Kosovo's CEFTA ride could be bumpy

Kosovo takes charge of a key regional agreement, but political turmoil has slowed implementation at home.

By Muhamet Brajshori for Southeast European Times in Pristina -- 02/02/11

Kosovo is considering a reciprocal product ban on Serbia and Bosnia and Herzegovina within the CEFTA arrangement. [Reuters]

Kosovo took over the chairmanship of the Central European Free Trade Agreement (CEFTA) at the start of the year, succeeding Serbia. According to Ahmet Shala, the economy minister, Kosovo will follow the "Gymnich Model", in which no state symbols are on display during meetings.

That will allow Serbia and Bosnia and Herzegovina to participate despite not having recognised Kosovo.

Kosovo officials are hailing the move as a boost to the country's international legitimacy, especially since it will conduct the chairmanship independently of UNMIK.

"With the CEFTA chairmanship, Kosovo will show a professional capacity to manage inter-regional projects," said Falmur Keqa, the head of trade department at the ministry of trade and industry. Local businesses, though, say little has been done to implement CEFTA within Kosovo.

"The Kosovo Chamber of Commerce (KCC) several times expressed its dissatisfaction with the non-implementation of the CEFTA agreement, but unfortunately so far nothing concrete has been done," says the KCC president Safet Gerxhaliu.

Political turmoil at the top has exacerbated the problem, according to the president of the Kosovo Business Alliance, Agim Shahini. "The Ministry of Trade and Industry, which for months has been without a minister, has weakened the authority of Kosovo to receive and lead this important institution," he said.

Recent months have seen the collapse of the former government coalition and an election marred by irregularities. Keqa acknowledges that CEFTA implementation has suffered as a result.

The objective of this regional agreement was "the liberalisation of free circulation of goods, people and services, but in practice this is not happening for Kosovo", he said.

Others say the dispute with Serbia cannot help but overshadow Kosovo's CEFTA chairmanship.

"They blockaded us and I think Kosovo should apply the principle of reciprocity. If Serbia places an [economic] blockade on Kosovo, the same must we do with Serbia," said economics professor Musa Limami, calling for reciprocal measures."In this case, the loser would be Serbia because Kosovo imports 60% of products from Serbia."

Another economist, Muhamet Sadiku, agrees that Kosovo has a problem with other CEFTA members, but cautions that it cannot impose reciprocal measures because its northern border is controlled by EULEX, not state institutions.

Despite the complications, Kosovo's leaders insist that taking the reins at CEFTA is an important milestone."If it is a success, it will create a positive image of Kosovo in Europe and the world," Keqa said. "It may help overcome some important issues that are still obstacles, as is the recognition of Kosovo Customs stamps and other technical and practical issues."

Source: SETimes.com