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Home ECONOMY

New protocol with EU offers new benefits for businesses at European markets

October 27, 2021
in ECONOMY, INTEGRATION, NEWSROOM
New protocol with EU offers new benefits for businesses at European markets
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The Government of the Republic of North Macedonia, at today’s session, and at the proposal of the Minister of Foreign Affairs, Bujar Osmani, adopted the Decision on early application of the changes to the Protocol on origin of goods within the Stabilization and Association Agreement between the Republic of North Macedonia and the EU, which ensures a legal framework for application of the revised preferential rules on the origin of goods from the beginning of November 2021.

As the Ministry of Foreign Affairs announced, with the changes from the new rules on the origin of goods, all economic operators and companies in our country dealing with exports will be affected. Having in consideration that about 85 percent of the entire export of North Macedonia is conducted with EU member states and the 24 countries of the Pan-Euro-Mediterranean zone (EFTA, Turkey, CEFTA, Eastern Partnership countries and the Mediterranean countries), these new rules are a kind of a revolution in the foreign trade exchange.

Manufacturers in North Macedonia will have great opportunities for import of duty- free raw materials from third countries and export of manufactured products in the EU, also duty-free. All industries will benefit, but companies manufacturing technologically up-to-date products will have the most benefit, especially companies from the automotive industry and companies in the TIDZ.

Companies from the food and processing industry will also benefit much. The new rules on the origin of goods open greater opportunities for companies to provide cheaper raw materials in creating products for these markets, given that with this decision, custom duties on raw materials for processing are abolished, is said in the statement of the Ministry of Foreign Affairs.

Additionally, by reducing the condition for the percentage of value added from 60 percent to 50 percent as a domestic contribution in creating the product, their position on foreign markets is improved, they become much more competitive, but at the same time conditions are created also for new foreign investments that receive opportunities for export at these markets with much more improved conditions through these new rules. These rules should facilitate the economic integration of our country in the regional economic market and the consolidation and development of integrated supply chains with the countries of the region that apply the new preferential rules of origin. According to analyses that have been performed, according to the new conditions on the origin, our export should additionally increase by 6.3 percent annually.

It is without a doubt that the integration of the Republic of North Macedonia towards the European Union, but also the conditions that the Government of North Macedonia is providing for a favourable climate for development of these relations have a direct influence on the dynamics of the development of our economy, industry and on directing our trade relations towards the EU, is added in the announcement.

 

Translation: N. Cvetkovska

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