WASHINGTON, D.C., March 13 – The U.S. Government’s Millennium Challenge Corporation (MCC) issued a statement regarding the status of its economic development programs in Kosovo, saying that they will be suspended.
The move comes as the Kosovo’s government did not agree to remove the extra tariffs on goods from Serbia.
The United States’ position regarding Kosovo’s tariffs against goods from Serbia is clear. Lifting these tariffs will improve Kosovo’s economy and help reduce poverty through economic growth. Until Kosovo’s tariff issue is resolved, MCC says it will pause implementation of the threshold program and development of the proposed compact program in Kosovo.
“The decision to proceed with MCC programs rests on the actions of the Government of Kosovo. It is MCC’s hope that the Government of Kosovo chooses to resolve this tariff issue quickly in order to proceed with MCC programs. Once a resolution is reached, MCC will resume operations as appropriate,” the press release reads.
MCC’s Kosovo Threshold Program addresses two key constraints to Kosovo’s economic growth: an unreliable supply of electricity; and real and perceived weakness in rule of law, government accountability and transparency. MCC’s investments are designed to strengthen the power sector by fostering a market-driven approach to lowering energy costs for households and businesses, encouraging energy efficiency, and developing new sources of electricity generation. The program also supports the Government of Kosovo’s efforts to improve decision-making and accountability by increasing the accessibility and use of judicial, environmental, and labor force data.
The suspension is part of the sanctions announced by U.S. officials, including the possibility of withdrawing troops from Kosovo in the event that tariffs on Serbian goods are not lifted.
The U.S. Senator David Perdue sparked debates in Kosovo after declaring the United States should reconsider its presence in Kosovo unless it lifts tariffs on Serbia.
“For over two decades, US forces have helped keep the peace between Kosovo and Serbia. Now, with historic progress in sight, Kosovo must do its part and abolish all duties imposed on Serbia. If Kosovo is not fully committed to peace, then the US should reconsider its presence there”, the Republican Senator wrote on Twitter.
The position was backed by U.S. envoy for Kosovo-Serbia talks, Richard Grenell, the National Security Council and president Trump’s son. Donald Trump Jr., retweeted Perdue’s statement, adding there are 650 troops in Kosovo and that it’s “time to bring them home.”
After the Prime Minister of Kosovo Albin Kurti announced on February 27 that his government would partially lift the 100 percent tariff on goods from Serbia and Bosnia and Herzegovina on March 15, Grenell called for the full abolition of tariffs “as soon as possible.”
Senator Perdue’s post sparked reactions and concerns in Kosovo, where the U.S. presence and involvement in political processes are considered irreplaceable.
The United States is one of the biggest backers of Kosovo’s independence from Serbia, which Prishtina declared in 2008. Serbia continues to consider its former province part of its territory.
Ambasador Grenell earlier this month brought Kosovar President Hashim Thaci and Serbian President Aleksandar Vucic together at the White House to discuss ways to reach a final agreement between the two Balkan countries.
