Speech of Minister for European Integration Gordana Đurovic on The Seventh Ministerial Conference, WTO, Geneva

Published date: 02.12.2009 16:39 | Author: Naslovna strana

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Prof Gordana Djurovic, PhD.
Minister for European Integration/Chief WTO Negotiator
The Government of Montenegro


Mr. Chairman,
Ladies and Gentlemen,
Distinguish delegates,


It is my pleasure, as minister in Montenegrin government, to have an opportunity to address the WTO Ministerial Conference. I am coming from one small European country, the youngest UN member.

WTO accession is strategic priority of the Government of Montenegro, which has been confirmed through dynamic accession process since February 2005. In this process, Montenegro has fulfilled all obligations on multilateral level, concluded all timely submitted bilateral, and in that sense, draft Final Working Party Report was prepared on 7 November 2008. On that meeting, WP concluded that all WTO members, who would have final comments on draft WP Report, are to deliver them not later than 21 November. Following that day, WTO Secretariat completed application package of Montenegro with consolidated schedules and circulated it to the Members on December 12, 2008, for final verification procedure.

Montenegrin accession was scheduled for 3 February 2009, for consideration by the General Council

A year ago, Montenegro was ready to join. Nevertheless, Montenegro has not become WTO member yet.

Why Montenegro has not become the youngest WTO member so far?

It is a good question, but, unfortunately, it is not possible to provide simple and easy answer. However, the facts and figures speak for themselves.

During the so-called verification procedure, on 19 December 2008, almost one year ago, a country, recently acceded to WTO a few months before, submitted an extremely comprehensive market access request. It is a country, whose representative was present only on the last WP meeting on November 2008 (when announced that they keep the right to open bilateral negotiations with Montenegro), but, it was not done within proposed deadlines, as defined by the Working Party (Master of its own procedures).

Request of aforementioned country to open negotiations came after the consolidated schedules had been circulated to WTO members. This is usually never done, and it is against good customary practice in WTO: the consolidated version is supposed to be the last one, for obvious reasons; otherwise, negotiations could go on ad infinitum.

One year on, some progress has been achieved, only due to strong efforts made by Montenegro, but we still do not have a deal, after four official bilateral rounds held. Unfortunately, negotiations were unfruitful because of very strong requests from this country (request for NAMA positions has raised for 2, 5 times) and lack of any kind of flexibility on their side (that country did never compromise of any of its requests). So, Montenegros accession process is blocked. This is extremely disappointing for the government and frustrating for its constituencies.

Allow me to focus your attention on four important facts:

1. Montenegro is one of the smallest European country with population of 630.000, and present small, but very open and liberalized, economic environment;

2. Simple average FBR in AGRI is 11,9%, and in NAMA is 4,6% respectively; it is one of the lowest average rates in comparison with RAMs and Region;

3. Trade volume with mentioned country (the only outstanding bilateral) is about 0,02% of total trade; (approach is not commercially based);

4. Montenegro has completed the most requested part multilateral and all bilaterals except one. i.e. Montenegro is blocked in accession by single country for one year.

Finally, simple question to be asked is: why is WTO membership such priority for Montenegro? Or, what Montenegro is loosing if not join the WTO?

- Firstly, Montenegro already respect all WTO rules, though we are still not officially in, Consequently, it negatively impacts image of Montenegro as attractive business destination for FDI, what means less possibilities for economic development and prosperity: level of country risk for investment and strategic economic partnership is higher because implementation of international trade standard is not confirmed by formal WTO membership:

- Secondly, postponing of WTO accession could slow down overall process of Euro Atlantic integration of Montenegro,

- Finally, raising awareness among other WTO members and acceding countries about this problem, Montenegro is voicing also for its neighbors non-WTO members. Only Balkan as a whole in WTO is an attractive investment place.

Dear Colleagues,

At the end, allow me to thank all members which have given clear voice for faster accession process and fair negotiations. We highly appreciated understanding shown by many countries in their statements during MC7.

Really, some bilaterals are problematic, making finish so hard. In that sense, please consider on strengthening of ombudsman role for acceding countries. Consider about making new document for rules of accession, which will be focused not only on rules, but also on content of negotiations.

Montenegro expects understanding and support of WTO members. This is not request for third country patronage, but for raising of one problem in WTO accession which is not only bilateral issue, but systemic one. Montenegro already pay the price with at least one year in this limbo status of the accession.

Today, it is problem of Montenegro only. However, tomorrow it would become the problem of other acceding countries too.

Please have it in mind. It is our common responsibility.

Thank you for your attention.