Kosovo has little product to export to EU

Thus says the published report by the Ministry of Commerce on the subject “Effects of the Kosovo Stabilisation and Association Agreement: The EU: The impact on the Trade Exchange”, where it also points out that if the current state of Kosovo trade exchange is viewed - The EU, in January period of April 2016, notes an increase in the level of exports to the tune of 6.6 % and also an increase in imports for 8.6%.

According to the report, from Kosovo's perspective, trade liberalisation offers the possibility of connecting domestic producers to global chains of value.

“It is likely that these effects will spur increased employment and poverty reduction. Job creation involves greater income and, as a result, better living standards, or generally improved prosperity. Other experiences, however, tell us that the benefits of liberalising trade are conditional on the factors of the offer. This is also the case with Kosovo. Although the production base in Kosovo is scarce, with the commitment of local producers and new opportunities this opening of trade is expected to bring, this production base will eventually expand. However, if institutional performance does not improve further in order to create even more favourable conditions for new businesses and investments, trade liberalisation may not fully yield desired results, which affect both consumers and producers' benefits. To show the results of strong growth, this should be accompanied by adequate policies such as better education and higher levels of skills, better infrastructure, financial and macroeconomic stability, etc.”, the report said.

In addition to the above mentioned, another very important thing Kosovo can benefit from the EU in general, and from the SAA in particular, is financial and technical assistance. This type of support, highlighted in the report, is expected to play an important role in promoting the implementation of reforms related to education, training, banking and finance, promotion of NVMs and macroeconomic stabilisation.

In addition, part of EU financial assistance is provided in the form of grants that will be distributed to the industrial and agricultural sector to improve Kosovo's economy. Beyond that the SAA has been asymmetrical agreement between Kosovo and the EU, which means that since the moment of its entry into power, although all of Kosovo's products will have full access to the EU market in addition to those negotiated through quotas, while accessing EU products to the Kosovo market will be liberalised by periods of time, 5, 7 and 10 years old. In this direction, it is noteworthy that despite what was said above, Kosovo still finds it impossible for animal-born products to be exported to the EU market. This is about the fact that still according to EU regulation no. 206/2010 Kosova is not on the list of states for export of these products of animal origin. Which means that Kosovo still has no chance of exporting these products to the EU market. However, it is disturbing because the implementation of the SAA can therefore not bring the expected benefits if there are limits on EU lists in which Kosovo does not figure”, the report says.

While the Kosovo institutions also remain a burden to make maximum efforts to resolve this obstacle, in general, it seems reasonable to conclude that the SAA will benefit Kosovo's economy and businesses, providing other opportunities to overcome current obstacles on the part of the bid, which is considered to be a major problem in Kosovo's economy.

The most important “, priorities of the SAA-based Free Trade Agreement, could be used as a way to increase productivity level, another important factor, which defines international competitiveness of businesses in Kosovo. Therefore, for Kosovo, an agreement with the world's largest trade bloc is more attractive. Kosovo businesses will be given access to 500 million consumers in the 28 EU member states. Businesses will benefit from the SAA with the reduction of trade barriers and the creation of a more stable and transparent trade and investment environment; for companies it will also be easier and cheaper to export their products to the partner trade markets. In addition, benefits from the SAA go beyond trade, because the EU connects the SAA in exchange for pledges for political, economic and trade reform in one country. In this respect, Kosovo will be able to make major advances in areas such as intellectual ownership, public procurement, competition policy, trade and sustainable development”, the conclusions end in the report.