Improving the Border Agency Cooperation
Among the OIC Member States for Facilitating Trade
95
4.4. Case Albania
Highlights:
 The Central European Free Trade Agreement (CEFTA) provides a regional platform for BAC
improvements in Albania, especially with respect to risk management and elimination of non-
tariff barriers to trade (e.g., harmonization of technical measures and rules of origin)
 The European Union supports Albania in customs modernization efforts that seek to upgrade
the country’s ICT capability, establish a EU-compliant regulatory framework, as well as train
customs and other border control agencies
 Albania has two important bilateral BAC arrangements with its neighbor Kosovo: simplified
transit program and mutual recognition of import/ export certificates
4.4.1. Setting the scene for iBAC in Albania
Overview
Albania is a developing economy, which is geographically located in South Eastern Europe,
while it is part of Asian region of OIC member states. Since the end of the World War II, Albania
was a very closed country under a communist rule, and only started opening up in the early
1990s after the collapse of the communist regime. The development since then has been
significant but in many ways the level of the economy lags behind its peers due to a difficult
starting point. It has taken time to build up the infrastructure, renew the legislation and
enforce it, in order to create a modern business environment.
The Albanian GDP is currently 11.5 BUSD (2015, official exchange rate), but it should be noted
that the informal economy is estimated to be significant. The economy experienced a period of
rapid growth between 1997 (after the collapse of the pyramid schemes) and 2008 during
which time the GDP more than quintupled. Since then the economy has been stagnant.
However, the inward FDI is in the rise and the economic outlook looks slightly more promising
again, at least in European terms. The GDP per capita remains at 11,400 USD per capita, which
is one of the lowest in Europe, and it is also below the Asian region median.
Albania has a large foreign trade deficit. The exports were 2,431 MUSD (2015), while the
imports amounted to 5,250 MUSD (2015). Following the HS classification, the most important
export commodities (2014) are footwear and footwear parts (456 MUSD), crude petroleum
(444 MUSD), textiles (418 MUSD), and chromium (99 MUSD). The exports have been growing
relatively steadily over the past 20 years, except for smaller slow-downs in 2008-09 and 2015-
16. The main import commodities include (2014) refined petroleum (547 MUSD), cars (198
MUSD), and packaged medicaments (129 MUSD).
Italy dominates as the major partner in Albania’s foreign trade. It accounts for 50 % of the
Albanian exports and 33 % of the imports. The other main export destinations are Spain (7.2
% of exports, 2014), China (5.6 %), Turkey (4.0 %), India (3.8 %), and France (3.6 %). The
other main origins of the imports to Albania are Greece (10 % of imports, 2014), Turkey (7.5
%), China (6.6 %), Germany (5.6 %), and Malta (3.4 %). In both categories there is one OIC
member state, Turkey.
In the World Economic Forum’s Global Competitiveness Index Albania ranks number 93
among 140 countries, which puts it below the median in the Asian region. Albania also lags