Šarović and Ljajić: Joint demand for urgent CEFTA agreement reform

(Patria) - Deputy Chairman of the Council of Ministers of BiH and Minister of Foreign Trade and Economic Relations Mirko Šarović met today in Sarajevo with Deputy Prime Minister of the Republic of Serbia and Minister of Trade, Tourism and Telecommunications Rasim Ljajić, with whom he discussed further steps regarding the discriminatory taxes that Pristina authorities continue to impose on goods from both countries.

Minister Šarović pointed out that in the last six months, Bosnia and Herzegovina has delivered 27 million euros less in goods to Kosovo than in the same period last year, which is a decrease of 97 percent.
For example, in the first four months of this year, goods worth only 500 thousand euros were placed on the market.

Minister Ljajić pointed out on this occasion that from November 21, when the taxes were introduced, to May 21, Serbia delivered 189.5 million euros less in goods to Kosovo compared to the same period last year, which represents a decrease of as much as 80 percent. This practically means, Ljajić pointed out, that the damage is slightly more than one million euros per day.

The two ministers also concluded that citizens in Kosovo are also suffering damage due to the imposed taxes, as retail prices have increased by 5.3 percent, the foreign trade deficit has increased by 5.4 percent, and the import of goods by 6.4 percent.
Also, it was stated at the meeting that due to the taxes, almost all regional initiatives have been halted, causing political damage to the normalization of relations in the region. For example, Additional Protocol 5 (facilitating trade within CEFTA) has only yet to be ratified by the Kosovo assembly, Protocol 6 (trade in services), although harmonized, has not been signed due to problems caused by the introduction of taxes, and negotiations for Protocol 7 (dispute settlement) have not even begun for the same reason.

Because of all this, Šarović and Ljajić agreed that the two countries should act jointly and implement coordinated activities aimed at increasing pressure to abolish the taxes.
If the taxes are not abolished by the summit of Western Balkan leaders in Paris on July 1, the two countries will consider introducing various models of counter-measures, aware that this is not the best, but it is certainly a forced measure.