It was exactly a similar situation a couple of years ago when the Kosovo government introduced a two-month trade embargo against Serbian products which proved successful to Albanian exporters
TIRANA, Sept. 10 – The trade embargo between Kosovo and Macedonia is a good chance for an increase in trade exchanges between Albania and Kosovo, Albanian exporters say. Alban Zusi, the head of the Albanian Association of Exporters says this could be the best chance for Albanian and Kosovo companies to create a common market between the two neighbouring Albanian-speaking countries.
“The measure of reciprocity that the Kosovo government has undertaken against Macedonian goods is a good chance for Albanian products, so that we can create the single Albanian-Kosovo market. It was exactly a similar situation a couple of years ago when the Kosovo government introduced a two-month trade embargo against Serbian products and under such circumstances, Albanian businessmen were pushed to replace Serbian products, an initiative which proved successful,” said Zusi.
Since several days Kosovo and Macedonia have been involved in what local media describe as a ‘trade war’ after Macedonia initially imposed quantitative limitations on flour and wheat from Kosovo to protect its domestic production. Kosovo responded by banning imports of Macedonian food, beverages and cigarettes and introduced a full ban on Sept. 7 after Macedonia reciprocated by introducing taxes on Kosovo citizens and vehicles crossing the Macedonian border.
Macedonian truck drivers on Monday blocked the main border with Kosovo, protesting over Kosovo’s sudden imposition of an embargo on Macedonian products.
Data from Kosovo’s statistical agency show Macedonia accounted for 9.6 percent of Kosovo’s exports and 11.5 percent of imports in 2012, with trade exchanges at 314 million euros. Meanwhile, Albania accounted for 14.6 percent of Kosovo’s exports, but only 4.4 percent of imports. Trade exchanges between the two countries in 2012 reached Euro 150 million.
Albania and Kosovo have just overcome a recent trade dispute over barriers imposed on Kosovo customs points for Albanian exports. Both Albanian exporters to Kosovo and Kosovo importers had been protesting new customs clearance procedures in some new private terminals which significantly increased costs making Albanian exports to Kosovo non-competitive. Traders complained the application of a 40 Euro/truck parking tariff was unacceptable, damaging Albanian-Kosovo trade exchanges and favouring Serbian exports to Kosovo.
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.
However, a recent study has shown the Kosovo-Albania highway, estimated to have cost the Kosovo government around Euro 800 million, has served more to replace regional Montenegro and Macedonia border crossing points as transit countries to Albania rather than increase Kosovo- Albania trade exchanges. Trade with Albania had been on a constant rising trend even before the construction of the highway which has only replaced Montenegro and Macedonia as transit countries for Kosovo exports to Albania but has not any impact on the volume of exports, says a study by Kosovo’s KIPRED Institute.
