“The decisions to continue applying reference prices for Kosovo products run counter to the agreement reached with Prime Minister Berisha last June to unify Kosovo-Albania fiscal procedures,” says the Kosovo Economy Minister.
By Ervin Lisaku
TIRANA, Dec. 22 – The Kosovo government could soon impose reciprocity measures on Albania’s key exports if customs reference prices for the neighbouring country’s products are not lifted as agreed last June. The warning is given by Kosovo’s Minister of Trade and Industry Mimoza Kusari-Lila who says that five months after the signing of agreement, some Kosovo products such as potato and wine continue facing reference prices in Albanian customs, making Kosovo farmers’ access to the Albanian market impossible because of lack of competitiveness.
The Kosovo Economy Minister has sent a letter to the Albanian government informing them of the ongoing application of reference prices for Kosovo products in Albania, warning the Albanian authorities that Kosovo could impose similar measures for Albanian products in case the situation continues. According to Kosovo’s Ministry of Economy, Albanian customs officials continue applying 18 Eurocent/kg reference prices for potato and export quota on wine.
“Both these decisions by the Albanian government run counter to the agreement reached with Prime Minister Berishga last June to unify Kosovo-Albania fiscal procedures. We hope to get a positive answer, otherwise Kosovo will also impose reference prices on Albania’s key exports to Kosovo,” said Kusari in a press conference this week. In a hearing in Kosovo’s Parliament earlier this month, Kusari-Lila hailed the removal of reference prices for Kosovo milk producers, a barrier which made Kosovo milk exports to Albania impossible because of the local competition.
Experts of the Albanian Institute of International Studies (AIIS) describe Kosovo’s request to lift trade barriers between the two neighbouring countries as fair, saying that removing reference prices will give a further impetus to trade exchanges now that the Highway of Nation is being completed. The Kosovo government’s warning of reciprocity measures with Albania comes few months after Kosovo lifted the trade embargo with Serbia on reciprocity measures. The 40 day-embargo ended in early September 2011 after Serbia agreed to accept goods marked “Kosovo Customs.” Albanian exports to neighboring Kosovo during the first nine months of this year, rank the third biggest at 10.3 billion lek, registering a 39 percent increase compared to the same period last year, according to INSTAT data.
Kosovo’s temporary trade ban with Serbia from July 20 to early September 2011 played a significant role. INSTAT data show Albanian exports to neighboring Kosovo registered a significant 45 percent increase y-o-y last August when Kosovo imposed a trade ban on Serbian products on reciprocity measures. Albania’s trade volumes with Kosovo rose by 29 percent to 14.1 bln ALL in 2010. Exports were valued at 9.7 bln ALL having increased by 36 percent compared to 2009. The most important category, remain metals products with a 50 percent share followed by minerals at 28 percent, says the Albanian Center for International Trade (ACIT).
