Effective trade policy is vital for regional integration and alignment with the European Union. This chapter examines how the government of Montenegro uses trade policy to ease market access and harness digitalisation for enhanced trade facilitation. The first sub-dimension, trade policy framework, assesses the government’s ability to formulate, implement and evaluate trade policy, examining the institutional formulation and co-ordination of trade policy, public-private consultations and the network of free trade agreements. The second sub-dimension, digital trade, focuses on the legal framework for digital trade policy and digital trade facilitation and logistics. The third sub-dimension, export promotion, explores the effectiveness of export promotion agencies and programmes, especially in the context of deepening regional integration.
Western Balkans Competitiveness Outlook 2024: Montenegro
3. Trade policy
Abstract
Key findings
Montenegro has continued to improve its overall trade policy score since the last two Competitiveness Outlook assessments in 2018 and 2021. Notable progress has been achieved especially under the trade policy framework sub-dimension and the digital trade sub‑dimension. While export promotion was not covered under the 2021 assessment cycle, the score slightly deteriorated since the 2018 evaluation (Table 3.1).
Table 3.1. Montenegro’s scores for trade policy
The key findings are:
Montenegro has effectively implemented its Trade Facilitation Strategy, resulting in notable reductions in the time required for import/export processes. The most significant such improvement is seen in export procedures, showcasing a 63% reduction in border clearance times.
The regulatory framework for trade policy was strengthened in May 2023 with the adoption of the Decision for the Creation of the Council for Trade Facilitation.
Only 45% of cases involving laws and strategies undergo public consultations, indicating room for improvement in stakeholder engagement.
Montenegro has been making meaningful progress in enhancing its digital trade policy framework through the enactment of key laws and the strategic implementation of measures. Notably, recent developments include the introduction of the Customs Law and the Strategy for the Development of Postal Activity in Montenegro 2024-28.
Implementation of paperless trade measures by customs cut processing time by 17%, bringing it down from 23 to 19 minutes. Physical inspections also dropped significantly, from 32% in 2016 to just 10% in 2021.
State of play and key developments
From 2021, Montenegro has seen a considerable rise in trade in goods and services, with external trade reaching record highs in 2022, up by 43.9% from 2021 (European Commission, 2023[1]). While the significant increase can be partially attributed to a slow global recovery of trade flows following the COVID-19 pandemic, Montenegro improved its trade performance. In 2022, the value of exports amounted to EUR 2.95 billion, indicating a robust 27.9% increase compared to the previous year. Imports reached EUR 4.25 billion in 2022, reflecting a substantial growth of 26.8% from 2021. Services remained the dominant component of exports, constituting 40.6% of gross domestic product (GDP) – a substantially higher proportion compared to goods exports, which accounted for only 12.1% of GDP (European Commission, 2023[1]). Since the assessment, Montenegro’s economy became even more open: trade constituted 126% of Montenegro’s GDP in 2022, up from 105% in 2021, partially driven by rising exports of transport and tourism services. However, the economy maintains a negative external balance on goods and services, amounting to -22.8% of GDP in 2022 (World Bank, 2022[2]).
The European Union continues to be Montenegro's predominant trade partner, representing EUR 1.77 billion in 2022, equivalent to 41.9% of the total trade in goods during that year (European Commission, 2023[3]). The Central European Free Trade Agreement (CEFTA) remained a crucial market for Montenegro, receiving 26.1% of the economy’s imports and accounting for 41.7% of exports in 2022 (European Commission, 2023[1]). Outside of the EU and CEFTA, in 2022 approximately 21.2% of Montenegro's merchandise exports were directed to Serbia, and an additional 15.7% to Switzerland, followed by Bosnia and Herzegovina at 13%. On the import side, 17.4% of merchandise imports originated from Serbia, and 9.3% from the People’s Republic of China (European Commission, 2023[3]).
