Macedonia is a small landlocked country located in Southeast Europe. The country has been working towards improving its economic prospects, and one of the key ways it is doing that is by negotiating a free trade agreement with the European Union (EU).
A free trade agreement (FTA) is a treaty between two or more countries that eliminates barriers to trade and promotes economic integration. FTAs remove tariffs, quotas, and other trade barriers, making it easier and cheaper for businesses to trade goods and services across borders. They also promote economic growth and job creation by opening up new markets for exports.
Macedonia already has a free trade agreement in place with several countries, including Turkey, Ukraine, and Serbia. However, negotiating an FTA with the EU is particularly significant, given the size and scale of the European market.
The European Union is currently Macedonia`s largest trade partner. Approximately 60 percent of Macedonia`s exports go to EU countries, while around 80 percent of the country`s imports come from the EU. Negotiating an FTA with the EU would thus be a significant boost to Macedonia`s export-oriented economy.
The negotiations for an FTA between the EU and Macedonia have been ongoing since 2012. However, progress has been slow, and the process has been complicated by political and economic issues in both the EU and Macedonia.
One of the key stumbling blocks has been the ongoing dispute over Macedonia`s name. Greece has long objected to the use of the name “Macedonia,” arguing that it implies a claim to a historical region in Greece. The dispute has led to Macedonia being referred to as North Macedonia in some international contexts.
Despite these obstacles, there have been some positive developments in recent years. In 2018, the EU agreed to open accession negotiations with Macedonia, following the resolution of the name dispute. While full EU membership is still a long way off, this decision was seen as an important step towards closer integration with the EU.
Negotiating an FTA with the EU would be another significant step in this direction. The FTA would eliminate tariffs on most goods traded between the two parties, making Macedonian exports more competitive and attractive to EU buyers. It would also open up new opportunities for Macedonian businesses to sell their goods and services across the EU.
In conclusion, negotiating a free trade agreement with the European Union is a key priority for Macedonia`s economic development. While the process has been complicated by political and economic issues, progress has been made in recent years. If an FTA is successfully negotiated, it has the potential to significantly boost trade and investment between Macedonia and the EU, and drive long-term economic growth and development in the country.