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Country Information

The Republic of Macedonia is situated in the central part of the Balkan Peninsula covering an area of 25,713 square kilometers. Its relief is characterized by large and high mountain massifs giving way to extensive, flat valleys and plains. The climate is classified as being transitory from continental climate to a Mediterranean climate. Summer temperature can rise as high as 40ºC, while winter temperatures can fall bellow minus 30ºC in some mountain areas.
The country is bordered by Serbia and Monte Negro to the North, Bulgaria to the East, Greece to the South and Albania to the West. It is a major transit way for shipment of goods from Greece, through the Balkans, towards Eastern, Western and Central Europe and through Bulgaria to the East.
The population of Macedonia is slightly over 2 million people. The capital is Skopje (over 600,000 citizens). Other major cities are Bitola, Tetovo, Gostivar, Veles, Kumanovo, Ohrid and Stip.
Macedonia has significant deposits of lead and zinc ores, copper, nickel, coal, decorative and architectural building stone, and non-metallic minerals, such as bentonite, fire-resistant clays, gypsum, quartz, opalite, and feldspar.

General economic indicators

* In March ’03, the discount interest rate was decreased on level 8%, and from April ’03 the rate is 6.5%**Up to 1997, total foreign debt included only medium and long-term credits. Since 1998, according to the new methodology suggested by the WB total foreign debt includes short, medium, and long-term credits.Source – National Bank of the Republic of Macedonia, Ministry of Finance and State Statistical Office of RM

Foreign trade regime and major regulations

Following the basic WTO principle to eliminate quantitative restrictions on trade, an extensive liberalisation of trade regimes has been implemented.
Macedonia officialy admitted the World Trade Organisation on April, 2003.
With the process of harmonisation of the WTO sectoral agreements on the level of the highest tariff rate and the bilateral and multilateral negotiation with the WTO members, the average tariff rate after the transitional period of WTO accession will be about 8%.

Customs regime, export and import quota and license systems, tariffs

With the adoption of the new Foreign Trade Law by the Parliament on 20 June, 2002 (Official Gazette of RM No. 45/2002) the Republic of Macedonia has made a complete harmonization with the trade regime of the WTO rules. Article 5 of the Law determines free import and export of goods, i.e. complete liberalization of the foreign trade regime.

Pursuant to Article XX of GATT 1994 the Law stipulates import and export licenses related to environment protection, protection of the human health, protection of animals and plants, protection of the historic heritage and trade with military arms.

The Law defines and regulates conditions under which measures could be taken for protection of the domestic production from increased import, antidumping measures and measures against subsidized import.

The Law on Customs Tariff (Official Gazette of RM No. 23/03) provides competes accordance to the Harmonized system of the World Custom Organization and the Combined Nomenclature of the European Union.

Exports and imports

Over 80% of the trade exchange of Macedonia is being realised under preferential conditions from the concluded bilateral and multilateral Free Trade Agreements.

Import and export statistics (USD bln)

Source: State Statistical Office of the of Macedonia

Structure of foreign trade by regions in 2002 (USD mln)

Source: State Statistical Office of the Republic of Macedonia

Biggest trade partners of the Republic of Macedonia in 2002 (USDmln)

Structure of foreign trade by commodities in 2002 (USD mln.)

Source: State Statistical Office of the Republic of Macedonia

Major bilateral and multilateral trade agreements

Macedonia has signed and is implementing Free Trade Agreements (FTAs) with the following countries: Slovenia, Croatia, Serbia and Montenegro, Bulgaria, Turkey, EFTA countries, Ukraine, Bosnia and Herzegovina, Albania and Romania.
The Republic of Macedoniahas concluded a Stabilization and Association Agreement with the EU. An integral part of this Agreement is the Interim Agreement on Trade and Trade Related Matters, between the Republic of Macedonia and the EU, has been applied since 01.07.2001.
Under this Agreement the industrial products originating from the Republic of Macedonia are granted free export to the EU member countries. At the same time under the Interim Agreement EU grants to the Republic of Macedonia high quotas related to the export of agricultural and food products. The import in the Republic of Macedonia of goods originating from the EU member countries is subject to liberalization in 10-year transition period.
The potential market of the RM through signed FTA with abovementioned countries, EFTA countries as well as Interim Agreement on Trade and Trade Issues with EU is over 500 million consumers.