After Germany's pressure, Kosovo on verge of returning Serbian goods

“We are working and committed to the 10th anniversary of the Berlin Process being successful”.

So the Government of Kosovo answered Radio Free Europe's question if it is considering Germany's request for the removal of the import ban on goods from Serbia.

German Embassy in Kosovo confirmed for REL that “has had many talks between German and Kosovo officials on this topic”, because, as said, “Germanism wants to achieve results in terms of CEFTA at this year's Berlin Process summit”.

The request for the removal of the import ban on goods from Serbia in Kosovo made Germany's special envoy for the Western Balkans, Manuel Sarrazin, in early September, with the explanation that this halts the work of CEFTA, or the Central European Free Trade Agreement.

He said that, due to this halt, Kosovo could jeopardise participation in the Berlin Process an initiative aimed at helping the economic development of six Western Balkan countries and their approach to the European Union.

The 10th Berlin Process Summit will be held on 14 October.

How much does Kosovo export to CEFTA countries?

From 2019 onward, the value of products Kosovo has exported to the member states of the Central European Free Trade Agreement (CEFTA) has reached about 1.6 billion euros. Besides Kosovo, parts of CEFTA are: Albania, Northern Macedonia, Serbia, Bosnia and Herzegovina, Montenegro and Moldova.

The Kosovo government made the decision to ban imports of goods from Serbia in mid-July 2023 for, as it said, security reasons.

At the time, Serbian police arrested three Kosovo police officers. Even though they, meanwhile, were released, the decision to prevent import goods from Serbia remained in force.

The EU has on several occasions stated that such a decision by Kosovo authorities is contrary to the CEFTA agreement and contrary to the spirit of Kosovo's Stabilisation and Association Agreement with the EU.

Germany's Minister of Foreign Affairs, Annalena Baerbock, said on October 1st at a feasibility conference with the foreign ministers of the Western Balkan countries, that the next two weeks are crucial for successfully maintaining the Berlin Process summit.

“Depends on whether to reach any agreement to implement CEFTA. There is still work to achieve this”, she said.

Experts back lifting measures banning imports from Serbia

The chairman of the Kosovo Economic Ode, Lulzim Rafuna, tells Radio Free Europe that the decision to ban import of goods from Serbia has been taken for security reasons more than a year ago and that it is time to seriously consider its abolition.

He says this decision risks not only the work of CEFTA, but also the Berlin Process and the Joint Regional Market, agreed on in 2020.

All connected. Therefore, it is important to remove all obstacles, not just from Kosovo... We also have problems exporting goods to Serbia, because it does not recognise Kosovo phytosanitary documentation”, Rafuna says.

Economist Safet Gerxhaliu, who says the government of Kosovo must not “experimente with” in regional economic co-operation.

According to him, Kosovo should understand the importance of European economic integration and it does not have “luks” to block regional co-operation with political decisions.

Rafuna: Investors View the Region as a Market

Rafuna, who is also chairman of the Western Balkans' economic opaque board, says all regional initiatives are important, so any obstacle affecting their functioning must be removed.

“We are a small country, we are a small market and all investors see the region as a market. It is important that there are no obstacles between us. They are not a good message for investors”, he estimates.

The market in Western Balkan countries has some 18 million inhabitants.

A similar attitude is expressed by economist Gerjaliu, who adds that CEFTA has great importance for businessmen, due to customs benefits and crack-offs.

He underlines that the Berlin Process is an important initiative, which benefits all Western Balkan countries, and that Kosovo should by no means allow to be expelled.

We cannot expect foreign investment unless there is political stability. That political stability cannot be achieved unless we have active participation in all regional initiatives”, Gerjaliu says.

The Berlin Process was established in 2014 in Berlin, with the initiative of then German Chancellor Angela Merkel, as a contribution to the prospect of EU enlargement.

All Western Balkan countries that are not members of the European Union are part of the Berlin Process: Kosovo, Serbia, Northern Macedonia, Bosnia and Herzegovina, Montenegro and Albania.

Some of the agreements signed among these countries, as part of the Berlin Process, are: the agreement on mutual recognition of identity cards, university diplomas, professional qualifications, then co-operation in the field of transport, energy, ecology, digitalisation, and Rhoming.

Kosovo has been a member of CEFTA since 2007, but is represented through the UN mission in the country UNMIK.

The Kosovo government has demanded that this representation of Kosovo be changed, while Germany has offered <x0 selection” in exchange for removing the ban on import of goods from Serbia.

Sarrazin told the Balkan Research Network ghlN on September 23rd that there would be a star next to the name of Kosovo, or an injection, showing that Kosovo's status has not been finally resolved.

Kosovo President Vjosa Osmani visited Germany this week, where she sought this country's support for Kosovo's membership in international organisations, such as the Council of Europe, the EU and NATO.

Through a post on the X platform, Germany's Ministry of Foreign Affairs said it supports Kosovo on its road to the EU and stressed the importance of Kosovo's participation in regional initiatives, as well as the normalisation of its relations with Serbia.