WORLD TRADE  
ORGANIZATION  WT/REG226/1 
25 January 2008 
 (08-0367) 
Committee on Regional Trade Agreements  
 
 
 
 
 
FACTUAL PRESENTATION 
 
Interim Agreement on Trade and 
Trade-related Matters between the  
European Communities and Albania 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Interim Agreement on Trade and 
Trade-related Matters between the European Communities and Albania has been drawn up by the WTO Secretariat on its own responsibility and in full consultation 
with the Parties.  The report has been  drawn up in accordance with the rules and 
procedures contained in the Decision for a Transparency Mechanism for Regional 
Trade Agreements (WT/L/671). 
 
Any technical questions arising from this report may be addressed to Ms. Juneyoung Lee (tel: +41 22 739 6791). 
 WT/REG226/1 
Page iii 
 
 
TABLE OF CONTENTS 
 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
II. TREATY CHARACTER ISTIC ELEMENTS 4  
A. BACKGROUND INFORMATION  4 
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  6 
1. Import duties and charges, and quantitative restrictions 6  
(a) General provisions 6 
(b) Liberalization of trade and tariff lines 6 
(c) The EC's liberalization schedule 7 (d) Albania's liberalization schedule 8 
(e) Tariff-rate quotas 9 
2. Rules of origin 10  
3. Export duties and charges, and quantitative restrictions 11  
C. R
EGULATORY PROVISIONS OF THE AGREEMENT  12 
1. Standards 12  
(a) Sanitary and phytosanitary measures 12 
(b) Technical barriers to trade 12 
2. Safeguard mechanisms 12  
(a) Global safeguards 12 
(b) Bilateral safeguards 12 
(c) Special safeguards 13 
3. Anti-dumping and coun tervailing measures 13  
4. Subsidies 14  
5. Other regulations 14  
(a) Customs-related procedures 14 
(b) Competition policy and State-aid 14 
(c) State monopolies 15 
(d) Government procurement 15 (e) Intellectual property 16 
(f) Shortage clause 16 
(g) Transit traffic 17 
D. S
ECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  17 
1. Iron and steel products 17  
2. Wines, spirits and aromatized wines 18  
(a) Reciprocal and preferential trad e concessions for certain wines 18 
(b) Reciprocal recognition, protection and control of wine, spirits and 
aromatized wine names 18 
E. G ENERAL PROVISIONS OF THE AGREEMENT  20 
1. Transparency 20  
2. Exceptions 20  
3. Accession 20  
4. Institutional framework 21  
5. Dispute settlement 21  
6. Relationship with other agreements concluded by the Parties 21  
ANNEX I 23 
ANNEX II  26 
 WT/REG226/1 
Page 1 
 
 
INTERIM AGREEMENT ON TRADE AND TRADE-RELATED MATTERS BETWEEN  
THE EUROPEAN COMMUNITIES AND ALBANIA (GOODS) 
 
Factual Presentation by the Secretariat  
 
 I. TRADE ENVIRONMENT 
1. The interim agreement on trade and trade-rela ted matters between the European Communities 
(EC) and Albania (hereinafter referred to as 'the Agreement') is a step envisaged under the 
Stabilization and Association Process (SAP).
1  The Agreement is Albania's second free trade 
agreement after the Central Europ ean Free Trade Agreement (CEFTA).2 
2. The EC is Albania's first export destination accounting for 88.7 % of the total value of its 
exports, followed by the Former Yugoslav Republic  of Macedonia(2.4%);  Turkey(1.7%);  and the 
United States(1.0%).  The EC is also Albania's fi rst import source with 63.6% of the total value of 
imports, followed by Turkey(7.5%);  China(6.5%);  the Russian Federation(4.0%);  and 
Ukraine(2.9%).3  
3. The EC(25)'s GDP was estimated at €10,884 billion in 2005, while that of Albania reached 
€6,738 million in the same year.4  With total merchandise exports of €1,072 billion and imports of 
€1,184 billion, the EC ranked in 2005 as the fi rst exporter and the second importer in the world 
(merchandise excluding intra-EC trade); with me rchandise exports of €529 million and imports of 
€2,105 million, Albania ranked as the 147th exporter and the 117th importer (merchandise including 
intra-EC trade) in that year.5  
4. Recent developments in global and intra-Party trad e are presented in Charts I.1 and I.2.  Over 
the period surveyed (1999-2006), Albania has r un a consistent trade deficit with the EC. 
 
 
 
                                                      
1 The SAP is the EC's policy scheme for the countrie s of the Western Balkans – Albania;  Bosnia and 
Herzegovina;  Croatia;  the Former Yu goslav Republic of Macedonia;  Mont enegro;  and Serbia.  This policy 
has three major goals: stabilization and a transition to a market economy;  the promotion of regional 
cooperation;  and the Western Balkan  countries' eventual accession to the European Union.  Consulted at: 
http://ec.europa.eu/enlarg ement/enlargement_process/ accession_process/how_does_a_country_join_the_eu/sap/
index_en.htm.  
2 Parties to the CEFTA are Albania;  Bosnia and Herzegovina;  Croatia;  Former Yugoslav Republic of 
Macedonia;  Moldova;  Montenegro;  Serbia;  and Un ited Nations Interim Administration Mission in Kosovo. 
3 WTO Statistics Database, Trade Profiles. 
4 Eurostat for the EC and WTO Statistic s Database, Trade Profiles for Albania. 
5 WTO Statistics Database, Trade Profiles. WT/REG226/1 
Page 2 
 
 
02505007501,0001,2501,500
1999 2000 2001 2002 2003 2004 2005 20060.00.51.01.52.02.53.0€ billion € billionChart I.1 - EC: merchandise import s from and exports to world and 
Albania, 1999-2006
Source: Eurostat statistical database.  Viewed at: http://epp.eurostat.ec.europa.eu.Imports from Albania
Exports to AlbaniaTotal imports
Total exportsLeft hand scale: Right hand scale:
 Note:       Data for 1999-2003 is for EC(15); 2004-2006 is for EC(25).
 
 
0.00.51.01.52.02.53.0
1999 2000 2001 2002 2003 2004 2005 20060.00.51.01.52.02.53.0€ billion € billionChart I.2 - Albania: merchandise im ports from and exports to world 
and the EC, 1999-2006
Source: UNSD, Comtrade database.Imports from the EC
Exports to the ECTotal imports
Total exportsLeft hand scale: Right hand scale:
Note:       Data for 1999-2003 is for EC(15); 2004-2006 is for EC(25).
 
 
5. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the period 2004-2006, is shown in Chart I.3 on the basis of Harmonized System 
(HS) section. 
 WT/REG226/1 
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Chart I.3
EC(25) and Albania: product compos ition of merchandise trade, annual 
average (2004-2006)
EC(25) imports from Albania Albania's imports from the EC(25)
Sources :  UNSD, Comtrade databasePer cent
Total:  €427.7 million Total:  €1,361.3 million
Total:  €1,190.5 billion Total: €2,130.1 million
Total:  €1,074.8 billion Total:  €548.9 millionEC(25) global exports Albania's global exportsEC(25) global imports Albania's global importsOther
5.2
Chemicals  7.6
Base Metals
14.2
Vehicles  8.2Machinery 4.6Machinery
16.9Other 
6.1
Stone, cement 4.1
Base Metals 8.7Wood Pulp 2.1
Other 
7.9 Machinery
16.1
Animals 2.9
Prepared 
Foods  7.8Base Metals 11.1Plastics 3.3Other
6.3
Minerals
23.9Optical  3.8Machinery
24.2
Vehicles
7.9Chemicals 7.4Textiles 6.3
Base metals 6.5
Prepared Foods  4.5Machinery
30.1Raw hides  2.7
Pearls  2.6Plastics 2.5
Vehicles
 6.2
Other 
9.6Other 
6.1Minerals 4.3
Vehicles
 14.8
Chemicals 
14.0Base Metals 6.7Optical  4.8Textiles 3.5
Minerals 4.4Plastics 3.9Prepared Foods  3.3Pearls  2.6Wood Pulp 2.3
Base Metals 
15.3Minerals
5.8Machinery 3.6Raw hides  2.0Footwear
  31.7Vegetables 2.2Miscellaneous 2.0
Minerals
12.3
Textiles 9.6Textiles 27.0Articles of good 2.4
Prepared  Foods  3.7
Textiles 11.8
Minerals 9.5
Prepared  Foods  9.0Vegetables 3.9Raw hides  3.4Plastics 3.3Footwear 3.2Miscellaneous 2.2
Miscellaneous 2.4Vegetables 2.3Prepared  Foods  2.2
Vegetables 6.2Stone, cement 3.7Footwear 2.8Miscellaneous 2.3Raw hides  2.3
Textiles 30.6
Footwear 27.0Vegetables 3.0Miscellaneous 2.1Chemicals 7.1
 
 WT/REG226/1 
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 6. The EC’s four largest export product categories – machinery, vehicles, chemicals and base 
metals – made up 65.6% of its  total exports in 2004-2006 and accounted for 41.4% of Albania’s 
imports from the EC.  Albania’s four largest e xport product categories – textiles, footwear, base 
metals and minerals – made up 78.7% of its total exports in 2004-2006 and accounted for 77.2% of 
the EC’s imports from Albania. 
II. TREATY CHARACTERISTIC ELEMENTS 
A. 
BACKGROUND INFORMATION  
7. The Agreement was signed by the EC and Alba nia on 12 June 2006.  The Agreement entered 
into force for all Parties on 1 December 2006. 
8. The Agreement was put into place to allow the EC and Albania to benefit from the trade and 
trade-related provisions of the Stab ilization and Association Agreement6 (hereinafter referred to 
'SAA') which Albania and the EC signed on 12 June 2006, but which is subject to ratification by the 
EU Member States and therefore not yet in force.7 
9. The goods aspects of the Agreement was notifie d to the WTO by the Parties on 1 March 2007 
under Article XXIV of the GATT 1994 and the Unders tanding on the Interpretation of Article XXIV 
of GATT 1994 (WT/REG226/N/1).  The text of the Agre ement is available, together with its related 
schedules, annexes and protocols, on the official website of the EC: 
http://europa.eu.int/eur-lex/lex/JOIndex.do?year =2006&serie=L&textfield2=239&Submit=Search 
10. The Agreement is composed of four Titles, thr ee Chapters and has related Annexes, Protocols 
and Appendixes, as follows: 
Box II.1: Composition of the Agreement 
Preamble   
Title I – General Principles 
Title II – Free Movement of Goods 
 Chapter I – Industrial Products 
Chapter II – Agriculture and fisheries 
Chapter III – Common provisions 
Title III – Other Trade and Trade-Related Provisions 
Title IV– Institutional, General and Final Provisions 
 
