Albania WT/TPR/S/229/Rev.1 
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II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(1) OVERVIEW  
1. Albania started a process of reform towards a market economy in the early 1990s.  This 
implied a complete overhaul of its economic regime, including trade policy.  The process of 
integration into the global economy received a boost when Albania became a WTO Member in 2000.  
Since then, Albania has continued to actively prom ote economic, legal, and institutional reform, and 
this has resulted in an open trade and investment  regime, characterized by low tariffs and few non-
tariff barriers to trade.  A considerable effort has also been made on the administrative side to facilitate trade and investment flows. 
2. The process of reform is, however, ongoing, and there are areas in which further effort is 
required, particularly with respect to the impl ementation of laws and re gulations and as regards 
review and appeal processes.  It is also of utmost  importance to continue efforts towards developing a 
strong, effective, and transparent judicial system.  
3. A large number of trade-related reforms are bei ng driven by Albania's desire to become more 
closely integrated into the Eur opean Union.  The Stabilisation and Association Agreement (SAA) 
with the EU, which entered into force on 1 April 2009, contains obligations on a range of political, 
trade, and economic issues.  This  has complemented implementation of WTO rules, which has already 
been largely achieved, as the main driving force for institutional and legal reform.  However, the 
Albanian authorities consider approximation to EU rules as a complement to the changes already 
implemented to comply with WTO provisions, whic h remain the basis of Albania’s trade policy 
regime.   
4. Albania has been an active participant in the Doha Development Agenda and in WTO 
activities in general.  Albania has an impressive record on making notifications to the WTO.  It has never been involved in a dispute under WTO rules. 
5. The Albanian foreign investment regime is ve ry open.  Investment is permitted on the same 
terms to both foreign and domestic investors, the only exception being with respect to land ownership.  
Prior authorization is not required for investments to be undertaken.  Companies investing in Albania 
have the right to employ foreign citizens.  Funds re lated to investments may be transferred outside of 
the country, with limitations in certain circumstances. 
6. Albania is signatory to the Central Europ ean Free Trade Agreement (CEFTA) and it has two 
bilateral free-trade agreements, w ith the European Union and Turkey.  Albania signed an FTA with 
EFTA States on 17 December 2009, which is expected to enter into force in 2010.  Albania submitted 
its application for EU membership on 28 April 2009,  and if this is accepted, hopes that negotiations 
may be completed before 2014.  Al bania has received considerable amounts of aid for trade assistance 
from the EU in recent years.   
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION  
(i) Institutional framework 
7. The Constitution of the Republic of Albania sets out, inter alia,  the functions of the executive, 
legislature, and judiciary.1 
                                                      
1 The Constitution was adopted on 21 October 1998, and entered into effect on 28 November 1998.  
Viewed at:  http://www.president.al/eng lish/pub/doc/Albanian%20Constitution. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 16 
 
 
8. The President is the Head of State, and is elected through a qualified majority vote of the 
National Assembly.2  The Presidential term in office is five years, renewable once.  The Constitution 
grants limited authority to the President, hence this role is largely ceremonial.3  Executive power is 
vested in the Council of Ministers, comprising th e Prime Minister, the Deputy Prime Minister, and 
Ministers.  The President appoints the Prime Minister on the proposal of the party or coalition with 
the majority of seats in the Assembly, usually fo llowing a general election.  Albania's Assembly 
comprises 140 Members, elected by proportional representation for a four-year term.4 
9. The Constitution (Article 95-2) grants large pow ers to the Council of Ministers, which may 
exercise any state function that is not attributed to other bodies of central or local government.  Some 
observers have noted this is often used as a c onstitutional basis for general and even enlarged 
discretionary powers of the administration5 (Articles 9 and 21 of the Code of Administrative 
Procedures). 
10. Law No. 9,000 of 30 January 2003, On the Or ganization and Functioning of the Council of 
Ministers, sets out the competences and rules of conduct of the Prime Minister and other Members of the Council of Ministers, as well as the procedures for preparation and submission of proposals for 
decision by the Council and the role of inter-minist erial committees.  Under th is law, the Council of 
Ministers has the authority to approve ministries’ areas of activity and their principal functions.  Law 
No. 9,000/2003 also gives guidelines for th e creation of subordinate institutions.  
11. In accordance with the 1998 Constitution, th e Government must be organized in a 
decentralized manner, and regions and local gove rnments have autonomy in certain decisions.
6  There 
are 373 local government units in Albania, 65 of which are municipalities and 308 communes, which 
form the 12 regions.  The president of a region is elected by the regional council composed of 
representatives of the communes and municipalities.  The regions have the responsibility of coordinating economic development measures and pr omoting public investment, and may exercise 
activities entrusted by the communes and municipaliti es.  Prefects are respons ible for controlling the 
legality of local government decisions.    
12. The People’s Advocate (Ombudsman) was establis hed as an institution by Law No. 8,454 of 
4 February 1999, as amended by Law No. 8,600 of 10 April 2000 and Law No. 9,398 of 12 May 2005, following Article 60 of  the Constitution.  The People’s Advocate, an independent body 
with its own budget, is in charge of defending the ri ghts, freedoms, and lawful interests of individuals 
from unlawful or improper actions or failures to act of the public administration bodies.  The People’s 
Advocate is elected by a three-fifths majority of all members of the Assembly for a five-year period, 
with the right of re-election.  The Advocate is  intended to serve as a reviewer towards better 
governance, and publishes an annual report presente d before the Assembly and available online, 
                                                     
