Study into effects of import tax presented in Prishtina
Kosovo-based Institute for Advanced Studies (GAP) presented a study into the effects of the import tariff on products from Serbia and Bosnia and Herzegovina on Kosovo’s economy.
The study found that in five months, imports from Serbia dropped by 88% while those from Bosnia by 83 percent but despite the decrease of import from Serbia and Bosnia, Kosovo’s trade deficit has increased which is an indicator that local producers did not capitalize on the tax.
At the same time, according to GAP, the tax has led to the increase of food prices and if it remains in force for the foreseeable future, it can lead to increase of poverty in Kosovo.
GAP also concluded that Kosovo has not violated the Central Europe Free Trade Agreement (CEFTA) when it decided to introduce the tax but that Kosovo needs to insist on renegotiating the terms of the agreement.