Konfindustria’s administrator Gjergj Buxhuku says the Albanian and Kosovo customs authorities must take immediate measures to end this situation
TIRANA, June 13 – Delays in checkpoints and high customs duties continue to hamper the trade exchanges between Kosovo and Albania. This concern has been raised by the Albanian Konfindustria– an association and lobby group bringing together manufacturing businesses– which says that the new highway linking the two countries through a tunnel has not had its positive effects yet.
Describing the current situation as unacceptable, Konfindustria’s administrator Gjergj Buxhuku stated that the Albanian and Kosovo customs authorities must take immediate measures to end this situation.
“Considering that time makes up an important part of the cost of transport and distribution of products and services, delays in the joint Albania-Kosovo border give a strong and long-term blow to the economies of both countries,” says Konfindustria in a statement.
The association says that the new Durres-Kukes highway which links the two countries and has been operational for more than one year, is proving inefficient due to barriers in customs points.
“The unreasonable increase in transport costs because of customs delays is also a clear blow to the establishment of the common Albanian market of 7 million consumers as the strategic goal and best opportunity for the quick economic development and welfare of Albanian and Kosovo citizens,” added Konfindustria.
The problems are becoming more evident now with export procedures of some agricultural products, especially potatoes, and its high reference prices in Albanian customs.
Potato growers in Kosovo say they have lost 30 to 40 percent of the market in Albania because of the reference prices at 28 Eurocent/kg and the 20 percent VAT at a time when 1 kg of potato in Kosovo costs 12 to 15 cents.
Producers say they feel discriminated against by the Albanian government which has recently signed a deal to lift customs duties for agricultural products.
Albanian and Kosovo trade exchanges registered a significant increase in 2010 when the Durres-Kukes highway linking the two countries was made fully operational.
Albanian exports to Kosovo registered a 30 percent increase in 2010, making the neighboring country the second most important destination after Italy. INSTAT data show exports to Kosovo accounted for 10 billion lek, or 6 percent of the total exports in January-December 2010, up from 7.1 billion lek during the whole of 2009.
Meanwhile, Albanian imports from Kosovo also registered a significant 22 percent increase climbing to 3.8 billion lek up from 2.97 billion lek in 2009.
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.
The Durres Port Authority has also recently opened its first representative office in Kosovo’s capital, Prishtina, in an effort to increase trade exchanges with the neighboring country, following the construction of the new highway tunnel cutting distance between the two countries to 2.5 hours. Ragip Grainca, the representative of the Durres Port Authority in Prishtina, is optimistic that more than half of Kosovo imports and exports will be handled in Durres’ port by this year.
