Albania and Kosovo were involved in trade disputes over reference prices on cement and potato exports in 2012
TIRANA, Feb. 19 – 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.
Albania’s imports from Kosovo have also considerably risen in the past few years but account for around only 1 percent of the country’s total imports. Albania imported 5.1 billion lek of goods from Kosovo in 2012, up from around 3 billion lek in 2009.
Data from Kosovo’s Agency of Statistics show Kosovo exported 34 million euros of goods to Albania in 2011, which accounts for around 11 percent of its total exports.
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.
“The loss of the two countries from the removal of customs duties will be negligible compared to the benefits of our economies and businesses,” Kosovo politician and businessman Behgjet Pacolli has earlier announced.
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.
Since March 2011, the Durres Port Authority has opened its first representation office in Kosovo capital, Prishtina, in an effort to increase trade exchanges with the neighbouring country following the construction of the new highway tunnel cutting distance between the two countries to 2.5 hours. An interconnection line between Albania and Kosovo has been delayed since more than one year due to tender problems and disagreements between the managing Albanian state-owned company and the donor, the KfW German development bank, over whether price or quality are more important in the project.
Kosovo citizens invested Euro 33 million mainly in real estate in Albania from 2008 to 2010 as a highway linking the two countries in the shortest possible way was completed. The investments mainly in apartments are confirmed by daily Kosovo newspapers referring to data by Kosovo’s central bank.
