Kosovo hits Serbia, Bosnia with 100 percent customs fees after Interpol snub

By Benet Koleka

TIRANA (Reuters) – Kosovo on Wednesday raised customs tariffs on Serbian and Bosnian goods from 10 to 100 percent after Serbia blocked its former province from joining Interpol, the international police organization.

It also required authorities to remove or stop from entering any goods that did not address Kosovo by its constitutional name, Republic of Kosovo, which Serbia and Bosnia do not recognize.

“This will halt any trade between Serbia and Kosovo,” Serbia’s Trade Minister Rasim Ljajic said.

President Aleksandar Vucic called a meeting of Serbia’s National Security Council to review the tariffs.

“This is the biggest blow to the regional free trade zone,” said Bosnia’s Foreign Trade and Economic Relations Minister Mirko Sarovic.

Bosnia, Kosovo and Serbia along with Albania, Montenegro and Moldova are part of the Central European Free Trade Agreement (CEFTA) set up to help ex-communist states harmonize their economic and legal systems with the demands of the European Union.

According to official figures, Serbia’s exports to Kosovo amounted to 440 million euros ($502.13 million), while imports amounted to 21 million euros ($23.97 million). Bosnia’s exports to Kosovo reached 80 million euros ($91.22 million) last year.

Two weeks ago Kosovo imposed a 10 percent import tax on goods coming from Serbia and Bosnia. The European Union has urged Pristina to reverse that decision.

Kosovo’s mostly ethnic Albanian population declared independence from Serbia in 2008, a decade after a NATO bombing campaign to end the killing of Albanian civilians by Serb forces during a two-year insurgency.

It is now recognized by more than 110 nations but not by Serbia, Russia or five EU states. Belgrade and Moscow have blocked Kosovo from joining the United Nations.

In 2013 both countries agreed to an EU-sponsored dialogue to resolve outstanding issues, but little progress has been made.

Kosovo blamed a campaign by Serbia for its failure to join Interpol and said Serbia was against normalizing relations, key for both countries if they are to join the European Union. Bosnia also voted against Kosovo’s membership.

“The government has decided to impose a tax of 100 percent on imported goods coming from Serbia and Bosnia,” Prime Minister Ramush Haradinaj said.

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