Government Considering Replacing Full reciprocity on Serbia

Although they are not yet defined, according to Kosovo Government officials, it is expected that the Government as the reciprocity move towards Serbia will impose a ban on the entrance of Serbia's license plates, establishing the same procedure Serbia applies to Kosovo license plates.

Another move against Serbia is warned to be non-recognition of Serbia's documents, as Serbia does not accept Kosovo documents, which deal with the quality of products and other documents.

Haki Shatri, Kosovo Prime Minister Ramush Haradinaj's economic adviser, told Radio Free Europe that it has not yet been decided on any new measures, but, according to him, has been discussed.

The “in the Government meeting that is tomorrow (Saturday) does not have to presuppose such a thing unless something like extraordinary is set up. It's about three measures that are of a 100 percent-like nature associated with whether to accept or not to accept documents, the same documents Serbia does not know from Kosovo, then as another measure is the ban on the entry of Serbia's license plates, which applies to the cars of citizens from Kosovo, and a measure has to do with the registration of foreign companies that supply Kosovo from Serbia<1>, Shatri explains.

The Kosovo government, with its reasoning for the protection of local products, decided to increase the 100 per cent customs tax on goods imported from Serbia and Bosnia and Herzegovina.

This decision has prompted severe reactions by Serbs in Kosovo and the authorities in Belgrade and Sarajevo. Serbia, which exports goods worth over 400m euros annually, called for tax removal as a condition for continuing dialogue between the two states.

Meanwhile, international mechanisms such as the European Commission and the United States demanded that taxes be lifted, viewing the tax as 100 per cent as a violation of the Free Trade Agreement, CEFTA.

But, the Kosovo government -- at least so far -- has not backed down on the 100 per cent fee decision, which continues to remain in force and envisions other measures for Serbia.

Representatives of businesses who came in support of the Government of Kosovo on the 100 per cent tax for products imported from Serbia and Bosnia and Herzegovina say to support other reciprocity measures as well.

Kosovo Business Alliance Chairman Agim Sahini told Radio Free Europe that reciprocity measures have negative and positive sides, but that such measures, the Government of Kosovo, according to him, were necessary to implement.

It shows that businesses from Kosovo have consistently faced Serbia's non-recognition of documents, which have been issued by Kosovo authorities, and that such a move would have to be taken a long time ago.

The Government of Kosovo's warning that it can increase measures against Serbia in various forms either by demanding reciprocity measures, I think the Government of Kosovo should keep in mind that the 100 percent measure has taken effect and if the effect has been achieved no further measures had to be taken, but if the effect is not achieved then this should take new measures. Now 18 years Serbia does not recognise documents, car plates and various certificates issued by our authorities”, Sahin says.

The Kosovo Government's decision on customs tax application at 100 per cent value to products imported from Serbia and Bosnia and Herzegovina has contributed to the raising of prices of certain essential food items in Kosovo. Of the essential expensive food products are flour, bread, sugar, and oil.