MONTENEGRO Negotiating Team for the Accession of Montenegro

MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 1 – Free Movement of Goods Bilateral Screening: Chapter 1 PRESENTATION OF MONTENEGRO Brussels, March 4 th, 2013

MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 1 – Free Movement of Goods Bilateral Screening: Chapter 1 Presentation of Montenegro Brussels, March 4 th, 2013 Chapter 1: Poglavlje 25 Free Movement of Nauka i istraživanje Goods

Chapter 1: Free Movement of Goods GENERAL PRINCIPLES Nina Vujošević Deputy Minister, Ministry of the Economy nina. vujosevic@mek. gov. me MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of General Principles Goods

Chapter 1: Free Movement of Goods Basic Information -Montenegro Territory 13, 812 km 2 (13, 452 km 2 of land/ 360 km 2 of sea) Capital/ Historical capital Podgorica / Cetinje Population 620, 029 Climate Continental, Mediterranean. Number of units of local government 21 Political system Parliamentary democracy Language Montenegrin Currency Euro (€) MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of General Principles Goods

Chapter 1: Free Movement of Goods Key Economic Indicators Ø Estimated GDP in 2012 - EUR mio. 3. 324 Ø Estimated GDP per capita in 2012 – EUR 5, 361 Ø Deficit of Goods Trade in 2012 - 43. 7% of GDP MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: 1: Chapter Free Movement of General Principles Goods

Chapter 1: Free Movement of Goods BASIC MARKET PARAMETERS -The total international trade of Montenegro in 2012, according to preliminary data, amounted to € 2, 187. 4 m showing a fall of 4% compared to the same period last year. -The value of exported goods amounted to EUR 366. 9 million in 2012, which is 19. 3% less than the same period of the previous year - The value of imported goods amounted to EUR 1, 820. 5 million which is 0. 2% lower than the same period of the previous year. - The coverage of imports by exports amounted to 20. 2% and is lower than the coverage in the same period last year when it amounted to 24. 9%. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: General Principles

Chapter 1: Free Movement of Goods FOREIGN TRADE ACCORDING SITC AND COUNTRIES -In the export structure, according to the SITC most represented are products classified according to material – Section 6, amounting to € 154 m (consisting of: Non-ferrous metals – € 128. 6 m; and Iron and steel – € 6. 3 m). -In the import structure, according to the SITC, the most represented are the products of Section 0 – Food and live animals – € 356. 6 m (consisting of: meat and meat preparations – € 84. 3 m; and cereals and cereal preparations – € 57. 1 m). MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: General Principles

Chapter 1: Free Movement of Goods FOREIGN TRADE ACCORDING COUNTRIES -In exports, the main international trade partners, in 2012 individually, were: Croatia (€ 83. 5 m); Serbia (€ 83. 4 m); and Slovenia (€ 28. 9 m). -In imports, the main international trade partners in 2012 individually, were: Serbia (€ 532. 8 m); Greece (€ 159. 2 m); and China (€ 130. 6 m). The largest international trade exchange was accomplished with the signatories of CEFTA and the European Union. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: General Principles

Chapter 1: Free Movement of Goods Graph on imports and exports of goods Source: Monstat portal – import: export ratio (in thousands of Euros) MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: General Principles

Chapter 1: Free Movement of Goods INTERNAL MARKET TRADE -Estimated Internal market trade exchange in 2012 was at a level of EUR 1, 041. 6 million -The increase compared to 2011 was 6. 7% Source: Ministry of Economy MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of General Principles Goods

