The Kosovo Manufacturing Club (KMC) reacts to the latest statements that entrepreneurs from Kosovo are blocking and are causing the failure of the common trade market between Albania – Kosovo.
KMC wants to remind that Kosovo and Albania are members of CEFTA, both of which have signed agreements for free trade and consequently they both have to apply free trade. The market of CEFTA in its focus has the stimulation of free trade, investments and the creation of broad market for all countries of the region.
From the aspect of trade, Kosovo in this phase of development it has mainly import relevance given the low level of coverage of import with export. According to data available in 2017 Albanian exports goods in Kosovo worth about 150 million euro, while Kosovo exports goods to Albania about 35 million euro. From this data it is clear that products of Albania enter more easily in the Kosovo market than products of Kosovo in to the Albanian market.
These differences are deepened when we add the fact that Kosovo producers face more barriers and problems when exporting to the Albanian market. We should remember the many cases when Kosovo producers have been subject to additional taxes or their goods have been blocked at the border, such is the case with potatoes, flour, beer, medications, and others. That is why certain individuals within the institutions of Albania are blocking the functioning of the free and common market.
At the end of last year, in the fourth joint meeting between the government of Kosovo and Albania in Korça, it was planned to sign an agreement that will relocate Kosovo customs from the point of customs in Morina to the port of Durres. This shift of customs is only a symbolic act and would not affect the creation of a common market because this custom would serve best to import goods from third countries in Kosovo. The only financial benefit from this shift would only go to the expeditioners from Albania, instead of those from Kosovo.
Traders and manufactures from Kosovo have many problems that need solutions rather than the symbolic relocation of the customs point at the port of Durres. Problems these that are related to the procedures applied by the Albanian state for products from Kosovo who enter the Albanian market, such as payments for scanners, refusal of phytosanitary certificates, long and unnecessary checks on products, which cause only delays and consequently increases the cost for manufactures. These are the real problems that are affecting the dysfunction of a common market.
Kosovo-Albania trade relations are limited to profile of trade exchanges of export-import without any significant advances in attracting direct investments in a joint or respective manner. Comparing the respective investments, we notice that Albanian businessmen tend to invest more in Kosovo.
As far as conditions of doing business are concerned, entrepreneurs from and manufactures from Kosovo complain of no protection from the Albanian state. The environment to make business it is difficult, when encountering various problems in disrespecting the contract, the non-payment of goods and services, property destruction and many other problems. Lack of securing the basic services is also why many Kosovo’s manufactures are reluctant to extend their business activity to the Albanian market.
Albania’s commercial banks continue to lend Kosovo’s economy and have high profits. According to various reports it turns out that Albanian banks have issued loans in the amount of over 300 million euro in Kosovo, thus greatly increasing the profit from this economic activity. Also, the Kosovo Insurance Industry continues to be dominated by companies from Albania that operate successfully in Kosovo. This proves that the insurance industry in Kosovo continues to be attractive and safe for investments by Albanian companies.
And at the end, Albania has for years been based on the patriotic tourism of citizens from Kosovo, who after the construction of the Durrës-Kukës road in 2009, have spent most of their summer holidays and their weekends in Albania. Kosovars spend over 400m euro a year on tourism in Albania, thus making an extremely important contribution to the Albanian economy.
The commitment for years to normalize, stabilize and intensify bilateral trade relations has resulted in a large number of agreements and memoranda of understanding as well as various initiatives either at the intergovernmental level or between business communities, but the progress is far too much to be desired.