Gërxhaliu: Free trade agreement between Turkey and Serbia creates risks for the economy of Kosovo

PRISHTINA, September 1, 2010 – Kosova Chamber of Commerce has information that tomorrow (Thursday, September 2010) enters into force the free trade agreement between Turkey and Serbia which can seriously damage the economy of Kosova, stated Safet Gërxhaliu, president of KCC.

In Belgrade it was assessed that this agreement will serve as an important step to push the processes to go forwards. The trade exchange between Turkey and Serbia during 2009 reached 460 million Euros and the Serbian governments expects a support from a country which is on development, such as Turkey.

“For a long time KCC has recommended such agreement with Turkey keeping into account good political relations with this Turkey and expecting that the Turkish side would welcome such a movement. This idea of KCC was initiated and elaborated than it was presented to Ministry of Trade and Industry. Unfortunately there is no concrete step to implement this agreement”, said Gërxhaliu.

Due to lack of agreement between Kosova and Turkey, that goods imported from Turkey are paying customs taxes and now exists the fear of re-export of Turkish goods, which could be sold cheaper through Serbia to Kosovo, and not directly and conform the clever logic of business.

For this purpose, Kosova Chamber of Commerce request from the Government to review seriously this issue, while it is still in the beginning of a huge problem.

KCC considers that – if there is not any proactive approach to create favorable conditions for free trade agreement with Turkey, and favorable conditions for joint venture – Kosova is a market oriented traditionally to Turkey, (import of the last year reaches 137 million euros). If Kosovar side does not take a concrete step soon the Kosovar companies will make trade with Serb companies instead to contact directly with Turkish companies.

For this purpose KCC strongly recommends to Ministry of Trade and Industry to prepare a document to be signed for the trade agreement with Turkey. Kosovo Chamber of Commerce considers also that this agreement should involve even the other forms of cooperation which could increase the trade balance between two countries.