• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

International Economic Relations

Albania is a cash economy. Credit cards and travelers checks are not generally accepted, except at the major new hotels in Tirana and some international airline offices. Travelers' checks can be changed at banks in larger towns. Automated Teller Machines (ATMs) are widely available in Tirana and in most larger towns. Electricity shortages have resulted in sporadic blackouts throughout the country, which can affect food storage capabilities of restaurants and shops. While some restaurants and food stores have generators to properly store food, travelers should take care that food is cooked thoroughly to reduce the risk of food-borne illness. Water in Albania is not potable. Visitors should plan to purchase bottled water or drinks while in country.

Albania's trade imbalance is severe. Albania continues to be an import-oriented economy and the export base remains small, narrow, and undiversified, due mainly to a lack of price competitiveness, poor infrastructure, and a challenging business environment. In 2008, Albanian imports amounted to $5.25 billion and exports were $1.35 billion. The trade deficit continues to widen and, according to the estimates of the Ministry of Finance, reached 26% of GDP for 2008, up from 23.3% in 2006.

The Albanian Government signed a free trade agreement (FTA) with the European Union (EU) as part of its Stabilization and Association Agreement negotiations. The interim agreement entered into force in December 2006, with a duty-free regime for almost 90% of agricultural and industrial products. On the fiscal side it will also significantly reduce revenue collection. Albania has FTAs with Macedonia, Croatia, Bulgaria, Romania, Bosnia, Turkey, and Moldova. Albania also previously established an FTA with the UN Interim Administration Mission in Kosovo (UNMIK), which was transferred to the Republic of Kosovo in 2009. In April 2006, these bilateral agreements were replaced by a multiregional agreement that entered into force in May 2007 based on the Central European Free Trade Agreement (CEFTA) model.

The EU remains, by far, Albania's main trading partner, providing 60.7% of Albania's imports and receiving 79.7% of exports for 2008. Trade with Italy and Greece represent the largest share of EU trade, with a combined 67.7% of imports and 88.6% of exports. The impact of CEFTA in Albania's trade with member countries has been insignificant.

U.S. trade with Albania is very low. In 2008, U.S. exports to Albania totaled $67 million compared with $49 million in 2007, an increase of 36.7%. Part of this increase was due to the 8% depreciation of the dollar against the domestic currency. U.S. imports from Albania decreased 26% in 2008 ($5.1 million) from $6.9 million in 2007. However, there are some discrepancies between U.S. and Albanian trade figures. Major U.S. investment to date has been limited to large-scale infrastructure contracts with the government; Lockheed Martin and Bechtel are principal U.S. participants. In 2008, Refinery Associates of Texas became the first significant U.S. investor representing 20% of the consortium that privatized 85% of the shares of the state-owned oil refinery ARMO.

Albania is trying to attract foreign investment and promote domestic investment, but significant impediments exist. The Albanian Government faces the daunting task of standardizing and uniformly applying business laws, improving transparency in business procedures, resolving property ownership disputes, restructuring the tax systems (including tax collection), and reducing corruption.