Montenegro inks free trade agreement with EFTA

Geneva, Switzerland (14 November 2011) – Montenegro’s Economy Minister Vladimir Kavarić signed today in Geneva the free trade agreement between Montenegro and the European Free Trade Association (EFTA), a 13 million consumer area comprising Iceland, Lichtenstein, Norway, and Switzerland. The Agreement envisages favourable asymmetric concessions for Montenegro’s products in EFTA markets.

Minister Kavarić said that Montenegro is an open economy dedicated to free trade principles and added that this Agreement should attract investors from the EFTA zone, especially given these countries’ track record in foreign direct investment and their very prolific external trade. This Agreement is also expected to encourage Montenegrin producers to enhance their competitiveness.

Norwegian Trade Minister Trond Giske stressed that Montenegro’s is among the fastest growing economies in the region, pointing out that the values the signatory countries share are a good basis upon which to build closer economic ties. Other participants at the meeting said this Agreement is of great importance for the exchange between the signatories and they agreed that it will be beneficial for Montenegro’s bid to join the World Trade Organisation (WTO).

The signing of a free trade agreement with the EFTA countries was among the EU Commission’s recommendations and will hence boost Montenegro’s EU integration efforts. The Agreement is expected to enter into force on 1 July 2012 when all the signatories will have ratified it.