Business & Finance

Kosovo re-ignites trade war with Serbia

Published June 1, 2020 Updated June 1, 2020 09:48am

PRISTINA: The Pristina government announced Sunday a ban on all imports from former war foe Serbia that are not stamped "for the Republic of Kosovo", re-igniting a trade spat between the two neighbours.Kosovo only abolished a 100-percent tariff on Serbian imports on April 1, ending a blockade that had poisoned ties.The tariff was introduced in late 2018 to protest Belgrade's campaign to undermine global recognition of the former Serbian province.Caretaker premier Albin Kurti had replaced the tariff with "reciprocity", a policy which could see Kosovo match Serbia on import matters.The government issued a statement on Sunday banning all imported products that "deny the independence and the sovereignty of the Republic of Kosovo". From now, all goods from Serbia will require a reference stating they are "destined for the Republic of Kosovo".Belgrade reacted immediately and strongly, declaring the decision "unacceptable". "We have no intention of pursuing dialogue (to normalise relations) as long as the taxes and reciprocity are not lifted," Serbian foreign minister Ivica Dacic told national RTS television.