Serbia's goods significantly reduce in Kosovo market

Serbia, which was the largest exporter of products in Kosovo before the tax was taxed, has fallen for the past eight months as exporter of goods to about 4m euros.

This state, before 21 November last year, has exported goods to Kosovo during a day worth about 1.2m euros or more than 360m euros within a year.

The Adriatic Stavileci, spokesman in Kosovo Customs, tells Radio Free Europe that “over the past few days has not been noticed any import increase from Serbia or increased smuggling.

“I have to stress that goods from Serbia and Bosnia and Herzegovina from November of last year have marked drastic decline when it comes to import”, Stevilec suggests.

The daily average of imports from Serbia, Stevilec says, is about 10 shipments, with some of them being humanitarian aid, some are commercial remittances, which are subject to a 100 per cent tax. Commercial products are food, raw materials, packing, etc.

The total value of imports from Serbia has reached about 4m euros”, Stavileci says.

In May alone, according to the Kosovo Statistics Agency, import of goods from Serbia to Kosovo was 519 thousand euros, up from more than 39m euros in the same period last year.

During this period, tax application, some economic associations and nongovernmental organisations have done research on economic tax effects. Some research has shown that this tax has affected the growth of local products, while nongovernmental organisations have claimed the effects have not been at a satisfactory level.

Kosovo's Economic Ode Chairman Berat Rukiqi, in a conversation for Radio Free Europe, says that even after the tax is imposed, there has been no shortage of products on the market, as businesspeople in Kosovo have soon found alternatives to replacement products from countries in the region and the European Union.

“We consider two main effects, the first is about reorienting trade. For all those products, with which the Kosovo market is supplied by Serbia and Bosnia, there are today replacements from other countries. And second, what you're seeing is a greater presence of local general consumer products”, Rukiqi points out.

Yes, according to ASK data, from member states of the European Union, with the highest import participation in Kosovo are Germany, Greece and Italy, while from countries in the region with larger products on the Kosovo market is Albania, followed by Northern Macedonia.

Another tax effect is the rate rate rate rate. Berat Rukiqi says that during this period there has been a slight rise in prices in some of the articles.

As far as prices are concerned, there is normally an increase in the cost of transportation for some products. In any case, supply from the most remote countries has the most cost of transportation, and this has also contributed to” prices, Rukiqi explains.

The Kosovo government in November last year has made the decision on customs duty, initially 10 per cent, and then 100 per cent for the products of Serbia and Bosnia and Herzegovina.

Besides the economic effects this tax has presented political effects. The European Union and the United States of America have consistently demanded suspension or cancellation of this tax. The introduction of the tax, Belgrade has described it as an obstacle to continuing dialogue between Pristina and Belgrade, relieved by the European Union.

But authorities in Pristina have stated that the 100 per cent tax on goods imported from Serbia and Bosnia and Herzegovina does not present an obstacle to continuing dialogue, but the obstacle lies in Serbia's unwillingness to recognise Kosovo.