WTO urges Albania to focus on implementation of legislation

TIRANA, May 3 – The World Trade Organization (WTO) has suggested the Albanian government authorities to focus on the implementation of the fiscal legislation it has adopted. In a recent report covering the 2002- 2009 period, the WTO says that Albania would gain from continuing and reinforcing the process of reform, which has yielded positive results. Given the speed and extent of legislative changes, it is essential to focus on implementation and further strengthening of the judicial system. And in the face of current world-wide economic difficulties, Albania may need to rely more on new sources of growth such as attracting green-field investment and developing a stronger export base, according to a WTO Secretariat report on the trade policies and practices of Albania.
Over the past decade, Albania has maintained an ambitious programme of economic, legal and institutional reform, largely driven by World Trade Organization membership and its desire to join the EU. In so doing, it has continued to engage in a remarkable process of transformation from a closed, centrally-planned economy to one that is liberal, market-oriented and private-sector driven, says the report.
Maintaining sound macroeconomic and fiscal policies, and reforming the business environment, Albania has improved productivity and achieved solid economic growth over the period of 2002-2008, averaging 5.8% per year. Per capita GDP in nominal terms more than doubled over the period, unemployment decreased, and human development indicators suggest considerable improvements.
Albania’s economy is characterized by a highly productive and growing services sector, a shrinking agriculture sector, and a very small manufacturing sector focused mainly on footwear and clothing production, said the report.
Among the key challenges facing Albania, the report mentions the need to continue reducing the increasing fiscal imbalances and the levels of public debt, while at the same time pursuing structural reform and investing in the infrastructure needed to improve the business environment and enhance productivity.
The WTO report, along with a policy statement by the Government, will be the basis for the Trade Policy Review (TPR) by the Trade Policy Review Body of the WTO.