WRITTEN QUESTION P-2322/98

by Francesco Baldarelli (PSE) to the Commission

(13 July 1998)

Subject: Opening up the domestic market in the Republic of Macedonia

In view of the following considerations:

- the EU has well-established economic and social links with the Republic of Macedonia,

- these contacts take the form of a structured dialogue which has enabled the Union to intervene directly by means of cooperation and support programmes in various sectors in that country,

- the Republic of Macedonia is party to the international trade agreements,

- the Government of Macedonia has repeatedly placed obstacles in the path of industrial and trade initiatives in various sectors, thus flouting the principle of cooperation with the EU and its Member States, as well as the relevant bilateral and international agreements,

- the recent setting-up under Macedonian law of Apimak, a joint enterprise with a substantial (52 %) Italian holding that operates in the energy sector,

- that joint enterprise is based on the principles of partnership and cooperation that are the essential basis of agreements with third countries and were initially accepted by the Government of Macedonia,

- the firm has been subjected to a series of restrictive measures of various kinds designed to prevent the marketing of petroleum products and derivatives,

- these measures were introduced by means of a government decree aimed at preventing imports of petroleum products and restrictive administrative procedures (licences) that distorted domestic competition and undermined the principle of opening up the market to which the Republic of Macedonia had assured the EU that it was committed,

- the measure in question was irregular, as the firm in question would have accounted for only a small share of the market, which was expected to amount to10 % at the most after a few years' operation,

Can the Commission answer the following questions:

1. How can situations arise such as that described above, which violates international law and is damaging to the country's well-established links with the EU?

2. Does the Commission, in view of the foregoing and other cases of which it is aware, intend to raise this matter as soon as possible in bilateral talks to ensure that normal economic and trade relations are restored with the Republic of Macedonia?

Answer given by Mr van den Broek on behalf of the Commission

(3 August 1998)

Economic relations between the former Yugoslav Republic of Macedonia and the Community have improved substantially since late 1995 and, more recently, on the basis of the cooperation agreement concluded between the Community and this country which entered into force on 1 January 1998. The Commission is however aware of problems for several Community investors in the former Yugoslav Republic of Macedonia including the case mentioned by the Honourable Member.

The former Yugoslav Republic of Macedonia is not a member of the Word trade organisation (WTO). On the other hand, the country has applied for WTO membership and should therefore respect relevant standards. The Commission also shares the view of the Honourable Member that the prohibition of imports, in this particular case, can be considered as an infringement of the principle of non-discrimination for Community imports as laid down in the bilateral cooperation agreement.

On the occasion of the first meeting of the cooperation council under the cooperation agreement which took place in Skopje on 20-21 March 1998, the Commission already stressed the importance of creating the appropriate framework conditions for crucially needed foreign direct investment in the country and to promote industrial cooperation and trade. In all bilateral relevant fora the Commission will remind the authorities of their responsibility in this respect, including in the particular case mentioned by the Honourable Member.