Kosovo, Serbia towards escalation of economic battle

The Kosovo government is ready to counter the eventual measures warned by Serbia and Bosnia and Herzegovina towards the Kosovo economy, say central institutions officials in Pristina.

Warnings of economic measures towards Kosovo come from officials in Belgrade, according to which, if Kosovo does not abolish the 100 per cent customs tax on imports from Serbia and Bosnia and Herzegovina, these two countries will retaliate.

The Minister of Trade and Industry in the Government of Kosovo, Andrew Shala, told Radio Free Europe that any action that can be taken by Serbia and Bosnia and Herzegovina towards the economy of the Republic of Kosovo is nothing but the continuation of practices that are being implemented for 19 years by these states towards Kosovo.

All these obstacles, different bureaucracy, transitary export barriers to Kosovo products, non-recognition of Kosovo documents, have been sampled since 19 years since they were used by Serbia and Bosnia and Herzegovina. And this warning of government officials of Serbia is only the appointment of these measures, which Serbia has been using for 19 years, says Shala.

Serbia's President Aleksandar Vuciq, days ago, has said Serbia has prepared the measures, but will use them not to hit Kosovo Serbs as well. According to him, those measures are limited in character, but some of them are prepared and will be extremely powerful and sharp.

“will not implement them until the end of the meeting in Paris”, Vuciq said, referring to the meeting between the Kosovo leadership and Serbia, which France and Germany have called on July 1st in Paris.

It has been six months since the Kosovo government has imposed a 100 per cent tax on products of origin from Serbia and Bosnia and Herzegovina.

The implementation of this tax has prompted the Central European Free Trade Agreement, known as the CEFTA February, signed in 2006 in Bucharest, to be considered the dead”” for Minister of Commerce in Serbia Government Rasim Lajiq.

He made these comments Monday in Sarajevo, where he met with Bosnian Trade and Economy Minister Mirko Sharovic. According to them, the current mode of trade exchange cannot be sustainable and that this is due to the tax Kosovo has imposed on goods imported from Serbia and Bosnia and Herzegovina.

But, Kosovo Trade Minister Andrew Shala says from the moment CEFTA signed to last November 21st of last year for the goods of these two states, any obstacle facing the CEFTA agreement, Kosovo has addressed them through the official channels of this institution, but that this mechanism has never responded to the demands it has faced.

“Not wanting to comment Mr. Lajiq's statements, I say Serbia and Bosnia and Herzegovina should start respecting and recognise Kosovo as a state if they want to have good trade relations”, says Shala, rel.

Rasim Lajic has asked the European Commission for greater commitment to the urgent reform of the CEFTA Agreement.

In Pristina, meanwhile, experts on economic issues and former Government officials that Kosovo has called on the current government to renegotiate the Free Trade Agreement with Western Balkan countries, as, according to them, since its signing, Kosovo has not been treated equal to the member states of this agreement.

Skender Krasniqi, chairman of the Kosovo Afarism Oda, in a conversation for Radio Free Europe, said the signing of this agreement has destroyed Kosovo's economy after its signing was made after no condition to protect Kosovo products.

“While the countries of the region have hundreds of essential products that have protected up to 500 percent. So this agreement has been devastating to Kosovo businesses, so it has stabilised the country's development. So the Oda of Afarism in the contingent we've asked to renegotiate the Cefta” said Krasniqi

In this mechanism, besides the Republic of Kosovo, other CEFTA member states are Albania, Macedonia, Serbia, Montenegro, Bosnia and Herzegovina and Moldova.

The European Union and the United States of America are constantly asking the official Pristina to suspend this tax so that the continued possibility of dialogue between Kosovo and Serbia, which has been blocked since the tax was imposed five months ago.