Annex I- Albanian Tariff Concessions for the EC Industrial Products (referred to in Article 6) 
Annex II(a) – Albanian Tariff Concessions for Agricultu ral Primary Products Origina ting in the EC (referred 
to in Article 14(3)(a)) 
Annex II(b) – Albanian Tariff Concessions for Agricultu ral Primary Products Originating in the EC (referred 
to in Article 14(3)(b)) 
Annex II(c) – Albanian Tariff Concessions for Agricultu ral Primary Products Origina ting in the EC (referred 
to in Article 14(3)(c)) 
Annex III – EC Concessions for Albanian Fish and Fishery Products 
Annex IV- Intellectual, Industrial and Commercial Property Rights 
                                                      
6 http://ec.europa.eu/enlargemen t/pdf/albania/st08164.06_en.pdf 
7 Stabilization and Association Ag reements (SAAs) aim to provid e for economic development and 
political stabilization of the countries in the region, and to establish a close and long-term association between 
the EC and the Western Balkans.  Two SAAs have entere d into force: with the former Yugoslav Republic of 
Macedonia and with Croatia (G/C/W/5 52, 5 May 2006).  A SAA with Monten egro was signed on 15 October 
2007.  Negotiations have been finalized on SAAs with Bosnia and Herzegovina and Serbia. WT/REG226/1 
Page 5 
 
 
Box II.1 (Cont'd)  
Protocol 1 – On Iron and Steel Products 
Protocol 2 – On Trade between Albania and the EC in the Sector of Processed Agricultural Products 
 Annex I – Duties Applicable upon Imports into the EC of Processed Agricultural Products 
Originating in Albania 
 Annex II(a) – Duties Applicable upon Imports into Albania of Processed Agricultural Products 
 Originating in the EC 
 Annex II(b) – Albanian Tariff Concessions for Pr ocessed Agricultural Products Originating in the 
 EC (eliminated on the date of en try into force of the Agreement) 
 Annex II(c) – Albanian Tariff Concessions for Processed Agricultural Products Originating in the 
EC (reduced and eliminated following  by the time schedule therein) 
 Annex II(d) – For Those that MFN Custom Duties Will Continue to Apply by Albania 
Protocol 3 – On Reciprocal Preferential Concession s for Certain Wines, the Reciprocal Recognition, 
Protection and Control of Wine, Spirits and Aromatised Wine Names 
 Annex I – Agreement between the EC and Albania on Reciprocal Preferentia l Trade Concessions for 
Certain Wines 
 Annex II – Agreement between the EC and Albania on the Reciprocal Recognition, Protection and 
Control of Wine, Spirits and Aromatised Wine Names 
 Appendix 1 – List of Protected Names 
 Appendix 2 – List of Traditional Expressions and Quality Terms for Wine in the EC 
 Appendix 3 – List of Contact Points 
Protocol 4 – Concerning the Definition of the Concept of 'Originating Products' and Methods of 
Administrative Cooperation 
 Annex I – Introductory Notes to the List in Annex II 
 Annex II – List of Working or Processing Required to be Carried Out on Non-Originating Materials 
in Order that the Product Manufactur ed Can Obtain Originating Status 
 Annex III – Specimens of Movement Certificate EUR.1 and Application for a Movement Certificate 
 EUR.1 
 Annex IV – Text of the Invoice Declaration 
Protocol 5 – On Mutual Administra tive Assistance in Customs Matters 
Final Act 
Joint Declarations  
 
Source : The Agreement. 
 
11. The Parties will gradually establish a free tr ade area over a maximum period of ten years 
starting from the date of entry into fo rce of the Agreement (Article 3.1).8  No overall implementation 
period is explicitly stated in the Agreement.  However, Albania's schedules of concessions on 
industrial products foresees implemen tation up to the fifth year following the date of entry into force 
of the Agreement (1 January 2011). In addition, for a number of agricultural products, Albania's duty 
reduction and elimination is to be completed on 1 January of the fourth year following the date of 
entry into force of the Agreement (1 January 2010).9 
12. The Combined Nomenclature (CN) of goods is a pplied to the classification of goods in trade 
between the Parties (Article 3.2). 
                                                      
8 Article XXIV.5.(c) of the GATT 1994 states that any interim ag reement shall include a plan and 
schedule for the formation of a free-trade ar ea within a reasonable length of time. 
9 According to the Parties, a shorter transitional period  of ten years applies for the elimination of duties. WT/REG226/1 
Page 6 
 
 B. 
NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. Import duties and charges, and quantitative restrictions 
(a) General provisions 
13. The Agreement covers agricultural and fisher y products (CN Chapters 1-24 and products 
listed in Annex 1,1,(ii) of the WTO Agreement on Agriculture)10 and industrial products 
(CN Chapters 25-97 with the exception of the pr oducts listed in Annex 1,1,(ii) of the WTO 
Agreement on Agriculture).11  Products covered by the Treaty establishing the European Atomic 
Energy Community shall be treated accord ing to the provisions of that Treaty. 
14. The Parties cannot increase existing, or introduce new, customs duties on imports or charges 
having equivalent effect on their mutual trade in pro ducts covered by the Agreement.  The Parties also 
cannot introduce any new or more restrictive quantita tive restrictions on their mutual trade in products 
covered by the Agreement (Article 20.1 and 20.2). 
15. The base rate used by the Parties for implemen ting tariff liberalization under the Agreement is 
the applied MFN duty on the day preceding the signature of the Agreement (11 June 2006) 
(Article 3.3). 
16. As regards agriculture and fisheries, the Parti es shall abolish all quantitative restrictions and 
measures having equivalent effect on imports on the date of entry into force of the Agreement 
(Article 13).  The EC shall abolish import duties a nd charges having equivalent effect on agricultural 
products originating in Albania from the date of entry into force of the Agreement with some 
exceptions (Article 14.1).  Albania shall abolish or reduce progressively import duties on agricultural 
products originating in the EC from the date of entr y into force of the Agreement (Article 14.3 (a)(b), 
Annex II (a)(b), and Annex II(a)(b)(c) of Protocol 2) .  The Parties shall examine the possibilities of 
granting each other further concessions to implement gr eater liberalization of the trade in agricultural 
and fishery products.  This shall be conducte d in the Stabilization and Association Council12, no later 
than six years after the date of entry into force of the Agreement, on a product by product and orderly 
and appropriate reciprocal basis (Article 16). 
17. The Parties abolish import duties, charges and qua ntitative restrictions on industrial products 
upon entry into force of the Agreement, with the exception of some goods originating in the EC that 
Albania will progressively reduce import duties on (Artic le 5, Article 6, Article 7 and Annex I).  The 
liberalization of import duties on industrial products  may be accelerated by Albania if its general 
economic situation, and the situation of the economic  sector concerned, allow.  The Stabilization and 
Association Council will analyse the situation and make any relevant recommendations (Article 9). 
(b) Liberalization of trade and tariff lines 
18. The EC's MFN tariff schedule in 2006 comprised 9,843 tariff lines at the 8-digit level, out of 
which 989 held non ad valorem  duties.  Table II.1.A shows duty elimination in terms of tariff lines 
and trade, as applied by the EC to imports from Al bania.  2,559 tariff lines (26% of the EC's tariff 
                                                      
10 Primary agricultural products (as defined in Anne x II of the Agreement);  processed agricultural 
products (as defined in Protocol 2 of the Agreement); fish and fishery products (as defined in Annex III of the 
Agreement);  and wines, spirits and aromatized wines (as defined in Protocol 3 of the Agreement). 
11 Iron and steel products listed in CN Chapters 72 and 73 are detailed in Protocol 1 of the Agreement. 
12 According to the Stabilization and Association Ag reement between the EC and their Member States 
and Albania, the Stabilization and Association Council shall consist of the members of the Council of the 
European Union and of the Commission of the EC, on the one hand, and members of the Government of 
Albania, on the other (Article 117.1). WT/REG226/1 
Page 7 
 
 
lines) were already duty-free on an MFN basis.   As a result of the Agreement an additional 7,154 
tariff lines (72.7% of its tariff lines) became duty fr ee for imports from Albania;  the EC eliminated 
duties on Albanian goods on 98.7% of its tariff lines and for 100% of the value of imports from Albania. 
19. Albania's MFN tariff schedule in 2006 comprised  10,175 tariff lines at the 8-digit level, all 
consisting of ad valorem  duties.  Table II.1.B shows duty elimination in terms of tariff lines and trade, 
as applied by Albania to the EC.  3,377 tariff lines ( 33.2% of Albania's tariff lines) were already duty-
free on an MFN basis.  Upon entry into force of the Agreement, an additional 5,435 tariff lines 
(53.4% of tariff lines) became duty-free for imports from the EC;  86.6% of Albania's tariff lines 
became duty-free for products of EC origin and for 77.1% of the value of imports from the EC.  A 
further 39 and 576 tariff lines are to become duty-free in 2009 and 2010, respectively.  By 2010, duty-free tariff lines under the Agreement are expected to increase to 92.7%. 
Table II.1 
Tariff elimination commitments under the Ag reement and corresponding average trade  
A:  The EC 
Duty phase-out period  Number  
of lines % of total lines in 
the EC's Tariff 
Schedule Value of EC imports 
from Albania  
(€ million) 
2004-2006 % of total EC imports 
from Albania 
2004-2006 
MFN duty free 2,559 26.0 79 37.6 
1 December 2006 7,154 72.7 131 62.4 
Remain dutiable 130 1.3 0.1 0.0 
Total 9,843 100.0 210.1 100 
 
B:  Albania  
Duty phase-out period Number  
of lines % of total lines in 
Albania's Tariff 
Schedule Value of Albania's 
imports from the EC  
(€ million) 
2004-2006 % of total Albanian  
imports  
from the EC 
2004-2006 
MFN duty free 3,377 33.2 410 30.3 
1 December 2006 5,435 53.4 632.5 46.8 
2009 39 0.4 17.9 1.3 
2010 576 5.7 105.6 7.8 
Remain dutiable 748 7.4 185.1 13.7 
Total 10,175 100.0 1,351.2 100.0 
Source:  WTO Secretariat estimates based on data provided by the EC and Albanian authorities. 
 