 
2 Presidential candidates must be put forward by at least 20 Members of the Assembly. 
3 The powers of the President are mainly set out in Part Four, Article 92 of the Constitution.  The 
President exercises his or her power by issuing decrees. 
4 Full proportional representation was introduced by constitutional amendment in 2008, prior to that 
100 members were elected directly, and 40 by proportional representation.  
5 SIGMA (2008). 
6 Law No. 8,652 of 31 July 2000, sets out the functions and competences of communes and 
municipalities.  These include functions of local interest such as:  infrastructure an d public services;  urban 
planning, land management and housing;  local economic development;  and order and civil protection.  Certain competences are also shared with the Central Government , such as the provision of health care and education. Albania WT/TPR/S/229/Rev.1 
 Page 17 
 
 
including in English.  In 2007, last year for which data are available, the Ombudsman received 
2,037 complaints and initiated procedures on 822.7 
13. Albania has a legal system based on civil law traditions.  In the hierarchy of laws, the 
Constitution has the highest legal force;  ratified international agreements  have superiority over 
domestic laws and legal acts issued by the Council of Ministers.  As set out in the Constitution, laws 
may be proposed by the Council of Ministers, Me mbers of the Assembly or by popular initiative 
supported by at least 20,000 voters.  Proposed laws must be accompanied by a report justifying the 
financial expenses of their implementation.  Non-go vernmental draft laws that would have budgetary 
implications must be submitted to  the Council of Ministers for its opinion.  Draft laws are voted upon 
three times;  they are passed with a majority of votes, in the presence of more than half of the 
Assembly members.  Certain laws require, however, a three-fifths majority .8  The President must 
either promulgate a law within 20 days or, throug h the issuance of a decree, send it back to the 
Assembly for review.  The Presidential decree for a review loses its effect when the majority of 
Assembly members vote against it.  Laws enter in to force 15 days after their publication in the 
Official Journal .  Referenda to abrogate specific existing la ws or to introduce new legislation can be 
organized if 50,000 signatures of voters are gathered. 
14. The President has authority to sign internati onal agreements.  Most agreements must be 
ratified by the Assembly through a simple majority vote in order to enter into force in domestic law.9  
As indicated, international agreements that have been ratified have superiority over other Albanian 
laws and take precedence in th e event of any incompatibility.10  The Constitutional Court (below) is 
responsible for deciding on the compatibility of in ternational agreements with the Constitution prior 
to their ratification, as well as the compatibility of  laws with international agreements.  Since 
Albania’s accession to the WTO there has been one instance when domestic legislation has been 
found to be incompatible with WTO Agreements;  this legislation was amended as a consequence.11    
15. Albania's court system comprises a High Court, seven courts of appeal (including a Serious 
Crimes Appeal Court, which was established in 2004), and 23 courts  of first instance (including a 
Serious Crimes Court, also established in 2004).  In  addition, Law No. 9,877 of 18 February 2008, On 
the Organization of the Judicial Power, provides fo r the creation of administrative courts.  As noted 
by the authorities, however, these have yet to be est ablished, and administrative conflicts are currently 
settled within the first instance courts.  The establis hment of commercial courts is one of the long 
term objectives set out in the Government's Nati onal Strategy for Development and Integration. 
16. The courts of appeal hear appeals from firs t instance courts, and in so doing, they may 
consider issues of law and fact.  The High Court is charged with hearing decisions of the courts of 
appeal and may only consider issues of law but not of  fact.  It also has initial jurisdiction for charges 
against the Government, deputies of the Assembly, and Judges of the High Court and the 
                                                      
 7 People’s Advocate (2008). 
8 For example, codes, and laws for the state of  emergency, on citizenship, on general and local 
elections, on the status of civil servants, on referenda, on amnesty, on administrative divisions of the Republic.  
9 The ratification of international agreements in Albania is done by law if they relate to:  (a) territory, 
peace, alliances, political, and military issues;  (b) fr eedoms, human rights, and obligations of citizens as 
provided in the Constitution;  (c) its membership in international organizations;  (d) the undertaking of financial 
obligations;  and (e) the approval, amendment, supplementing or repeal of laws. 
10 Article 122 of the Constitution. 
11 Council of Ministers Decree No. 52 of 14 January 2009 prohibited imports of a certain type of diesel 
(D2), but granted a local company the sole right to produce and sell this diesel in the domestic market.  The 
Constitutional Court, through its Decision No. 24 of 24 Ju ly 2009, repealed this decree as it found that it 
violated Albania's commitments under the WTO and other international agreements.  WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 18 
 
 
Constitutional Court when there are criminal charge s against them.  Albania's Constitutional Court is 
charged with ensuring the provisions of the Constitu tion are respected and their interpretation.  Its 
decisions are final.12 
17. Legislative reforms taken over the period under review have included the adoption of a law 
on judicial reform, Law No. 9,877 of 18 February 2 008, On the Organization of the Judicial Power in 
the Republic of Albania, which sets out the organi zation and competences of the courts, the conditions 
and procedures for judicial appointments, the rights and obligations of judges, and related disciplinary 
procedures.  This was followed in  2009 by the issuance of Preside ntial decrees to advance certain 
reforms.13  The authorities indicated that the Govern ment is working on a new justice strategy, 
amendments to the Civil Procedure Code and the Criminal Procedure Code, as well as new draft 
laws.14  There have also been efforts to improve th e management of cases through the installation of 
enhanced information technology systems.  
18. In the context of its enlargement monitoring ac tivities, the EU had noted that while Albania 
has made some progress in undertaking judicial reform s, this has been limited.  Concern remains that 
judicial procedures are slow and lack transparency, and that the system continues to function poorly 
due to shortcomings in accountability and transparency.15  A recent study, under the American Bar 
Association’s Rule of Law Initiative, indicated that the  2008 Judicial Reform Index (JRI) for Albania 
demonstrates that the pace of judicial reform, w ith the aim of encouraging the functioning of an 
independent, transparent, impartial, efficient, a nd professional judiciary, has been slow.  Of the 
30 factors analysed in the JRI, seven (relating to  training of judicial candidates and sitting judges, 
judicial jurisdiction over human rights cases, appella te process, budgetary process, judicial immunity, 
and professional associations) were rated positive in 2008, while 19 factors were rated neutral.  The 
four remaining factors, which related to improper influence in judicial decision-making, enforcement 
powers of the courts, public access to court proceedings , and publication of judicial decisions, were 
rated negative.16 
19. The importance of developing a strong, effective, and transparent judicial system is a key 
theme in the Government's National Strategy for De velopment and Integration.  It acknowledges that 
shortcomings in Albania's judicial system, incl uding poor implementation of laws, had enabled 
corruption and organized crime to develop as well as  tax evasion, a disregard for property rights and 
other unregistered activities.  The Strategy also notes that political interventions in judicial decisions 
have been numerous.  Priorities for reform, inter alia,  include:  guaranteeing judicial independence;  
orienting the court system to best European practices;  strengthening the status of judges and 
prosecutors;  increasing the efficiency and transp arency of criminal and civil procedures; and 
increasing the level of execution of court decision s towards the standards of EU countries.  The 
Strategy sets out medium- and long-term goals for achieving a judiciary that would function in an independent, transparent, responsive, and efficient manner.   
                                                     
