Bosnia does not recognise independence, but covets Kosovo market

Bosnia and Herzegovina and Serbia are the only two states to emerge from the breakup of the former Yugoslavia that do not recognise Kosovo's independence.

Government officials say the trade balance between these two states has improved in recent years.

Dervisoli's goals, director of the Trade Department under the Ministry of Trade and Industry, tell Radio Free Europe that in recent years there is a positive trend of increased goods from Kosovo to Bosnia and Herzegovina.

“In 2015 Kosovo has exported about 5.5m euros to Bosnia and Herzegovina, in 2016 this figure has increased to 8.4m euros, while last year around 9m euros”.

“Plus, import of Bosnian products on the Kosovo market in 2015 was 75m euros, in 2016 , 79m euros, while in 2017 we have 81.5m euros”, Dervisolli informs us.

Among the many products imported to Kosovo, milk and its products were and still remain as one of the problematic imports. At least that's how local producers in Kosovo stress.

Despite good trade relations, some Kosovar producers have long been demanding from competent authorities measures on milk products coming from Bosnia and Herzegovina, because, according to them, Kosovo's market is entering at a lower price than sold in their country.

The Ministry of Trade and Industry has done a research on this issue and has concluded that the import of milk products has increased by 20 percent, which is estimated to threaten serious damage to local producers.

On this issue, Dervisol shows that the Ministry of Trade and Industry in April has imposed temporary safeguard clauses, applying the 17 per cent tax for all milk products originating from Bosnia and Herzegovina.

Based on the information we have so far, this decision has not yet been implemented. We don't know the reasons. It has already surpassed the powers of the Ministry of Trade and Industry. All that's dependent on the Ministry has gone back to reform. Therefore, responsibility has remained with relevant institutions to implement this decision”, Dervisolli points out.

Failure to comply has disappointed the Association of Milk Producers in Kosovo. Ramadan Memaj, chairman of this association, tells Radio Free Europe that failure to implement the decision is taking place because of different interest groups.

“We suspect that behind these impasses lies the corruption scene and different interest groups, which are not allowing the implementation of this law”, Memaj says.

On the other hand, Kosovo Government officials have stated that such decisions can be implemented only when the Government of Kosovo decides.

Otherwise, after Kosovo's declaration of Independence, official Sarajevo has not recognised the Kosovo Customs stamps, which had prompted the Kosovo government's response with the 10 per cent customs duty imposed on all products from Bosnia.

This decision was estimated to have caused extreme loss to Bosnia's economy by “oblicating” Bosnia and Herzegovina's Council of Ministers to give the go-ahead for accepting Kosovo customs seals. (REL)