Brussels, 06/12/2011 (Agence Europe) - By accepting the important commitments on privatisation, price control and market access, Montenegro has paved the way to joining the WTO.
It only took Montenegro seven years to ensure its place in the multilateral organisation governing world trade. Its accession was approved by the working group in charge of the dossier on Monday 5 December. The entry into the WTO of this former Yugoslav federation member was formulated in a document prepared in 2004. It now needs formal approval from member countries in the middle of December in Geneva.
On Monday, the head of the WTO, Pascal Lamy, said that “joining the WTO will strengthen Montenegro's ability to compete in the world's trade arena through its political and legislative reforms. It also obtains the WTO label, which is so important when it comes to attracting investment”. This go-ahead was welcomed by Montenegro's minister for the economy, Vladimir Kavaric, whose country obtained the status of EU candidate country in December 2010. After having adopted important reforms in 2011, the Commission gave a favourable opinion to opening accession talks. The EU may decide to begin these talks in the middle of next year. Montenegro's accession to the WTO sends out a “strong signal” underlining its commitment to undertaking important economic reforms, as emphasised by the Slovenian ambassador to the WTO, Andrej Logar.
In order to join the WTO, Montenegro agreed to further liberalisation of its trade regime and to guarantee a transparent framework for trade and foreign investment. The country also made a commitment to continuing its privatisation programme of state enterprises, which are mainly controlled by the public sector. Podgorica will also apply price control measures that are compatible with WTO rules. Finally, Montenegro agreed to comprehensive reform of its restrictive regime on market access. From now on, individuals and companies, irrespective of their national origins, will be able to import and export products without having to meet any “physical presence” or investment requirements in Montenegro. In the context of goods, all of Montenegro's tariffs will be consolidated. Its final average tariff ceiling will be 5.1% (10.8% for agricultural products and 4.3% for industrial products), with transition periods up to 2022 for certain products. In the services field, the country made specific commitments in the corporate services area, construction/engineering, distribution, education, financial services, healthcare, tourism, cultural and sport services, and transport. Podgorica will consolidate its export subsidies for agricultural products at a zero rate and is also seeking an agreement on public procurement. (EH/transl.fl)