The paper deals with the preferential trade arrangements which the Republic of Macedonia has concluded with the countries of the region of Southeastern Europe. The key features of the Free Trade Arrangements (FTAs) are presented, and their main shortcomings are also identified. Particular emphasis is put on the exemptions of free trade regime related to the sensitive products and to services, as these activities are important in the production structure of the Macedonian economy. Then we deal with the issue of the supply response of the Macedonian economy to the improved access to the markets of the countries with whom FTAs have been concluded. The paper concludes with discussion of the possible improvements in the implementation and enforcement of the FTAs.