 
12 The provisions relating to the Constitutional Court are set out in Part 8 of the Constitution. 
13 As indicated by the authorities, these decrees relate d, among other things, to the establishment of the 
territorial competences of first instan ce and appeal courts, and to determina tion of the number of judges for each 
court of appeal and first instance. 
14 The draft laws being debated in the Assembly relate to administrative disputes and the organization 
of administrative justice on one hand, and to judicial administration on the other. 
15 European Commission (2008).   
16 The Judicial Reform Index (JRI) is an asse ssment tool implemented by the American Bar 
Association’s Rule of Law Initiative (ABA ROLI) to asse ss a cross-section of factors important to judicial 
reform in emerging democracies.  See American Bar Association’s Rule of Law Initiative (2008). Albania WT/TPR/S/229/Rev.1 
 Page 19 
 
 
(ii) Trade policy formulation, implementation, and objectives 
20. The Ministry of Economy, Trade and Energy (METE) has overall responsibility for the 
formulation of trade policy.  The Trade Policy De partment, staffed by nine professionals, formulates 
most of Albania’s trade policies and follows up all trade policy issues, including those related to WTO 
participation. A number of other ministries and agencies have policy-maki ng responsibilities in trade-
related areas (see Chapters III and IV).  Private sect or and civil society input into policy making has 
been institutionalized through the Business Advisory  Council established under Law No. 9,607 of 
11 September 2006, On Business Advisory Counc il.  The Council comprises representatives from the 
Chamber of Commerce and Industry, local and fore ign business associations, civil society involved in 
business, state institutions and local governmen t bodies;  it became operational in 2006.  
21. Trade-related reforms are largely being driven by Albania's desire to become more closely 
integrated into the European Union.  Albania s ubmitted its formal application for membership in 
April 2009.17  The mechanism to achieve this closer in tegration is the Stabilization and Association 
Agreement (SAA), which Albania signed with the EU in 2006.  The SAA, inter alia, contains 
commitments to create a free-trade zone between the European Union and Albania (section (3)(ii) 
below), as well as provisions regarding the gradual a lignment of Albania's current and future laws 
with the acquis communautaire .  In this regard, the initial focus is on fundamental elements of the 
Internal Market acquis , as well as other areas, which include:  competition;  intellectual property 
rights;  public procurement;  standards and certificat ion;  financial services;  and land and maritime 
transport.18 
22. The authorities have indicated in the context of  this Review, that, after accession to the WTO 
in 2000, compliance with all WTO rules was cons idered the main trade policy driving force.  
Currently, trade policy changes are driven main ly by compliance with SAA requirements and 
approximation to EU law.  The Albanian authorities c onsider this to be a complement to the changes 
already implemented for compliance with WTO rul es, which remain the base platform of minimum 
requirements for Albania’s trade policy regime.  
(3) TRADE REGIME  
(i) World Trade Organization 
23. Albania became a Member of the WTO on 8 September 2000.  Albania grants at least MFN 
treatment to all its trading partners.  The basic laws through which Albania approved and formally 
undertook the obligations of WTO Membership, are Law No. 8,648 of 27 July 2000, On ratification 
of the Protocol of the accession of the Republic of Albania to the Marrakech Agreement Establishing 
the World Trade Organization, and Law No. 8,649 of 27 July 2000, On ratification of the Agreements 
of the Results of the Uruguay Round of Multilateral Trade Negotiations.   
24. Albania is a signatory to the Information Technology Agreement;  it has undertaken 
commitments on basic and value-added telecommuni cations services and committed to the regulatory 
principles in the Reference Paper, and it is ne gotiating accession to the Agreement on Government 
Procurement.19  
                                                      
17 European Commission online information.  Viewed at:  http://ec.europa.eu/enlargement/potential-
candidate-countries/albania/eu_albania_relations_en.htm. 
18 SAA Article 70. 
19 WTO online information. Viewed at: http://www.w to.org/english/tratop_e/inftec_e/itscheds_e.htm., 
and http://www.wto.org/english/tratop_e/gproc_e/memobs_e.htm. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 20 
 