Sub-dimension 2.1: Trade policy formulation
Montenegro boasts a strong regulatory framework for trade policy formulation. The Ministry of Economic Development, which plays a central role in shaping trade policies, regularly engages relevant ministries throughout the entire policy-making process to formulate trade regulations. The regulatory framework was further strengthened in May 2023, when the Decision for the Creation of the Council for Trade Facilitation was adopted. While the previous National Committee for Trade Facilitation (NCTF) was created in 2018 to develop Montenegro’s first National Trade Facilitation Strategy and define a five-year framework for the implementation of trade facilitation reforms, the new Council will be responsible for overseeing the implementation of the WTO Trade Facilitation Agreement, CEFTA Additional Protocol 5,1 and other bilateral and multilateral agreements, while also taking over the responsibilities of the former NCTF. The mandate of the new Council will also be expanded to include managing the loan agreement with the International Bank for Reconstruction and Development (IBRD) to establish a single window for international trade. The Council for Trade Facilitation will include new members who represent the private sector.2 The decision to establish this new body reflects the goal of having a fortified structure and adapting to changes in the state administration's organisation, particularly considering the frequent turnover in personnel.
The NCTF was responsible for adopting the Trade Facilitation Strategy in 2018, which expired in 2022. One of the main strategic goals of the strategy was to reduce administrative and border inefficiencies impacting Montenegro’s competitiveness, consequently achieving a minimum 50% reduction in the release time for importing, exporting, or transiting goods, and a minimum 20% decrease in trade-related costs (Ministry of Finance, 2018[4]). Compared to the 2016 baseline established prior to adopting the strategy,3 Montenegro has seen a significant reduction of time spent on import/export procedures at border points. The biggest improvement was seen in the time for export procedures – from 28 minutes in 2016 to 14 minutes in 2021, a reduction of 50%. The total time of procedures4 was reduced by 27%, from 5 hours and 28 minutes to 4 hours 1 minute. The waiting time has a more pronounced impact on the average customs clearance duration than the processing time (Ministry of Finance, 2021[5]).
Montenegro acknowledges the interdependence between trade and environmental goals, and aims to strike a sustainable balance between economic activities and environmental conservation (WTO, 2020[6]). Trade policies incorporate environmental objectives aligned with national environmental targets. Furthermore, collaboration between the ministry responsible for trade and the ministry responsible for the environment is a crucial aspect during the development of all policies and programmes. These relevant ministries actively engage in consultations and contribute to international forums, facilitating the exchange of best practices in the pursuit of environmentally sustainable trade practices.
Montenegro has a well-developed framework in place for public-private consultations, but their use remains low (European Commission, 2023[1]). Consultations are launched after a public invitation announcement on the ministry's website and the e-government portal, and span a duration of 20 to 40 days. The specific timeline is determined by the significance and complexity of the law or strategy under discussion. Upon conclusion of the public consultations, the ministry responsible for the draft regulation publishes a comprehensive report5 on the consultation process on its website and the e‑government portal.
Despite the importance of public consultations in the policy-making process, there is a lack of consistency among ministries in conducting them. Only 45% of cases involving laws and strategies undergo public consultations (European Commission, 2023[1]), indicating a notable gap in stakeholder engagement. Essential accompanying documents, such as the regulatory impact assessment (RIA), crucial for understanding the potential effects of proposed drafts, are published for 48% of the drafts under consideration (European Commission, 2023[1]). This suggests a need for ministries to enhance both the frequency and the comprehensiveness of their public consultation processes, ensuring a more inclusive and informed decision-making framework.
In February 2021, Montenegro strengthened the mandate of the Competitiveness Council, originally founded in 2017, with the goal of elevating it to the primary forum for fostering dialogue between the government and the business community. The Council is responsible for reviewing laws and procedures and offering recommendations to the government to enhance the business environment. Additionally, it advises the government in formulating an annual structural reform programme to boost competitiveness, a crucial component of Montenegro's Economic Reform Programme. The Council's membership has been expanded to include new representatives.6 The President of the Council is the Minister of Economic Development, with the Minister of Finance serving as the deputy president. The Council is further assisted by a dedicated full-time Secretariat, funded and established by the European Bank for Reconstruction and Development, which provides technical, administrative, and analytical support.
Sub-dimension 2.2: Digital trade
Montenegro has a robust policy framework for digital trade, with the Montenegrin Law on Electronic Commerce aligned with EU regulations, including the EU Directive on e-Commerce (European Commission, 2022[7]). E-commerce regulations are within the purview of two institutions: the Ministry of Public Administration is tasked with enacting the Law, and the Ministry of Economic Development oversees its implementation in pertinent trade areas. The economy’s strategic framework, including the Digital Transformation Strategy and the Strategy for the Development of Postal Activity in Montenegro 2024-28, is well integrated with the digital trade landscape.
