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Trade Policy Review: Albania
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This first Trade Policy Review of Albania has
allowed us to understand better the impressive reform process, with respect
to trade policy, that Albania has undertaken since its accession to the WTO
in 2000. Our discussions have benefited from the participation of Mr. Enno
Bozdo, Deputy Minister of Economy, Trade and Energy, Ambassador Sejdi
Qerimaj, Permanent Representative to the WTO, Mrs. Pranvera Kastrati, Head
of the Trade Policy Department and their delegation from Tirana and Geneva.
We thank Ambassador Major for his valuable contribution as a discussant, and
for the constructive engagement of Members in this first yet positive
review.
Albania was praised by WTO Members for its solid
economic performance over the period under review, its key achievements in
substantially reducing unemployment and trimming down fiscal deficit, while
keeping inflation in check. Albanian economy has successfully managed to
weather the effects of the global financial crisis, at the same time
maintaining a sound growth. Some Members noted, however, that challenges
remain, in particular in the areas of reduction of the public debt and
integration of the unregistered economic activities to the mainstream.
Members praised Albania for the substantial reform of its tax system and its
positive effect on government revenues, Members noted that balancing public
finances might require further measures, including the ones on the
expenditure side. The reforms Albania have successfully performed, defined
the path for an ongoing process of transformation from a centrally planned
economy to a liberal one, driven by private sector. Albania is invited to
continue with its reform process so as to further foster foreign direct
investment.
Members noted Albania's openness to trade and
investment, as well as the dynamism of its services sector. In this regard
Members showed interest regarding Albania's intentions to develop its
services and manufacturing sectors, and modernize agriculture. Albania's
success in privatizing state owned enterprises was highlighted, and Members
encourage the continuation of efforts in this regard. Noting the occasional
use of minimum values to calculate tariffs on imports, Members encourage
Albania to eliminate this practice. Albania was also encouraged to review
the method to assess tariffs applied to shipments of goods with different
tariff classifications, and the issue of transparency in tax policy
formulation.
Members also praised Albania for the initiatives
it has undertaken to improve its business environment particularly in the
areas of trade facilitation, taxation and business registration. They noted
that the perceived gap between legal provisions with respect to intellectual
property rights and their implementations could be ameliorated. Albania
informed the TPRB that it was changing its legal and institutional framework
in the area of intellectual property rights, as well as with respect to food
safety. Albania's effort to reform its judicial system was also highlighted
by the Members. Albania was asked about future initiatives to assist small
and medium-sized enterprises, to further attract investment and to improve
the business environment.
It was observed that Albania's negotiations to
accede to the WTO's Government Procurement Agreement had been dormant for
some time, and Albania was encouraged to revitalize this process. Members
noted Albania's increasing implementation of government procurement through
electronic means, and raised a number of questions with respect to
procurement procedures, including thresholds, security requirements, tender
time limits and the review process.
Members acknowledged that, as a newly acceded
country, Albania has undertaken significant and wide-ranging commitments in
the WTO. Members took note of Albania's exemplary record of submitting
notifications to the WTO in a timely fashion.
I would conclude that this Review has been a major
accomplishment for Albania. We have witnessed an interesting saga of Albania
starting with WTO accession in 2000 and moving closer to European
integration. The tremendous changes Albania has carried out is a clear
demonstration of how well-sequenced reforms focused on opening markets to
trade, investment and private enterprise can contribute to economic growth
and higher living standards. So much has been achieved over a relatively
short period of time: certainly the Albania of today bears little
resemblance to the Albania of one decade ago. So, I would wish to highlight
Albania's determination in pursuing economic, institutional and political
reform and its remarkable achievements to date.
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