Key to economic recovery and regional stability in Southeastern Europe (especially Western Balkans) economies is establishing institutions supporting competitive markets and integration into European markets. This should meet institutional, legal and economic objectives. From the institutional perspective, the new trade policy should be simpler in order to reduce the administrative burden and to minimize incentives for corruption. From the legal viewpoint the WTO will be the anchor of the trade policy of the countries in the region. From the economic perspective countries should seize the opportunity to sign Free Trade Agreements which boost their current and future growth, and contribute to solving their pending economic and institutional problems. Serbia and Montenegro has started to harmonize their tariff systems. This harmonized tariff should serve as the base for the negotiations with the other members of WTO before Serbia and Montenegro becomes the member of this organization.