UNMIK/PR/1408
PRISTINA – UNMIK and the PISG announced today the conclusion of an Interim Free Trade Agreement with FYR Macedonia. DSRSG of Pillar IV, Joachim Ruecker and the Minister for Trade and Industry, Bujar Dugolli hailed the finalisation of the agreement by the two sides as a success for Kosovo’s economy.
DSRSG Ruecker said: “For investors, Kosovo is no longer a landlocked economy with 2 million people, but Kosovo becomes part of a rapidly growing regional market with many more customers.” Minster Dugolli said: “Kosovo is moving towards regional and European integration. Our Macedonian counterpart with this FTA also wins, because they gained a good partner with Kosovo.”
Under the Agreement, Kosovo will collect customs on oil and a number of agricultural products, in a transitional period that will end on 1 January 2008. The reduction for customs duty on a limited number of products is planned as follows:
- until 31 December 2005, 8% Custom Duty
- from 1 January 2006, 7% duty
- from 1 January 2007, 6% duty
- from 1 January 2008, 0% (no duty).
Negotiations for the Free Trade Agreement started in December 2004. They were successfully brought to a conclusion on 28 June in Pristina by a joint UNMIK/PISG delegation on one side, and a delegation led by the Deputy Prime Minister of the FYR Macedonia on the other. From 3 August, UNMIK provisionally implemented the Agreement. Since then, almost one million Euro was collected by UNMIK Customs for oil products, thus providing additional revenue for the budget. The formal entry into force on the Macedonian side will follow upon its ratification by the Parliament.
This is the second Free Trade Agreement for Kosovo: In 2003, UNMIK Kosovo and Albania signed the first FTA.