The study is organized in the three sections following the introduction, by which Section I reviews the economic performance of the five Balkan countries - Albania, Bosnia and Herzegovina, Croatia, Macedonia, and Serbia and Montenegro - with a focus on international trade. A discussion follows in Section II on the current status regarding participation in the World Trade Organization (WTO), relations with the European Union (EU), and relations with each other, and other countries in Central and Eastern Europe, all of which affect the conditions for market access for their exports. Then follows an institutional and policy analysis regarding trade in goods and services, including the main challenges these countries face in global integration. The study stipulates the political economy of reducing trade controls is difficult, especially if it is to be done on an autonomous basis
however, the accession (EU) process gives governments a vehicle they can use to push forward reforms that would otherwise be difficult to implement. Moreover, WTO members, need to take the opportunity of the new Round of multilateral trade negotiations (agreed in Doha), to reduce existing trade barriers further, both in merchandise trade, and in services. But it is important to strengthen institutions for regional cooperation, supported within the framework of the Stability Pact, which provides a useful forum for cooperation on trade policy.