Significant advances have been made in enhancing the digital trade policy framework. The enactment of the Law on Fiscalisation of Trade in Products and Services7 in January 2021 marks a substantial move towards the complete digitalisation of service sales processes. Included are the activation of new services, digital invoice delivery, and comprehensive digital payment procedures from start to finish.
Another element within the strategic framework with implications for digital trade is the aforementioned Strategy for the Development of Postal Activity in Montenegro 2024-28. This strategy is designed with the objective of establishing a sustainable market for postal services in Montenegro within the context of a rapidly evolving digital environment. Its aim is to address the challenges and opportunities posed by digitalisation, ensuring that postal services in Montenegro remain resilient and effective in meeting the demands of the modern digital landscape. Given that postal services often provide a crucial physical infrastructure that can be drawn on for the distribution of physical goods, they also contribute to the digital trade ecosystem. The legal framework helps ensure that the postal infrastructure is well integrated with digital platforms, enabling efficient cross-border transactions (Ministry of Economic Development, 2023[8]).
Furthermore, Montenegro adopted the new Customs Law in July 2022, which mandates electronic data processing for information exchange within customs authorities and among economic entities. This development enhances efficiency in customs-related processes, contributing to a more streamlined and secure digital trade environment. Moreover, the CEFTA Joint Committee Decision to streamline electronic commerce has been reached and is prepared for formal acceptance, as affirmed by the Committee of Contact Points in December 2022. This Decision aims to align e-commerce regulation and consumer protection within the European Union's regulations, including the EU E-Commerce Directive (European Commission, 2022[7]).
Montenegro made moderate progress in implementing digital trade facilitation measures. Many of the measures are still to be implemented or in the planning stage. However, there have been moderate improvements in implementing paperless trade measures since 2021. The introduction of electronic transit confirmations by customs led to a 17% decrease in the average duration of this process, reducing it from 23 minutes to 19 minutes and the percentage of physical inspections decreased from 32% in 2016 to 10% in 2021 (Ministry of Finance, 2021[5]).
Further advances, such as fully connecting customs administration with other border agencies and laying the groundwork to establish a system for electronically exchanging sanitary and phytosanitary (SPS) certificates (United Nations Regional Commissions, 2023[9]) also had a positive impact on trade facilitation. This upgrade and the introduction of electronic SPS certificate exchange are crucial steps in modernising and streamlining trade processes, ensuring greater efficiency, and facilitating international trade while maintaining strict health and safety standards. Moreover, there are plans to implement the SEED+ programme, which will be initially adopted by phytosanitary services in early 2024. The government also implemented improvements to the Customs Information System (CIS), a crucial component of trade and border management. The improved CIS has been operational since November 2023 and allows for a simplified and automated submission of customs declarations. Nevertheless, the Electronic Single Window System is not yet fully implemented. Although customs declarations are initially submitted electronically, a physical copy must be submitted by the end of the CIS upgrading project, expected to conclude in the first quarter of 2025. Once completed, all customs procedures will transition to a digital format. The Customs Administration employs a risk management system (RMS), integrating Central and Local Risk Analysis for automated risk assessment across customs procedures and transit. However, only four8 economic operators have been granted Authorised Economic Operator (AEO) status, falling below the regional average in the Western Balkans of 20 entities with AEO status. Since 2019, Montenegro also fully implemented trade facilitation measures for authorised operators, allowing for the electronic exchange of data, and partially implemented trade finance services for exporters (United Nations Regional Commissions, 2023[9]). The continued implementation of the digital trade facilitation measures partially drove the improvements in Montenegro’s performance under the OECD Trade Facilitation Indicators in 2022 (Box 3.1).
However, monitoring and evaluation of digital trade facilitation measures have been hindered due to the COVID-19 pandemic and frequent changes in the organisation of the state administration, as well as to frequent changes in the management staff members of the National Committee for Trade. Similarly, evaluating the effectiveness of past programmes aimed at digitalising businesses in Montenegro and digital trade facilitation measures – and identifying any shortcomings in the design of regulatory measures for e-commerce – fell short, as there are no specific performance indicators developed to gauge Montenegro's adoption of e-commerce or its participation in digital trade.
Box 3.1. Montenegro’s performance under the OECD Trade Facilitation Indicators
In order to assist governments in streamlining their border processes, reducing trade costs, increasing trade volume, and optimising gains from global trade, the OECD has formulated a set of Trade Facilitation Indicators (TFIs).
