THE BEGINNING OF THE BERLIN PROCESS REGION IN FIGURES

With a high-level meeting (prime ministers, foreign ministers, and ministries of economies of In the territory of the participants of the Berlin Process from the Western Balkans, there Albania, Bosnia and Herzegovina, Montenegro, *1 , Macedonia and – the so-called are about 350 thousands companies registered for economic activity, mainly small and Western Balkans Six “WB6”, Croatia, Slovenia, Austria, France, and representatives of the Europe- medium-sized companies. It is a market of more than 24.5 million potential consumers. an Commission), which was organized in Berlin on 28 August 2014, at the initiative of German chancellor Angela Merkel, the so-called “Berlin Process” was launched. Albania BIH Kosovo* Macedonia Serbia Montenegro Croatia Slovenia Total The aim of the first Western Balkan Summit was to achieve joint agreement on strengthening Area 28,748 51,129 10,908 25,713 99,269 13,812 87,661 20,273 235,951 regional cooperation on the Western Balkans and establish a four-year framework for resolving (km²) outstanding issues in the region, as an additional incentive for joining the Western Balkans in the Population 2.88 3.81 1.79 2.08 7.09 0.62 4.22 2.06 24.55 European Union. (mln)

1 This label does not prejudge the status of Kosovo and is in accordance with Resolution 1244 and the opinion of the International Court of Justice on Kosovo’s declaration of independence. NON-TARIFF BARRIERS CEFTA MATRIX OF NON-TARIFF BARRIERS

Through the implementation of the Central European Free Trade Agreement 2006, as of 2007, The matrix of non-tariff barriers in CEFTA exists since 2009, when a total of 102 of different types the volume of trade and investments has been substantially increased and the regional trade of non-barriers were officially identified. Since 2012, it also included barriers in services, and cooperation has been liberalised and facilitated. UNCTAD classification of non-tariff measures was applied. The use of on-line database for identification and reporting on non-tariff barriers started in 2013. Various types of non-tariff barriers (technical, administrative and other) are special problems in the implementation of CEFTA 2006 that exist with all CEFTA parties. Serbia reported a total of 29 different types of barriers applied by other CEFTA signatories, and Serbia introduced a total of 36 non-tariff barriers towards other CEFTA signatories, out of which Chambers of commerce and business association should help in reducing barriers to greater it removed 29 (81%). trade and investments, while insisting on competent authorities to find pragmatic solutions to the above problems.

With the support of DIHK-CEFTA Partnership Project funded by the Federal Ministry for Economic Cooperation and Development of Germany (BMZ), we have been actively working for seven years now on identifying barriers to mutual trade and recommendations for their elimination and improving conditions for business and investment. TRADE EXCHANGE BETWEEN SERBIA AND THE REGION INVESTMENTS FROM THE REGION IN SERBIA

Total commodity exchange between Serbia and the participants of the Berlin Process from the Starting from 2014, according to a new calculation methodology of the National Bank of Serbia, Western Balkans in 2016 amounted to 5.34 billion euros, which is an increase by 6.4% for the aligned with the IMF guidelines, and as part of joining the European Union, total net investments same period in 2015. Export to the region was 3.64 billion euros, which is by 8.8% more than in by residents from the participating states of the Berlin Process from the Western Balkans were 2015. Import from the region rose by 1.4% compared to the same period in 2015 and was 1.65 730.6 million euros in the period 2010-2016. billion euros. Trade surplus on the side of Serbia was 2.05 billion euros, with excellent coverage of import by export. Rank Country Total 2010-2016 in EUR (‘000) Commodity export and import between Serbia and the Region CommodityRobna export razmena(in and Srbijebillion import i EUR)regiona between (u milionima Serbia and evra) the Region 11 Slovenia 304,686.10 (in billion EUR) 3,693.69 17 Croatia 190,554.00 3,14 3,18 3,393.39 3,03 3.03 3.14 3.18 3,69 19 Montenegro 136,821.00 2,78 2,932.93 2,852.85 3,39 2.78 3,03 2,74 2.74 3,14 3,18 24 2,78 2,36 2.36 2,74 2,93 2,85 Bosna and Herzegovina 69,402.00 2,36 2,052.05 31 Macedonia 28,722.00 1,77 1,66 1,771.77 1,65 1.77 1,45 1,591.59 1,56 1.66 1,671.67 2,05 1.65 1,771,29 1.45 1.56 1,77 1,65 1.29 1,59 1,56 1,66 1,67 73 Albania 436.00 1,29 1,45 1,65 1,491.49 1,511.51 1,621.62 1.65 1,26 1,29 1,341.34 1,29 1,65 730,621.10 1,13 1.261,07 1.07 1.29 1.29 1,49 1,51 1,62 1.13 1,26 1,29 1,34 1,29 1,13 1,07