(c) The EC's liberalization schedule 
20. Table II.2 shows the EC tariff elimination commitments vis-à-vis  Albania by HS section 
product categories.  The 130 tariff lines which remain dutiable after entry into force of the Agreement 
(1.3% of EC tariff lines) are found in HS sections  IV and I (prepared food and live animals and 
animal products).  
 WT/REG226/1 
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Table II.2 
The EC: Tariff elimination under the Agreement, by HS section  
Number  of duty-free lines  
HS section and description MFN 
average 
% Total 
No of 
lines 
 MFN 
2006 Under the 
Agreement on  
1 December 
2006 Remain dutiable 
I Live animals and animal products 21.7 799 114 631 54 
II Vegetable products 15.3 543 137 406  
III Animal or vegetable fats and oils 9.2 125 22 103  
IV Prepared food etc. 17.9 834 93 665 76 
V Minerals 0.8 247 183 64  
VI Chemical and products 4.4 1,285 353 932  
VII Plastics and rubber 4.6 351 67 284  
VIII Hides and skins 2.9 155 47 108  
IX Wood and articles 2.7 188 85 103  
X Pulp, paper etc. 0.0 224 224   
XI Textile and textile ar ticles 7.9 1,228 52 1,176  
XII Footwear, headgear 7.9 111 2 109  
XIII Articles of stone 3.9 251 34 217  
XIV Precious stones, etc. 0.7 63 48 15  
XV Base metals and  products 1.9 1,000 508 492  
XVI Machinery 2.1 1,537 377 1,160  
XVII Transport equipment 4.7 280 32 248  
XVIII Precision equipment 2.2 357 103 254  
XIX Arms and ammunition 2.2 28 5 23  
XX Misc. manufactured articles 2.4 230 66 164  
XXI Works of art, etc. 0.0 7 7   
Total 6.9 9,843 2,559 7,154 130 
Note: In-quota tariff lines are excluded. 
Source:  WTO estimates based on data provided by the EC authorities. 
 
(d) Albania's liberalization schedule 
21. Table II.3 shows Albania's tariff elimination commitments vis-à-vis  the EC by HS section.    
Of the remaining 1,363 tariff lines subject to duty af ter entry into force of the Agreement, 39 lines are 
to be fully liberalized by 2009;  they include mostly base metals and base metal products.  The 
additional 576 tariff lines to be fully liberalized by 2010 are all agricultural products.  Those that will 
continue to remain dutiable after implementati on of the Agreement (748 tariff lines or 7.4% of 
Albania's tariff lines) are also mostly agricultural pr oducts, such as prepared food;  live animals and 
animal products;  a nd vegetable products.  
Table II.3   
Albania: Tariff elimination unde r the Agreement, by HS section  
Number of lines duty-free 
under the Agreement in: 
HS section and description MFN 
average 
% Total 
No of 
lines  
 MFN 2006 
duty-free 
lines 1. Dec. 
2006 2009 2010 Remain 
dutiable 
I Live animals and animal products 5.5 805 328 63  130 284 
II Vegetable products 8.2 560 32 253  218 57 
III Animal or vegetable fats and oils 2.2 125 92 22  8 3 
IV Prepared food etc. 10.5 843 65 259  220 299 
V Minerals 4.4 248 28 204 1  15 
VI Chemical and products 1.6 1,284 633 630 4  17 
VII Plastics and rubber 6.3 368 48 299   21 
VIII Hides and skins 8.6 155  155    
IX Wood and articles 2.0 189 128 61    
X Pulp, paper etc. 1.6 226 165 61    
XI Textile and textile arti cles 9.7 1,288  1,288    
XII Footwear, headgear 14.3 111  92   19 
XIII Articles of stone 10.1 255 6 230   19 
XIV Precious stones, etc. 6.1 63  63    
XV Base metals and  products 7.4 1,020 226 763 27  4 
XVI Machinery 1.3 1,679 1,339 330   10 
Table II.3 (Cont'd)  WT/REG226/1 
Page 9 
 
 
Number of lines duty-free 
under the Agreement in: 
HS section and description MFN 
average 
% Total 
No of 
lines  
 MFN 2006 
duty-free 
lines 1. Dec. 
2006 2009 2010 Remain 
dutiable 
XVII Transport equipment 4.0 292 79 213    
XVIII Precision equipment 3.5 392 191 201    
XIX Arms and ammunition 15.0 28  28    
XX Misc. manufactured articles 12.1 237 10 220 7   
XXI Works of art, etc. 0.0 7 7     
Total 5.7 10,175 3,377 5,435 39 576 748 
Note: In-quota tariff lines are excluded. 
Source:  WTO estimates based on data provide d by the Albanian authorities. 
 
(e) Tariff-rate quotas 
(i) Maintained by the EC  
22. The EC maintains tariff-rate quotas on products of  cane and beet sugar and chemically pure 
sucrose, in solid form, and other sugars;  wine;  an d some fish and fishery products.  See Annex II for 
a more detailed description of the tariff-rate quotas under the Agreement. 
23. On cane and beet sugar and chemically pure sucrose, in solid form (CN 1701), and other 
sugars (CN 1702)  originating in Albania, the EC applies duty-free access within the limit of an annual 
tariff-rate quota of 1,000 tonnes from the date of entr y into force of the Agreement;  above this quota 
volume, the full MFN rate of duty is applicable (Art icle 14.2).  Further liberalization of the tariff-rate 
quota on these products is not mentioned. 
24. On wine, the EC grants duty-free access for quality sparkling wine (CN ex 220410) and wine 
of fresh grapes (CN ex 220421) originating in Albania up to 5,000 hl from the date of entry into force 
of the Agreement;  above this quota volume, the full MFN rate of duty is applicable.  In addition, 
wine of fresh grapes (CN ex 220429) is entitled to duty-free access up to 2,000 hl from the date of 
entry into force of the Agreement;  above this quota volume, the full MF N rate of duty is applicable.  
At the request of one of the Parties, consultati ons may be held to adapt the quotas by transferring 
quantities from the quotas applying to CN ex 2204 29 to CN ex 220410 and ex 220421 (Article 1, 
Annex I of Protocol 3).  The EC shall examine th e opportunities for granting further concessions to 
Albania no later than in the first quarter of  2008 (Article 7, Annex I of Protocol 3). 
25. With regard to fish and fishery products,  trout;  carp;  sea bream;  sea bass;  prepared or 
preserved sardines;  and prepared or preserved anchovies listed in Annex III of the Agreement are 
subject to tariff-rate quotas.13  For trout;  carp;  sea bream;  and sea bass, the tariff-rate quota is 
applied from the date of entry into force of the Agre ement for an indefinite period.  For prepared or 
preserved sardines, a rate of 6% of the MFN duty is  applicable for up to 100 tonnes from the date of 
entry into force of the Agreement;  above this quota volume, the full MF N rate of duty is applicable.  
Prepared or preserved anchovies enter duty-free within the quota of 1,000 tonnes from the date of 
entry into force of the Agreement and over this quota volume, the full MFN rate of duty is applicable.  
From the first of January of the first year followi ng the date of entry into force of the Agreement 
(1 January 2007), the annual volume of the qu ota on prepared or preserved anchovies will be 
increased by 200 tonnes provided that at least 80% of the previous year's quota has been used by 
31 December of that year.  This mechanism app lies until such time as the annual quota volume has 
                                                      
13 For all products under HS 1604 except prepared or preserved sardines and anchovies, 80% of MFN 
will be dutiable from date of entry into force of th e Agreement (1 December 2006);  65% of MFN will be 
dutiable from 1 January 2007;  and 50% of MFN will be dutiable from 1 January 2008 and following years 
(Annex III of the Agreement). WT/REG226/1 
Page 10 
 
 reached 1600 tonnes (by 2009) or the Parti es agree to apply other arrangements.
14  No specific 
liberalization of the tariff-rate quota on these fish and fi shery products is mentioned;  Article 16 of the 
Agreement foresees further trade liberalization for ag riculture and fisheries to start before six years 
from the entry into force of the Agreement. 
(ii) Maintained by Albania 
26. The Agreement provides for duty-free access to the Albanian market for the EC through 
tariff-rate quotas on common wheat and meslin seed;  spelt, common wheat and meslin;  and wine.  
See Annex II for a more detailed description of the tariff-rate quotas under the Agreement. 
27. For imports from the EC, within the tariff-rate  quota volume of 20,000 tonnes, Albania offers 
duty-free access for common wheat and meslin seed  (HS 10019091) and spelt, common wheat and 
meslin (excl. seed) (HS 10019099) from the date of en try into force of the Agreement and over this 
quota volume, the full MFN rate of duty is applicable  (Article 14.3. (c) and Annex II (c)).  Further 
liberalization of the tariff-rate quota volume is not mentioned and appears not to be considered at 
present.15  Imports of quality sparkling wine originating in the EC (HS ex 220410) and wine of fresh 
grapes (HS ex 220421) are duty-free up to 10,000 hl from the date of entry into force of the 
Agreement;  above this quota volume, the full MFN rate  of duty is applicable (Article 3, Annex I of 
Protocol 3).  Albania shall examine the opportuniti es for granting further concessions to the EC no 
later than in the first quarter of 2008 (Article 7, Annex I of Protocol 3). 
2. Rules of origin 
28. Disciplines regarding rules of origin and met hods of administrative cooperation covered by 
the Agreement are set out in Protocol 4;  they are modelled on the Pan-European regime.  
Articles 2-15 of Protocol 4 deal with the rules of  origin themselves, while Articles 16-38 relate to 
other customs-related issues. 
29. The general requirement for a product to be co nsidered originating (Article 2, 5 and 6 of 
Protocol 4) is: the product is wholly obtained in one of the Parties; or the product obtained 
incorporates materials which have undergone "sufficien t working or processing" in one of the Parties.  
Further, Article 6.1 states that products not wholly obtained are considered to  be sufficiently worked 
or processed when the conditions set out in Annex II of Protocol 4 are fulfilled. 
30. Articles 3 and 4 of Protocol 4 allow for bilateral cumulation between the Parties. 
31. There are no regime-wide rules of origin;  Annex II of Protocol 4 sets out the specific criteria 
covering HS Chapters 1-97 that non originating ma terials should meet so that the final product 
acquires originating status.  In the majority of cases, origin is granted if the working or processing 
carried out on non-originating materials results in a change in tariff classification (CTC) on the basis 
of HS headings - i.e. at the four digit level, a nd chapters.  The CTC is supplemented with, or replaced 
by, a non-originating content (MC) requirement.  The MC requirement establishes the maximum 
value of non-originating materials allowed in the fina l product to be considered as originating.  It is 
expressed as a percentage of the ex-works price of the product.16  The maximum value is normally 
40 %, but ranges from 10 to 60% (Annex II of Protocol 4). 
                                                      