Figure 3.1. OECD Trade Facilitation Indicators (2019-22)
Notes: These indicators pinpoint areas for improvement and enable the assessment of potential reforms' impact. Covering a comprehensive range of border procedures, the OECD indicators apply to over 160 countries, spanning various income levels, geographical regions and developmental stages. Utilising estimates derived from these indicators allows governments to prioritise trade facilitation initiatives and strategically channel technical assistance and capacity-building efforts for developing nations. Moreover, the TFIs serve as a tool for economies to visualise the status of policy implementation across different areas and measures outlined in the WTO Trade Facilitation Agreement. The assessment is conducted every three years.
Source: OECD (2022[10]).
Since the last assessment in 2019, Montenegro improved in five of the eleven indicators: involvement in the trade community, fees and charges, automation, procedures, and internal border agency co‑operation. Average trade facilitation performance also improved, edging closer to convergence with the OECD average. Montenegro also outperformed the Western Balkan economies in terms of involvement with the trade community, documents, procedures and internal and external border co-operation. The average trade facilitation performance remains on par with the regional average. While none of the scores deteriorated, six areas remained stable since the last TFI assessment: information availability, advance rulings, appeal procedures, documents, external border co-operation and governance and impartiality.
In the area of adherence to international standards in digital trade facilitation, in comparison to other economies in the Western Balkans, Montenegro positioned itself as a frontrunner in adopting international standards in digital trade, ratifying or adhering to ten international instruments (Table 3.2). Notably, Montenegro actively participates in the ongoing WTO Joint Statement Initiative (JSI) on E-Commerce, engaging in discussions encompassing various aspects such as cybersecurity, privacy, business trust, transparency, and consumer protection. Furthermore, Montenegro stands out as one of the only economies (alongside Albania) to embrace the Information Technology Agreement. This agreement, operating on a most-favoured-nation basis, eliminates tariffs for a broad spectrum of IT products, including computers and telecommunications equipment. Moreover, Montenegro is the only economy in the region to adhere to the legally binding UN Electronic Communications Convention, which aims to ease the use of electronic communications in global trade, ensuring that contracts and other electronic exchanges hold the same validity and enforceability as their traditional paper-based counterparts.
Table 3.2. OECD’s Digital Trade Inventory
|
Instrument |
Description |
Montenegro’s adherence |
|
|---|---|---|---|
|
E-transaction frameworks |
JSI Participant |
WTO Joint Statement Initiative comprises discussions on trade-related aspects of e-commerce, including cybersecurity, privacy, business trust, transparency, and consumer protection. |
|
|
UN Electronic Communication Convention |
Convention encourages standardisation of national laws and regulations governing e-commerce transactions. |
|
|
|
Consumer protection |
OECD Recommendation of the Council on Consumer Protection in E‑commerce |
The OECD Recommendation on Consumer Protection in E-commerce provides guidelines and recommendations for member countries to enhance consumer protection in the context of electronic commerce. The recommendations typically cover various aspects of online transactions to ensure that consumers can engage in e-commerce with confidence and trust. |
|
|
Paperless trading |
WTO Trade Facilitation Agreement |
The Trade Facilitation Agreement (TFA) includes clauses aimed at accelerating the transit, release, and clearance processes for goods, encompassing those in transit. It also outlines measures for fostering efficient collaboration between customs and relevant authorities concerning trade facilitation and customs compliance matters. |
|
|
Cross-border data transfer/ privacy |
Convention 108 |
Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data is the first legally binding international treaty dealing with privacy and data protection. |
|
|
2001 Additional Protocol to the Convention |
The Additional Protocol reinforces the protection of individuals' rights in the context of automated processing of personal data and encourages international co-operation on privacy and data protection matters. |
|
|
|
Convention 108+ |
2018 Amending Protocol to Convention 108 updates the provisions on the flow of personal data between signatories. |
|
|
|
Cybersecurity |
The Convention on Cybercrime of the Council of Europe (Budapest Convention) |
An international treaty aimed at addressing crimes committed via the Internet and other computer networks. It serves as a framework for international co‑operation in combating cyber threats and promoting a harmonised approach to cybercrime legislation. |
|
|
Goods market access |
The Information Technology Agreement (ITA) |
The Information Technology Agreement, on a most-favoured-nation basis, removes tariffs for a broad range of IT products, including computers and telecommunications equipment. |
|
|
Updated ITA concluded in 2015 |
Expands the products covered by the Information Technology Agreement by eliminating tariffs on an additional list of 201 products. |
|
When extending the focus beyond the Western Balkans, Montenegro's adherence to various instruments within the JSI framework remains incomplete. Notably, the economy has yet to adopt or adhere to key instruments crucial in the realm of electronic transactions, such as the non-binding United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce. The Law establishes three fundamental principles for e-commerce legislation: non-discrimination, technological neutrality, and functional equivalence between electronic communications and traditional paper documents, serving as a complement to the UN Electronic Communications Convention. Moreover, Montenegro has yet to adhere to the OECD Recommendation of the Council on Consumer Protection in E-Commerce, which encompasses principles related to transparent and efficient consumer protection, equitable business practices, online disclosures, payment procedures, dispute resolution and redress mechanisms, as well as privacy and security measures (OECD, 2021[11]).