2007. 20072008. 20082009. 20092010.20102011.20112012.2012 2013.2013 2014.2014 2015.2015 2016.2016 2007. 2008. 2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016. ExportsIZVOZ UVOZImports SALDOSaldo RAZMENE Exports Imports Saldo

PokrivenostExport-import uvoza coverage izvozom Srbijeratio u region Export-import coverage ratio 211,4% 210,2% 209,0% 224,2%224.2% 183,3% 184,0% 211.4% 210.2%224,2%209.0% 171,4% 183.3% 184.0% 211,4% 210,2% 209,0% 171,4%171.4%183,3% 184,0% 188,5% 168,3% 188.5% 182,5% 168,3%168.3% 188,5% 182,5%182.5%

2007. 2008. 2009. 2010. 2011. 2012. 2013. 2014. 2015. 2016. 2007.20072008.20082009.20092010. 20102011. 20112012. 20122013. 20132014. 2015.2014 2016.2015 2016 Export-import coverage ratio Export-import coverage ratio Pokrivenost uvoza izvozom AGREEMENT FOR SUCCESSFUL REGION VIENNA WESTERN BALKAN SUMMIT

The Austrian Chamber of Commerce hosted a meeting of representatives of Western Balkan The first practical results in terms of adopting joint regional projects within the Berlin chambers of commerce on 16 June 2015 in Vienna, and they reached an agreement on more Process were achieved on the second Western Balkan Summit, held in Vienna on 27 August 2015. efficient inter-chamber cooperation at different levels, to enable the inclusion of business The agreed framework for infrastructure investment development of the region in the area of associations in implementing on-going and planned infrastructure projects significant for the transport and energy should lead to creating some 200 000 new jobs, over the next 15 years. economic prosperity of the Western Balkans, proposed under the Berlin Process. ESTABLISHMENT OF CHAMBER INVESTMENT FORUM (CIF)

Following the initiative of the Chamber of Commerce and Industry of Serbia and Kosovo Chamber of Commerce on direct inclusion of Western Balkan chambers of commerce and their member companies in the economic dimension of the Berlin Process, the Western Balkans Chamber Investment Forum (CIF) was established on 27 August 2015, on the sidelines of the Vienna Western Balkan Summit, with the support of EUROCHAMBRES, the Austrian Federal Eco- nomic Chamber (WKÖ) and Association of German Chambers of Commerce and Industry (DIHK).

The establishment of the CIF is a response of the business community to the political processes in the region, taking place within the Berlin Process and new opportunities for stronger network- ing of business communities of the region through influence on the removal of the remaining obstacles to the development of regional economic cooperation and improving the business and investment climate in the WB6 markets.

CIF MANAGING BOARD WITH PRESIDENT OF THE AUSTRIAN FEDERAL ECONOMIC CHAMBER CHAMBERS OF COMMERCE CIF MEMBERS CIF MANAGING STRUCTURE

The CIF has eight members as follows: the Union of Chambers of Commerce and Industry of Albania, Foreign Trade Chamber of Bosnia and Herzegovina, Chamber of Economy of Montenegro, Kosovo Chamber of Commerce, Croatian Chamber of Economy, Economic Chamber of Macedonia, Chamber of Commerce and Industry of Serbia and Chamber of Commerce and Industry of Slovenia.

The CIF Presidency is held by its rotating members, and in 2017, the Croatian Chamber of Economy is holding the Presidency of the CIF. MANAGING BOARD CCI PRESIDENTS 8

SECRETARIAT NATIONAL COORDINATORS 8

WORKING GROUP ON WORKING GROUP ON PRIVATE WORKING GROUP ON TRANSPORT AND ENERGY SECTOR DEVELOPMENT IMPROVEMENT OF BUSINESS INFRASTRUCTURE AND UTILITY AND INVESTMENTS ACTIVITIES 16 MEMBERS 8 MEMBERS 8 MEMBERS THE FIRST MEETING OF CIF MANAGING BOARD RECOGNITIONS FOR CIF FROM THE EUROPEAN UNION

At the constitutive meeting of the CIF Managing Board (CIF MB), consisting of presidents of European official have a position that the CIF is a successful example of regional cooperation and the chambers of commerce, held on 21 October 2015, the Statute and Rules of Procedure were it has become the most powerful cohesion factor, which directly contributes to the competitive- adopted. ness and attractiveness of the Western Balkans.