 
25. Albania has been an active participant in  the Doha Development Agenda, making 
submissions on its own in NAMA and agriculture20, and together with other delegations in the areas 
of:  trade facilitation;  TRIPS;  services;  the treatment of recently acceded Members;  and NAMA.21  
At the 2005 Ministerial Conference in Cancun, Albania, inter alia,  expressed its priorities to include 
flexibility for the treatment and future commitments  of recently acceding Members in the agriculture 
and NAMA negotiations.22  At the 2009 Geneva Ministerial Conference, Albania highlighted its 
active participation in NAMA negotiations, and t hose related to small and vulnerable economies.  
Hope was expressed that the DDA could be speedily concluded.  Albania noted on that occasion that it had managed to circumvent the economic crisis  as a result of an improved business environment 
and resilient macroeconomic polici es, which had resulted in rapid productivity growth and provided a 
solid engine for economic growth.  Albania highli ghted that full compliance with WTO rules guided 
its trade agenda, and that the foundation of Albani a’s trade and economic reforms had been the main 
WTO principles of transparency, predictability, and accountability.
23  
26. Albania has not been involved  in WTO dispute settlement proceedings as complainant, 
defendant or third party.  Since its accession, Al bania has submitted numerous  notifications covering 
various WTO topics (Table II.1).  In some cases,  such as its SPS notifications, Albania has not 
complied with the prescribed 60-day period for commen ts, although it has invariably done so for TBT 
notifications. 
Table II.1 
Notifications to the WTO, January 2000 to December 2009 
Legal provision Description of requirement Frequency WTO document (most recent or series) 
General Agreement on Tariffs and Trade 1994 
Article XVII.4 Products traded by state-trading 
enterprises Every three years No notification made 
Article XXIV.7 Customs unions and free-trade 
areas Ad hoc WT/REG240/N/1, 14 May 2008 
WT/REG/226/N/1, 22 March 2007  
WT/REG/183/N/1, 20 December 2004  
WT/REG180/N/1, 14 December 2004  WT/REG181/N/1, 14 December 2004  
WT/REG/182/N/1, 14 December 2004  
WT/REG178/N/1, 19 December 2004 
Understanding on the Interpretation of Article XVII (State Trading)  
Article XVII:4(a) State trading activities Annua l G/STR/N/11/ALB,G/STR/N/12/ALB, 13 October 
2008;  G/STR/N/10/ALB, 13 September 2005 
Agreement on Agriculture   
Article 5.7 Special safeguard Annua l, ad hoc No notification made 
Articles 10 and 18.2 Export subsidies Annual G/AG/N/ALB/1, 6 October 2008 (2000 to 2007) 
Article 12.1(b) New export restricti ons Ad hoc No notification made 
Article 16.2 Food aid and other assistance Annual, ad hoc No notification made 
Article 18.2 Volume of imports under tariff 
quotas Annual No notification made 
Article 18.2 Tariff quota administration Once, then changes No notification made 
Articles 18.2 and 18.3 Domestic support Annual and ad hoc G/AG/N/ALB/2, 6 October 2008 (2000 to 2007) 
   Table II.1 (cont'd) 
 
                                                      
20 WTO documents TN/MA/W/99, 2 January 20 08 and TN/AG/GEN/28 , 20 December 2007. 
21 WTO documents TN/TF/107/Add.1, 18 March 2009;  TN/TF/W/108, 18 March 2009;  
TN/TF/W/109/Rev.1/Add.1, 18 March 2009;  TN/TF/W/110/Rev.1/Add.1, 18 March 2009;  TN/C/W/52, 19 July 2008;  WT/GC/W/587/Add.1, 11 April 2008;  TN/C/W/48/Add.1, 11 April 2008;  TN/S/W/60/Add.4, 
27 September 2007;  S/CSC/W/51/Add.4, 27 September 2007;  TN/TF/W/137/Add.4, 24 July 2007;  
TN/AG/GEN/24, 13 March 2007;  TN/MA/W/83, 26 February 2007;  TN/S/W/60, 26 January 2007;  S/CSC/W/51, 26 January 2007;  TN/MA/W/29, 19 March 2003. 
22 WTO document WT/MIN(05)/ST/94, 16 December 2005. 
23 WTO online information.  Viewed at:  http://www.wto.org/english/thewto_e/minist_e/min09_e/ 
stat_e/alb.doc. Albania WT/TPR/S/229/Rev.1 
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Legal provision Description of requirement Frequency WTO document (most recent or series) 
Agreement  on the Application of Sanitary and Phytosanitary Measures  
Article 7 and Annex B Proposed SPS regulations 
(including proposed or 
emergency measures) Ad hoc 123 notifications ov er 2005-09 (G/SPS/N/ALB/3, 
11 January 2005 to G/SPS/N/ALB/125, 1 October 
2009   
2 notifications in 1999 
Annex B, paragraph 3 Enquiry point Once, then changes Notified (see:  http://spsims.wto.org) 
Annex B, par. 10 National notificati on authority Once, then changes Notif ied (see:  http://spsims.wto.org) 
Agreement on Technical Barriers to Trade  
Articles 2, 3, 5 and 7 Proposed and adopted technical 
regulations Before or 
immediately after 
the measure is taken. 38 notifications over period 2005-09, none prior;  
G/TBT/N/ALB/1, 28 January 2005 to 
G/TBT/N/ALB/38, 3 September 2009 
Article 5.6, 5.7 and 7.2 Conformity assessment 
procedures Ad hoc No notification made 
Article 10.1 and 10.3 Enquiry point Once, then  changes Notified (see:  http://tbtims.wto.org) 
Article 15.2 Implementation and 
administration measures Once, then changes G/TBT/2/Add.99, 15 May 2008 
Paragraph J, Code of 
Good Practice for the 
Preparation, Adoption 
and Application of Standards Work programme of bodies that 
have accepted the Code Biannual G/TBT/CS/2/Rev.15, 2 March 2009 
Agreement on Trade-Related In vestment Measures (TRIMs)  
Article 5.1 TRIMs not in conformity with the 
provisions of the Agreement Once No notification made 
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping)  
Article 16.4 Anti-dumping actions taken over 
the past six months Biannual No action taken (lat est) G/ADP/N/180/Add.1, 
27 April 2009 
Article 16.5 Investigating authority Once, then cha nges No notification made 
Article 18.5 Laws and regulations Once, then  changes G/ADP/N/1/ALB/2/Rev.1, 8 May 2008  
G/ADP/N/1/ALB/2, 3 December 2007  G/ADP/N/1/ALB/1/Suppl.1, 8 June 2007  
G/ADP/N/1/ALB/1, 24 March 2005 
Agreement on Implementation of Article VII of the GATT 1994 (Agreement on Customs Valuation)  
Article 22.2  Legislation Once, then  changes G/VAL/N/1/ALB/1, 9 June 2001 
Annex III  paragraph 3 Reservations in respect of 
valuation methods order Once G/VAL/N/3/ALB/1, 27 November 2007 
Decision of the 
Committee on CV 
(12.5.95) Responses to the checklist of 
issues Once G/VAL/N/2/ALB/1, 26 November 2007 
Decisions under paras. 
A3 and A4 of 
document G/VAL/5 Application of decision Once G/ VAL/N/3/ALB/1, 27 November 2007 
Agreement on Preshipment Inspection  
Article 5 Laws or regulations notified Once,  then changes G/PSI/N/1/Add.11, 24 June 2008 
Agreement on Rules of Origin 
Article 5.1 Rules, judicial decisi ons Once G/RO/N/47, 6 July 2005   
Article 5.2 Changes in non-preferential rules 
of origin Ad hoc G/RO/N/53, 18 September 2007 
Annex II Preferential and non-preferential 
rules of origin Once, then changes G/RO/N/47, 6 July 2005   
G/RO/N/53, 18 September 2007 
Agreement on Import Licensing Procedures  
Articles 1.4(a), 8.2(b)   Laws and regulations Once, then changes G/LIC/N/1/ALB/2, 30 June 2008  
G/LIC/N/1/ALB/1, 27 November 2007 
Article 5 Import licensing procedures Ad hoc G/LIC/N/2/ALB/2, 28 November 2008 
Article 7.3 Questionnaire Annual G/LIC/N/3/ALB/3, 22 December 2008  
G/LIC/N/3/ALB/2, 2 January 2008 
Article 8.2(b) Changes in legislation On ce, then changes No notifications made 
Agreement on Subsidies a nd Countervailing Measures  
Article 25.1 Article XVI:1 of the GATT 1994 
and Article 25 of the SCM 
Agreement Full notifications 
every three years; 
annual updating. G/SCM/N/155/ALB, 14 April 2008 
Article 25.11 Counterva iling duties applied 
over the past six months Biannual No action taken (latest) 
G/SCM/N/185/Add.1/Rev.1,  14 October 2009 
Article 25.12 Investigati ng authority, domestic 
investigation procedures Once No notification made 
   Table II.1 (cont'd) 
  WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 22 
 
