Calling for a political solution to the repeated trade disputes, Kosovo media warned that Serbian companies were benefitting from the frequent Albania-Kosovo trade rows
TIRANA, April 1 – Albania and Kosovo were involved in a new trade dispute last week after Kosovo authorities initially blocked Albanian milk and Albanian authorities immediately responded by blocking Kosovo flour on the same safety grounds.
On March 27, Kosovo authorities refused clearing through customs 23 tonnes of packaged milk coming from Albania because of lacking test results for toxic and carcinogenic substances known as aflatoxin. In late February 2013, the toxic substance served as a cause to ban two Albanian milk companies from exporting to Kosovo because of aflatoxin levels being slightly higher compared to EU standards but yet seven to eight times below norms allowed in the United States and Canada.
Immediately after the new ban of milk, Albania responded by blocking 100 tonnes of flour coming from Kosovo over aflatoxin allegations. Several trucks from Kosovo company M&Sillos carrying flour to Albania were blocked at the Morine customs point last week after Albanian authorities unexpectedly required aflatoxin test results for flour destined for the Albanian market.
The situation sparked a new trade row with senior officials from both countries calling for an end to the artificial barriers on the trade of products to Albania and Kosovo.
Kosovo Ambassador to Albania Sulejman Selimi described the mutual blockades on Albanian and Kosovo products as meaningless and unacceptable.
Meanwhile, Albanian Foreign Minister Edmond Panariti, who has recently signed a cooperation agreement with his Kosovo counterpart Enver Hoxhaj, called for an end to speculations and efforts to damage the interests of Albanian and Kosovo consumers and businesses.
“It is hurried, unjustified and harmful that actions of blockage and bans are undertaken on goods and services without notifying the respective authorities,” said Panariti.
While the Kosovo flour was allowed to enter Albania after flour tested negative for aflatoxin, the returned milk from Kosovo will be destroyed, Albanian authorities say.
Calling for a political solution to the repeated trade disputes, Kosovo media warned that Serbian companies were benefitting from the frequent Albania-Kosovo trade rows.
Few weeks ago, the ban of two Albanian milk brands in Kosovo because of slightly higher levels of potentially carcinogenic aflatoxin sparked a new trade dispute between Albania and neighboring Kosovo. It was the Kosovo Food and veterinary Agency which first identified the dangerous milk, imposing a ban on five foreign dairies which traded their products in Kosovo, among which Albania’s Fast Milk and Primalat.
Albanian government officials labeled the ban as unfair commercial fight between regional countries, and an artificial barrier for the free movement of goods after samples tested in Italy proved Albanian milk mostly met EU standards for aflatoxin levels, while some samples proved two to three times above the EU standard but yet seven to eight times below norms allowed in the United States and Canada.
Last year, both Albania and Kosovo were involved in trade disputes over reference prices on cement and potato exports. In August 2012, the Kosovo government decided to lift the 35 percent reference prices on imported cement after fierce reaction by both the business community in Albania and Kosovo during its 50 days in force.
Earlier in 2012, Albania introduced reference prices on Kosovo potatoes which Kosovo considered as unacceptable under the CEFTA agreement and warned of imposing reciprocity measures. However, in April 2012 reference prices for Kosovo potatoes were restored to the previous levels.
Albanian and Kosovo officials have described current customs procedures between the two countries as a trade barrier and proposed their simplification or removal.
Kosovo businesses had previously complained about prolonged customs procedures delaying the free movement of goods, calling for their simplification and setting up joint customs control teams.
Albania’s trade exchanges with Kosovo have considerably increased in the past few years after the construction of the Highway of Nation linking the two countries in the shortest possible way despite ongoing trade barriers and disputes over reference prices, but yet remain below their potential. Data from Albania’s state Institute of Statistics, INSTAT, show Albania’s exports to neighbouring Kosovo climbed to 17.4 billion lek (Euro 122 million) in 2012, up 18.5 percent compared to 2011. Compared to 2009 when Albania finished its part of the Durres-Kukes highway, exports to Kosovo have more than doubled. Metals and minerals account for around 70 percent of Albania’s exports to neighbouring Kosovo which ranked the second most important destination of Albanian exports in 2011 and the third top destination in 2012 after Italy and Spain.
