PRISTINA (Kosovo), November 7 (SeeNews) – Kosovo government said it has decided to introduce a 10% import tax on all goods produced in Serbia and Bosnia and Herzegovina in order to protect Kosovo’s sovereignty and interests.
The import tax will not be applied to products of international brands produced in the two neighboring countries, the government said in a press release on Tuesday.
Serbia and Bosnia do not recognise the independence of Kosovo.
“This decision protects the state of Kosovo and above all the interests of local producers,” deputy prime minister Enver Hoxhaj said in a Facebook post after the decision was approved.
“Serbia is distributing large amounts of money to damage Kosovo's independence and sovereignty, with a large part of the money coming from trade with our country,” Hoxhaj said, adding that imports measures are the first step to protect Kosovo’s sovereignty and interests.
The decision was not welcomed by the EU and Belgrade.
European Commission spokeswoman Maja Kocijancic called on the Kosovo government to revoke the new measure, saying it undermines regional cooperation and is in clear violation of the country's obligations under the Central European Free Trade Agreement (CEFTA), Kosovo public service broadcaster RTK reported.
Kosovo has turned to classic protectionism with this move, Serbian trade minister Rasim Ljajic told Serbian news agency Tanjug.
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.