New publication on the possibilities and benefits of improved Kosovo-Serbia economic relations

Enabling free trade, restoring the monetary flow between Belgrade and Pristina, defining the regional framework for the implementation of Article 6 of the Agreement on the Road to Normalization of Relations, enabling CEFTA decisions and the abolition of double taxation and equal access to labor market, exploring possible cooperation in the energy sector, speeding up the implementation of transport projects – are some of the recommendations of the publication “Improving Kosovo-Serbia Economic Relations” prepared by the Institute for Social Policy Musine Kokalari from Pristina in cooperation with the Institute for Philosophy and Social Theory from Belgrade.

This report was compiled as a result of Article 6 of the Ohrid Agreement in 2023 between Pristina and Belgrade which specifies that “The parties agree to deepen future cooperation in the fields of economy…”, but does not explain what exactly “deepening cooperation” means. The report identifies areas that should and can be improved, and proposes ideas and measures to be taken in this direction.

Finding that the economic cooperation between Kosovo and Serbia is in the interest of peace and regional development, this document of proposals is based on the current state of regional agreements for trade and cooperation, as well as in line with the basic principles of the Brussels Agreement on the economic relationship between Kosovo and Serbia, as one of the important pillars towards the final agreement.

The main obstacles and measures required to improve economic relations highlighted by experts from both sides are: free trade, removal of customs barriers, cooperation between the two central banks to enable the circulation of money in RSD and EURO between Belgrade and Pristina, mutual recognition of documentation (enabling bank transfers), implementation of existing and not necessarily new economic agreements, offer joint production of goods, promote cooperation and not competition where possible (energy and ecology), fully utilize the opportunities of CEFTA and the Common Regional Market and prevent its violations.

Accelerating the implementation of transport projects, such as speeding up work towards a rail link and establishing a direct flights between Belgrade and Pristina, as well as the beginning of a strategic discussion on the complementarity of economies are some of the additional recommendations.

You can read the full report in English in the following link:

This report was developed within the project “Implementation of Article VI of the Agreement on the Road to Normalization of Relations between Kosovo and Serbia” between IPS Musine Kokalari and Peaceful Change Initiative – PCI, supported by UK Aid as part of the project “Amplifying Local Voices” for Equitable Development”.

April 12, 2024

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