BAKU, Azerbaijan, May 31. International trade in the Western Balkans has expanded significantly over the past decade, though persistent barriers continue to hinder further progress, Matteo Colangeli, the EBRD’s Regional Director for the Western Balkans, said in an interview with Trend.
"North Macedonia, at around 140 percent of GDP, has reached a level of trade openness similar to the Central Eastern European countries, which are among the most open in the world," Colangeli noted. He added that services trade has also seen substantial growth, particularly in the field of information and communication technologies (ICT), where North Macedonia and Serbia are now among the top 10 ICT exporters globally.
Despite these advancements, Colangeli pointed out that several obstacles remain, especially within the region itself. "There are still a lot of issues to be tackled, including in intra-regional trade, where political issues often prevent more trade," he said. He identified non-tariff barriers, import restrictions, and lengthy border procedures as key challenges that slow down trade. "The slow movement of trucks over the borders due to long procedures is still a problem," the regional director added.
Some progress has been made through regional frameworks such as the Central European Free Trade Agreement (CEFTA), which has eased trade restrictions and facilitated border crossings. "CEFTA has moved ahead in many areas, easing trade restrictions and facilitating border crossing for goods by introducing ‘green lanes’ during the pandemic," Colangeli noted.
The EBRD continues to play a key role in supporting both regional and international trade in the Western Balkans. "We are helping by providing trade finance and guarantees to banks covering the political and commercial payment risk of transactions," he said. In addition, the bank has been actively involved in supporting the implementation of the WTO Government Procurement Agreement in Albania, Montenegro, and North Macedonia.
"Our goal is to help remove obstacles to trade while boosting the region’s competitiveness and integration into global markets," Matteo Colangeli concluded.
