INKE: Find alternative markets to replace Serbia's products

This institute has said that Kosovo must find alternative markets to replace Serbia's products.

Kosovo with a detailed long-term economic plan can avoid trade with Serbia without negative effects on the national economy.

Here's their full reaction:

Kosovo must find alternative markets to replace Serbia's products

Reaction

The Institute for Economic Research attention is monitoring the economic processes the Republic of Kosovo is undergoing.

The Kosovo government today has made decisions on economic sanctions against Serbia and Bosnia and Herzegovina, imposing a 100% tax on products of sanctioned countries exporting to Kosovo.

The political decision is correct, as it can be seen as countering the Serbian diplomatic aggression that prevented Kosovo from membership in INTERPOL. Economically, the decision should be handled by microeconomic and macroeconomic outlook.

Kosovo should necessarily find alternative markets that would replace Serbia's products. Serbian and Bosnian products would be built automatically to cover the cost of customs, on the other hand many local production companies would freeze the price because the first materials are taken in Serbia. It is there that other countries in the region also benefited from this commercial climate by increasing prices of products in particular emphasis on consumer products. Inflation would be experienced by the Kosovo market, specifically the consumer of the Republic of Kosovo.

Kosovo is officially declared oriented to the market economy, there is a state regulatory mechanism in some cases, but the price assignment would hinder the market in its functioning nature, where demand and bid determines the price.

The demand would be reduced because of the low living standard that fails to cope with price hikes, the offer would be reduced because of the high tax. Consequently, the national economy is a problematic situation when the offer and market demand less transactions would affect consumer baskets, but even macro-economics.

We suggest alternative markets are required, even offering them facilities to export their products to Kosovo. Kosovo should not worry about the CEFTA agreement because Serbia and Bosnia are its biggest violators, hindering the free movement of goods and services from Kosovo. Kosovo should worry about possible inflation and customs stability.

Kosovo with a detailed long-term economic plan can avoid trade with Serbia without having negative effects on the national economy.