Standing working groups were established as follows: 1) transport and energy infrastructure and The has recognized the efforts of the CIF chambers to contribute to utility activities; 2) improvement of business and investment climate, and 3) development of pri- facilitating intensive business networking in the region, as well as an active and concerted action vate sector. Each chamber of commerce has its representative in these working groups, which with regard to shared economic interests. discuss proposals and give recommendations to the CIF MB. In the context of encouraging structured dialogue with the private sector in the process of At the constitutive meeting, it was also adopted a conclusion to call on WB6 governments to intensified economic integration of the Western Balkans in the EU, the European Commission enable presidents of the chambers to be directly involved in the work of National investment announced in early 2017, except for the CEFTA Secretariat and the Regional Cooperation Council committees. (RCC), additional support to the CIF.

COMMISSIONER JOHANNES HAHN WITH PRESIDENTS OF CCIS AND KCC

ANGELINA EICHHORST WITH CIF REPRESENTATIVES CIF SUPPORT ACCTIVITIES TO MICRO, SMALL AND MEDIUM SIZED COMPANIES CIF AT BUSINESS FORUMS IN THE REGION

At the core of the CIF activities is support to the development of SMEs competitiveness in the Two years in a row, members of the CIF MB participated in panel discussions on regional region, which accounts for about 98% of the economy in the region. cooperation within the so-called “Serbian Davos” - Kopaonik Business Forum, in 2016 and 2017, where recommendations to governments were adopted for measures to improve the At the meeting of the CIF MB with the South East European Centre for Entrepreneurial Learning competitiveness of regional economies (SEECEL), held on 25 February in Zagreb, close cooperation for human resource development and strengthening entrepreneurship in the region was agreed, which will be implemented by the Joint CIF – SEECEL Committee set up at the first meeting of the CIF MB. CIF AT THE PARIS WESTERN BALKAN SUMMIT WB6 CIF ACTION PLAN

The CIF organized the participation of 20 of its renowned regional member companies at the The CIF Action Plan “WB6 Chambers of Commerce in creating the value chain at the regional business forum within the third Western Balkan Summit held on 4 July 2016 in Paris, and thus level”, consisting of 26 regional development projects delegated by WB6 chambers, was enabled them useful business networking with leading French companies that are interested in adopted at the CIF constitutive meeting in Vienna and presented on the same day to ministers cooperating with the region. for economic development of participating states of the WB6.

On the sidelines of the Business Forum, the second meeting of the CIF Managing board was One third of the Action Plan has been successfully implemented so far. held, chaired by the Foreign trade Commerce of Bosnia and Herzegovina, in the presence of representatives of the Chamber of Commerce of France, EUROCHAMBRES and the Regional Cooperation Council, where it was concluded to intensify the cooperation between the CIF and European partners and other stakeholders for more efficient implementation of joint development projects

CIF MANAGING BOARD WITH PRESIDENT OF THE CHAMBER OF COMMERCE AND INDUSTRY OF FRANCE MEETINGS OF CIF WORKING GROUPS

Meetings of standing and ad hoc CIF working groups are held annually and more often if necessary (with the possibility of skype conferences).

At meetings of CIF working groups held with the support of DIHK-CEFTA Project Partnership in Belgrade in June 2016 and Sarajevo on 6 September 2016, chambers’ expert members of these working groups discussed the current issues envisaged in plans of the presiding chamber.

Their conclusions were considered and adopted at the CIF MB meeting, which was held in Zagreb on 3 March 2017, and organized by the Croatian Chamber of Commerce. The CIF MB supported the proposal of setting up a new working group under the CIF, which would deal with issues of public procurement. SO FAR WE SUCCEEDED WE CONNECT

By late 2015, the CIF succeeded to win a five-year extension of the autonomous trade measures, On the side-lines of meetings between regional officials, only during the last quarter of 2016, and preferential treatment for placement of mainly fruits and vegetables from the WB6 on the EU Serbian Chamber of Commerce organized a total of 960 business - B2B meetings of market. entrepreneurs (in business forums with Albania, Slovenia and Macedonia) where a total of 470 domestic and 490 foreign companies participated at. Around 2,000 B2B meetings were During two years of operational work, on the sidelines of regional meetings and exchange realized over the observed period at the level of the entire CIF. visits of state-economic delegations, the CIF contributed to the removal of non-tariff barriers to bilateral trade.

