Prishtina, 7 October, 2023
The Prime Minister of the Republic of Kosovo, Albin Kurti, participated in the international scientific conference entitled “Challenges and Prospects of Economic Cooperation Kosovo-Albania and the Region”, which is holding the second and last day of proceedings today.
In his speech, Prime Minister Kurti said that this conference is one of the most natural, and the most important, so we are clear that such cooperation is a determinant of the state of relations between our countries, but also of relations throughout our Balkans region.
Speaking about the relations and cooperation between Kosovo and Albania, he said that a total of 184 agreements, protocols and memoranda have been signed over the years.
Among the agreements signed between the parties, he singled out, an important place is occupied by agreements with a direct impact on the economic life of citizens, businesses and beyond, as he mentioned the agreements that have been implemented and that have results.
He also spoke about trade exchanges and economic relations. “Investments from Albania in Kosovo from 2019 to 2022 have increased by 136.5%, expressed in values (in 2019 we had 15.2 million investments; a year later 2020 – 39.8 million; 2021 – 50.4 million and in the year of past 2022-79.7 million euros). Kosovo’s desire is for these investments to increase, and for our country to be as hospitable as possible for business, capital and consumers coming from Albania”, he said.
Prime Minister Kurti has wished success to the work of this conference and with as many effects as possible on the concrete plan of our joint integration.
“I thank you very much for your hospitality and attention and I congratulate you for this very appropriate initiative, such as this activity that gathers minds, ideas, studies, research and valuable thoughts to contribute criticism and proposals in such a priority area for all of us, as is the economy”, he concluded.
Prime Minister Kurti’s complete speech:
Dear Mr. Mehmet Kraja, Chairman of the Academy of Sciences and Arts of Kosovo,
Dear members of the Organizing Council,
Academics and professors from Kosovo, Albania, from North Macedonia, from the Presheva Valley, from wherever the Albanians are in the Balkans,
But also, greetings to all professors and academics from around the world, foreigners and Albanians who live, act and contribute there,
Ladies and gentleman,
Dear attendees,
This conference is one of the most natural, and most important, so we are clear that such cooperation is a determinant of the state of relations between our countries, but also of relations throughout our Balkan region. It is also decisive for their political, economic and socio-cultural interaction. As such, this conference is an event that focuses on what is most necessary, because it is the most substantial and immediate vector of changes, field or economic aspect of life and development.
What is taking place here today is one of the highest conferences because in this place where you have welcomed me and gathered together, the highest experts of our two countries will speak. It is one of the most strategic conferences because it will talk about the cooperation between the two countries according to their possessions in people, production, finance and technological level.
It is also an exchange conference in terms of fields, from energy to tourism. I also saw that this conference looks at issues in the horizon of ecology, but also in the condition of inflation from more concrete data such as those of agricultural production to the acceleration of trade in terms of digital payment technology.
It seems that the organizers and participants are laying out in an exhaustive and very fundamental way the state and possibilities of research cooperation.
Therefore, I wish success to the works of this conference and with as many effects as possible on the concrete plan of our common integration.
A total of 184 agreements, protocols and memoranda have been signed between Albania and Kosovo over the years. Among the agreements signed between the parties, an important place is occupied by agreements with a direct impact on the economic life of citizens, businesses and beyond. Cooperation, competition, distribution and redistribution of goods and services, all these vital processes for the economy, are facilitated, improved, and more frequent and give us more breath and vitality in our countries, in society and in the state.
Investments from Albania in Kosovo from 2019 to 2022 have increased by 136.5%, expressed in value (in 2019 we had 15.2 million investments; a year later 2020 – 39.8 million; 2021 – 50.4 million and in the previous year 2022-79.7 million euros). Kosovo’s desire is for these investments to increase, and for our country to be as hospitable as possible for business, capital and consumers coming from Albania.
In order to further facilitate trade, deepen economic cooperation, and remove trade barriers between Albania and Kosovo, a significant number of bilateral agreements and memorandums of understanding that have been signed over the years operate.
However, the agreements do not implement themselves, but work and action are needed for them to give concrete effects. Everyone, both individuals, businesses, academics and politicians, need to hear and see that the economy is improving, but first we want to feel it in our daily lives. So, let’s draw positive, progressive conclusions from experiences.
