Post by Fender on Feb 21, 2009 3:22:28 GMT -5
Trade battle clouds Kosovo’s anniversary
By Neil MacDonald
Published: February 16 2009 19:25 | Last updated: February 16 2009 19:25
Bashkim Osmani’s juice company was a rarity in Kosovo – a profitable manufacturing and export business. But two months ago the government replaced the United Nations customs stamps with its own. Then the problems started.
Serbia refuses to recognise the new stamp, forcing Kosovo’s handful of exporters to find other routes for goods.
Birthday celebrations: a child in Pristina wraps up in a US flag as Kosovo prepares to mark the first anniversary of its independence
Serbia is one of the landlocked state’s most important trading partners despite tensions between them over Kosovo’s independence declaration a year ago today.
The new state is striving to secure its borders and develop its economy in the face of Serbian hostility and international divisions over Kosovo’s status.
“The problems started on December 3 when two of our trucks were turned back,” Mr Osmani said of his juice business, Laberion.
EDITOR’S CHOICE
Serb leaders reject Kosovo’s independence - Feb-17Editorial: Kosovo at one - Feb-16UN tribunal tries Serb police commander - Jan-27EU deploys Kosovo mission - Dec-10UN judge orders release of German spies - Nov-30Serbia wins right to challenge Kosovo at ICJ - Oct-08Sending the lorries via other routes has eliminated Laberion’s profit margin.
“We’ve tried to transport our juices via Montenegro ... and now Macedonia,” he said. “Our transport costs have nearly doubled.”
The dispute has dragged European Union officials – who have taken partial supervisory powers from the UN – into arguments with Kosovo’s leaders who, in turn, face domestic accusations of betraying independence.
Hashim Thaci, the prime minister, told the FT:
“The Serbian government should be more careful, not keep undermining Kosovo’s sovereignty in the spirit of Slobodan Milosevic,” referring to the Serb leader who died three years ago while on trial for war crimes.
Kosovo has refused to withdraw its new customs stamp, introduced as an assertion of statehood. People such as Mr Osmani want the government to go further – by blocking or taxing Serbian imports.
Kosovo’s total exports were only €180m ($230m, £161m) in 2008. Its €1.64bn overall trade deficit – 42.9 per cent of gross domestic product – is sickly even by the standards of the economically weak western Balkans. Exports to Serbia fell to €10m from €19m in 2007.
Kosovo’s EU-led supervisors have urged restraint. Retaliating against Serbian goods would not be “in the spirit of Kosovo’s EU perspective”, said Pieter Feith, the international civilian representative sent by Brussels to oversee the new state’s transition.
He has proposed a compromise on customs stamps, but Pristina is in no mood to back down – especially while under pressure from its allies to return to negotiations with Belgrade on how to manage troublesome Serb-dominated northern Kosovo.
“I would prefer partnership over pressure,” said Mr Thaci. “I’m ready any time to meet the leadership of Serbia as representatives of two sovereign states.”
This demand for Serbian recognition of Kosovo was “a non-starter”, said Mr Feith. “That is just as unhelpful as the Serbs saying they want to discuss [Kosovo’s] status.”
The stand-off highlights the tough challenges ahead for Kosovo as it enters its second year. Troubles with legal trade could also dent recent successes against smugglers. EU customs monitors recently took over two previously unmanned crossing points in the north.
A first year full of challenges
The ethnic-Albanian dominated province – from which Serbia withdrew following the 1999 war with Nato – declared independence with backing from the US and the biggest European Union states on February 17 last year. Supporters saw it as the last act in the break-up of Yugoslavia.
But with Russia taking the side of Serbia, which still claims the territory as a province, the western-backed settlement plan failed to gain UN Security Council endorsement.
Serbia has challenged the legality of Kosovo’s secession at the UN’s International Court of Justice. Ethnic Serbs make up about 5 per cent of the total population.
With the US, Japan and the main EU economic powers on side, Kosovo expects to join the International Monetary Fund and World Bank this year.
Five EU countries have yet to recognise Kosovo’s independence. This is also a large obstacle to the new state’s future EU integration.
