Foreign trade relations of the Western Balkan states in the context of European integration

Abstract

The aim of the article is to identify trends in the development of foreign trade relations of the Western Balkan countries in the context of their ongoing integration processes with the European Union in recent years. The main challenges and achievements of the countries in the region – Albania, Bosnia and Herzegovina, North Macedonia, Serbia, and Montenegro on the path of harmonizing trade policies in accordance with current EU policies are analyzed. Special attention is paid to the role of bilateral Stabilization and Association Agreements between the EU and the studied countries, as well as to the significance of the Central European Free Trade Agreement (CEFTA) in shaping the regional economic space. Using trend analysis, export statistics to the EU from 2014 to 2024 are presented, showing an overall positive dynamics in export-import operations between the EU countries and the Western Balkans. It is demonstrated that the participation of the region’s countries in the Stabilization and Association Both trade agreements contributes to trade liberalization and increases integration compatibility with the European market. Despite positive developments, internal and external factors affecting the effectiveness of foreign trade activities in the Western Balkans are revealed, particularly institutional limitations, underdeveloped logistics, and dependence on certain industries, which impact the current export potential. The role of EU macro-regional strategies (EUSDR, EUSAIR) as tools for deepening integration cooperation is noted. The article concludes that despite positive developments, the countries of the region require structural reforms, increased competitiveness, and stronger institutional capacity. The experience of the Western Balkans is considered a valuable reference for Ukraine which is also at the stage of implementing the European integration course.