Trading with neighbors at a loss

TIRANA, July 22؁lbania is finding it impossible to compete with its neighbors. The latest statistics from the Customs General Directory (DPD) point to a wider gap in the trade deficit with its neighbors. The regional countries have for years now implemented a Free Trade Agreement (FTA) which means the gradual reduction to zero of all custom taxes for the FTA members.
The trade deficit with FTA members in January-April 2009 amounted to 3.4 billion Lek, about 5 times the gap recorded in the same period a year ago. The deficit suffered its biggest blow during April.
The trade deficit in the first quarter of 2009 in relation to Serbia, Montenegro, Kosova, Croatia, Former Yugoslavian Republic of Macedonia (FYROM), and Bosnia & Herzegovina was three times higher on an annual basis.
It is a clear conclusion that the current FTA has not worked to Albanian producers’ advantage. The drop in Albanian exports to its neighbors is the biggest contributor to the recent widening deficit. According to DPD, January-April exports to other FTA countries amounted to only 750 million Lek, compared to 2.8 billion in the same period of 2008. That is a 73% drop, while imports from FTA countries have increased by 22% for a total value of 4.2 billion Lek.