Kosovo has entered into a notable Free Trade Agreement with the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland. The agreement was signed during a ceremony held in Davos, Switzerland, attended by EFTA representatives and Kosovo’s Prime Minister, Albin Kurti.
The agreement removes customs tariffs on goods exported from Kosovo to EFTA member states, significantly boosting trade opportunities. Until now, Kosovo’s local producers have faced customs duties of up to 10%, which has placed additional financial burdens on their exports. With the new agreement, Kosovar products can access EFTA markets tariff-free, enhancing their competitiveness.
This milestone deal is the result of over two years of negotiations. Notably, Kosovo is the first country in the Western Balkans to include services within the scope of the agreement, a feature introduced at its own request. EFTA Chairperson Cecilie Myrseth highlighted this achievement, calling it a progressive step for Kosovo’s global economic integration.
Prime Minister Kurti hailed the agreement as a turning point for Kosovo’s economy, stating, “The agreement we are signing today establishes a framework for trade relations between EFTA states and Kosovo, creating new opportunities by granting Kosovo access to EFTA markets. This opens new export possibilities for our businesses and deeper integration into the European economic framework, enabling us to compete on a broader scale.” Kurti expressed confidence that the deal would benefit businesses, industries, and citizens alike.
Myrseth underscored the importance of the agreement for fostering economic growth and expanding opportunities for both sides. “I am confident that this will promote economic growth, creating opportunities for businesses and citizens on both sides,” she remarked.
Kosovo has shown promising economic progress, recording a growth rate of approximately 4% last year alongside a reduction in inflation. However, the country still faces challenges due to a high import-to-export ratio. Myrseth pointed out that trade between Kosovo and EFTA nations has already reached €176 million in recent years, adding that the Free Trade Agreement is expected to drive this figure higher.
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