Trade liberalization in the region is being promoted by the European Union's Stability & Association processes for the Balkan countries. Albania signed the Stabilization–Association Agreement with the EU in Luxembourg on 12th June 2006. One of the Stability Pact's requirements is that Balkans be transformed into a free trade zone, a process which is now largely achieved.

Since 2000, when it became a WTO member, Albania has significantly reduced its trade-weighted average MFN import tariff as you can see in underlying table that summarizes its evolution. 

Source: World Bank – Albania, Trade at a glance

The real trade-weighted average tariff in Albania is even lower if effects of the imports from various countries which have a privileged trade status through Free Trade Agreements (FTAs) are taken in account. Under the EU Association agreement, all industrial products originated from Albania will be exported into the EU with a 0 % customs tariff, while 83% of industrial goods originating in the EU can be imported into Albania without any custom tariffs.The remaining 17% of industrial products originating in the EU that retain a customs tariff will have that eliminated within a 5-year period.

FTAs are based on the principle of reciprocity and mutual advantage. They aim to substantially reduce and liberalize customs, duties and other trade barriers, and above all, to eliminate the discrimination in bilateral and multilateral trade relations between the signatory countries.

FTAs provide for the establishment of free trade areas between the signatory parties over a period of 5 to 6 years through the elimination of tariffs on trade in full compliance with article XXIV of GATT 1994. FTAs differentiate between industrial and agricultural goods. Agricultural products are more likely to be partially or fully protected, while industrial products, with a few exceptions, are subject to progressive tariff reductions.

The Albanian government has expressed its desire to participate in a new arrangement for a free trade area in the region. At the Summit of the Prime Ministers of Southeast Europe, held in Bucharest on April 2006, the Albanian Prime Minister signed the joint declaration for the 'Enlargement of the Free Trade Agreement for Central European Countries' (CEFTA).

Albania has functioning Free Trade Agreements with its Balkan neighbours that allow manufacturers based in Albania to use the country as a gateway to markets in southern Europe as well as via transhipment to the EU. Albania has FTAs in place with Bosnia-Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Romania, Serbia & Montenegro, plus Moldova & Turkey.

Albania is a member of the WTO, IMF/IBRD, and MFN. We have trade and investment agreements in place with the USA and our country is covered under TDA, GSP, OPIC & EXIM schemes. A WTO member since 2000, Albania is a signatory to the WTO agreements in the areas of civil aircraft, information technology products, government procurement, TRIPS and Basic Telecommunications.