1. FLORICULTURE – FLOWERS AND PLANTS SECTOR M ARIJA K RSTIĆ MARIJA. KRSTIC @ MPR. GOV. ME M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 – Agriculture and Rural Development Bilateral screening: Chapter 11 Brussels, 11-13. December 2012

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Production of flowers and decorative plants Chapter 11: Agriculture and Rural Development number of holdingsarea(ha) family agricultural holdings 693.2 < than 0.10 ha 50.2 0.10 -< 0.50 ha 35 1.3 0.50 -< 1.00 ha111.2 1.00 - <2.00 ha20.3 business entities42.1 Source: MONSTAT Agricultural Census 2010.  According to the Monstat data, 122 entities are engaged in nursery production on the area of 561.8 ha. This datum encompasses the producers of all categories of planting material (fruit varieties, grapevine, decorative plants, vegetables).  Agriculture holdings according to the area of used arable land for production of flowers The number of subjects in the flower production

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Production of flowers and decorative plants Chapter 11: Agriculture and Rural Development Source: Phytosanitary Administration  Producers of planting material ARE OBLIGED TO SUBMIT the Annual Plan of Planting Material Production to the Phytosanitary Administration, which, after the control of production, adopts a Decision by which placement on the market of planting material is approved.  According to the records of the Phytosanitary Administration, ten producers applied for and were granted the decision for marketing of planting material.  Major part of production (3/4) refers to only one business entity Ekoplant (average annual production 476780 units of decorative plants). Production is organized on 29.5 ha of open air and 0.5 ha of the closed space (glasshouses or tunnels). The production volume of flowers and decorative plants year of production20072008200920102011 for open air (units)302600428400584300675300320300 for indoors (units)14000 15500 14000 total316600442400599800690800334300

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  Montenegro is the net importer of flowers and decorative plants.  Exports in relation to imports in this time period ranged from 0 %, in 2008 to 2.7% in 2007.  Average for this period is 1.5 %. TRADE Chapter 11: Agriculture and Rural Development  Quality standards for this type of production have not been set up. IMPORT - EXPORT Quality standards

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  Montenegro is a member of the World Trade Organization,  The Stabilization and Association Agreement with the European Union  Free trade agreements with the CEFTA, EFTA members, the Russian Federation and Turkey.  Within these agreements, the imports and exports preferential customs quotas for floriculture – plants and flowers sector – have not been agreed. TRADE Chapter 11: Agriculture and Rural Development IMPORT  Customs-free imports of floriculture has been agreed with the European Union, CEFTA members and the Russian Federation  With other states, the imports of floriculture are carried out by the MFN customs duty, except for Norway, with which the concession in the form of reduction of customs duties for around 50% has been agreed for the tariff code 0602. TRADE WITH THIRD COUNTRIES EXPORT  Exports of floriculture products is carried out without quantity restrictions with full or reduced customs duty, or fully customs-free, in accordance with the free trade agreements and in accordance with the Stabilization and Association Agreement.  Customs duty for parts of plants for plantation (cloves, rhizomes, tubers) is 5 %, for the open air and indoors plants it is 10 %, and for the cut flowers 15 %.

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  Within the project Montenegro Institutional Development and Agriculture Strenghtening– MIDAS, implemented by the Ministry of Agriculture and Rural Development using the funds of the World Bank and the GEF (Global Environment Fund), grants are provided for construction of greenhouses and glasshouses. SUPPORT PRODUCTION Chapter 11: Agriculture and Rural Development

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  Political occurrences in the second half of the twentieth century, economic, social trends and events are the reason why a small number of producers opted for production of decorative plants.  In the conditions of difficult economic situation, producers were giving priority to the types of agricultural production directly linked to the basic needs of population.  By accession to the EU, we expect a significant increase in living standard, and thereby growth in producers’ interest for engagement in this type of production Joining the EU and our expectations Chapter 11: Agriculture and Rural Development

8. Thank you for your attention!