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Challenges in Advancing Regional Trade – Working Meeting with CEFTA Secretariat Director

02/10/2025

For companies, it does not matter on what legal basis trade measures are implemented; what matters is that they are enforced. This was the shared conclusion of a working meeting between Dr. Pranvera Kastrati, Director of the CEFTA Secretariat, and representatives of member companies of the Economic Chamber of North Macedonia.

The meeting, held at the Chamber, aimed to open a discussion on effective mechanisms to overcome situations when one of the CEFTA signatories introduces unilateral measures that effectively obstruct regional trade. It was also an opportunity for Macedonian businesses to share their perspectives on priority challenges in regional trade in goods and services.

Dr. Kastrati outlined CEFTA’s upcoming priorities, including the establishment of green lanes and border crossings linking the region with the EU Single Market. Supporting documents have already been prepared, identifying main problems and proposing solutions such as investment in infrastructure, facilities, and equipment, strengthening human capacities, and enhancing inter-agency coordination. These are expected to be formally endorsed by regional leaders by the end of the year. She also highlighted priorities in achieving fully digitalized trade (without paper-based documentation) through upgrades of the SEED+ and Traces systems, as well as the completion of the process for mutual recognition of digital signatures and certificates among CEFTA members. Additionally, she addressed the potential for granting further benefits to Authorized Economic Operators (AEOs) by introducing dedicated lanes at border crossings and finalizing recognition of their status in trade with the EU.

During the discussion, companies emphasized the need for further simplification of customs procedures and prioritization of border crossings for AEO-certified companies, the introduction of a fully integrated electronic system for import/export procedures, further liberalization of trade in fruit and vegetables, and the possibility for CEFTA to advocate for differentiated treatment of the region compared to other third countries when it comes to EU trade policies and measures.

Ahead of the working meeting, the Chamber’s Management Board delegation held a session to review recent activities addressing unilaterally imposed non-tariff measures against Macedonian exporters by one CEFTA party. They also discussed modalities for establishing standardized communication channels between chambers of commerce in the CEFTA region and the CEFTA Secretariat. This would enable timely reporting of such cases to CEFTA’s Non-Tariff Measures Committee and ensure appropriate follow-up and decisions.

The CEFTA Agreement, signed in 2006, is a regional trade accord linking the Western Balkans (Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia) and Moldova. Its purpose is to facilitate trade and foster economic cooperation by reducing or eliminating tariffs and non-tariff barriers. The agreement is also an important step in preparing countries for future EU membership, as it aligns rules with EU standards.

Since the beginning of 2025, implementation of the second extension of the Common Regional Market Action Plan (2025–2028) has begun. The plan sets out key priorities for removing barriers to regional trade and accelerating alignment with EU rules and standards, strengthening each Western Balkan economy’s readiness for integration into the EU Single Market under the New Growth Plan. For example, easing the free movement of labor within the Western Balkans could potentially increase the region’s GDP by 1.3% by 2025, while creating a favorable and competitive business environment is expected to contribute to 2% annual growth, attract up to 6.5% more investment, and raise job growth rates by 1% annually. At the same time, it could boost SME productivity by 5–10%.