 
  WORLD TRADE  
ORGANIZATION  G/C/W/504 
24 November 2004 
 (04-5112) 
Council for Trade in Goods Original:   English 
  
 
REQUEST FOR A WTO WAIVER 
 
Communication from Albania
 
  
 The following communication, dated 19 November 2004, is being circulated at the request of 
the Delegation of Albania.  
_______________ 
 
 
Albania's Reformatory Policies towards Trade and Liberalization
 
 
  The Government of Albania is totally committed to carry out deep trade reforms aiming at the 
restructuring of Albanian economy, as a necessary step  towards the integration of the country in the 
international dimension.  These reforms are being strictly implemented with satisfactory results, 
especially in terms of trade liberalization.  
The Government of Albania is convinced that being a member country in an international 
organization such as the WTO opens new ways of c ooperation and gives us the opportunity to tackle 
different problems in a more structured manner.  It  has demonstrated a continue engagement in order 
to implement the political, financial and economic reforms.  These refo rms indicate the efforts and the 
concrete steps taken by the Albanian Government in  order to have a stable  economic development and 
be integrated in international organization thro ugh implementation of international standards.   
  Despite all these changes and reforms the prior ities of the Albanian Government still remain 
(i) harmonizing costs and benefits of the liberaliza tion and integration process;  (ii) macroeconomic 
stability;  (iii) develop domestic supply capacities in several sectors of the economy;  and (iv) 
compatibility with the international obligations.    
That is why, by means of this letter I take the opportunity to address the Members of WTO, 
the request to grant Albania a waiver from the obligation related to the implementation of its 
commitments for the years 2004 and 2005 on a small group of products.  Such waiver would merely 
concern the postponement of the staggering of the inte rmediate rates before th e finally bound rates are 
reached in 2009.  I would like to stress that the wa iver does not affect either the final bound rates nor 
the final year for the implementation of our co mmitments for any of the products listed in our 
Schedule of commitments.  
 This request is presented based on Article IX, paragraph 3 and 4 of the Marrakech Agreement 
Establishing the World Trade Organisation.  The full package of Albania’ s Notification for such 
purpose is attached to this letter.  
 I would like to seize this opportunity to menti on that Albania has already liberalized 303 tariff 
lines below the level agreed on the WTO accession.   These lines represent approximately 48 per cent G/C/W/504 
Page 2  
 
 of the overall accession commitment for 2004.  Furtherm ore, the maximum applied tariff rate stands 
at 15 per cent, while its binding is at 20 per cen t.  The lower level of maximum applied duties as 
against maxima bound in its WTO accession commitments  and applied is a clear demonstration of 
Albania’s commitment in continuing the reform of it s tariff system in line with the process of trade 
liberalization. 
 
 In addition, while at the time of accession,  the biggest share of tariff lines (namely 
66 per cent) corresponded to its maximum tariff rates at 20 per cent, currently Albania’s largest share 
of duties (namely 54 per cent) corresponds to its mi nimum rates which are at the level of 2 per cent 
and zero.  All of which shows the liberalisation e fforts accomplished by Albania in the limited time 
since its accession. 
 
Favourable consideration of such a request by the WTO Members would be an extremely 
valuable contribution to the rapid process of Al bania’s development, will avoid unnecessary damage 
to the commercial and economic interests, thus help ing Albania to succeed on its efforts to expand the 
internal markets, eliminate trade instability and pr omote investment in several industries.  Fiscal 
sustainability is for Albania a pre-requi site of economic policy development.  
 
Given the flexibility Members will have to demonstrate in this occasion, I would like to 
confirm once again Albania’s unflagging commitment to predictability and balanced liberalisation as 
basic principles of the WTO. 
  
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  G/C/W/504 
 Page 3 
 
 
 ARTICLE  IX; DECISION - MAKING  
 
OF 
THE MARRAKESH AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION 
 
Schedule CXLVI - Republic of Albania  
   In accordance with the provisions and pro cedures of Article IX “ Decision-Making” 
paragraph 3 and 4 of the Marrak ech Agreement Establishing the World Trade Organization, the 
Republic of Albania hereby notifies its intention to the Council for Trade in Goods on the request for 
a waiver concerning the implementation  of certain  concessions included in its Schedule CXLVI, as 
set forth in Annex I hereto, within the transitional  period.   The Government of Albania is prepared to en ter into consultations w ith the appropriate WTO 
Members under Article IX, paragraph 3 (b), for such a waiver of the said concessions.  
 Background:
 
 
 During the accession to the WTO, the Republic of Albania negotiated, among its several 
commitments, an obligation to reduce gradually tari ffs for a considerable number of products included 
in its Schedule of Commitments.  At moment  Albania is undergoing integration and trade 
liberalization process, manifested in many reforms launched by the Albanian Government.  In terms 
of commitment to liberalization process, year 2004 reflects an ambitious moment for the Albanian 
Government.   
 Albania has already liberalized 303 tariff lines  below the level agreed on the WTO accession. 
These lines represent approximately 48 per cent of the overall accession commitment for 2004. Furthermore, the maximum applied tariff rate st ands at 15 per cent while the maximum bound rate 
stands at 20 per cent. It is to be noted that while  Albania’s largest share of duties (namely 66 per cent) 
was at 20 per cent at the time of accession, curren tly the biggest share of tariff rates (namely  
54 per cent) corresponds to the minimum applied rates which stand at the level of  2 per cent and zero. 
 