Chapter 1: Free Movement of Goods FOREIGN TRADE MARKET LIBERALISATION - Following the aforementioned joining of the internal market and geoeconomic parameters as well as the structure of foreign trade, Montenegro opened its market and equalized the treatment of imported goods with that of domestic markets. - For the purpose of structural problem-solving of the high trade deficit (goods trade deficit) , it is necessary to strengthen Montenegrin exports in parallel with a decrease in dependence on imports. In the following period significant investments would be required in export production and an increase in the quality and competitiveness of Montenegrin products. - In order to gradually start solving structural problems and open its way to other markets, Montenegro approached the signing of the following international agreements: • TBT/WTO • SAA • CEFTA Chapter 1: MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods INTERNATIONAL TRADE • TBT/WTO -Montenegro became a member of the World Trade Organization in 2011 -The agreement on technical barriers to trade also includes the obligation of: Ø TP reconciliation ØUsage of standardization ØCompliance procedures Ø TP and standards notifications ØRemoval of other non-tariff trade barriers MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods INTERNATIONAL TRADE SAA – Stabilization and Assotiation Agreement ARTICLE 21 Montenegrin concessions for industrial products • Upon the entry into force of this Agreement, customs duties on imports of industrial products into Montenegro originating from the Community will be abolished except for those listed in Annex I. • Upon the entry into force of this Agreement, charges having an effect equivalent to that of customs duties on imports of industrial products into Montenegro originating from the Community will be abolished. • Customs duties on imports of industrial products into Montenegro originating from the Community listed in Annex I will be gradually reduced and abolished in accordance with the time schedule given in that Annex. • On the date of entry into force of this Agreement, quantitative limitations and measures having equal effect on the imports of industrial products into Montenegro originating from the Community will be abolished. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods INTERNATIONAL TRADE CEFTA – Central Europe Free Trade Agreement Article 13 Technical Barriers to Trade • The Parties commit themselves to identifying and eliminating unnecessary technical barriers to trade, in accordance with the WTO Agreement. The Joint Committee or Special Committee for Technical Barriers to Trade that may be set up in accordance with Article 41, paragraph 5, shall supervise the process of eliminating unnecessary technical barriers to trade. The Parties hereby commit themselves not to introduce new unnecessary trade barriers. In that respect, the Parties shall cooperate within the Joint Committee or Special Committee to be appointed by the Joint Committee for these purposes for facilitating and harmonizing technical regulations, standards and obligatory procedures for reconciliation assessment in order to eliminate technical barriers to trade. On the basis of the above, a sub-committee for unnecessary technical barriers was set up. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods : INTERNATIONAL TRADE CEFTA – Central European Free Trade Agreement Article 13 Technical barriers to trade • If a Party considers that the other Party has adopted or is in the process of adoption of a measure that represents an unnecessary technical barrier to trade it shall inform about it the Joint Committee or Special Committee dealing with technical barriers to trade that shall make a decision on the measures to be taken. Commitment evidence – in practice Montenegro has never received any notification that it has created unnecessary technical barriers although there is a very intensive process among members based on all types of industrial or food products MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods Measures having equal effect on industrial products In accordance with European legislation and SAA there are no measures in Montenegrin legislation that: • create unequal discriminating treatment to “domestic” legal entities and natural persons and importers established abroad • encourage or approve the purchase and use of any domestic or foreign products • introduce additional customs duties or other controls before releasing onto the market imported industrial products • create unpermitted monopolies • create reservations for domestic products • prescribe procedures for parallel imports • prevent imports or placement on the market of any industrial product depending on the price • introduce an obligation for storing the products on any basis MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

Chapter 1: Free Movement of Goods Measures having equal effect on industrial products In accordance with European legislation and SAA, Montenegrin legislation prescribes as follows: • All products, without discrimination, on the Montenegrin market shall be subject to technical requirements for products through technical regulations. The subject of adoption of technical regulations has been horizontally governed by the Law on Technical Requirements for Products and Conformity Assessment (Official Gazette of Montenegro, No. 53/2011). • Law on Foreign Trade (Official Gazette of Montenegro No. 28/04, 37/07) in Article 6 prescribes that the Government shall by way of a special decision establish, update and publish an Import and Export Control List consisting of information on goods whose export or import is limited. To that end, the Control List was adopted for imports-exports and transit of goods (Official Gazette of Montenegro No. 5/12) whose international trade is limited and is carried out based on the permit issued by the responsible authority in accordance with the law. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Chapter 1: Free Movement of Goods

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