FOREIGN RELATIONS

In February 1994, Greece imposed a trade embargo on Macedonia due to disputes over the use of the name "Macedonia" and other issues. Greece and Macedonia signed an interim accord in October 1995 ending the embargo and opening the way to diplomatic recognition and increased trade. After signing the agreement with Greece, Macedonia joined the Council of Europe, the Organization for Security and Cooperation in Europe (OSCE), and the Partnership for Peace (PfP). Athens and Skopje began talks on the name issue in New York under UN auspices in December 1995, opening liaison offices in respective capitals January 1996. These talks continue.

The stability of the young state was gravely tested during the 1999 Kosovo crisis, when Macedonia temporarily hosted about 360,000 refugees from the violence and ethnic cleansing in Kosovo. The refugee influx put significant stress on Macedonia's weak social infrastructure. With the help of NATO and the international community, Macedonia ultimately was able to accommodate the influx. Following the resolution of the conflict, the overwhelming majority of refugees returned to Kosovo. A small number of Roma refugees from Kosovo remains in Macedonia, most of them housed in the predominantly Roma municipality of Suto Orizari in the Skopje suburbs, and supported by the UNHCR.

Macedonia enjoys good relations with its neighbors. It has strong trade and tourism ties with Greece, and has developed similarly robust political and trade ties with Albania and Bulgaria. Relations between Belgrade and Skopje are good overall, although a dispute between the Macedonian Orthodox Church and the Serb Orthodox Church has strained ties over the past two years. Relations with Kosovo are good, with Macedonia having signed an Interim Free Trade Agreement with UNMIK in 2005 and with regular bilateral political contacts occurring between Pristina and Skopje since 2005. Under the auspices of the International Civilian Office, which is supervising independent Kosovo's implementation of the Ahtisaari Plan, the Government of Macedonia and Government of Kosovo are in discussions with the aim to complete the demarcation of their common border by April 2009.

Macedonia has made important strides toward Euro-Atlantic integration. Macedonia is an active participant in NATO's Partnership for Peace and Membership Action Plan, the OSCE, and United Nations, and was accepted as a member of the World Trade Organization (WTO) in October 2002. In May 2003, Macedonia, Albania, Croatia, and the U.S. created the Adriatic Charter, modeled on the Baltic Charter, as a mechanism for promoting regional cooperation to advance each country's NATO candidacy. Since then, the Adriatic Charter countries have cooperated closely in regional military exercises, and have deployed a joint medical team to support international coalition operations in Afghanistan. At the NATO Bucharest Summit in April 2008, Albania and Croatia received invitations to join the Alliance. NATO Allies noted that Macedonia met NATO membership criteria, but could not reach consensus on issuing an invitation for membership, in the absence of a solution to Macedonia's dispute with NATO member Greece over Macedonia's name. The United States believes Macedonia has met the performance-based standards for membership. Allies agreed that Macedonia would be invited to join NATO as soon as the name issue is resolved.

In 1999, the EU agreed to pursue a Stabilization and Association Agreement (SAA) with Macedonia; negotiations with Macedonia were launched April 5, 2000. The SAA was signed April 2001 and came into force in April 2004. Its trade and trade-related provisions have been in force since June 2001. In December 2005, the European Council granted candidate country status to Macedonia, taking into account the "substantial progress made in completing the legislative framework related to the Ohrid Framework Agreement, as well as its track record in implementing the Stabilization and Association Agreement (including its trade-related provisions) since 2001." It recommended beginning formal accession negotiations after Macedonia had made further progress on a number of reform fronts, including combating corruption; enacting judicial, administrative, and economic reforms; and conducting free and fair parliamentary elections, in accordance with European standards, in 2006. The Council also noted the need to consider further steps toward membership in light of the debate on the enlargement strategy, and the need for Macedonia to continue strong progress toward meeting the Copenhagen political criteria, as well as Stabilization and Association Agreement requirements. In March 2008, the Council provided the Government of Macedonia a list of benchmarks to guide Macedonia's preparations to open formal accession negotiations.

U.S.-MACEDONIAN RELATIONS
The United States and Macedonia have enjoyed good bilateral relations since Macedonia gained its independence in 1991. The United States formally recognized the Former Yugoslav Republic of Macedonia on February 8, 1994, and the two countries established full diplomatic relations on September 13, 1995. The U.S. Liaison Office was upgraded to an embassy in February 1996, and the first U.S. Ambassador to Skopje arrived in July 1996. The development of political relations between the United States and Macedonia has ushered in a whole host of other contacts between the two states.

During the 1999 Kosovo crisis, Macedonia played a key role in facilitating U.S. and international efforts in the region by accepting hundreds of thousands of refugees, served as a launching pad for allied military efforts, and functioned as the long-term conduit for humanitarian assistance programs and military logistics for Kosovo. The United States, together with its European Allies strongly condemned the initiators of the 2001 insurgency in Macedonia and closely supported the government and major parties' successful efforts to forge a peaceful, political solution to the crisis through the Ohrid Framework Agreement. In partnership with the EU and other international organizations active in Macedonia, the United States remains focused on facilitating the Macedonian Government's implementation of the Framework Agreement and fostering long-term peace and stability in the country. Macedonia continues to make an important contribution to regional stability by facilitating the logistical supply of NATO (including U.S.) peacekeepers in Kosovo.