14 According to the Parties, it will be discussed betw een the Parties in the Stabilization and Association 
Council. 
15 According to Albania, no further liberalization is considered at the moment. 
16 Definitions of "ex-works price" are provided in Article 1 of Protocol 4. WT/REG226/1 
Page 11 
 
 
32. Article 6.2 which applies to all produc ts except textiles and textile articles 
(HS Chapters  50-63), provides that non-originating materials which would not otherwise be accepted 
may nevertheless be used, provided that (i) thei r total value does not exceed 10% of the ex-works 
price of the product, and (ii) any of the percentag es given in Annex II of Protocol 4 for the maximum 
value of non-originating materials are not exceeded through the application of the Article.  The rules 
of origin for textiles and textile articles are ba sed on double transformation.  Textiles and textile 
articles are excluded from the tolerance rule of Article  6 of Protocol 4;  however there is a specific 
tolerance rule for textiles, based on weight, in Annex I of Protocol 4. 
33. Article 7 of Protocol 4 lists minimal, non-qualif ying operations or processes carried out in the 
territory of the Parties that do not confer origin.  Paragraph 2 of this Article states that all operations 
carried out in the Parties on a given product are to  be considered when determining whether the 
working or processing is beyond minimal operations.  Articles 8-11 define the units of qualification 
and how certain materials (accessories, spare parts and tools;  sets;  and neutral elements) are to be 
treated/valued when determining the origin of the goods. 
34. Article 12 of Protocol 4 contains  conditions related to territori ality: no outward processing is 
authorized although there is a tolerance limit of  10% of the ex-works price acquired outside the 
territory of the Parties with other conditions.  Artic le 13 refers to direct transport: only operations 
needed to preserve the product's good condition are pe rmitted;  in the absence of direct transport, 
products constituting one single consignment may be transported through other territories with trans-
shipment or temporary warehousing under th e surveillance of the customs authorities. 
35. Under Article 15 of the Protocol non-origin ating materials used in the manufacture of 
products originating in a Party for which a proof of or igin is issued shall not be subject in the Parties 
to drawback of, or exemption from, any customs duties. 
Box II.2:  Rules of Origin: Basic features at a glance 
• No regime-wide rules of origin. 
• Product specific criteria:  
- Wholly obtained  or obtained in the Parties incorporating materials which have not been wholly 
obtained there, provided that such materials have undergone sufficient working or processing in the 
Parties 
- In general, CTC at the heading or chapter levels 
- MC rules used, either alone  or as supplementary rules 
- Two alternative rules for some products 
• Bilateral cumulation. 
• Absorption principle. 
• Tolerance rule at a maximum 10% (except for products falling within HS Chapters 50 to 63). 
• No duty drawback. 
• Outward-processing not authorized. 
• Simple transhipment authorized.  
 
3. Export duties and charges, and quantitative restrictions 
36. The Parties shall abolish any exports duties and charges having equivalent effect on industrial 
products, and any quantitative restrictions on expor t and measure having equivalent effect.  These 
shall be ended on the date of entry into force of the Agreement (Article 8).  The introduction of any 
such new duties and charges, and quantitativ e restrictions is forbidden (Article 20).  WT/REG226/1 
Page 12 
 
 C. R
EGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Sanitary and phytosanitary measures 
37. There are no sanitary and phytosanitary measures per se  explicitly stated in the Agreement. 
(b) Technical barriers to trade 
38. The Agreement contains no specific provision w ith regards to technical barriers to trade 
measures. 
2. Safeguard mechanisms 
(a) Global safeguards 
39. The provisions of Article XIX of GATT 1994 and the WTO Agreement on Safeguards are 
applicable (Article 25.1).  However, safeguard measures applied in accordance with Article XIX of 
GATT 1994 and the WTO Agreement on Safeguards sh all preserve the level/margin of preference 
granted under this Agreem ent (Article 25.5.(a)).17 
(b) Bilateral safeguards 
40. The Parties are free to invoke bilateral safegua rd measures between them (Article 25.2 and 
Article 25.3). 
41. Other than 'serious injury' to the domestic industry of like or directly competitive products, 
'serious disturbances ' in any sector of the economy or difficulties, which could bring about serious 
deterioration in the economic situation of a region of  the importing party, can also be considered when 
taking bilateral actions (Article 25.2).18  
42. Bilateral safeguard measures (Article 25.3) sh all not exceed what is necessary to remedy the 
difficulties which have arisen, and should normally consist of the suspension of the further reduction 
of any applicable rate of duty provided for under the Agreement for the product concerned, or an 
increase in the rate of duty for that product up  to a maximum corresponding to the MFN rate 
applicable to the same product.  Bilateral safeguard measures shall not exceed one year.19  In 
exceptional circumstances, measures can be taken up to a maximum period of three years.20  Bilateral 
safeguard measures shall not be applied for at least, three years on imports of a product that had 
previously been subject to a safeguard measure.21 
                                                      
17 For example, in a situation wh ere the MFN duty is at 10% and the preferential duty at 2%, a 
safeguard measure raising the MFN duty to 20% shall only raise the bilateral duty to 12% so as to preserve the 
preference of 8 percentage points. 
18 No definition of 'serious disturbances' is provided in the Agreement. 
19 Article 7.1 of the WTO Agreement on Safeguards indicates that the duration of (the global) safeguard 
measures shall not exceed four years, unless the measure is extended  under Article 7.2. 
20 Under the WTO Agreement on Safeguards, the total period of application of (the global) safeguard 
measures shall not exceed eight years (Article 7.3). 
21 According to Article 7.5 of the WTO Agreement on Safeguards, (the global) safeguard measure has a 
period of non-application of at least two years. WT/REG226/1 
Page 13 
 
 
Table II.4   
Synopsis of bilateral safeguards   
Requirements Specific Conditions under the Agreement 
Trigger Rise in imports 9 
Criteria Cause of serious injury or threat 
thereof Serious injury but also serious 'disturbances' or threat 
thereof 
Measures allowed  Suspension of further duty 
reduction 9 
 Increase in duty rate Up to a maximum limit corre sponding to the MFN rate 
applicable to the same product 
Timing Maximum duration including 
extension 1 year;  in “very exceptional circumstances” up to a 
maximum of 3 years 
Conditions or limitations Information by the institution of a 
proceeding through written notice  9 
(Not specified in the Agreem ent, but between Parties the 
provisions of Article XIX GATT 1994 and the WTO 
Agreement on Safeguard are applicable)  
 Information by the institution of its 
intention to take measures Before taking the measures provided for therein or, in the 
cases to which paragraph 5(b) of Article 25 applies, the 
Parties shall supply the Stabilization and Association 
Council with all relevant info rmation as soon as possible 
 Consultation  
within the Stabilization and Association Council 
 
 Prior investigation 9 
(Not specified in the Agreem ent, but between Parties the 
provisions of Article XIX GATT 1994 and the WTO 
Agreement on Safeguard are applicable) 
 Re-imposition of safeguard 
measures on the same good At least 3 years after the previous measure has elapsed. 
 Progressive liberalization For all measures 
 Compensation Not mentioned 
 Possibility of retaliation Not mentioned 
 
(c) Special safeguards 
43. The Agreement contains no provisions on special safeguards. 
44. Although the Parties shall try to avoid imposing restrictive measures, including import 
measures (Article 35.1), if there are serious balan ce of payments difficulties or an imminent threat 
thereof, the Party concerned may adopt restrictiv e measures, including measures relating to imports.  
The measures shall be in accordance with the c onditions established under the WTO Agreement, of 
limited duration, and may not go beyond what is strictly necessary to redress the balance of payments 
situation (Article 35.2). 
3. Anti-dumping and countervailing measures 
45. The Parties are free to invoke anti-dumpi ng and countervailing measures between them 
(Article 24.1).  The Parties affirm their ri ghts under Article VI of the GATT 1994 and the 
WTO Agreement on Subsidies and Countervailing Measure s (Article 24.2).  If one of the Parties finds 
the existence of dumping and/or countervailable s ubsidization in the other Party, it may take 
appropriate measures as provided for under Article  VI of GATT 1994 and the WTO Agreement on 
Subsidies and Countervailing Measures.  The Parti es may also take appropriate measures under their 
own related internal legislation (Article 24.2).  WT/REG226/1 
Page 14 
 
 
4. Subsidies 
46. The Parties' rights and obligations are govern ed by the WTO Agreement on Subsidies and 
Countervailing Measures under Article 24.2.  The Pa rties may also take appropriate measures under 
their own related internal legislation. 
5. Other regulations 
(a) Customs-related procedures 
47. The Parties affirm the importance of coopera tion in administration and control in the 
implementation of customs and rela ted matters to combat irregularities and fraud (Article 30.1).  In 
the case that a Party has found a failure to provide administrative cooperation and/or of irregularities 
or fraud, it may temporarily suspend the relevant preferential treatment of the product(s) concerned 
(Article 30.2).  The temporary suspension must be notified to the Stabilization and Association 
Committee and consultations will be held within the Committee (Article 30.4.(a)).22  If the 
consultations fail to result in an acceptable solution within three months  following the notification, the 
Party concerned may temporarily suspend the rele vant preferential treatment of the product(s) 
concerned (Article 30.4.(b)).  The temporary susp ension shall not exceed six months, which may be 
renewed indefinitely.  Temporary suspensions are to  be notified immediately after their adoption to 
the Stabilization and Association Committee.  They sh all be subject to periodic consultations in the 
Committee, in particular with a view to thei r termination as soon as the conditions for their 
application no longer exist (Article 30.4.(c)). 
48. Article 41 states that the Parties' customs coopera tion aims to achieve the closer alignment of 
the customs system of Albania to that of the EC.  In line with this, Protocol 5 describes the rules on 
mutual administrative assistance in customs matters.  It sets out the arrangements for administrative 
assistance to be followed by the Parties' cust oms authorities including for assistance on request, 
spontaneous assistance, execution of requests, excep tions to the obligation to provide assistance, 
exchange of information and conf identiality, and implementation. 
(b) Competition policy and State-aid 
49. While reaffirming the Parties' rights and ob ligations on relevant Articles of GATT 1994 and 
the WTO Agreement on Subsidies and Countervaili ng Measures or related internal legislation 
(Article  37.9), Article 37 sets out a framework for competition and State-aid. 
50. Three kinds of activities are defined as contrary  to the proper functioning of the Agreement: 
i) agreements between undertakings, decisions by  associations of undertakings and concerted 
practices between undertakings whic h have as their object or effect, the prevention, restriction or 
distortion of competition;  ii) abuse by one or more undertakings of a dominant position in the 
territories of the EC or of Albania as a whole or in a substantial part thereof;  iii) any State-aid which 
distorts or threatens to distort competition by favouring certain undertakings or certain products 
(Article 37.1).  Category iii) does not apply to ag riculture and fisheries products (Article 37.8).  
Articles 81-82, and 86-87 of the Treaty establishing  the European Community and interpretative 
instruments adopted by the EC institutions are used as assessment tools for any incompatible 
competition practices (Article 37.2). 
                                                      