Sub-dimension 2.3: Export promotion
The economy does not have a dedicated export promotion agency: all export promotion activities are co-ordinated by the Directorate for Enhancement of Competitiveness within the Ministry of Economic Development, responsible for implementation of the activities that would usually be conducted by specialised agencies. The centralised approach, with a single entity overseeing policy design, implementation and evaluation poses potential risks. These include the lack of specialisation within the ministry and difficulties in connecting with underrepresented business segments (e.g. SMEs, start-ups, young firms) due to the geographical distance between the central government and local entrepreneurial communities. Such challenges may adversely impact the effectiveness of support programmes (OECD, 2022[12]).
Apart from the Trade Facilitation Strategy, the government implements a Programme for Improving Competitiveness every year, which serves as a de facto export promotion programme. A comprehensive assistance of EUR 4 million was provided to a total of 353 companies through the 2022 programme.
In contrast to the Programme for Improving Competitiveness 2022, the 2023 Programme introduces a total of nine programme lines, comprising seven lines for financial assistance and two for non-financial support. The 2023 Programme introduced two entirely new financial support lines. These focus on bolstering the internationalisation efforts of micro, small, and medium-sized enterprises by enhancing their marketing activities, as well as promoting economic empowerment among young entrepreneurs and women in business through dedicated incentive support mechanisms. Through the 2023 Programme, Montenegrin SMEs have access to co-financing of the cost of participation in international fairs and meetings, support producing promotional material, and informational and educational support granted by the Ministry of Economic Development. The potential beneficiary covers the entire cost of the support activity for which it is applying until its completion. After submitting the necessary documentation to verify the expenses incurred for the contracted activity, the Ministry of Economic Development and Tourism reviews and approves a reimbursement, subsidising a portion of the costs.
Furthermore, the Programme offers support for companies seeking to meet international standards and comply with international quality and regulatory requirements. The existing seven programme lines have undergone enhancements and innovations, aligning them more closely with the evolving needs of the business sector, such as upskilling, developing export-readiness and capacity building. The programme is aligned with the overarching Montenegro Industrial Policy 2019-23,9 which envisions improved access to international markets through trade facilitation. However, the scope of dedicated export promotion programmes beyond the Programme for Improving Competitiveness is limited.
The 2022 and 2023 Programmes for Improving Competitiveness include a programme line for promoting circular economy. The main goal is to improve resource efficiency and, through other available incentives, encourage exports; however, there is no explicit programme line for stimulating trade in environmentally friendly products. While Montenegro exhibits a relative comparative disadvantage in low‑carbon technology products10 it has since improved, from 0.14 in 2019 to reach 0.23 in 202211 (IMF, 2022[13]). Nevertheless, it is still one of the lowest in the Western Balkan region – North Macedonia has the highest comparative advantage, amounting to 1.94 in 2022, trailed by Serbia with 1.27 (IMF, 2022[13]). While the absence of export promotion programmes for low-carbon technology products is not the primary cause of comparative disadvantage, factors such as skilled labour shortages, infrastructure challenges, and high production costs contribute to the setback. This highlights the need for strategic initiatives that actively foster and support international trade in this sector.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Montenegro’s progress in implementing 2021 Competitiveness Outlook Recommendations has been progressing moderately (Table 3.3). The economy advanced on evaluating regulatory frameworks for public-private consultations and effective regulatory impact analysis, although again, the pace was moderate. The strategic framework for e-commerce was strengthened, but no digital-trade-related performance indicators were developed to monitor implementation effectively. Limited progress was achieved in establishing monitoring mechanisms for public-private consultations.
