The 13th Subcommittee meeting on Trade, Industry, Customs and Taxation between the EU and Albania took place on 29 June 2022 in Brussels. Representatives from the European Commission (Commission) discussed the most recent developments in these areas with the relevant Albanian authorities. The meeting was co-chaired for the EU by Mr. Andrew Williams, Permanent Secretary for the Subcommittee at the Directorate General for Neighbourhood and Enlargement Negotiations of the European Commission, for Albania by Ms. Vasilika Vjero, Deputy Minister of Finance and Economy.

In the area of free movement of goods, the Commission noted the preparation work Albania is making to address legal alignment and the screening of the non-harmonised sectors in order to start ensuring that is in line with Treaty requirements. The Commission also welcomed Albania’s progress on industrial policy and investments, notably the start of the Business and Investment Development Strategy, and the programme for inclusive and sustainable industrial development. Further discussions on the Albanian Investment Corporation is foreseen, when there will also be follow-up on tourism.

On trade policy, the Commission welcomed Albania’s full alignment with sanctions imposed on Russia following its invasion of Ukraine and that the Albanian authorities have refrained from taking any restrictive measures following Russia’s attack, as well as the positive trends in the first quarter of 2022. The Commission noted the continuing importance of Albania’s trade with the EU and other CEFTA members. Regarding trade agreements between Albania and the UAE, the Commission emphasised a need for clarity on the trade agreement regarding how EU companies can compete on a fair and equal basis for public contracts, as foreseen in the Stabilisation and Association Agreement.

In the area of customs, the Commission welcomed the further progress on aligning to EU acquis, and encouraged Albania to continue working with business representatives to identify non-customs barriers and to foresee with CEFTA the mutual recognition of sanitary and phytosanitary certificates. On the fight against fraud, the Commission took note of the reported activity on seizures related to drugs, cash and IPR infringements and acknowledged the progress on internal cooperation.

On taxation the Commission welcomed that Albania is the first jurisdiction in the Western Balkans to implement the OECD Common Reporting Standard, and has improved the speed of its VAT refunds, but regretted that the adoption of the Medium-Term Revenue Strategy has been delayed.

The Commission highlighted serious concerns about the current draft of the fiscal amnesty law. It would weaken Albania’s anti money-laundering controls while doing little to enhance its tax administration´s ability to improve future tax compliance. In addition, because non-tax residents, including Albanians living in the EU or the Western Balkans, are included within its scope, and asked to import cash to benefit from the amnesty, the current draft of the law therefore raises serious apprehensions for EU Member States and other partners and a substantial reputational risk for the country.