22 According to the Stabilization and Association Ag reement between the EC and its Member States 
and Albania, the Stabilization and Association Commi ttee (the Committee) assists the Stabilization and 
Association Council (the Council) in the performance of  the Council's duties (Article 120.1).  The Committee 
may create Sub-Committees (Article 121). WT/REG226/1 
Page 15 
 
 
51. The Parties shall ensure that an operationally independent public body is delegated with the 
powers necessary for the full application of cate gories i) and ii), regarding private and public 
undertakings and undertakings to which special rights have been granted (Article 37.3).  Albania shall 
establish an operationally independ ent authority entrusted with th e powers necessary for the full 
application of category iii) within four years from the date of entry into force of the Agreement.  This 
authority has, inter alia , the powers to authorize State-aid schemes and individual aid grants based on 
Articles 81-82, and 86-87 of the Treaty establishing  the European Community and interpretative 
instruments adopted by the EC institutions.  It also  has the power to order the recovery of unlawfully 
granted State-aid (Article 37.4). 
52. Albania must establish a comprehensive invent ory of aid schemes before establishing an 
operationally independent authority within four years from the date of entry into force of the 
Agreement (Article 37.6).  Albania has prepared a li st of existing State-aid schemes before the entry 
into force of the State-aid law.  A comprehensiv e report on the inventory of aid schemes is in the 
process of finalization, and will be submitted to the European Commission. 
(c) State monopolies 
53. Albania shall progressively adjust any State monopolies of a commercial character to end 
discrimination between nationals of EC Member St ates and Albania concerning the conditions under 
which goods are procured and marketed by the end of the fourth year following the date of entry into 
force of the Agreement (31 December 2010).23  The measures adopted to pursue this aim must be 
notified to the Stabilization and A ssociation Council (Article 27). 
(d) Government procurement 
54. Article 40 establishes a regulatory framework for government procurement (referred to in the 
Agreement as public contracts) and considers the opening-up of the award of public contracts on the 
basis of non-discrimination and reciprocity, in par ticular in the WTO context, to be a desirable 
objective  (Article 40.1). 
55. Whether Albanian companies are established in the EC or not, they shall be granted access to 
contract award procedures in the EC according to EC procurement rules under no less favourable than 
that accorded to EC companies from the date of entr y into force of the Agreement.  With respect to 
the utilities sector24, once Albania has adopted legislation introducing EC rules, Albanian utility 
companies shall be granted access to contract  award procedures under the same conditions as 
mentioned above.  The EC shall conduct periodic ex aminations to determine whether Albania has 
introduced such legislation (Article 40.2). 
56. EC companies established in Albania, on the date  of entry into force of the Agreement, shall 
have access to contract award procedures under treat ment no less favourable than that accorded to 
Albanian companies (Article 40.4).  EC compani es not established in Albania shall be granted access 
to contract award procedures in Albania pursuant to the Albanian Law on Public Procurement under 
treatment no less favourable than that accorded to Albanian companies at the latest four years after the date of entry into force of the Agreement (Article 40.3).
25  Albania's legislation on government 
                                                      
23 According to Albania, new developments in this re gard consist of i) account separation for railway of  
passenger tickets;  ii) privatization of the only fi xed-line telephone company ALBTELECOM sh.a.;  and 
iii) division of state energy enterpri se, KESH sh.a. into three companies, each of them responsible for one of 
three activities: generation, transmission and distribution.  The measures in the energy sector aim to prepare the 
company for the privatization process. 
24 There is no definition of utilities in the Agreement. 
25 Albania has applied for membership of the WTO Agreement on Government Procurement (GPA/57, 
2 October 2001). WT/REG226/1 
Page 16 
 
 procurement has been notified to the WTO.  Acco rding to the authorities the new law and sub-legal 
acts are partially approximated with the respective EU directives in this field.  The full approximation 
is foreseen in medium-term priorities under SAP. 
(e) Intellectual property 
57. In Article 39 and its related A nnex IV, the Parties confirm their obligations as set out in the 
WTO Agreement on Trade-Related Aspects of Inte llectual Property Rights (TRIPS Agreement) and 
other multilateral agreements rela ting to intellectual property. 
58. Albania shall take all the necessary measures to guarantee a similar level of protection of 
intellectual, industrial and commercia l property rights to that existing in the EC, no later than four 
years after the entry into force of the Agreemen t including using effective means of enforcement 
(Article 39.2).
26  With respect to the recognition and pr otection of intellectual, industrial and 
commercial property, Albania will grant, from the da te of entry into force of the Agreement, EC 
companies and nationals treatment no less favourable than that granted by it to any third country 
under bilateral Agreements (Annex IV, Article 3).  In addition to this, Albania, within four years after 
the date of entry into force of the Agreement, undertook to accede to the WIPO Copyright Treaty;  the 
Convention for the Protection of Producers of Phonogra ms against Unauthorized Duplications of their 
Phonograms;  and the International Convention fo r the Protection of New Varieties of Plants;  
according to Albania, this has occurred.27  The Stabilization and Association Council may also oblige 
Albania to accede to other specific multilatera l conventions in this area (Article 39.3).28  When there 
are problems in the area of intellectual, indu strial and commercial property affecting trading 
conditions, they shall be referred urgently to the St abilization and Association Council, with a view to 
reaching mutually satisfactory solutions.  This can oc cur at the request of any Party to the Agreement 
(Article 39.4).  There are also provisions in the Agreement for the protection of names, geographical 
indications, and traditional expressions under Protocol 3.  See Section D, sector-specific provisions of 
the Agreement in this factual presentation.  
(f) Shortage clause  
59. According to Article 26, a critical shortage, or threat thereof, of foodstuffs or other products 
essential to the exporting Party;  or shortage or major difficulties resulting from re-export to a third country of a product against which the exporting Party maintains quantitative export restrictions, 
export duties or measures or charges having equivale nt effect, exporting Party may take appropriate 
measures in accordance with th e procedures laid down below. 
60. Before taking the measures which disturb least the functioning of the arrangements 
(Article 26.2), the Parties shall supply the Stabili zation and Association Coun cil with all relevant 
information, seeking a solution acceptable to the Par ties.  The Parties within the Council may agree on 
any means needed to put an end to the difficulties.  If no agreement is reached within 30 days of the 
matter being referred to the Counc il, the exporting Party may apply measures on the export concerned 
(Article 26.3).  Where exceptional and critical circ umstances requiring immediate action make prior 
information or examination impossible, the Parties may apply the precautionary measures necessary 
to deal with the situation and shall inform the ot her Party immediately (Article 26.4).  Any measures 
applied pursuant to this Article shall be imme diately notified to the Council which will conduct 
                                                     
 
26 According to Albania, the new draft law on industrial property has been finalized and is in the 
process of being approved. 
27 According to Albania, it acceded to the WIPO Co pyright Treaty on 6 August 2005;  the Convention 
for the Protection of Producers of Phonograms against Unauthorised Duplications of their Phonograms on 
26 June 2001;  and the International Convention for the Protection of New Varieties of Plants on 15 October 
2005.  
28 According to the Parties, there are no new developments in this regard. WT/REG226/1 
Page 17 
 
 
periodic consultations with a view to establishi ng a timetable for their elimination as soon as 
circumstances permit (Article 26.5). 
(g) Transit traffic 
61. The Parties benefit from reciprocal and unrest ricted access to: EC transit traffic through 
Albania;  and Albanian transit traffic through th e EC from the date of entry into force of the 
Agreement (Article 33.2).  In addition, the Parties refrain from taking any unilateral action that might 
lead to discrimination between EC and Albanian carrier s or vehicles (Article 33.4).  In line with this, 
the Parties agree to simplify formalities for bilate ral trade in or transit of goods by rail and road 
(Article 33.5) and to promote the adoption of me asures for further simplification (Article 33.6). 
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
1. Iron and steel products 
62. Protocol 1 contains sector-specific provisions on iron and steel products.29  The EC's import 
duties and any charges having equivalent effect on iron and steel products originating in Albania are 
abolished on the date of entry into force of the Ag reement (Article 2 and Artic le 6 of Protocol 1).  
Albania's import duties and any charges having equivalent effect on iron and steel products 
originating in the EC that are referred to in Artic le 6 of the Agreement and listed in Annex I (Albanian 
tariff concessions for Community industrial products) are to be progressively reduced (Article 3.1 and 
Article 6 of Protocol 1). 
63. Albania's import duties on all other iron and st eel products from the EC are abolished on the 
date of entry into force of the Agreement (Article 3.2 of Protocol 1).  Albania may reduce its customs 
duties on iron and steel products from the EC more rapidly than its schedule and the Stabilization and 
Association Council shall analyse the situation and ma ke relevant recommendations (Article 9 of the 
Agreement).30 
64. Further to Article 37 of the Agreement on co mpetition and other economic provisions, State-
aid disciplines of the EC, including secondary legislation and any specific rules on State-aid control 
applicable to the iron and steel sector after the expiry of the Treaty estab lishing the European Coal 
and Steel Community are applied (Article 5.2 of Pr otocol 1).  However, as an exception, during the 
first five years after the date of entry into for ce of the Agreement, Albanian producers may receive 
State-aid for restructuring provided that i) at the end of the restructuring period, the beneficiary firms 
are viable under normal market conditions;  ii) the am ount and intensity of such aid is, strictly limited 
to what is absolutely necessary to restore such viability, and also to be progressively reduced;  and 
iii)  the restructuring programme is linked to global rationalization and compensatory measures to 
counter the distorting effect of the aid (Article 5.3 of Protocol 1).  According to the Parties, Albania 
has so far not taken any decision to grant State-aid to its iron and steel industry.  Within three years from the date of entry into force of the Agreemen t Albania shall establish the necessary restructuring 
and conversion programme for its iron and steel industry to achieve viability under normal market 
conditions.
31  Albania is also entitled to receive techni cal advice from the EC to ensure the global 
competitiveness of this sector (Article 5.1 of Protoc ol 1).  Albania has not yet made such a request. 
                                                      
