February 15 (SeeNews) - Kosovo's government should come up with a concrete proposal about the steps it will take to revoke the tariffs imposed on goods from Serbia, the head of the EU Office/EU special representative and heads of EU missions in Kosovo said on Friday.
“The imposition of the tariffs has impacted negatively upon the dialogue process with Serbia […] A successful dialogue that leads to a comprehensive and sustainable agreement will contribute to the stability of Kosovo and the whole region,” the EU office in Kosovo said in a press release.
"We are aware that the success of the dialogue depends on both sides avoiding unhelpful actions and we recall that the EU has urged both sides to act accordingly; it is in this spirit that we call upon the government of Kosovo to articulate clearly the concrete steps it will take to enable the tariffs to be suspended, so regional cooperation can move forward. We also urge the Government to seriously consider the EU Commission´s offer to assist in removing non-tariff barriers that Kosovo exports are facing in the region,” it added.
The EU also stressed that Kosovo’s decision to impose a 100% tariff on goods from Serbia and Bosnia and Herzegovina is a clear violation of the Central European Free Trade Agreement (CEFTA), runs contrary to the spirit of the Stabilisation and Association Agreement (SSA) and has a negative impact on regional cooperation.
The EU noted that it is Kosovo's largest donor, investment and trade partner, adding that tariff and non-tariff barriers to free trade, whether imposed by Kosovo or any of its neighbours, hinder the region’s progress towards a competitive market economy and make it less attractive as a place to invest.
Serbia's exports to Kosovo were completely suspended as of December 31, following a decision by the government in Pristina to increase import tariffs on all goods produced in Serbia and Bosnia to 100%.
Kosovo's decision has resulted in direct damages estimated at 46.1 million euro ($52.3 million) for the Serbian economy between November 21 and December 31, Serbian trade minister Rasim Ljajic has said.
On November 21, Kosovo's government decided to increase the import tax on all goods produced in Serbia and Bosnia to 100% from 10% set earlier that month in order to protect Kosovo’s sovereignty and interests. The scope of the tax was expanded on December 29 to include products manufactured under international brands in the two neighbouring countries.
Serbia was the biggest importer into Kosovo with around 450 million euro of imports in 2017, whereas imports from Bosnia amounted to around 82 million euro, according to data from Kosovo’s statistical office.
Kosovo, considered to be a potential candidate for EU membership by the European Commission, unilaterally declared independence from Serbia in 2008 and has so far has been recognised by more than half of the 193 UN member states. It is the only country in the Western Balkans whose citizens need visas to travel to EU member states.
($ = 0.88638 euro)