 
Legal provision Description of requirement Frequency WTO document (most recent or series) 
Article 32.6 Laws and regulations Once, then  changes G/SCM/N/1/ALB/2/Rev.1, 8 May 2008 
G/SCM/N/1/ALB/2, 3 December 2007  
G/SCM/N/155/ALB, 14 April 2008  G/SCM/N/1/ALB/1/Suppl.1, 7 June 2007  
G/SCM/N/123/ALB, 21 March 2005 
Agreement on Safeguards  
Article 12.6 Laws and regulations Once, then  changes G/SG/N/1/ALB/2/Rev.1, 30 April 2008  
G/SG/N/1/ALB/2, 28 November 2007  G/SG/N/1/ALB/1/Suppl.1, 8 June 2007  
G/SG/N/1/ALB/1, 21 March 2005 
General Agreement on Trade in Services (GATS)  
Article III:3 Legislation Ad hoc S/C/N/ 453; 455; 456; 457; 458; 459, 16 June 
2008;  S/C/N/485, 9 March 2009 
Article III.4 and IV.2 Enquiry a nd contact point Once, then cha nges S/ENQ/78/Rev.10, 13 June 2008 
Article V.7(a) Economic integration agreements Once only No notifications made  
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)   
Article 63.2 Laws and regulations Once, then  changes IP/N/1/ALB/P/2, 10 April 2008   
IP/N/1/ALB/D/1, 9 April 2008   
IP/N/1/ALB/D/2, 9 April 2008  
IP/N/1/ALB/I/1/Add.1, 9 April 2008  IP/N/1/ALB/P/1, 9 April 2008   IP/N/1/ALB/3, 4 April 2008   
IP/N/1/ALB/2, 23 February 2005 
IP/N/1/ALB/C/1/Add.1, 31 October 2002  IP/N/1/ALB/1, 30 October 2002  
IP/N/1/ALB/C/1, 25 March 2002  
IP/N/1/ALB/E/1, 25 March 2002  IP/N/1/ALB/I/1, 25 March 2002  
IP/N/1/ALB/L/1, 25 March 2002  
IP/N/1/ALB/U/1, 25 March 2002 
Article 69 Contact points Once, then changes IP/N/3/Rev.10, 16 May 2008 
Decision of the Council for TRIPS of 21 November 1995 Checklist of issues on 
enforcement Once, then changes IP/N/6/ALB/1, 18 April 2001 
Other    
Integrated Data Base 
for Personal 
Computers.  General 
Council Decision of 16 July 1997 Customs tariffs, import statistics Annual  G/MA/IDB/2/Rev.29/Corr.1, 31 March 2009 
Source : WTO Secretariat. 
(ii) Regional trade agreements 
27. Albania is signatory to the Central Eu ropean Free Trade Agreement (CEFTA 200624), and has 
bilateral free-trade agreements w ith the European Union and Turkey .  All of these agreements have 
entered into force and a consideration of the ag reements between Albania and the EU (on the goods 
aspect)25 on the one hand, and Albania and Turkey on the other, have been undertaken by WTO 
Members pursuant to the Transparency Mechanism for RTAs.26  As at early 2010, a factual 
presentation was under preparation by the WTO Secr etariat for the CEFTA 2006 and for the services 
aspect of the agreement with the European Union.  The focus of all the agreements Albania has signed 
                                                      
