Trade of services from Albania to EU expand

Tirana Times
By Tirana Times June 6, 2019 13:57

Trade of services from Albania to EU expand

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  • This was the second consecutive year when Albanian exports exceeded imports of services with a margin of 77.4 million euros. Exports of services from Albania to the EU were 857.9 million euros in 2017, from 812.7 million euros a year earlier, increasing by 6 percent.

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TIRANA, June 3- With technological development and the growth of globalization, trade in services is gaining momentum. The European Union is one of the main trading partners of Albania according to Eurostat published data on trade exchanges of services for 2017. Service trade refers to the sale and distribution of intangible products, from the producer to the consumer.

According to Eurostat data, Albania had a surplus in the trade of services with the EU that year. This was the second consecutive year when Albanian exports exceeded imports of services with a margin of 77.4 million euros. Exports of services from Albania to the EU were 857.9 million euros in 2017, from 812.7 million euros a year earlier, increasing by 6 percent. Albania’s trade surplus in services recognized an expansion of almost 60 percent. In the category of services are included maintenance and repair services; transport; travel; construction; insurance and pension services; financial services; the use of intellectual property; telecommunications and computing services; other business services; entertainment services; government services; etc..

The Western Balkans region is increasingly seen as one from the European Union countries. One of the EU’s objectives is to create a common market with the six Western Balkan countries. According to Eurostat, exports from the Western Balkan countries to the EU were 4.9 billion euros, while exports from the EU to the Western Balkans were 5.8 billion euros. From the trade of services with the Western Balkans the EU made a surplus of 896 million euros. From the Western Balkan countries only Albania and Montenegro exported more than their imports. Montenegro’s trade surplus with the EU in terms of services was 121 million euros, followed by Albania with a surplus of 77.4 million euros. Concerning the rest of the regional countries, Serbia had the broadest service deficit with a margin of 563.2 million euros, followed by North Macedonia with 438.2 million euros, and Bosnia with 94 million euros. Data on trade in services with the EU have not been updated for Kosovo.

According to preliminary data for 2018, exports of services from the EU to the rest of the world increased by 0.7 percent compared to a year earlier, from 912.4 billion euros to 918 billion euros, while imports increased by 1.1 percent, from 720 billion euros to 728.4 billion euros.

Consequently, the EU’s trade surplus in services amounted to 190.1 billion euros in 2018, down 0.8 percent on the previous year. The European Union services exports were dominated by “other business services,” such as research and development, technical, professional and business services, which accounted for a quarter of the total exports, followed by transport by 18 percent, and travel services by 15 percent.

“Other business services” were the category with the highest share of services imported from the European Union (about 29 percent of the total), followed by transport services by 18 percent, trips by 15 percent and tariffs for the use of intellectual property 15 percent. The EU surplus in 2018 was mainly due to surplus in telecommunications and information technology (82 billion euros), transport by 31.9 billion euros, travel by 30.7 billion euros, and financial services by 32.1 billion euros. While there was a deficit in tariffs for the use of intellectual property.

Tirana Times
By Tirana Times June 6, 2019 13:57