Trade ban on Serbia favoured Albanian exports to Kosovo

TIRANA, Sept. 26 – Albanian exports to neighbouring Kosovo registered a significant 45 percent increase y-o-y last August when Kosovo imposed a trade ban on Serbian products based on reciprocity measures. INSTAT data show Albanian exports to Kosovo in August 2011 rose to 1.6 billion lek, up from 1.1 billion lek in August 2010, ranking the neighbouring country the second most important destination of exports after Italy. In total, Albanian exports to Kosovo during the first eight months of this year are estimated at 8.7 billion lek, up from 6.4 billion lek during the same period a year ago, registering a 36 percent increase. Differently from last year, Albanian exports to Kosovo during the first eight months of this year rank the third biggest after Italy and Turkey, accounting for only 6.7 percent of total exports. Meanwhile, Albanian imports from Kosovo have also registered a significant increase during the first eight months of this year. INSTAT data show imports from Kosovo amounted to 3 billion lek up from 2.4 billion lek during the first eight months of 2010. The trade embargo between Kosovo and Serbia remained in force from July 20 to early September when the two countries struck a deal in EU-led negotiations. Serbia agreed to accept goods marked “Kosovo Customs”, while Prishtina has given up on including state emblems, coats of arms, flags, or use of the word “republic”. Kosovo’s ban on Serbian and Bosnian exports on measures of reciprocity presented a good chance for Albanian and Kosovo businesses to increase trade exchanges and look toward long-term investments, Albanian and Kosovo officials said last August. According to official data, Albanian exports to Kosovo rose to 72 million Euros in 2010, up 40 percent compared to 2009 while imports increased by 28 percent to 27 million Euros. The construction of Durres-Kukes highway linking the two countries in the shortest possible way has also had a positive impact. Albanian authorities have recently agreed to remove reference prices for Kosovo products, a trade barrier which has prevented Kosovo agricultural exporters from entering the Albanian market during this year.