The Minister of Trade and Industry, Endrit Shala, has opened “CEFTA Week 2018”, which is being held in Prishtina from 4 to 6 December.
Minister Shala thanked all institutions, adding that we will benefit from the participation of representatives from the World Trade Organization, International Trade Centre, GIZ, Regional Cooperation Council, UNCTAD, World Bank/ICF, the representatives of CEFTA countries and of the business community.
Mr Shala estimated that, as a general objective of economic policies, the Government of Kosovo attaches great importance to the creation and maintenance of a liberal economy while respecting all WTO rules.
“Kosovo is one of the potential candidate countries and has been given the EU perspective by the EU Council. Kosovo has signed the Stabilization and Association Agreement with the EU, by regulating not only the free trade relations between Kosovo and the EU, but also establishing the principles of association between the EU and Kosovo. Kosovo has signed the Transport Community Treaty together with the EU and five other Western Balkan countries. This is an important positive step for the liberalization of transport markets and the implementation of EU Directives, including road transport in a non-discriminatory manner", said Minister Shala.
The Minister said that Kosovo is implementing CEFTA since 2006 and also the obligations that have emerged from this agreement. He also stressed the fact that three of the seven CEFTA countries do not recognize Kosovo.
“Kosovo has been implementing CEFTA since 2006. Kosovo has fulfilled its obligations which derive from the implementation of CEFTA. Therefore, we are absolutely right to celebrate the success that we achieved till now in CEFTA, along with other countries. Three of the seven CEFTA countries do not recognize Kosovo and two of these countries are the first and the second trade regional partners in CEFTA. Kosovo is a landlocked country and has a long border with Serbia, which is the largest economy in CEFTA and does not recognize Kosovo as an independent country. Despite this fact, official delegates and public servants of all CEFTA countries, including Serbia, Bosnia and Herzegovina, and Kosovo, have shown considerable flexibility and understanding for each other to keep the CEFTA process on the right track. Kosovo and CEFTA countries that have not recognized Kosovo have used creative and innovative tools with articulated diplomatic acrobatics such as the adoption of Additional Protocol 5 or the use of personal name tags in the meetings. In front of you, I want to thank all these professionals for their courage and flexibility, said Mr Shala.
According to the Minister, there are some issues in CEFTA that the public servants cannot solve.
“For example, our imports or exports that pass through our neighbour who do not recognize our country are stopped and required to submit the national export or import certificates of that country. This is because they consider our country as part of their domestic market. Or the fact that this country does not accept the vehicle registration plates or the export certificates of our country because those documents bear our constitutional name and the flag. Can these problems be solved by the public servants? No. Are these problems violating the agreement? Yes", Mr Shala said.
The Minister has asked us to focus on the negative impacts and barriers caused by the non-recognition of Kosovo as a state, which cannot be solved by the public servants. Mr Shala stressed that Kosovo's market is dominated by neighbouring countries that do not recognize Kosovo as a state.
“The percentage of EU imports, except Kosovo, for all CEFTA countries is 60%. For Kosovo, this percentage is 40%. The percentage of EU exports for all CEFTA countries, except Kosovo, is 40%. For Kosovo, this percentage is 20%. So please tell us how Kosovo's economy could be competitive as it has consistently harmonized its legislation with the EU Acquis, while its market is dominated by neighbouring countries that do not recognize Kosovo as a state”, said the Minister.
Also, Mr Shala has raised the issue of not allowing Kosovar companies to access foreign markets.
“Can you please tell me how can companies from Kosovo access the EU markets equally if the shortest transport road is blocked due to such political issues? How can they be competitive with prices? And finally, how could Kosovo, in these circumstances, be prepared for its possible membership in the EU?”
Minister Shala has shown that despite all these barriers, Kosovo has raised these issues in front of CEFTA.
“However, neither the conflict resolution mechanisms nor its structures have been able to provide a friendly resolution. But then again, the main reason for this failure is the same as the main cause of the problem. Let’s be honest with ourselves. Non-recognition of Kosovo as a state is the biggest non-tariff barrier in CEFTA and is also the biggest barrier to transport facilitation”.
The Minister emphasized that the Government of Kosovo, with all its capabilities, is committed to contributing to the conversion of our regional aspirations into an achievable reality.
“There have been many barriers in the past, and probably even in the future we will have to face some other difficulties, both, together and individually. But the potential temporary difficulties and barriers will not divert us from our path and we will not compromise on our legitimate aspirations. We need to find a way to constructively work together to facilitate the path towards a more promising future that our people expect and rightly deserve. We cannot disappoint them, and we will not”, said the Minister.
The Minister said he strongly believes that regional political dialogue will help overcome these problems as it has happened in many other cases.