29 Iron and steel products are those contained in CN Chapters 72 and 73.  It also applies to other 
finished iron and steel products that may originate in future in Albania under the above Chapters (Article 1, 
Protocol 1 of the Agreement). 
30 According to Albania, the liberalization of import duties on iron and steel products is on schedule. 
31 According to Albania, there is no new development in this regard. WT/REG226/1 
Page 18 
 
 
2. Wines, spirits and aromatized wines 
65. Protocol 3 sets out rules on reciprocal and preferential concessions for certain wines and the 
reciprocal recognition, protection and control of wine , spirits and aromatized wine names.  It includes 
two Agreements as Annexes: the Agreement betwee n the European Community and the Republic of 
Albania on Reciprocal Preferential Trade Concessions for Certain Wines (Annex I to Protocol 3);  and 
the Agreement between the Europ ean Community and the Republic of Albania on the Reciprocal 
Recognition, Protection and Control of Wine, Sp irits and Aromatized Wine Names (Annex II to 
Protocol 3). 
66. The Protocol covers wines, spirits and aromatized  wines.  In terms of the Harmonised System 
of the International Convention on the Harmoni sed Commodity Description and Coding System on 
1983, the Protocol applies to wines under Heading 22.04, spirits under Heading 22.08 and aromatized 
wines under Heading 22.05.  Under Article 2(1) of Pr otocol 3, wines are referred as those which have 
been produced from fresh grapes originating in the Pa rties in accordance with each Party's rules on the 
oenological practices and processes.  Article 2(1)(b) of Protocol 3 further provides that Albanian rules governing oenological practices and processes shall be in  compliance with the EC legislation.  Spirits 
and aromatized wines are defined according to each Party's relevant rules and regulations 
(Article 2(3)of Protocol 3).  There is, however, no requirement for Albania to follow EC legislation on 
spirits and aromatized wines. 
(a) Reciprocal and preferential trade concessions for certain wines 
67. Reciprocal and preferential trade concessions for certain wines between the Parties are 
discussed above and in Annex II of this factual pr esentation which gives more details of tariff-rate 
quotas under the Agreement. 
(b) Reciprocal recognition, protection and control of wine, spirits and aromatized wine names 
(i) Protection of names 
68. Under the non-discrimination and reciprocity pr inciple, the Parties recognize, protect and 
control names of wines, spirits and aromatized wine s, originating in their territories and ensure that 
their obligations under Annex II of Protocol 3 will be  met (Article 1, Annex II of Protocol 3).  The 
following products originating in the EC are protected : i) references to the name of the Member State 
in which the wine, spirits and aromatized wine originates or other names to indicate the Member 
State;  ii) the geographical indications, listed in Appendix 1, Part A;  and iii) traditional expressions 
listed in Appendix 2.  The following products origina ting in Albania are protected: i) references to the 
name "Albania" or any other name designating Albani a;  and ii) the geographi cal indications, listed in 
Appendix 1, Part B (Article 4, Annex II of Prot ocol 3).  For Albania, there is no traditional 
expressions list indicated under the Protocol for protection. 
(ii) Protection of geographical indications 
69. In order to ensure effective protection of geographical indications, the Parties reaffirm that 
they shall make use of the appropriate legal me ans referred to in Article 23 of the WTO TRIPS 
Agreement (Article 6.3, Annex II of Protocol 3).  The Parties shall prohibit any use of protected 
names which do not originate in the geographical ar ea indicated or in the place where the expression 
is traditionally used,  even when:  i)  the true origin of the wine, spirits or aromatized wine is indicated;  
ii) the geographical indication in question is transl ated;  and iii) the name is accompanied by terms WT/REG226/1 
Page 19 
 
 
such as "kind", "type", "style", "imitation", "method"  or other expressions of the sort (Article 6.5, 
Annex II of Protocol 3).32 
70. When a geographical indication listed in Appe ndix 1 is homonymous with a geographical 
indication of a third country, Article 23.3 of the WTO TRIPS Agreement applies (Article 6.7, Annex 
II of Protocol 3).  From the date of entry into force of the Agreement, protected geographical names 
shall no longer be used as a common name for wi nes, spirits and aromatized wines as permitted in 
Article 24.6 of the WTO TRIPS Agreement (A rticle 6.10, Annex II of Protocol 3). 
(iii) Protection of traditional expressions 
71. Albania shall protect the traditional expressions fo r wine originating in the EC, notably that 
they shall not be used for the description or presenta tion of wine originating in Albania (Article 7.1, 
Annex II of Protocol 3).  It shall provide appropr iate legal means to prevent the EC's traditional 
expressions from being used to describe wine that  has no entitlement to the traditional expressions, 
even where the traditional expressions used are a ccompanied by expressions such as "kind", "type", 
"style", "imitation", "method" or the like (Article 7.2, Annex II of Protocol 3).  
(iv) Trademarks 
72. The Parties' competent national and regiona l offices must refuse the registration of a 
trademark for a wine, spirits or aromatized wine that  is identical with, or similar to, or contains, or 
consists of a reference to a protected geographical i ndication (Article 8.1, Annex II of Protocol 3).  
The same obligation applies to the registration of a tr ademark for a wine that contains or consists of a 
traditional expression protected under Appendix 2 (Article  8.2, Annex II of Protocol 3).  Albania will 
adopt the measures necessary to am end the trademarks names of Amantia (Grappa)  and Gjergj 
Kastrioti Skenderbeu Konjak  so as to remove all references to protected EC geographical indications 
by 31 December 2007 (Article 8.3, Annex II of Protocol 3).33 
(v) Institutional Mechanisms 
73. A Working Group under the Sub-Committee on Agriculture  is established.  It is in charge of 
the proper functioning of Annex II of Protocol 3 and examines all implementation questions.  The 
Working Group may recommend, discuss and suggest on any matter of mutual interest in the wine, 
spirits and aromatized wine sector.  At the request of the Parties, it shall meet at a time, a place and in a manner mutually determined by them (Article 10, Annex II of Protocol 3). 
74. The representative bodies are the Albanian Mi nistry of Agriculture and Food, and the 
Directorate-General for Agriculture and Rural De velopment of the European Commission (Article 
11.2, Annex II of Protocol 3).  The Parties shall inform each other of their intentions to adopt new 
regulations or amendments to existing regulations  concerning public policy, such as health or 
consumer protection.  The Parties also shall notify each other of any legislative, administrative and 
judicial decisions concerning the implementation of Annex II of Protocol 3 and inform each other of 
measures adopted on the basis of such decisions (A rticle 11.3 and 11.4, Anne x II of Protocol 3). 
75. If the description or presentation of a wine, spirits  or aromatized wine, in particular on the 
label, in official or commercial documents or in advertising, is in violation of the Agreement, 
i.e. gives misleading information,  the Parties shall apply the neces sary administrative measures and/or 
                                                     
 
32 Article 23.1 of the WTO TRIPS Agreement indicates  expressions such as "kind", "type", "style", 
"imitation" or the like. 
33 Albania has indicated that it has undertaken necessary measures to amend the above mentioned 
trademarks. WT/REG226/1 
Page 20 
 
 initiate legal proceedings to combat unfair competition or prevent the wrongful use of the protected 
name in any other way (Article 13. 1 and 2, Annex II of Protocol 3).
34 
76. If one of the Parties considers that the other h as failed to fulfil an obligation under Annex II 
of Protocol 3, the Parties shall enter into consu ltations.  However, prior c onsultation is not required 
where any delay could jeopardize human health or im pair the effective measures to control fraud.  In 
this situation, appropriate interim protective measures which, depending on circumstances could 
include a prohibition of imports and confiscation, ma y be taken provided that consultations are held 
immediately after the measures are taken.  Following the consultations, if the Parties have not reached 
agreement, the Party which requested the consulta tions or which took the measures above may take 
appropriate measures which least disturb the functi oning of Annex II of Pr otocol 3 (Article 14, 
Annex II of Protocol 3). 
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. Transparency 
77. There are no separate transparency provisi ons governing the Agreement.  However, 
Article 37.5 requires each Party to provide to th e other a regular annual report, or equivalent on 
State-aid;  also upon request by one Party, the other Party shall provide information on individual 
cases of public aid.  Furthermore, for iron and steel  products, the Parties shall fully and continuously 
exchange information, including details of rest ructuring plans as well as the amount, intensity and 
purpose of any State-aid (Article 5.4 of Protocol 1). 
2. Exceptions 
78. Article 29 describes the general exceptions of th e Agreement, including for reasons of public 
morality, public policy or public security;  the protection of human, animal or plant health and life;  
and the protection of national treasures of artistic, hist oric or archaeological value or rules relating to 
gold and silver, and reflects exceptions under Article  XX of the GATT 1994.  In addition, under the 
Agreement on grounds of the protection of intelle ctual, industrial and commercial property, the 
Parties can prohibit or restrict imports, exports or  goods in transit.  Article 46 sets out general 
exceptions relating to security concerns that are similar to those in Article XXI of the GATT 1994. 
3. Accession 
79. No accession (of third Parties, other than ca ndidate countries for accession to the European 
Union) provision per se  exists in the Agreement.  However, the Agreement permits Albania to 
cooperate and conclude a Conve ntion on regional cooperation with any candidate country for 
accession to the European Union in any of the fi elds covered by the Agreement (Article 48.1). 
80. In particular, Albania is directed to start nego tiations with Turkey to establish a free trade area 
in accordance with Article XXIV of the GATT with a view to concluding it before the end of the 
transitional period of ten years from the date of entry into force of the Agreement 
(by December 2016) (Article 48.2).  According to th e Parties, a free trade agreement between Albania 
and Turkey has been signed and has been ratified by Albania.  
 