Copyright The Financial Times Limited 2009
By Neil MacDonald
Published: February 16 2009 19:25 | Last updated: February 16 2009 19:25
Bashkim Osmani’s juice company was a rarity in Kosovo – a profitable manufacturing and export business. But two months ago the government replaced the United Nations customs stamps with its own. Then the problems started.
Serbia refuses to recognise the new stamp, forcing Kosovo’s handful of exporters to find other routes for goods.
Birthday celebrations: a child in Pristina wraps up in a US flag as Kosovo prepares to mark the first anniversary of its independence
Serbia is one of the landlocked state’s most important trading partners despite tensions between them over Kosovo’s independence declaration a year ago today.
The new state is striving to secure its borders and develop its economy in the face of Serbian hostility and international divisions over Kosovo’s status.
“The problems started on December 3 when two of our trucks were turned back,” Mr Osmani said of his juice business, Laberion.
EDITOR’S CHOICE
Serb leaders reject Kosovo’s independence - Feb-17Editorial: Kosovo at one - Feb-16UN tribunal tries Serb police commander - Jan-27EU deploys Kosovo mission - Dec-10UN judge orders release of German spies - Nov-30Serbia wins right to challenge Kosovo at ICJ - Oct-08Sending the lorries via other routes has eliminated Laberion’s profit margin.
“We’ve tried to transport our juices via Montenegro ... and now Macedonia,” he said. “Our transport costs have nearly doubled.”
The dispute has dragged European Union officials – who have taken partial supervisory powers from the UN – into arguments with Kosovo’s leaders who, in turn, face domestic accusations of betraying independence.
Hashim Thaci, the prime minister, told the FT:
“The Serbian government should be more careful, not keep undermining Kosovo’s sovereignty in the spirit of Slobodan Milosevic,” referring to the Serb leader who died three years ago while on trial for war crimes.
Kosovo has refused to withdraw its new customs stamp, introduced as an assertion of statehood. People such as Mr Osmani want the government to go further – by blocking or taxing Serbian imports.
Kosovo’s total exports were only €180m ($230m, £161m) in 2008. Its €1.64bn overall trade deficit – 42.9 per cent of gross domestic product – is sickly even by the standards of the economically weak western Balkans. Exports to Serbia fell to €10m from €19m in 2007.
Kosovo’s EU-led supervisors have urged restraint. Retaliating against Serbian goods would not be “in the spirit of Kosovo’s EU perspective”, said Pieter Feith, the international civilian representative sent by Brussels to oversee the new state’s transition.
He has proposed a compromise on customs stamps, but Pristina is in no mood to back down – especially while under pressure from its allies to return to negotiations with Belgrade on how to manage troublesome Serb-dominated northern Kosovo.
“I would prefer partnership over pressure,” said Mr Thaci. “I’m ready any time to meet the leadership of Serbia as representatives of two sovereign states.”
This demand for Serbian recognition of Kosovo was “a non-starter”, said Mr Feith. “That is just as unhelpful as the Serbs saying they want to discuss [Kosovo’s] status.”
The stand-off highlights the tough challenges ahead for Kosovo as it enters its second year. Troubles with legal trade could also dent recent successes against smugglers. EU customs monitors recently took over two previously unmanned crossing points in the north.
A first year full of challenges
The ethnic-Albanian dominated province – from which Serbia withdrew following the 1999 war with Nato – declared independence with backing from the US and the biggest European Union states on February 17 last year. Supporters saw it as the last act in the break-up of Yugoslavia.
But with Russia taking the side of Serbia, which still claims the territory as a province, the western-backed settlement plan failed to gain UN Security Council endorsement.
Serbia has challenged the legality of Kosovo’s secession at the UN’s International Court of Justice. Ethnic Serbs make up about 5 per cent of the total population.
With the US, Japan and the main EU economic powers on side, Kosovo expects to join the International Monetary Fund and World Bank this year.
Five EU countries have yet to recognise Kosovo’s independence. This is also a large obstacle to the new state’s future EU integration.
Copyright The Financial Times Limited 2009