Pointing to the emergence of administrative, technical barriers and problem of non-recog- nition of various certificates accompanying foreign trade in the region, the CIF contributed to enacting efficient measures for facilitating connectivity and more efficient cooperation among businessmen in the region. WE DEVELOP CIF IN PERSPECTIVE

• Regional platform for SMEs development, with an emphasis on the availability of alter- The process of transformation of comparative into competitive advantages of economies of native sources of funding and standardization of business operations, in line with the EU the WB6 member states is part of comprehensive reform processes on the road of the region rules. The project is funded through the so-called “technical assistance” of the European towards the European Union. In order to fulfil its mission, being a representative and advocate of Commission, and the start of implementation is provided through the TAIEX instrument by interests of the business community in the region, in this challenging road, we put the focus of our organizing four workshops in Belgrade, Podgorica, Sarajevo and Skoplje, in the following areas: activities in the coming period on: access to public procurement markets, access to finance, innovation and internationalization. • Cooperation of the European Commission and the CIF for promotion of business cooperation • Regional investment database, through which the region should be made more attractive among the WB6 member states, to increase development opportunities for the SME sector in for new investment. Any potential investor will be able to get relevant information on the the region, and strengthen capacities of CIF chambers current legal framework for investment and business in the region. • Support to SME sector through the development of CIF products and services in the domain • Common tourism product, combing tourist attractions of the Western Balkans into a single of: internationalization of doing business with an emphasis on easier access to sources of product that would attract tourists from distant destinations (Asia, the Middle and Far East, funding necessary for increasing the volume of trade and investment, establishing start-ups, USA and others) in an integrated regional offer, based on the specifics of each market. and encouraging research and innovative development.

• Regional knowledge platform for work based learning in SEE, with the goal to enhance the • Strengthening the role of CIF chambers in national dual education systems, and concerted employability and labour mobility of young people through the promotion of the relevance promotion of entrepreneurial education and lifelong learning for entrepreneurs. of VET for the labour market of the region. • Developing CIF recommendations for improving business and investment environment in • CIF Web platform, for on-line availability of all relevant information, which can contribute to the WB6 region. the success of doing business in the region – open support programs, export tools, etc. The CIF will continue, with the valuable support of partner institutions, to open the possibility for member companies to have direct benefit from more integrated Western Balkans market, to inform them of accompanying improvement of regulatory framework, and help them solve specific challenges of joint competitiveness on the single European market.

Chamber Investment Forum USEFUL ADDRESSES

CHAMBER OF COMMERCE AND REGIONAL COOPERATION COUNCIL CHAMBER OF ECONOMY OF MONTENEGRO ECONOMIC CHAMBER OF MACEDONIA INDUSTRY OF SERBIA Trg Bosne i Hercegovine 1/V Novaka Miloševa 29/II Dimitrije Čupovski 13 15, Resavska str. 71000 Sarajevo 81000 Podgorica 1000 Skoplje 11000 Belgrade Bosna and Herzegovina Montenegro Republic of Macedonia Republic of Serbia Phone: +387 33 561 700 Phone: +382 20 230 545 Phone: +389 2 324 4032 Phone: +381 11 3300 900 Fax: +387 33 561 701 Fax: +382 20 230 493 Fax: +389 2 324 4088 Fax: +381 11 3230 949 e-mail: [email protected] e-mail: [email protected] e-mail: [email protected] e-mail: [email protected] web site: rcc.int web site: pkcg.org web site: mchamber.mk web site: pks.rs UNION OF CHAMBERS OF COMMERCE CROATIAN CHAMBER OF ECONOMY CHAMBER OF COMMERCE AND CENTRE FOR REGIONAL COOPERATION AND INDUSTRY OF ALBANIA Rooseveltov trg 2 INDUSTRY OF SLOVENIA AND INITIATIVES Kavaja 6 1000 Zagreb Dimičeva 13 +381 11 3300 900 / ext. 586, 422, 522 1001 Tirana Republic of Croatia SI-1504 Ljubljana [email protected] Republic of Albania Phone: +385 1 4828501 Republic of Slovenia Phone: +355 44 500 221 Fax: +385 1 4828365 Phone: +386 1 5898 000 CEFTA SECRETARIAT e-mail: [email protected] e-mail: [email protected] Fax: + 386 1 5898 100 Rue de la Loi 42 / boîte 10 web site: uccial.al web site: www.hgk.hr e-mail: [email protected] B-1040 Brisel web site: www.gzs.si Kingdom of FOREIGN TRADE CHAMBER OF BOSNIA KOSOVO CHAMBER OF COMMERCE Phone: +32 2 229 1011 AND HERZEGOVINA Nena Tereze 20 Fax: +32 2 229 1019 Branislava Đurđeva 10 10000 Priština e-mail: [email protected] 71000 Sarajevo Kosovo* web site: cefta.int Bosna and Herzegovina Phone/Fax: +381 38 224 299 Phone: +387 33 566 222 e-mail: [email protected] DIHK-CEFTA PROJECT Fax: +387 33 214 292 web site: oek-kcc.org Frederic Joliot-Curie 25 a e-mail: [email protected] 1113 Sofia web site: komorabih.ba Republic of Bulgaria web site: dihk.de