                                                      
34 For the EC, Article 72 of Council Regulation (EC) No 1493/99 of 17 May 1999 provides the list of 
national authorities responsible for verifying compliance with Community provisions for wine. WT/REG226/1 
Page 21 
 
 
4. Institutional framework 
81. Title IV deals with the administration of the Ag reement.  In particular, Articles 42 and 43 set 
out the functions of the Joint Committee establishe d by the Agreement on Trade and Commercial and 
Economic Cooperation.35  The Committee exercises the powers,  and performs the duties, assigned by 
the Agreement to the Stabilization and Associa tion Council or the Stabilization and Association 
Committee (Article 42).  The Joint Committee has the power to take decisions that are binding on the 
Parties within the scope of the Agreement in th e cases provided for therein and adopts its own Rules 
of Procedure.36  It may also make appropriate recommenda tions.  It meets at regular intervals and, 
when there are circumstances that require it, is chai red alternately by each of the Parties.  The agenda 
of the Joint Committee is agreed beforehand (Article 43). 
82. The depository of the Agreement is the Secretary-General of the Council of the European 
Union (Article 54). 
5. Dispute settlement 
83. With respect to any matter concerning the inte rpretation or implementa tion of the Agreement 
and other relevant aspects of the re lations between the Parties, the Pa rties agree to consult 'promptly'  
through the appropriate channels at the request of e ither Party.  This clause on consultation shall in no 
way affect and is without prejudice to consultation pr ovisions in Articles 18 (agricultural and fisheries 
products), 24 (dumping and subsidies), 25 (gener al safeguard clause), 26 (shortage clause) and 
30 (administrative cooperation on custom s related procedures) (Article 50).37 
84. Disputes relating to the application or interp retation of the Agreement are referred to, the 
Stabilization and Association Council which may settle the dispute by means of a binding decision 
(Article 44). 
85. The Parties are required to fulfil their obligations  under the Agreement to attain its objectives 
(Article 49.1).  If either Party considers that the other has failed to execute an obligation under the 
Agreement, it may take appropriate measures.  Before taking these measures, apart from urgent cases, 
the Stabilization and Association Council shall be provided all relevant information required for a 
thorough examination of the situation (Article 49.2). 
86. Apart from the dispute settlement mechanism unde r the Agreement, each Party ensures that 
natural and legal persons of othe r Party have non-discriminatory access to the competent courts and 
administrative organs of the Parties to defend their individual rights and other property rights 
(Article 45). 
87. No particular provisions on good offices, conc iliation or mediation, and arbitration are 
available under the Agreement. 
6. Relationship with other agreements concluded by the Parties 
88. No specific provisions regarding relationships w ith other agreements concluded by the Parties 
exist in the Agreement. 
89. Table II.4 lists the regional trade agreements  (RTAs), notified to the GATT/WTO, and in 
force, to which the EC and Albania are parties. 
                                                      
35 This was signed on 11 May 1992 and en tered into force on 4 December 1992. 
36 According to the Parties, the Join Committee has already adopted its Rules of Procedure. 
37 A specific time frame for consultations in not foreseen in Article 50. WT/REG226/1 
Page 22 
 
 
Table II.5 
Albania and the EC:  Participation in RTAs (notified and in force) 
GATT/WTO Notification Partner/ 
Agreement Date of entry 
into force Type of 
Agreement Year WTO Provision 
ALBANIA 
CEFTA  26-07-07 Goods 2007 GATT Art. XXIV 
THE EC 
Chile 01-03-05 Services 2005 GATT Art. V 
EEA 01-01-94 Services 1996 GATT Art. V 
Algeria 01-09-05 Goods 2006 GATT Art. XXIV 
Egypt 01-06-04 Goods 2004 GATT Art. XXIV 
Lebanon 01-03-03 Goods 2003 GATT Art. XXIV 
Chile 01-02-03 Goods 2004 GATT Art. XXIV 
Jordan 01-05-02 Goods 2002 GATT Art. XXIV 
Croatia 01-03-02 Goods 2002 GATT Art. XXIV 
FYROM 01-06-01 Goods 2001 GATT Art. XXIV 
Israel 01-06-00 Goods 2000 GATT Art. XXIV 
Morocco 01-03-00 Goods 2000 GATT Art. XXIV 
South Africa 01-01-00 Goods 2000 GATT Art. XXIV 
Tunisia 01-03-98 Goods 1999 GATT Art. XXIV 
Palestinian Authority 01-07-97 Goods 1997 GATT Art. XXIV 
Faroe Islands 01-01-97 Goods 1997 GATT Art. XXIV 
Iceland 01-01-97 Goods 1997 GATT Art. XXIV 
Turkey 01-01-96 Goods 1995 GATT Art. XXIV 
Andorra 01-07-91 Goods 1998 GATT Art. XXIV 
Syria 1977 Goods 1977 GATT Art. XXIV 
Switzerland and Liechtenstein 1973 Goods 1972 GATT Art. XXIV 
Norway 1973 Goods 1973 GATT Art. XXIV 
OCTs 1971 Goods 1970 GATT Art. XXIV 
Mexico 01-07-00 Goods and Services 2000 GATT Art. XXIV & GATT Art. V 
Treaty of Rome 1958 Goods and Services 1957 GATT Art. XXIV & GATT Art. V 
CEFTA: Central European Free Trade Agreement 
EEA:  European Economic Area FYROM: Former Yugoslav Republic of Macedonia 
OCT: Association of certain Overseas Countries and Territories 
Source: WTO Secretariat . 
 WT/REG226/1 
Page 23 
 
 
ANNEX I 
 
Indicators of Trade Liberalization under the Agreement  
  
90. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the MFN rates applied by the EC and Al bania to imports is shown in Tables AI.1 (the 
EC) and AI.2 (Albania) below, by total products, agricultural products and non-agricultural products. 
Table AI.1  
The EC:  Indicators of MFN tariff rates a nd preferential rates for imports from Albania 
ALL PRODUCTS Agricultural productsa Non-agricultural  products 
Average applied 
tariff Average applied tariff Average applied tariff Origin 
of 
goods Year 
Overall
(%) On dutiable 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On dutiable
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On dutiable 
(%) Share of 
duty-free 
tariff lines
(%) 
MFN 2006 6.9 9.4 26.0 18.6 23.2 18.9 4.0 5.6 27.9 
Albania 2006 0.4 28.4 98.7 1.3 43.9 96.7 0.1 12.9 99.2 
 2007 0.4 27.4 98.7 1.3 43.9 96.7 0.1 11.0 99.2 
 2008 0.3 26.5 98.7 1.3 43.9 96.7 0.1 9.1 99.2 
a WTO Definition. 
Note: In-quota tariff lines are excluded. 
 
Source:   WTO Secretariat estimates based on da ta provided by the EC's authorities. 
 
91. The EC's average applied MFN rate in 2006  was 6.9%;  the average applied tariff on 
agricultural products is roughly four times higher th an that applied to non-agricultural products.  
Duty-free tariff lines account for 26% of all tariff lin es.  Albanian exporters enjoyed an absolute 
margin of preference of 3.9 % for non-agricultural products vis-à-vis  the prevailing average 
MFN tariff in 2006, and 17.3 % for agricultural goods.  Overall, Albanian exporters enjoyed an 
average margin of preference of 6.5% vis-à-vis  the prevailing average applied MFN tariff, as well as 
an increase (to 98.7%) in the share of the EC's duty-free lines. 
Table AI.2  
Albania:  Indicators of MFN tariff rates a nd preferential rates for imports from the EC 
ALL PRODUCTS Agricultural productsa Non-agricultural  products 
Average applied 
tariff Average applied tariff Average applied tariff Origin 
of 
goods Year 
Overall 
(%) On dutiable 
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On dutiable
(%) Share of 
duty-free 
tariff lines
(%) Overall 
(%) On dutiable 
(%) Share of 
duty-free 
tariff lines
(%) 
MFN 2006 5.7 8.6 33.2 8.9 9.6 7.0 4.9 8.2 40.0 
The EC 2006 1.5 10.9 86.6 6.5 11.1 41.7 0.1 8.5 98.3 
 2007 1.4 10.1 86.6 6.2 10.6 41.7 0.1 6.5 98.3 
 2008 1.2 8.9 86.6 5.5 9.5 41.7 0.1 4.0 98.3 
 2009 1.0 8.0 87.0 4.9 8.5 41.7 0.0 2.1 98.8 
 2010 0.8 10.6 92.6 3.7 12.1 69.2 0.0 1.4 98.8 
a WTO Definition. 
Note: In-quota tariff lines are excluded. 
 
Source :  WTO Secretariat estimates based on data provided by the Albanian authorities. 
 
92. Albania's average MFN rate in 2006 was 5.7%;  the average applied tariff on agricultural 
products is 4% higher than that applied to non-ag ricultural products.  Duty-free tariff lines account for 
33.2% of all tariff lines.  EC exporters enjoyed an  absolute margin of preference of 4.8 % on 
non-agricultural products vis-à-vis  the prevailing average applied MFN tariff in 2006, and a 
preference of 2.4% in agricultural goods as well as an increase (to 86.6%) in the share of Albania's 
duty-free lines. 
 
 WT/REG226/1 
Page 24 
 
 
Table AI.3 – The EC:  Market access opportunities  under the agreement for Albania's top 25 exports  
Access Conditions to Community's import markets Albania top export products in 2004-2006 
MFN  
Number of tariff 
lines 
HS number and description of the product Share 
in 
global 
exports 
(%) Average 
MFN 
applied rate 
(%) Duty-
free Dutiable Duty-
free in  
2006 Remain 
dutiable 
640610 Parts of footwear. Uppers  and parts thereof, other 
than stiffeners. 17.7 3.0  3 3  
620342 Men's or boys' cotton suits, ensembles, etc. 7.9 12.0  7 7  
620520 Men's or boys' cotton shirts. 3.7 12.0  1 1  
720241 Ferro-alloys containing by weight more than 4% 
of carbon. 2.8 4.0  2 2  
160416 Prepared or preserved anchovies. 2.6 25.0  1  1 
830140 Other locks. 2.5 2.7  3 3  
610910 Cotton T-shirts, singlet s and other vests, knitted 
or crocheted. 2.4 12.0  1 1  
640359 Footwear with outer so les of rubber, plastics, 
leather etc. Other. 2.3 7.6  8 8  
740400 Copper waste and scrap. 2.2 0.0 3    
121190 Plants and parts of plants (including seeds and 
fruits), of a kind used primarily in perfumery, in pharmacy etc. Other. 2.1 1.5 1 1 1  
640510 Other footwear with uppers of leather or 
composition leather. 2.0 3.5  1 1  
610610 Women's or girls' cotton blouses, shirts and shirt-
blouses, knitted or crocheted. 1.8 12.0  1 1  
640351 Footwear with outer so les of rubber, plastics, 
leather etc. Covering the ankle. 1.6 8.0  6 6  
261000 Chromium ores and concentrates. 1.4 0.0 1    
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude. 1.4 0.0 2    
610821 Women's or girls' cotton slips,  petticoats, etc. 1.4 12.0  1 1  
721420 Other bars and rods of iron or non-alloy steel 
containing indentations, ribs, etc. produced during the 
rolling process or twisted after rolling.  1.4 0.0 1    
720449 Ferrous waste and scrap, other. 1.3 0.0 3    
610711 Men's or boys' cotton underpants, briefs, etc. 1.2 12.0  1 1  
760200 Aluminium waste and scrap. 1.1 0.0 3    
620690 Women's or girls' othe r textile materials blouses, 
shirts and shirt-blouses. 1.0 12.0  2 2  
271320 Petroleum bitumen. 1.0 0.0 1    
481940 Other sacks and bags, incl uding cones. 0.9 0.0 1    
220210 Waters, including mine ral waters and aerated 
waters, containing added sugar or other sweetening matter 
or flavoured. 0.8 9.6  1 1  
621710 Other made up clothing accessories. 0.8 6.3  1 1  
 Total of above  65.3  16 41 40 1 
Source: WTO estimates based on data provided by the EC authorities and UNSD, Comtrade data. 
 
