Speech of Prime Minister Edi Rama at a meeting with 20 of the biggest exporters:

 

Hello everyone!

Thank you very much for being here!

The reason for this meeting is our need to give a very clear message of support and partnership to all of you, in this week where we are specifically focused on entrepreneurship. Together with the Minister of Economy, we have developed a series of meetings with entrepreneurs on the ground. Meanwhile, the Directors of Customs and Tax Department have been engaged in an intensive communication with enterprises in order to strengthen dialogue, in the framework of the operation against informality that has entered a new phase. It is essential that we take advantage of every opportunity, and identify any means to support industrial production and manufacture for export, because we are convinced that this is a very important pillar to build the Albania that we want.

We are aware of your problems, and this increases even more our responsibility, because a number of prices in the international markets has been significantly reduced, and not just as far as the minerals and fuel sector is concerned, but also beyond.

On the other hand, we are encouraged by figures showing that, if we subtract the effect of the price of minerals and fuels, exports increased by 5.2% in the 12 months of the year we just left behind, compared with a year ago. This is very significant information that obviously speaks about the ongoing and sustainable economic recovery, but also about a huge potential.

Seeing also the largest share of this growth, where exports of textiles and footwear occupy 4.8%, food, mainly agricultural products, but also beverage and tobacco, approximately 25%, and accessories and spare parts realized in our country 16.8%, we have an indicator that we must focus even more and support you even more, specifically to promote a process that began in textile and shoe manufacturing towards the closed cycle.

It is a necessary process in order to take industry in this sector to another level.

We are aware that there are still many opportunities for food products. Suffice it to give you some very significant figures. Dairy products have increased by 582% along with natural honey. Other agricultural products, fruits and vegetables have increased by 133%, always compared with a year ago. Fabrics and fibre have increased by 50%. There is an interesting growth in glass items, approximately 65%, and in stone or plaster items, by 32%.

What also should be noted is that Albania is listed among the countries with increased exports, and it has the highest number of exports in the region, which is another important factor of encouragement.

 

Just as we are very encouraged by some of the data showing a significant increase of Albanian exports with the region, while the overall increase is not only with the region, but also with the EU.

Exports with Kosovo have been higher than ever and have increased more than ever, year after year. When this happens in particularly difficult conditions due to the contraction of markets, global markets, European markets, regional markets, we cannot help but feel very encouraged.

Some other important information. Export and imports wouldn’t mark a significant increase in free trade in the region until 2014. We made a more significant leap in 2015, with 30%. Of course, this relates to the first effects of a new policy that has included the region after the launch of the Berlin process, and we are fully legitimated to be proud of the role we have played and of the fact that we have taken an important concrete step to embody a vision that opens new paths to manufacture, export or import ventures.

Albania’s exports towards the EU remain 40% below the potential that we are able to use. That’s why all these indicators of growth are for us encouraging signs that impose on us not only to fully believe in that potential, but also to do everything together in order to use that potential. 40% under the optimal potential means a space and a set of options that we have and should use with a tremendous impact on the economy.

Of course, it is legitimate to ask what we must do to help you in order to sophisticate and multiply products, which our neighbours have managed to sell year after year, mainly in Europe.

You know better what we can read through the figures of the regional market, but I believe you can give us a substantial assistance in identifying all the opportunities we have in order to support you.

You are witnesses, and have seen the effects of the new fiscal approach and of the new fiscal administration – reimbursement within 30 days for toll manufacturing and exporters, and within 60 days for other businesses, thus ending the ordeal of terrible delays and unpredictability in relation to VAT – have given very positive and healthy effects in the relation of the business with the state.

On the other hand, the use of unpaid VAT to pay other tax liabilities is another instrument that has been widely used by you, and which has turned out to be positive.

We have entered a new phase in terms of tax and customs administration, and I would ask for your understanding when controls do not meet expectations in terms of ethics, speed, efficiency, transparency, but you must be assured that the new phase we have entered will bring very soon an entirely new situation in terms of business control based on risk, thus avoiding abusive visits, the famous endless visits of the tax administrators to businesses.

On the other hand, we are working to unify visits in order to avoid the horror of having a company visited by all kinds of agencies, there are actually 8 different agencies, in addition to taxes, thus taking their time and stress out your administration. We will set the rule that every control will be done only once, and only by the tax audit. If the tax audit, notified in advance, takes place in your company, then, on that occasion the other agencies will be invited to send their representatives. Thus, agencies such as environment, health, etc., will come along with tax authorities, so you won’t have 8 visits from all sorts of agencies, with all sorts of allegations.

Regarding economic indicators, I just want to express our conviction that we have good reason to believe that economic growth will be approximately 3% this year. But on the other hand we are aware that there is a huge, untapped potential, ranging from the liberation of further business loaning, to continue intensively with an ongoing facilitation for business from the standpoint of procedures and of any mechanism that concerns business relationships with the state and government institutions.

Many thanks for being here. We are here with 20 of the biggest exporters, but we have not excluded anyone because we are convinced that your word will be on behalf of others, who may export less than you, but who face the same problems. If we identify these problems together, as we should, problems that you think we should deal with more intensively in this period, will definitely facilitate everybody, and not only you who are sitting here around this table.