We asked economists about the consequences of Pristina’s 100%

A week ago Pristina authorities increased tax on goods from Serbiat to 100%. A measure that does not have an economic, but exclusively political power, has caused turbulent reactions among Kosovo Serbs, the international community is trying to arbitrate but still without success. Disturbing news arrive from Kosovo about gradual depletion of necessary supplies, prices of certain products are rising and solution is not in sight.

What consequences could such situation have for the Serbian economy?

The former governor Dejan Soskic points out that it is a rash decision that is contrary to international rules and agreements. In his statement with BIZLife he also warns of possible losses that would not be insignificant.

„Such moves are contrary to the CEFTA rules, they are not in the spirit of association and accession to joint market of the EU by the Western Balkans and they are contrary, if you allow, with rules of the World Trade Organization as well, Soskic has said, adding that this is an “unjustified precedent in trade relates.”

Foreign Investments Consultant Mahmut Busatlija thinks that this is an economic war that is increasingly replacing wars with weapons. He expects of imposed measures to cause more damage to citizens than economies.

„Pristina objectively has nothing to protect in economic sense with such measure, its reason is exclusively political,“ Busatlija is of an opinion.

He estimates that exchange and quantity of goods that Serbia sends on Kosovo market is not large enough to significantly jeopardize the economy.

“Economies are always adjustable, those goods will be redirected to some other markets,” Busatlija says, adding that citizens on Kosovo will feel the biggest consequences, both Serbs and Albanians who regularly used and purchased goods originating from Serbia.

Izvor: BIZLife