24 There was an earlier CEFTA Agreement (1991), signed by Poland, Hung ary, and the former 
Czechoslovakia.  Slovenia, Romania, Bulgaria, and Croatia joined subsequently.  However, the membership of 
CEFTA diminished as these countries acceded to the EU. 
25 The services aspect of the EU -Albania FTA was notified to the WTO under GATS Article V:7(a) 
(WTO document S/C/N/515, 12 October 2009) and is scheduled to be considered by the Committee on Regional 
Trade Agreements in 2010. 
26 EU-Albania (goods):  WTO document WT/REG226/1/Rev.1, 29 April 2008;  Turkey-Albania 
(goods):  WTO document WT/REG240/1, 31 March 2009. Albania WT/TPR/S/229/Rev.1 
 Page 23 
 
 
is on the liberalization of industrial produc ts.  Concessions in agriculture are limited.27  Under the 
EU-Albania agreement, services commitments are mi nimal;  there are no services commitments in the 
agreements with CEFTA and Turkey, but future libera lization is envisaged (Table II.2).  As at early 
2010 there had been no concrete progress in services liberalization under the CEFTA or the agreement 
with Turkey.  On 17 December 2009, Albania signed a free-trade agreement w ith the European Free 
Trade Association (EFTA).28  No other FTAs are under negotiation.   
 28. Albania participates in the EU's Stabilisation and Association Process.
29  The Stabilisation 
and Association Agreement (SAA) with the EU, whic h entered into force on 1 April 2009, contains 
obligations on a range of political, trade, and econo mic issues.  Previously, trade-related provisions 
had been implemented, since December 2006, und er an Interim Agreement.  The EU provides 
guidance to the Albanian authorities on reform priorities through the European Partnership.30  
Progress on these reform priorities is monitored thr ough bilateral dialogue that takes place through the 
SAA structures.  The first SAA Council was held in May 2009.  Six sector al working groups/sub-
committees meetings have been held since November  2008.  Albania is a potential candidate for EU 
membership.  Albania submitted its application for EU membership on 28 April 2009.  On 
16 November 2009 the Council invited the European Commission to submit its Opinion on Albania's 
application;  the Opinion is an analysis of a count ry's capacity to meet the membership criteria.  On 
the basis of the Opinion, it will be decided whethe r and when to proceed to the next stages of the 
accession process.31  The European Commission submitted a qu estionnaire to the Albanian authorities 
in December 2009. 
29. In its 2009 Progress Report, the EU noted, inter alia , that Albania has made progress in 
aligning its legislation, policies, and capacity with European standards in most areas, albeit unevenly.  
While progress had continued in areas such as free movement of goods, energy, SME policy, customs computerization, government procurement, and comp etition policy, in other areas, such as intellectual 
property rights, audiovisual polic y, agriculture, and veterinary/phytosanitary control, progress had 
been limited.  The report also noted that, ove rall, further efforts were needed to improve 
administrative capacity and to enhance effective implementation of legislation.
32 
30. The CEFTA 2006 regional free-trade agreement replaced the individual bilateral free-trade 
agreements Albania had signed with Bosnia a nd Herzegovina;  Croatia;  the Former Yugoslav 
Republic of Macedonia;  Moldova;  Serbia and Montenegro;  and UNMIK/Kosovo (United Nations 
Interim Administration Mission in Kosovo).33  Most of these stemmed from commitments under the 
Stability Pact, particularly a memorandum of understanding (MOU) signed in 2001 on Trade 
                                                      
27 Under the EU-Albania Agreement, 69.2% of tariff lines on agricultural products will be duty-free by 
the end of the implementation period in 2011;  under the Turkey-Albania Agreement, the equivalent share is 
14.7%. 
28 The member states of EFTA are:  Iceland,  Liechtenstein, Norway, and Switzerland.    
29 The Stabilisation and Association Process is the framework for EU negotiations on accession with 
the Western Balkan countries.  Its aims include enc ouraging their swift transition to a market economy and 
promoting regional cooperation.  EU online information. Viewed at:  http://ec.europa.eu/enlargement/enlargeme 
nt_process/accession_process/how_does_a_country_join_the_eu/sap/index_en.htm. 
30 Council Decision 2008/210/EC of 18 February 2008 on the principles, priorities and conditions 
contained in the European Partnership with Albania and repealing Decision 2006/54/EC.  Viewed at:  http://eur-
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:080:0001:01:EN:HTML. 
31 EU online information.  Viewed at:  http://ec. europa.eu/enlargement/press_corner/whatsnew/albania 
_en.htm. 
 32 European Commission (2009b);  and European Commission (2009a). 
33 WTO document WT/REG/GEN/N/5, 7 August 2007. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 24 
 
 
Facilitation and Liberalization under which Albania and the other signatory states to the MOU agreed 
to negotiate a network of b ilateral free-trade agreements.34   
Table II.2 
Overview of Albanian preferential trade agreements 
ALBANIA-EU 
Parties: Albania and the European Union and its Member States 
Date of signature/entry into force: 12 June 2006/1 D ecember 2006 (Interim Agreement (goods only)), 1 April 2009 (SAA 
(goods and services)) 
Transition for full implementation: Customs duties on industrial pr oducts listed in Annex I, to be  phased out to zero gradually  
over a five-year period.  Customs duties on ag ricultural products listed in Annex II(b) to 
be progressively reduced  
Albanian duty-free tariff lines: 87% (2006);  94% (2011) 
Provisions concerning goods: Abolition of quantitative restri ctions on imports (industrial, agricultural and fishery 
products) and exports (industria l products only);  abolition of any charges having an 
equivalent effect to customs duties on impor ts (industrial products);  abolition of export 
duties (industrial products).  Special safegua rd for agriculture and fisheries products. 
Specific arrangements for iron and steel produc ts and wines and spirits respectively;  
general safeguard clause;  shortage clause  
Provision concerning services: Provisions on movement of "key personnel";   rules on transport services (although 
carve-out for air transport services;  inla nd waterways transport and maritime cabotage 
services) 
Other provisions: Non-discrimination in procurement and marketing of goods by state monopolies;  
administrative cooperation;  investment-rela ted provisions;  approxi mation of laws;  law 
enforcement and competition rules; cooperati on in a number of trade related areas 
Albanian merchandise trade ( 2009): Exports US$1.08 billi on (79.4% of total);  imports US$3.19 billion (60.7% of total) 
Related WTO documents: WT/REG226/N/1, 22 Ma rch 2007;  WT/REG226/1/Rev.1, 29 April 2008 
Relevant websites: http://ec.europa.eu/en largement/potential-ca ndidates/albania/key-
documents/index_en.htm 
ALBANIA-CEFTA 2006 
Parties: Albania;  Bosnia and Herzegovina;  Cr oatia;  Former Yugoslav Republic of Macedonia;  
Moldova;  Montenegro;  Serbia;  UNMIK/Kosovo 
Date of signature/entry into force: 19 December 2006/1 May 2007 
Transition for full implementation: Transition period to end at  latest on 31 December 2010;  abolition of customs duties on 
entry into force of the agreem ent, with the exception of progressive reduction leading to 
abolition of customs duties on industrial produc ts listed in Annex 2 by 2008.  Customs 
duties specified in Annex 3 to be reduced or abolished according to the schedules listed in 
the Annex 
Albanian duty-free tariff lines: Industrial products are duty fr ee for all CEFTA countries.  In 2009, Albania agreed (but 
the agreement has not yet been signed) that ag ricultural tariffs should be duty free for all 
countries except Bosnia and Herzegovina 
Provisions concerning goods: Abolition of quantitative restri ctions on imports and exports of all goods;  abolition of 
export duties on all goods;  abolition of custom s fees; abolition of export subsidies in 
mutual agricultural trade;  parties to nego tiate agreements on harmonization or mutual 
recognition of SPS measures;  elimination of un necessary technical barriers to trade;   
cooperation to facilitate and harmonize technical  regulations;  general safeguard clause 
ALBANIA-CEFTA 
Provision concerning services: Parties to cooperate with the aim of progressive liberalization and mutual opening of 
services markets 
 Table II.2 (cont'd) 
 
