Integration of the Albanian agricultural market into the regional and EU markets

Shkelzen Marku MSc.Director-General of Agriculture Policies

Ministry of Agriculture, Food and Consumer Protection, Albania

Introduction

Albania actually has signed the SAA with the EU, which needs Albania actually has signed the SAA with the EU, which needs to be ratifyed from the member countries during the next to be ratifyed from the member countries during the next months. months.

Albania became member of WTO in 2000;Albania became member of WTO in 2000;

Eight FTAs are already signed with countries in the region;Eight FTAs are already signed with countries in the region;

New FTA with Turkey ready for approval in parliaments; New FTA with Turkey ready for approval in parliaments;

CEFTA still under negotiation within all regional countries;CEFTA still under negotiation within all regional countries;

Export / import ration for food products about 1:7; Export / import ration for food products about 1:7;

FTA with different countries

Countries with FTA

Date of entry in force

Comments

Macedonia Macedonia 01. 07. 200201. 07. 2002

Croatia Croatia 05. 01. 200305. 01. 2003

Rumania Rumania 10. 05. 200310. 05. 2003

Bulgaria Bulgaria 15. 07. 200315. 07. 2003

BiHBiH 15. 08. 200315. 08. 2003

Kosovo Kosovo 01. 09. 200301. 09. 2003 After 01 January 2007: all tariffs 0%After 01 January 2007: all tariffs 0%

Serbia & Mont. Serbia & Mont. 10. 04. 200410. 04. 2004 Under revisionUnder revision

MoldaviaMoldavia 10. 04. 200410. 04. 2004

TurkeyTurkey -- Negotiations closed and ready for Negotiations closed and ready for approvalapproval

Balkans,Trade with the World

-20,000

-10,000

10,000

20,000

30,000

40,000

2001 2002 2003 2004 2005

Imports Exports Balance

-15,000

-10,000

-5,000

5,000

10,000

15,000

20,000

25,000

2001 2002 2003 2004 2005

Imports Exports Balance

Balkans, Trade with the EU

Regional trade with EU (2004)

Regional trade in Western Balkans

Albania: Balance of payments

Albanian export to EU

Albanian Imports from EU

Rank of Albania in EU trade

Top 25 trade partners of Albania by volume

Top 10 export-to-import destinations

for 2005

Evolution of export/import

coverage

Albania - Export of agriculture goods (000$)

Albania - Import of agriculture goods (000$)

Main agriculture trade partners of Albania in 2005

Exports Italy 38%, Kosovo 16% Greece 16% Germany 11%

Imports Greece 21% Italy 18%

Trade Liberalization: Evolution of trade-weighted MFN average import tariffs in Albania

Agriculture export-import situation (EU)

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

2004 2005 2004 2005

Exports Imports

Region EU

Agriculture export-import situation (EU)

0

5000

10000

15000

20000

25000

2001 2002 2003 2004 2005 Average 5years

Unprocessed Processed

Agriculture export-import

situation (Region)

2004

(15,000)

(10,000)

(5,000)

-

5,000

10,000

15,000

Ru

ma

nia

Ma

ced

on

ia

Cro

aci

a

Ko

sova

Se

rbia

&M

on

t.

Bo

snia

Bu

llga

ria

Mo

lda

via

Exports Imports Balance

2005

(20,000.0)

(15,000.0)

(10,000.0)

(5,000.0)

-

5,000.0

10,000.0

15,000.0

20,000.0

Rum

ania

Mac

edon

ia

Cro

acia

Kos

ova

Ser

bia

&M

ont.

Bos

nia

Bul

lgar

ia

Mol

davi

a

Exports Imports

Specialization index for Albania

Challenges for agricultural marketing in Albania

Small and fragmented production offer, Marketing infrastructure (collection, sorting, grading, packing),

Supply chains and marketing linkages, Food standards and certification, Traceability system, Production methods, procedures, technologies, Training of inspectors, Waste management, Information:

Marketing (food-industry producers, traders, consumers) Export standards and terms of the EU common market

Closing Comments and Open Questions

Increasing but still limited regional trade (main issues: infrastructure, fragmented offer, business linkages, administrative procedures, information, etc.);

EU main trade partner for most SEE countries (mainly imports, while exports still very limited by NTB). Could we succeed with the scrutiny inspections of EU officials???

Regional agriculture still suffers form structural and other problems. Could our products really compete with highly subsidized EU products???

Free trade agreements – difficult to management and not fully effective. Will CEFTA be more practical for businesses???

Regional cooperation and exchange on trade development within the region needs more attention. Could we be more effective???

THANK YOU FOR YOUR ATTENTION !