and IPR issues.  
CANADA 
251. We have one follow up question regarding the ju dicial system. It is question No. 4 that 
Canada had made. There was an answer by the Alba nian delegation and we would like to receive 
further information on the new Law No. 9877 on th e Organization of the Judicial Power in the 
Republic of Albania which increases judicial indepe ndence, into what extent the new law marks a 
difference from previous legal systems, and also  on the comprehensive document that is being 
established by the Ministry of Justice on a working group for the guideline for all future steps 
regarding the justice area.  We are looking for more information on when  this review will be 
completed and more information on what would be the benchmarks.  I will follow up this question in 
writing. 
252. Secondly, just a comment on the response to Canada on questions Nos. 6 and 7 on the 
Customs Code. I would like to thank the delegation of Albania for the further clarification that this is 
at the discretion of the importer and not at the discretion of customs. That is a very important clarification.  WT/TPR/M/229 
 Page 35 
 
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
253. This first Trade Policy Review of Albania has allowed us to understand better the impressive 
reform process, with respect to trade policy, th at Albania has undertaken since its accession to the 
WTO in 2000.  Our discussions have benefited fro m the participation of Mr. Enno Bozdo, Deputy 
Minister of Economy, Trade and Energy, Ambassador  Sejdi Qerimaj, Permanent Representative to the 
WTO, Mrs.  Pranvera Kastrati, Head of the Trade Policy  Department and their delegation from Tirana 
and Geneva.  We thank Ambassador Major for his valuable contribution as a discussant, and for the 
constructive engagement of Members in  this first yet positive review.   
254. Albania was praised by WTO Members for its solid economic performance over the period 
under review, its key achievements in substantially reducing unemplo yment and trimming down fiscal 
deficit, while keeping inflation in check.  Th e Albanian economy has successfully managed to 
weather the effects of the global fi nancial crisis, at the same time  maintaining sound growth.  Some 
Members noted, however, that challenges remain, in pa rticular in the areas of reduction of the public 
debt and integration of the unreg istered economic activities into the mainstream.  Members praised 
Albania for the substantial reform of its tax syst em and its positive effect on government revenues, 
Members noted that balancing public finances mi ght require further measures, including on the 
expenditure side. The reforms Albania has successfu lly performed, defined the path for an ongoing 
process of transformation from a centrally planned economy to a liberal one, driven by the private sector. Albania is invited to continue with its refo rm process so as to further foster foreign direct 
investment. 
255. Members noted Albania's openness to trade and investment, as well as the dynamism of its 
services sector.  In this regard Members showed inte rest regarding Albania's intentions to develop its 
services and manufacturing sectors, and modernize agricu lture.  Albania's success in privatizing state- 
owned enterprises was highlighted, and Members enc ouraged the continuation of efforts in this 
regard.  Noting the occasional use of minimum values to calculate tariffs on imports, Members encouraged Albania to eliminate th is practice.  Albania was also encouraged to review the method to 
assess tariffs applied to shipments of goods with different tariff classifications, and the issue of 
transparency in tax policy formulation. 
256. Members also praised Albania for the initiativ es it has undertaken to improve its business 
environment particularly in the areas of trade fa cilitation, taxation and busin ess registration. They 
noted that the perceived gap between legal provision s with respect to intellectual property rights and 
their implementations could be ameliorated.  Al bania informed the TPRB that it was changing its 
legal and institutional framework for intellectual property rights, as well as with respect to food 
safety.  Albania's effort to reform its judicial sy stem was also highlighted by the Members.  Albania 
was asked about future initiatives to assist small a nd medium-sized enterprises, to further attract 
investment and to improve the business environment.   
257. It was observed that Albania's negotiations to accede to the WTO's Government Procurement 
Agreement had been dormant for some time, and Alba nia was encouraged to revitalize this process.  
Members noted Albania's increasing implementation of government procurement through electronic 
means, and raised a number of questions with  respect to procurement procedures, including 
thresholds, security requirements, tende r time limits and the review process. 
258. Members acknowledged that, as a newly acceded country, Albania has undertaken significant 
and wide-ranging commitments in the WTO.  Member s took note of Albania's exemplary record of 
submitting notifications to the WTO in a timely fashion.   
 WT/TPR/M/229 
Page 36  
 
  259. I would conclude that this Review has been a major accomplishment for Albania.  We have 
witnessed an interesting saga of Albania starting with WTO accession in 2000 and moving closer to 
European integration. The tremendous changes Alba nia has carried out are a clear demonstration of 
how well-sequenced reforms focused on opening market s to trade, investment and private enterprise 
can contribute to economic growth and higher livin g standards.  So much has been achieved over a 
relatively short period of time:  certainly the Alba nia of today bears little resemblance to the Albania 
of one decade ago.  So, I would wish to highlig ht Albania's determination in pursuing economic, 
institutional and political reform and its  remarkable achievements to date. 
 
__________