                                                      
34 Signatories to the 2001 Memorandum of Understand ing on Trade Facilitation and Liberalization are:  
Bosnia and Herzegovina, Bulgaria, Croatia, the Federal Re public of Yugoslavia, the Former Yugoslav Republic 
of Macedonia, and Romania.  Viewed at:  http ://www.stabilitypact .org/trade/Memorandum%20of%20Under 
standing%20on%20Trade%20Liberalisation%20and%20Facilitation.pdf. Albania WT/TPR/S/229/Rev.1 
 Page 25 
 
 
ALBANIA-CEFTA 
Other provisions: Non-discrimination in procurement and marketing of goods by state monopolies;  
competition;  state aid;  investment-r elated provisions;  transparency and non-
discrimination in government procurem ent (by May 2010);  implementation of 
obligations in certain IP conventions by May 2014;  dispute settlement 
Albanian merchandise trade ( 2008): Exports:  US$186 milli on (13.7% of total);  imports:  US$436 million (8.3% of total) 
Related WTO documents: WT/REG233/N/1, 26 Ju ly 2007;  WT/REG233/N/1/Rev.1, 30 July 2007 
Relevant websites: http://www.stabilit ypact.org/wt2/TradeCEFTA2006.asp  
ALBANIA-TURKEY 
Parties: Albania and Turkey 
Date of signature/entry into force: 22 December 2006/1 May 2008 
Transition for full implementation: Transiti onal period lasting a maximum of five year s to 1 January 2013.  Duty elimination 
on industrial products takes place on the date of entry into force of th e agreement and, for 
products listed in Annex II, there are 20%  reductions on 1 January on each of the 
following years until the elimination of most duties on 1 January 2013 
Albanian duty-free tariff lines: 81.1% (2008) and 82.4% (2013) 
Provisions concerning goods: Abolition of quantitative rest rictions on imports of industrial goods;  concessions on 
certain basic agricultural, processed agricultu ral and fishery products in accordance with 
Protocol I (preferential treatment granted by Albania to Turkish products listed in Annex I 
to Protocol I); abolition of export duties and quantitative restrictions on exports of 
industrial products;  veterinary and phytosan itary control measures to be harmonized on 
the basis of EU legislation;  safeguard meas ures of limited duration permitted for infant 
industries or sectors under going restructuring or facing serious difficulties 
Provision concerning services: Cooperation with a view to futu re liberalization of opening markets to trade in services 
Other provisions: Non-discriminatio n in procurement of goods by state monopolies;  objective of 
progressive liberalization of pub lic procurement;  competition;  transparency of state aid;  
cooperation with view to future liberali zation on opening markets to investment;  
non-discriminatory protection and enforcement of intellectual property rights;  dispute 
settlement 
Albanian merchandise trade (2008): E xports:  US$26 million (1.9% of total);  imports US$315 million (6% of total) 
Related WTO documents: WT/REG240/N/1, 14 May 2008;   WT/REG240/1, 31 March 2009;  WT/REG240/2, 
24 June 2009;  WT/REG240/3, 12 October 2009 
Relevant websites: http://www. mete.gov.al/rub.php?idr=239&l=e 
Source:  WTO Secretariat. 
31. In addition, Albania has trade and economi c cooperation agreements  in force with:  
Argentina, China, Croatia, Egypt, Israel, FY RM, Malaysia, Russia, Serbia and Montenegro, 
Switzerland, Turkey, Ukraine, the United States, a nd Uruguay.  According to official sources, these 
are intended to promote trade and economic cooperation.35   
32. Albania is entitled to benefit from the GSP sch emes of Canada, Japan, Norway, Switzerland, 
and the United States.  In addition, since 2000, Albania (together with other Western Balkan 
countries) is eligible for preferential treatment in th e EU market under a waiver  to GATT Article I(1).  
The waiver was originally set to expire in 2006, but was extended until 2011.36 
                                                      
35 Albinvest online information. Viewed at: http://www.albinvest.gov.al/dokumenti.asp?id=352&kujam 
=212&menu=84.   
36 WTO documents WT/L/380, 13 December 2000;  WT/L/380/Corr.1, 8 January 2001;  and 
WT/L/654, 2 August 2006.  Under the terms of this waiver , the EU is required to submit an annual report to the 
WTO General Council.  For the most recen t report, see WT/L/763, 21 July 2009. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 26 
 
 
(iii) Aid for trade 
33. According to the Joint WTO/OECD database, Al bania received trade-related assistance from 
international donors totalling US$115.68 million du ring 2001-07.  Over 60% of all funding was 
provided by the EU.  Most of the assistance was provided under the category of "trade policy and 
regulations" (US$82.83 million), and the remainde r under the category "all trade development" 
(US$32.86 million).  No support under the "i nfrastructure" category was recorded.37  Financial 
support from international donors tailed off significantly in 2007.   
 