Table 3.3. Montenegro’s progress on past recommendations for trade policy
The way forward for trade policy
To further support Montenegro’s progress toward strengthening its trade policy, policy makers should adopt the following efforts:
Improve the enforcement of public-private consultation guidelines and procedures to boost stakeholder engagement. Acknowledging the crucial role of public consultations in the policy-making process, it is imperative for ministries in Montenegro to address the existing inconsistency in their execution. To enhance the effectiveness of the policy-making process, ministries are encouraged to increase the frequency and comprehensiveness of their public consultation processes by establishing and enforcing public consultation guidelines. This will contribute to a more inclusive and informed decision-making framework, fostering transparency and greater engagement with stakeholders.
Accelerate the implementation of the Electronic Single Window (ESW) for trade to streamline and modernise trade processes. The platform would serve as a centralised hub, facilitating efficient exchange of trade-related information among various government agencies, businesses, and other stakeholders. By consolidating documentation and data submissions into a unified electronic interface, Montenegro can significantly reduce administrative burdens, enhance transparency, and expedite the clearance of goods across borders. The adoption of an ESW system fosters a more agile and responsive trade environment and ultimately bolster the economy’s competitiveness and attractiveness for international trade. In addition, the development of the ESW should follow international best practices and guidelines.
Develop indicators to gauge the impact of digital trade facilitation measures. Policymakers and stakeholders can use these indicators to gain insights, make informed decisions, and enhance the digital trade landscape. While Montenegro conducts time release studies, assessing costs and time in border processes, a gap exists in evaluating the effectiveness of digital trade facilitation measures, necessitating a more detailed analysis. Examples of additional indicators include the percentage of paperless trade transactions and adoption of digital certificates.
Introduce dedicated export promotion support programmes for exporters of environmental goods and services. These programmes might include financial incentives, capacity-building initiatives to improve specialisation, and market access support aimed at fostering the growth and competitiveness of businesses involved in providing environmentally friendly goods and services (Box 3.2). This strategic approach not only aligns with global efforts to address environmental challenges, but also positions Montenegro as a proactive participant in the green economy.
Box 3.2. E3F: Export Finance for Future
In April 2021, the governments of Denmark, France, Germany, the Netherlands, Spain, Sweden and the United Kingdom launched the Export Finance for Future alliance, with the goal to use export finance to expedite the shift towards a low-carbon economy. This approach seeks to hasten the gradual elimination of carbon-intensive projects while substantially boosting financial support for exporters' projects aligned with the Paris Climate Agreement.
The seven members of the E3F coalition have officially embraced a set of principles. Among these commitments, the coalition pledges to create export promotion incentives that better facilitate the advancement of exports toward sustainable projects across diverse sectors of the economy. Additionally, there is a firm commitment to cease trade and export support directed towards coal‑powered projects. The coalition members acknowledge the need to reassess trade and export finance support provided to fossil fuels, conducting a thorough evaluation to determine the most effective way to phase it out, considering the unique characteristics of respective industries.
Recognising the imperative to address the climate impact of their trade and export finance activities, the coalition has initiated a climate-oriented review. This collaborative effort aims to establish a shared and well-documented understanding of the climate implications associated with their activities. Furthermore, there is a concerted effort to enhance transparency regarding climate-related information, especially in the identification of sustainable projects. The coalition is actively promoting this initiative and commits to engaging with other providers of official trade and export finance on a global scale. This collaborative engagement seeks to shape a level playing field that duly incorporates considerations of the climate emergency.
By tailoring support initiatives to environmental goods and services, Montenegro can actively encourage and assist businesses that contribute to environmental sustainability, and consequently improve its comparative advantage in low-carbon technology products.
Source: Export Finance for Future (2021[14]).
References
[3] European Commission (2023), EU Trade in Goods with Montenegro, https://webgate.ec.europa.eu/isdb_results/factsheets/country/details_montenegro_en.pdf (accessed on 28 May 2024).
[1] European Commission (2023), Montenegro 2023 Report, https://neighbourhood-enlargement.ec.europa.eu/system/files/2023-11/SWD_2023_694%20Montenegro%20report.pdf.
