The Minister of Economy, Employment, Trade, Industry, Entrepreneurship and Strategic Investments (MEETIESI), Rozeta Hajdari, today held a press conference on the removal of raw material tariffs from Serbia and Bosnia and Herzegovina as well as on the closer information about the last ordinance on the performance of economic activities during a public health emergency.
The Minister of Economy, Employment, Trade, Industry, Entrepreneurship and Strategic Investments (MEETIESI), Rozeta Hajdari, today held a press conference on the removal of raw material tariffs from Serbia and Bosnia and Herzegovina and on the last Ordinance regarding the performance of the economic activities during a public health emergency.
Minister Hajdari announced that Kosovo continues to face an increasing trade deficit with CEFTA countries, especially for trade of goods, with an import of 850.64 million € and an export of only 173.32 million € for 2018. Whereas, in 2019 with an import of 502.6 million € and an export of only 164.82 million €with CEFTA countries.
The fact that Kosovo has the lowest level of exports in the region is a clear sign of the difficulties concretely trade barriers that Kosovo companies are still facing with CEFTA countries, especially with Serbia and Bosnia and Herzegovina.
Regarding the 100% tariff, Minister Hajdari emphasized that “although we have all welcomed the 100% tariff, its impact on the economic reality in Kosovo has not been as expected, due to the weak enforcement, monitoring and control mechanisms in Kosovo at the time of application. Changes in the reduction of imports clearly show the negative effects of the 100% tariff. Statistics show a decline in Kosovo's exports toward CEFTA, respectively in relation to Serbia and Bosnia and Herzegovina”, added Minister Hajdari.
"Therefore, the Government of the Republic of Kosovo is proving that it is committed to maintaining and further strengthening relations with key international allies of Kosovo, due to the fact that as a result of yesterday's decision, the Government of the Republic of Kosovo has removed the 100% tariff for of all raw materials imported from Serbia, which is a quite significant percentage of imports (about 15% of the total 450 mil. euros of Serbian imports into Kosovo), which was indispensable for local businesses, respectively food and construction industry products.
"The import of raw materials is essential for local producers," added Minister Hajdari.
She further added that despite the difficulties, some businesses had been able to find substitute markets for raw material imports from other countries, thus it may be much more preferable for us as a country to replace imports from Serbia with imports from amicable countries of Kosovo.
Referring to the source “trading economics”, the minister announced that initially: The inflation rate was 1.7%, where in the period following the imposition of the 100% tariff the inflation had risen to 3.3% as a result of the high demand for Serbian products.
The Government of the Republic of Kosovo acted with willingness and commitment to its decision, but we also expect from international allies to make pressure on Serbia to fully eliminate the non-tariff barriers applied to Kosovo companies, as well as to immediately stop the aggressive lobbying for derecognising Kosovo, said Minister Hajdari. She added "Since, Kosovo is lifting the 100% tariff on raw materials, which is an important and constructive step to ensure the circulation of export and import with all countries without barriers and the use of Serbian territory as a transit, especially in these moments when Kosovo as the whole world is facing the “COVID19” pandemic. Products imported from EU countries are important for our market, but it is almost impossible to import with this approach, and consequently Kosovar companies are obliged to find other alternatives which then results with higher costs for them with higher market prices for Kosovo consumers”, said Minister Hajdari.