Kosovo lifts cement reference prices

TIRANA, July 26 – The Kosovo government has 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.
In a statement issued on Wednesday, Kosovo’s Ministry of Trade and Industry says minister Mimoza Kusari-Lila has decided the 35 percent reference price on imported cement will no longer be in force starting from August 1, 2012.
“The temporary measures, undertaken on June 11, 2012 achieved their goal by preventing the uncontrolled influx of imported cement, especially during the construction season. The measures also ensured stability for domestic producers and enabled an increase in the local capacities in the construction industry,” says Kosovo’s Ministry, which claims the reason the high reference prices were imposed was due to the influx of cheap cement coming from Italy.
However, the decision severely affected a local cement factory in Fushe-Kruja Albania which covers 30 percent of the Kosovo markets. A chain of factory and transport workers both in Albania and Kosovo were also severely affected by the decision, staging several protests and calling the measures as anti-Albanian.
The temporary measures imposed on June 11 favoured Sharrcem, a local company part of Greece’s Titan.
The cement reference prices had sparked a new Albania-Kosovo trade dispute.
Earlier this year, 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.
According to INSTAT data, Kosovo ranked the third biggest destination of Albanian exports in 2011 with an estimated 14.7 billion lek, (Euro 103 million), up 47 percent compared to 2010.