93. Table AI.3 shows the market access conditions in the EC for Albania's top 25 exports, which 
in 2004-2006 accounted for 65.3% of its global exports.  Sixteen tariff lines were already duty-free on an MFN basis and 40 tariff lines, which were dutiabl e, became duty-free in 2006;  one tariff line,   
prepared or preserved anchovies (HS 160416), remains dutiable. 
94. Table AI.4 shows the market access conditions in Albania for the EC's top 25 exports, which 
in 2004-2006 accounted for 28.5% of the EC's globa l exports.  114 tariff lines were already duty-free 
on an MFN basis and 37 tariff lines, which were dutiable, became duty-free in 2006.  Five tariff lines 
remain dutiable: HS 27101125;  HS 27101170;  HS 27101921;  HS 27101925;  and HS 27101929.  
 
 WT/REG226/1 
Page 25 
 
 
Table AI.4 – Albania: Market access opportunities under the Agreement, for the EC's top 25 exports 
Access Conditions to Albania's import markets The EC's top export products in 2004-2006 
MFN 
Number of tariff lines 
HS number and description of the product Share 
in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) Duty-free Dutiable Duty-
free in  
2006 Remain 
dutiable 
300490 Other medicaments (e xcluding goods of heading 
30.02, 30.05 or 30.06) consisting of mixed or unmixed products for therapeutic or prophylactic uses.  3.2 0.00 4       
870323 Motor cars and other motor vehicles of a cylinder 
capacity exceeding 1,500 cc but not exceeding 3,000 cc. 2.8 6.33   3 3   
870324 Motor cars and other motor vehicles of a cylinder 
capacity exceeding 3,000 cc. 2.2 6.00   2 2   
852520 Transmission apparatu s incorporating reception 
apparatus.  1.8 0.00 3       
880240 Aeroplanes and other airc raft of an unladen weight 
exceeding 15,000 kg. 1.8 1.00 1 1 1   
271011 Petroleum oils and oils obtained from bituminous 
minerals, other than crude; light oils and preparations. 1.4 4.50 5 7 5 2 
271019 Petroleum oils and oils obtained from bituminous 
minerals, other than crude; preparations not elsewhere 
specified or included, containi ng by weight 70% or more of 
petroleum oils or of oils obtained from bituminous 
minerals, these oils being the basic constituents of the 
preparations. Other. 1.3 4.00 11 14 11 3 
854221 Digital electronic integrated circuits and 
microassemblies. 1.1 0.00 25       
710231 Unworked or simply sawn, cleaved or bruted 
diamonds.  1.0 2.00   1 1   
847330 Parts and accessories suitable for use solely or 
principally with machines of headings 84.71.  1.0 0.00 2       
870899 Other parts and accessories of the motor vehicles of 
headings 87.01 to 87.05. 1.0 2.00   6 6   
293399 Heterocyclic compounds with nitrogen hetero-
atom(s) only. Other. 0.6 0.00 6       
841112 Turbo-jets of a thrust exceed ing 25 kN. 0.6 0.00 4       
841191 Parts of turbo-jets or turbo-propellers. 0.6 0.00 2       
870332 Motor cars and other motor vehicles of a cylinder 
capacity exceeding 1,500 cc but not exceeding 2,500 cc. 0.6 6.33   3 3   
270900 Petroleum oils and oils obtained from bituminous 
minerals, crude.  0.5 10.00   2 2   
293499 Nucleic acids and their salts, whether or not 
chemically defined;  other heterocyclic compounds. Other. 0.5 0.00 6       
711319 Articles of jewellery and parts thereof, of other 
precious metal, whether or not pl ated or clad with precious 
metal. 0.5 15.00   1 1   
847989 Other machines and mechanical appliances having 
individual functions, not specifi ed or included elsewhere in 
this Chapter. 0.5 0.00 10       
848180 Taps, cocks, valves and similar appliances for 
pipes, boiler shells, etc. in cluding pressure-reducing valves 
and thermostatically controlle d valves. Other appliances. 0.5 0.00 17       
852990 Parts suitable for use solely or principally with the 
apparatus of headings 85.25 to 85.28. Other. 0.5 0.00 7       
710239 Other diamonds, whether or not worked, but not 
mounted or set. 0.4 2.00   1 1   
901890 Other instruments and appliances. 0.4 0.00 10       
300439 Medicaments, other. 0.3 0.00 2    
840999 Parts suitable with engines of heading 84.07 and 
84.08, other. 0.3 200  1 1  
       
 Total of above  28.5   114 42 37 5 
Source: WTO estimates based on data provided by  the EC and Albanian authorities. WT/REG226/1 
Page 26 
 
 
ANNEX II 
 
Tariff-Rate Quotas under the Agreement  
 95. As discussed, tariff-rate quotas exist on agricultura l products between the Parties.  These have 
been examined under each Party's liberalization sche dule in this factual presentation.  The tables 
below are designed to show a picture of tariff-rate  quotas under the Agreement, maintained by the EC 
and Albania with each other. 
Table AII.1  
The EC: Tariff-rate quotas for agricultura l products originating in Albania  
TRQ from entry into force  
(1 December 2006) Liberalization scheme  
Duty 1 January 2007 
 As of 1 January 2008 
(no specific time schedule) 
Duty Duty CN Code (description) 
Quantity 
In-
quota Out-
quota Quantity 
In-
quota Out-
quota Quantity 
In-
quota Out-
quota 
Trout: live; fresh or chilled; 
frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit 
for human consumption          
03019110, 03019190, 03021110, 
03021120, 03021180, 03032110, 
03032120, 03032180, 03041015,  03041017, ex 03041019,  ex 03041091, 03042015, 03042017, ex 03042019, ex 03049010, 
ex 03051000, ex 03053090,  
03054945, ex 03055980,  ex 03056980 50 tonnes 0 90% 
of 
MFN duty 50 tonnes 0 80% 
of 
MFN duty 50 tonnes 0 70% 
of 
MFN duty 
Carp: live; fresh or chilled; 
frozen; dried, salted or in brine, 
smoked; fillets and other fish 
meat; flours, meals and pellets, fit for human consumption          
03019300, 03026911, 03037911,  
ex 03041019, ex 03041091,  
ex 03042019, ex 03049010,  
ex 03051000, ex 03053090,  ex 03054980, ex 03055980,  ex 03056980 20 tonnes 0 90% 
of 
MFN 
duty 20 tonnes 0 80% 
of 
MFN 
duty 20 tonnes 0 70% 
of 
MFN 
duty 
Sea bream: live; fresh or chilled; 
frozen; dried, salted or in brine, 
smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption          
ex 03019990, 03026991, 03037991, 
ex 03041038, ex 03041098,  
ex 03042094, ex 03049097,  ex 03051000, ex 03053090,  ex 03054980, ex 03055980,  ex 03056980 20 tonnes 0 80% 
of 
MFN duty 20 tonnes 0 55% 
of 
MFN duty 20 tonnes 0 30% 
Of 
MFN duty 
Sea bass: live; fresh or chilled; 
frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption          
ex 03019990, 03026994,  
ex 03037700, ex 03041038,  ex 03041098, ex 03042094,  ex 03049097, ex 03051000,  ex 03053090, ex 03054980,  
ex 03055980, ex 03056980 20 tonnes 0 80% 
of MFN duty 20 tonnes  0 55% 
of MFN duty 20 tonnes 0 30% 
of MFN duty 
Table AII.1 (Cont'd) 
 WT/REG226/1 
Page 27 
 
 
TRQ from entry into force  
(1 December 2006) Liberalization scheme  
Duty 1 January 2007 
 As of 1 January 2008 
(no specific time schedule) 
Duty Duty CN Code (description) 
Quantity 
In-
quota Out-
quota Quantity 
In-
quota Out-
quota Quantity 
In-
quota Out-
quota 
Prepared or preserved sardines    
16041311, 16041319, ex 16042050 
 100 
tonnes 6% of 
MFN duty MFN 
duty  
 
Not mentioned  
Prepared or preserved anchovies     
16041600, 16042040  1,000 
tonnes 0 MFN 
duty From 1 January 2007, the annual quota volume will be increased 
by 200 tonnes provided that at least 80% of the previous year’s quota has been used by 31 December of that year.  This mechanism will apply until such ti me as the yearly volume of the 
quota has reached 1,600 tonnes or the Parties agree to apply 
other arrangements. 
Cane or beet sugar and 
chemically pure sucrose, in solid form: Raw sugar not containing added flavouring and colouring 
matter 
1701 
Other sugars, including 
chemically pure lactose, maltose, 
glucose and fructose, in solid 
form; sugar syrups not containing added flavouring or colouring matter; artificial 
honey, whether or not mixed with 
natural honey; caramel:  
1702  
   
 
  
1,000 
tonnes   
   
 
  
0 MFN 
duty  
   
 
  
Not mentioned  
Quality sparkling wine 
ex 220410 
Wine of fresh grapes 
ex 220421 5,000 hl 0 MFN 
duty 
Wine of fresh grapes 
ex 220429 2,000 hl 0 MFN 
duty The opportunities for granting fu rther concessions shall be 
examined no later than the first quarter of 2008.  
Source: Article 14.2 and Annex III of the Agreement;  and Article 1. Annex I of Protocol 3. 
 
Table AII.2 
Albania: Tariff-rate quotas for agricultural products originating in the EC  
CN Code (description)  TRQ from the date of entry into force  
(1 December 2006)  Liberalization scheme  
 Quantity  Duty  Quantity In-quota duty 
  In-quota Out-quota   
Common wheat and meslin 
seed 
10019091 
Spelt, common wheat and 
meslin (excl. seed) 
10019099 20,000 tonnes 0 MFN duty Not mentioned 
 
Quality sparking wine 
ex 220410 
Wine of fresh grapes 
ex 220421 10,000 tonnes 0 MFN duty The opport unities for granting further 
concessions shall be examined no later 
than in the first quarter of 2008. 
Source: Article 14.3.(c) and Annex II (c) of the Agreement;  and Article 3 and Ar ticle 7. Annex I of Protocol 3. 
__________