The United States strongly supports Macedonia's aspirations for full integration into Euro-Atlantic institutions. Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues. The United States has supported Macedonia's progress in building a democratic, secure, and market-oriented multiethnic society with large amounts of foreign assistance for democracy and economic reforms, defense reforms, and projects to strengthen rule of law and improve education. Bilateral assistance budgeted to Macedonia under the Support for East European Democracy (SEED) Act totaled over $440 million from 1990 to 2008. Macedonia received approximately $28 million in SEED Act assistance in 2007 and is receiving approximately $22 million in 2008.

U.S. Agency for International Development (USAID) programs in Macedonia promote accelerated growth, support stronger democratic institutions, and help educate Macedonians for a modern economy. A focus of U.S. assistance has been to assist Macedonia in implementing the August 2001 Framework Agreement. Successful completion of the decentralization process is a remaining priority for framework implementation. USAID is targeting capacity building for local government officials, who will have more authority and responsibility devolved from the central government, as well as providing grants to fund small-scale infrastructure projects.

A further priority of U.S. assistance is to facilitate Macedonia's transition to a market economy and increase employment and growth levels. USAID economic assistance is focused on two levels. At the macro-level, programs target improvements in the business-enabling environment by helping to bring legislative and regulatory frameworks in line with EU standards and improving the transparency and efficiency of government services through technology. At the micro-level, assistance is given to firms and agribusinesses to increase their competitiveness and productivity, coupled with initiatives to attract foreign investment and stimulate local investment. Training programs that provide career-enhancing education to prepare youth and adults for growth sectors are also supported. A resident U.S. Department of Treasury advisor, who will be phased out in 2008, is assisting the Ministry of Finance in improving strategy, planning and execution, and public expenditure management.

USAID is also focused on helping the Macedonian Government and civil society combat corruption, enhancing democratic political competition, supporting government decentralization and promoting the rule of law. USAID also supported the Government of Macedonia in developing a comprehensive State Program for the Prevention of Corruption with a detailed performance management system in 2007. A U.S. Department of Justice Resident Legal Advisor and a Senior Law Enforcement Advisor focus on strengthening the independence of the judiciary, efficacy of public prosecution, reform of criminal codes, increasing police capacity, and abating trafficking in persons and organized crime.

Complementing its assistance in Macedonia's political and economic transition, USAID programs improve education and human capacity in Macedonia through projects on the primary, secondary, and post-secondary levels. Targets include improving teaching techniques, modernizing vocational education, introducing information and communication technology (ICT) as a learning tool in the classroom, and providing broadband Internet service throughout the country using primary and secondary schools as a platform. Other programs address crosscutting issues, including interethnic cooperation, assistance to the Roma minority, performance improvement of key institutions, and corruption.

On May 7, 2008, Secretary of State Condoleezza Rice and Foreign Minister Antonio Milososki signed a joint Declaration of Strategic Partnership and Cooperation affirming the determination of our governments to further expand and deepen the partnership between our two countries based upon common goals, interests, and values. The full text of the declaration is available at http://www.state.gov/p/eur/rls/or/104441.htm.

DEFENSE
Macedonia established its armed forces following independence and the complete withdrawal of the Yugoslav National Army (JNA) in March 1992. The Macedonian Armed Forces consist of an army, navy, air and air defense force, and a police force (under the Ministry of Interior). Under its North Atlantic Treaty Organization (NATO) Membership Action Plan, Macedonia has launched a major effort to reform and reconstruct its armed forces with the goal of building and sustaining a modern, professional defense force of about 12,000 troops.

Successive Macedonian governments have viewed integration into Euro-Atlantic political, economic, and security institutions as the country's primary foreign policy goal. In pursuit of these goals, Macedonia is restructuring its military to be smaller, more affordable, defensively oriented, and interoperable with NATO. The Macedonian Government has welcomed close cooperation with the U.S. military and seeks to deepen this relationship as it restructures its forces.

Macedonia continues to play an indispensable role as the Kosovo Force's (KFOR) rear area, hosting the logistical supply line for KFOR troops in Kosovo. As part of these efforts, Macedonia hosts NATO troops, including U.S. troops, in support of NATO operations in Kosovo and to assist Macedonia's efforts to reform its military to meet NATO standards. Close U.S.-Macedonian bilateral defense cooperation continues. Macedonia also contributes troops to international coalition operations in Iraq and Afghanistan, and recently deployed troops and equipment to support the EU peace support operation in Bosnia and Herzegovina.

Principal U.S. Officials
Ambassador--Philip T. Reeker
Deputy Chief of Mission--Tom Navratil
Political and Economic Affairs--David Burger
Economic/Commercial Affairs--Darren Hultman
Consul--Kimberly McDonald
Management Affairs--Bruce Wilson
Public Affairs--Ryan Rowlands
Defense Attaché--Col. Chris Benya

The U.S. Embassy in Macedonia is located at Bul. Ilinden bb, 91000 Skopje (tel: [389] (2) 311-6180; fax: [389] (2) 311-7103).