 However, products subject to tariffs reduction in 2004 represent a considerable share in the 
overall WTO commitments’ structure.  Consequen tly, the Albanian Government seeks to request a 
waiver to delay the staging of the intermediate ra tes before the final bound rates are reached in 2009.  
This would concern only a limited number of tariff lines, without affecting either the final bound rates 
nor the final year of the implementation of the commitments for any products listed in schedule 
CXLVI.  Justification:
 
  The Albanian Government has demonstrated  a continued commitment to  implement far-
reaching  political, financial and economic reform s.  These reforms indicate the efforts and the 
concrete steps taken by the Albanian Government in  order to have a stable  economic development and 
be integrated in international organization thro ugh implementation of international standards.   
  Despite all these changes and reforms the prior ities of the Albanian Government still remain 
(i) harmonizing costs and benefits of the liberaliza tion and integration process;  (ii) macroeconomic 
stability;  (iii) develop domestic supply capaciti es in several sectors of the economy;  and 
(iv) compatibility with the international obligations.      G/C/W/504 
Page 4  
 
  Albania is a small economy in transition, relying substantially on customs revenues for 
budgetary purposes. The immediate implementation of all the 2004 commitments as set forth in 
schedule CXLVI would exert a significant strain on the fiscal budget.  The cost of the implementation of these commitments is estimated at 580 million Lek (USD 5.8 million), or 33 per cent of the fiscal budget for the year 2004.  The foregone revenues resulting from the full implementation of the 
accession commitments of the years 2000-2003, which Albania has fully respected, is estimated at 
370 million Lek (USD 3.7 million).  While the overall impact would not in absolute terms, represent a 
major amount, it would nevertheless account for a ve ry significant portion of the Albanian budget and 
hence represent a high fiscal burden for a single y ear.  The impact of such burden on Albania’s 
current budget deficit is likely to extend to Al bania’s macro-economic stability that remains fragile 
despite consolidation efforts by the government.  The induced fiscal instability, considering the fact of 
the accumulation of commitments at a single point in time, represents one of the reasons behind Albania’s request to adjust time line for implementing tariff reductions.   
 
 Harmonizing costs and benefits of the liberali zation and integration process is a challenge for 
the Albanian government since it requires special  consideration of the infant market economy 
structure.  During these transition years local economic initiatives have been developed thus 
increasing and improving production capacities in some i ndustrial sectors.  These optimistic signals of 
Albania’s economic development need to be encour aged at the same time as the liberalization and 
integration processes go on, including through th e implementation of our WTO commitments. 
  
  G/C/W/504
 Page 5ANNEX  I  
           
      Proposed schedule on reducing tariff in % 
      2005 2006 2007 2008 2009 
HS code  Group Bound 
rate Interim Final Bound 
rate Implementation Tariffs till 
15.01.2004      
           
22030001 20 10 
(2004) 0 2005 10 10 10 0   
22030009 20 10 
(2004) 0 2005 10 10 10 0   
22030010 20 10 
(2004) 0 2005 10 10 10 0   
22051010 - 22089099 20 10 
(2004) 0 2007 15 10 5 0   
33030010 - 34070000 20  6.5 2004 15 10 8 6   
34060011 - 34060090 20  6.5 2004 10 10 10 6   
39172110 -39172399 20  5 2004 15 10 8 5   
39172912 - 39202021 20  6.5 2004 15 10 8 6   
39202029 20  6.5 2004 10 10 10 6   
39202061 - 39269099 20  6.5 2004 15 10 8 6   
44091011- 44219010 20  0 2004 15 10 5 0   
44201011 - 44209099 20 10 
(2002) 0 2004 10 10 10 0   
48025610 20  0 2004 2 2 2 0   
48141000 - 48209000 20  0 2004 15 10 5 0   
48211010 - 48219090 20  0 2004 10 10 10 0   
48221000 - 48236090  20  0 2004 15 10 5 0   
48236010 20  0 2004 2 2 2 0   
48236090- 48239090 20  0 2004 15 10 5 0   
49090010- 49100000 10  0 2004 10 10 10 0   
49111010 - 49119900 10  0 2004 10 10 10 0   
72131000 - 72230099 20 10 
(2004) 0 2009 15 15 10 5 5 0 
72249001- 72249099 10  5 (2004) 0 2009 10 10 10 5 5 0 
72251100-  73170090 20 10 
(2004) 0 2009 15 15 10 5 5 0 
85365011-85365080 10  0 2004 10 0     
94011090- 95059000 20 10 
(2004) 0 2006 15 10 0     
 G/C/W/504 
Page 6  
Note:   Related to these items the data shows that we have started th e liberalization, but not in full conformity with the commitment s;  that is why we are 
asking to postpone it. 
 
Applied Tariff in % 
2003 2004 
34060011-34060090 15 10 
39202029 15 10 
44201011 - 44209099 15 10 
48025610 15 2 
48236010 15 2 
49090010- 49100000 15 10 
 
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