[7] European Commission (2022), e-Commerce Directive, https://digital-strategy.ec.europa.eu/en/policies/e-commerce-directive (accessed on 11 July 2024).
[14] Export Finance for Future (2021), Statement of Principles, https://www.tresor.economie.gouv.fr/Articles/48e53470-62e7-4048-a507-5292b4ba69f4/files/36bb69c3-e7d9-4b77-b34f-f6240ffa1290.
[13] IMF (2022), Comparative Advantage in Low Carbon Technology Products, https://climatedata.imf.org/pages/country-data.
[8] Ministry of Economic Development (2023), Strategy for the Development of Postal Activity in Montenegro 2024‒2028, https://www.gov.me/en/documents/a8220a48-f812-4d1e-9be2-ed181291ae95.
[5] Ministry of Finance (2021), Montenegro Time Release Study 2021, https://wapi.gov.me/download-preview/8eff2c32-e880-40e6-922f-4faedb8b99e1?version=1.0.
[4] Ministry of Finance (2018), Trade Facilitation Strategy 2018-2022, https://www.gov.me/en/documents/5a86c490-80bd-4706-8ef1-9e626fd3808e.
[10] OECD (2022), Recommendation of the Council on OECD Guidelines for Managing Conflict of Interest in the Public Service, OECD, Paris, https://legalinstruments.oecd.org/public/doc/130/130.en.pdf.
[12] OECD (2022), SME Policy Index: Western Balkans and Turkey 2022: Assessing the Implementation of the Small Business Act for Europe, SME Policy Index, OECD Publishing, Paris, https://doi.org/10.1787/b47d15f0-en.
[11] OECD (2021), Digital Trade Inventory, https://doi.org/10.1787/9a9821e0-en.
[15] Pigato, M. et al. (2020), Technology Transfer and Innovation for Low-Carbon Development, International Development in Focus Series, World Bank, Washington, DC, https://openknowledge.worldbank.org/entities/publication/ba95cb2c-6db5-5a29-bcad-36d97cb988ac.
[9] United Nations Regional Commissions (2023), Global Survey on Digital and Sustainable Trade Facilitation, https://www.untfsurvey.org/.
[2] World Bank (2022), Exports as a Percentage of GDP, https://data.worldbank.org/indicator/NE.EXP.GNFS.CD (accessed on 28 May 2024).
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Notes
← 1. CEFTA’s Additional Protocol 5 on trade facilitation aims to streamline inspections related to clearance procedures, simplify formalities, exchange data among customs authorities and strengthen co-operation among border agencies. It entered into force in 2018.
← 2. The Council of Foreign Investors, American Chamber of Commerce, Association of Managers of Montenegro, and the Montenegrin Association of Employers.
← 3. The Time Release Study is a mandatory requirement stemming from World Trade Organization membership and the ratified Trade Facilitation Agreement. Article 7.6 of the Agreement advises the periodic measurement and publication of data on the average time taken for goods release in cross‑border traffic. The initial Study occurred from November to December 2016, at four locations, while the second Study, conducted for comparability, took place from November to December 2021, at the same locations.
← 4. Measured without inland transit.
← 5. This report is then shared with the entities that actively participated in the consultation process. Furthermore, the ministry commits to publishing the mentioned report on its website and the e‑government portal, ensuring transparency and accessibility. Within 15 days from expiration of the specified time limit, the ministry is obligated to submit the report to the entities that took part in the public hearings.
← 6. Two business associations focused on women in business, the Union of Young Entrepreneurs, and the Association of Managers. Currently, the Council comprises 10 non-governmental sector members out of a total of 22.
← 7. The implementation of the Law on Fiscalisation in the Turnover of Trade in Goods and Services now mandates taxpayer adoption of electronic cash registers for recording transactions. This shift ensures real-time reporting to the tax authorities, enhancing efficiency and transparency in financial transactions.
← 8. Neregelia, Mesopromet, Trebjesa and Montenomaks.
← 9. Montenegro’s Industrial Policy Strategy 2019-23 is set to be evaluated and updated in the course of 2024.
← 10. Low-carbon technology products are assessed by consolidating Harmonized System (HS) 6-digit commodities recognised as such according to the classification outlined by Pigato et al. (2020[15]). The classification methodology is sourced from research conducted by the World Bank and the IMF.
← 11. A value exceeding one signifies a comparative advantage in low-carbon technology products, whereas a value below one indicates a relative disadvantage in this sector.