The trade dispute between Pristina and Skopje escalated as Kosovo imposed a total embargo on imports of all Macedonian products in retaliation for restrictions on some of its exports.
Pristina increased the level of the embargo from food to all products after the Macedonian government decided to introduce tax for all Kosovo citizens entering Macedonia. Now a new counter measure is announced from Macedonia.

According to the economists Macedonia is losing about 1 million dollars a day because of this ban. Neighboring Kosovo is one of Macedonia’s main trading partners and one of the few countries to which Macedonia exports considerately more than it imports.

Last year Macedonia exported products in Kosovo worth 392 million dollars, while importing only products worth only 28 million dollars.
The ban is expected to be most painful to Macedonian agricultural industry. The Macedonian farmers are not only afraid that their products will not be sold, but also they fear the ban will crash the prices of the fruit and vegetables.

“This is not good for both countries. Kosovo is important market for us because we export our fruits and vegetables there. We appeal to both governments to find a solution to this problem fast”, Risto Velkov president of the Regional Association of Agriculture said.
For now the bid for solving this situation did not proved productive as nothing changed after Macedonian prime-minister Nikola Gruevski and his Kosovo counterpart Hashim Taci talked on the phone about the bans.

“Macedonia will have extra taxes on all products and this way we are determined to respond to the actions of Skopje”, Mimoza Kusari, Kosovo trade and industry minister told local media.

She said a meeting with the a Macedonian delegation was expected to be held today in Pristina on this issue, “but the delegation returned to Skopje in order to take part in an extra-ordinary government meeting which will be held on the latest events”.

The roots of this trade war originate from July 1, when Macedonia said that for every kilo of imported wheat, Macedonian importers would have to buy three kilos of local wheat, while for every kilo of imported flour, they would have to buy four kilos of local flour.

This protective measure angered neighbouring Serbia, which is a major exporter of these products to Macedonia. However, Kosovo has remained silent ever since.

Macedonia announced lifting the ban but was surprised by Kosovo which introduced embargo on food products last week. Now, Macedonian border authorities are introducing tax to Kosovo citizens of two euros per person, five per car and ten per bus.

Macedonian authorities were justifying the measure as part of the CEFTA agreement and that it was not only for Kosovo but for all members of CEFTA. Opposite of that the ban that Pristina introduced is only for Macedonia. Balkaninsight