Kosovo’s Institutions and CEFTA Elinor Bajraktari UNMIK European Union Pillar 23 February 2007 UNMIK EU PILLAR Economic Policy Office

What CEFTA means for Kosovo? UNMIK EU PILLAR Economic Policy Office The Content of CEFTA  Market Access  Domestic Reforms Economic effects and potential benefits Obstacles to reaping the benefits Capitalizing on CEFTA  Institutional requirements for reaping the benefits  Strengthening institutions and linking them to CEFTA  …….

What CEFTA means for Kosovo? UNMIK EU PILLAR Economic Policy Office The Content of CEFTA  Market Access  Domestic Reforms Economic effects and potential benefits Obstacles to reaping the benefits Capitalizing on CEFTA  Institutional requirements for reaping the benefits  Strengthening institutions and linking them to CEFTA  …….

Areas covered by CEFTA (all in line with WTO and EU standards) UNMIK EU PILLAR Economic Policy Office Classical  Customs Duties  Sanitary and Phytosanitary Measures  Technical Barriers  Rules of Origin  Competition  State Aid  Anti-dumping and safeguards New  Services  Investment  Government procurement  Intellectual property rights

Institutional Infrastructure of CEFTA UNMIK EU PILLAR Economic Policy Office Joint Committee Secretariat Working GroupsTask ForceSub-committees MTI MAFRD Public Procurement Agency Customs Veterinary agency MFE Competition Commission Ministry of Culture OPM Assembly CEFTA KOSOVO

Institutional Infrastructure of CEFTA UNMIK EU PILLAR Economic Policy Office Joint Committee Secretariat Working GroupsTask ForceSub-committees CEFTA Elements of CEFTA’s operation  Joint Committee (JC) to supervise and administer implementation  JC to facilitate consultations (using mediators as well)  JC to take decisions for areas in agreement, make recommendations for others  JC to meet whenever necessary but at least once a year  JC to act by consensus  JC to adopt rules of procedure (convening meetings, chairman, terms in office)  JC to set up working groups, task forces, sub-committees  JC to be supported by a permanent Secretariat located in Brussels  disputes not settled by consultations will be referred to an Arbitral Tribunal  parties promptly publish laws, regulations, etc, relevant to the areas covered  parties promptly respond to requests by parties through a contact point

Institutional Infrastructure in Kosovo UNMIK EU PILLAR Economic Policy Office MTI MAFRD Public Procurement Agency Customs Veterinary agency MFE Competition Commission Ministry of Culture OPM Assembly KOSOVO Kosovo’s institutions in light of CEFTA  Basic questions (representation in JC, point of contact, etc.)  Need for continued institutional (policy, regulatory and organizational) reforms  How will reforms be coordinated internally and externally? Who takes lead?  Multi-disciplinary nature of CEFTA provisions - commitment and good coordination  Need to further upgrade the internal institutional infrastructure  Objective: Harmonization within the region and with the EU  Benefit: better inst reforms and more credible => improved conditions for investment  Role of foreign investment

The role of the Trade Policy Working Group UNMIK EU PILLAR Economic Policy Office  Role  Composition  Operations  Work (FTAs, NTBs, Trade Policy Paper)  Further Institutionalization and Transfer

UNMIK EU PILLAR Economic Policy Office TRADE POLICY WORKING GROUP Trade Department MTI Tariff Non Tariff Barriers/ Complaints Export regime State Aid/ Government Procurement Antidumping & safeguards Competition Marking, labelling and packaging Intellectual Property Rights Rules of Origin Thematic SUBGROUPS Permanent Ad Hoc Future WTO Accession Sanitary and phytosanitary One way of further institutionalizing the TPWG

The case of Non-tariff Barriers UNMIK EU PILLAR Economic Policy Office  Nature  Importance/Potential  Tackling them  Continued institutionalization

10 Steps to establishing an NTB infrastructure in Kosovo UNMIK EU PILLAR Economic Policy Office 1. Establish subgroup (working group) on NTBs. The subgroup meets once every two months. MTI Trade Department serves as the Secretary of Subgroup. 2. NTB subgroup revises and approves a standardized “NTB Feedback Form”. 3. MTI establishes the “NTB FF” as mechanism for collecting complaints. 4. Customs incorporates the “NTB FF” into documentation for traders. 5. MTI produces and distributes forms to Customs, Chamber of Commerce, etc. 6. MTI Trade Department publicizes the NTB process and the “NTB FF”. 7. MTI identifies focus person on NTBs (responsible for collecting forms). 8. Subgroup meets and analyzes the collected information. 9. NTB Subgroup formulates a report on NTBs. 10. Focus person submits report to JC and negotiates.

Other Areas that require further work UNMIK EU PILLAR Economic Policy Office IssueActor Sanitary and phytosanitary measures MAFRD, Veterinary Agency, Customs Rules of OriginMTI, Customs, business organizations CompetitionCompetition Council, MTI, business organizations State AidMFE Anti-dumping & SafeguardMTI, MAFRD, Customs, business organizations Services InvestmentMTI, business organizations Government procurementPublic procurement agency, Public procurement regulatory commission Intellectual property rightsMTI, MCYS, business organizations

Conclusions UNMIK EU PILLAR Economic Policy Office  Prepare for further reforms in the areas covered by CEFTA  Use the TPWG to further institutionalize CEFTA components in general, and strengthen links with CEFTA structures specifically.  Form working groups relevant to CEFTA areas to start looking into arising obligations