(4) FOREIGN INVESTMENT REGIME  
34. The foreign investment regime is very op en.  Law No. 7,764 of 2 November 1993, On 
Foreign Investments, state that investment is  permitted on the same te rms to both foreign and 
domestic investors, the only exception being with respect to land ownership.38  Prior authorization for 
investments is not required.  Foreign investments are not subject to conditions:  the Law guarantees 
equal and impartial treatment, and protection and security.  Companies investing in Albania have the 
right to employ foreign citizens, and funds relate d to investments may be transferred outside the 
country, with limitations in certain circumstances.39  Under the law, funds related to a foreign 
investment include:  (a) revenues;  (b) compensa tion;  (c) payments deriving from an investment 
dispute;  (d) payments made pursuant to a contr act, including loan and interest payments made 
according to a loan agreement;  (e) revenues deriving from the sale or the partial or complete liquidation of an investment;  and (f) revenues de riving from reduction of the company's capital.   
35. The Constitution guarantees the right to private property.  Articles 4 and 5 of the Law on 
Foreign Investments states that foreign investments may not be nationalized or  expropriated, except in 
special cases defined by law and when in the public  interest.  In these cases, procedures must take 
place without any discrimination, with compensati on, and in accordance with the law.  Legal 
provisions on expropriation and nationalization of private property are also set out in the Constitution 
(Article 41).  These Constitutional provisions are developed in more detail in Law No. 8,561 of 
22 December 1999, On Expropriations and Tempor ary Takings of Private Property for a Public 
Interest.  It, inter alia,  specifies the procedures and conditions that must be followed in order for 
expropriations to take place, the reasons for which expropriations may be made, whom they may be in 
favour of, valuation of and compensation for expropriated objects, and, appeal procedures.
40  
Compensation must be equal to the real market valu e of the investment and paid without delay.  As 
set out in Article 8 of the Law on Foreign Investments, foreign investors may submit disputes to the 
appropriate national court.  The authorities indicated that, sin ce 2000, there has been one case of 
expropriation in the public interest:  this i nvolved the expropriation of land from the Kamza 
                                                      
37 Joint WTO/OECD Trade Capacity  Building Database.  Viewed at:  http://tcbdb.wto.org.   
38 Law No. 7,764 of 2 November 1993, On Foreign Investments.  Viewed at:  
http://www.slas.info/legislazione_albanese/law%20_7764_1993_foreign_investments.php#top_contenuto. 
39 As set out in Article 7(3) of Law No. 7,764 of 2 November 1993, Albania may limit transfers 
through a non-discriminatory application of laws of a general character, including those regarding the payment 
of taxes and fulfilment of duties and court decisions. 
40 The reasons for expropriation are set out in Article  8 of the law.  They include:  realizing treaty 
obligations and projects contemplated in international agreements;  investments for the public interest in the 
areas of:  transportation, telecommunications, water and irrigation works, environmental protection, heath, culture, public education, and infrastructure;  reasons of  national defence, public health, and national security;  
and to protect property of a historical, archaeological, cultural or scientific value.  As set out in Article 9 of the 
law, expropriation may be done in favour of the State, publ ic or private, local or foreign juridical persons for the 
reason of a project, investment or obj ect that presents a public interest. Albania WT/TPR/S/229/Rev.1 
 Page 27 
 
 
Development Company (foreign owned) in order to de velop a road interchange.  They noted that the 
company was duly compensated. 
36. Albania has recently ratified both the New York Convention of 1958 and the Geneva 
Convention of 1961.  Law No. 7, 764 of 2 November 1993 stipulates that Albania is committed to 
recognize and enforce any international arbitrati on award concerning a dispute relating to foreign 
investment.  Albanian legislation provides for th e possibility of entering a clause into a contract 
indicating the steps to be taken to resolve disput es.  If this clause has b een inserted, the foreign 
entrepreneur may turn to a court or arbitrator, as required by Albanian law.  Disputes concerning unequal treatment or expropriation of foreign invest ment by the Government of Albania, may be 
submitted to the International Center for Settlement  of Investment Disputes (ICSID), as determined 
by the Convention on the Settlement of Investment Disputes, adopted in Washington in 1965.  In 
accordance with Albanian law, every international arbitration decision is final and irrevocable for the 
parties in dispute.  In case any provision of Law No. 7,764 is not in conformity with international 
agreements ratified by Albania, the latter will prevail to the extent that they provide greater rights or 
protection for foreign investors. 
37. Albania has 37 bilateral agreements in for ce on reciprocal protection and promotion of 
investments.  These are with:  Austria;  Belgium and Luxembourg;  Bosnia and Herzegovina;  Bulgaria;  China;  Croatia;  Czech Republic;  Denmark;  Egypt;  Finland;  France;  Germany;  Greece;  
Hungary;  Israel;  Italy;  UNMIK;  Kuwait;  Repub lic of Korea;  Lithuania;  Former Yugoslav 
Republic of Macedonia;  Malaysia;  Moldova;  Neth erlands;  Poland;  Portugal;  Romania;  Russian 
Federation;  Serbia;  Slovenia;  Spain;  Sweden;  Switzerland;  Tunisia;  Turkey;  Ukraine;  United 
Kingdom;  and United States.
41  A further eight agreements have been approved in principle but not 
yet signed, with Malta;  Cyprus;  Iran;  Lebanon;  Libya;  Norway;  Syria;  and Qatar. 
                                                      
41 Albinvest online information.  Viewed at:  http://www.albinvest.gov.al/dokumenti.asp?id=352& 
kujam=212&menu=84.