Content Group 2 of North Macedonia

• North Macedonia joined the World Trade Organization (WTO) on April 4, 2003. As a member of the WTO, North Macedonia regularly notifies the WTO committee on technical barriers to trade and proposes amendments to technical regulations concerning trade.


• North Macedonia acquired EU membership candidate status in December 2005. As an EU aspirant, North Macedonia is harmonising its customs laws with EU laws and regulations.


• Following the changing of its name to North Macedonia, a resolution to the longstanding political stalemate with Greece could finally come to an end. This paved the way for EU accession talks.


• North Macedonia's average tariff rate is the fifth highest in the South East Europe region (out of 12 countries). The average tariff rate on agricultural goods is 16% and 6% on industrial products, on average. However, there are no discriminatory trade policies affecting foreign investors and almost 96% of total foreign trade is unrestricted.


• Customs duties generally apply to most products imported into North Macedonia. The customs rates under the most favoured nation treatment for agricultural products are up to 31%, whereas the customs rates for industrial products are below 23%.


• The import of industrial products with preferential origin and certain raw precious metals are exempt from customs duties.


• North Macedonia has signed trade agreements with Turkey, Ukraine, and the European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway and Switzerland). The country is also a member state to the Central European Free Trade Agreement (CEFTA) and has signed a Stabilisation and Association agreement with European Communities.


• In April 2001, North Macedonia and the EU became signatories to the European Stabilisation and Association Agreement (SAA). The SAA came into effect on April 1, 2004.


• Under the SAA, customs duties on industrial goods are being phased out, with a number of North Macedonian-origin industrial goods already being imported duty free by the EU.


• Excise duties apply to alcohol, cigarettes, mineral oils, tobacco, petroleum coke and passenger vehicles, these duties are determined by the type and quantity of the product and are levied in addition to the customs tariff. The customs tariff on new and used cars is 5%. However, there is no tariff on cars produced in EU countries.


• A number of products in North Macedonia are subject to quality control at customs offices, to ensure that imported goods are in compliance with domestic standards. The products subject to quality control include the majority of agricultural goods, cars, electrical appliances, and products in which poor quality may pose a health risk to consumers. When applicable, products must also pass sanitary, phytopathology or veterinary control.


• Numerous import regulations that are not always available in English pose barriers to importers and exporters.


• In May 2016, the North Macedonian Bank for Development Promotion (MBDP) lowered the export factoring interest rates from 6% to 5% per annum (a rate that is exclusively designated to benefit North Macedonian exporters). The export factoring interest rate is the rate which North Macedonian export-oriented business entities pay as part of the export factoring support (a form of trade finance loans with recourse, offered to businesses for their exporting activities) that the MBDP offers to them exclusively.


• In August 2019, Kosovo banned the import of potatoes and honey from North Macedonia as a reciprocal measure following North Macedonia's introduction of tariffs on fish and roe imports from Kosovo.
• As of January 1, 2020, a new tax on vehicles was introduced. The tax applies to passenger cars and other motor vehicles designed primarily for the transportation of people, including motorcycles, pickup vehicles, as well as vans for combined transportation of people and goods. The new law is subject to only new and used motor vehicles that are imported or are put into use in the country for the first time. This law does not cover freight motor vehicles and exclusively electrically driven vehicles.

Sources: WTO - Trade Policy Review, Fitch Solutions