Until now, the implementation of the agreements concluded for economic and commercial cooperation have made possible some of the important results that I would like to mention here with you today:
– The opening of the customs offices of Kosovo, in Durrës and Porto Romano, where customs clearance is carried out for all goods destined for Kosovo. This procedure facilitates business, saves time and reduces bureaucracy and costs for business.
– Recognition of insurance periods and contributions paid to citizens of both countries and the benefit of old-age pensions and other benefits of the social contribution scheme, thereby promoting the increase in employment of citizens in each of our two countries.
– The movement of our citizens without any control during the summer season (June-September) as well as during weekends and public holidays. This, since the economic exchange between the two countries also has a special importance in the field of tourism.
For 2022, according to sources from the Kosovo Police, about 8.2 million citizens have passed through the common border crossing point Morinë – Vërmica, increasing the flow of crossings at this point. So, it is a large number of trips in both directions, and each of these trips has its own meaning in our economies. Therefore, the facilitation of movement, with as little delay and controls as possible, definitely serves the growth of the economy.
On this occasion, I would have highlighted a study from a few years ago, which said that close to 90% of the citizens of Kosovo have been to the Republic of Albania, while somewhere around 1/3 of the citizens of the Republic of Albania have been to the Republic of Kosovo . This shows that there is room for improvement, but especially the direction of this improvement is clear. We need as many citizens from Albania to visit Kosovo and spend time meeting people and exchanging ideas and experiences as much as possible, because in the other direction this already has a high dimension and a tradition of familiarity.
In order to promote trade and remove barriers, Kosovo and Albania have agreed on the recognition of veterinary certificates, the recognition of reference laboratory analyses, as well as the removal of control procedures for food products of non-animal origin, which will significantly help farmers in both sides of the border.
The next commitment we have agreed on is the legal and technical analysis (road map) for the possibility of a full customs union between the parties. The Working Group has prepared the relevant analysis proposing instruments and measures to move towards customs union (unification of procedures, tariff approximation, minimization of non-tariff barriers, restructuring of common border crossing points, etc.).
Another materialized cooperation aimed at increasing the connection between our countries is the construction of the Durrës – Pristina railway connection. Currently, the procurement procedure for the feasibility study and project idea for this project is being followed. The finalization of this initiative, for which we have a very great interest to happen as soon as possible, will have direct effects on the mobility of people and goods, thus also on the concrete economic and commercial cooperation between our parties.
All these agreements, as well as many others that will follow, enable the growth of trade between Kosovo and Albania, the finding and offering of new investment alternatives, of course they also bring with them planning for new infrastructural constructions, such as the direct connection of Kosovo’s economy with the port of Durrës and the construction of the dry port near Pristina, while the steps for customs union have an impact on the formation of a larger and more attractive common market for both countries.
Since I have the honor to speak in front of such a select audience of economic scientists, without further ado I would like to show here some data from the process of intergovernmental work that is being done in the direction of the Kosovo-Albania customs union.
Until now, the Working Group, which was set up in implementation of the Memorandum of Cooperation “On the establishment of a joint working group for the customs union” between the Ministry of Finance, Labor and Transfers of the Republic of Kosovo and the Ministry of Finance and Economy of the Republic of Albania, has drafted the relevant material, identifying the regulatory legal framework, the situation of customs procedures between the two countries and the level of customs cooperation, has addressed the cost-benefit analysis, the potential challenges for the customs union Albania – Kosovo, etc.
Some of the conclusions of the joint working group on the customs union that should be considered by us now are: common customs tariff; unification of customs procedures; issues such as customs procedures; administrative fees; common risk profiles; security risk profiles etc. A possible risk could be the evasion of goods, destined for Albania. Kosovo and Albania currently have different levels of taxes applied to imports. Both countries have different exclusion policies. At the moment of the entry of a commodity at the point of entry, if it is destined for Kosovo, it will pay the indirect taxes that are applied in Kosovo, VAT, excise, etc.
From an overview, it seems that the instruments and measures proposed by the working group, to move towards customs union, are: unification of procedures, tariff approximation, minimization of non-tariff barriers, unification of working hours of customs administrations, restructuring of points common border crossings, etc., so initially a “bureaucratic customs union” at the level of state offices and bureaucracies.
Such suggestions certainly require a lot of discussion and further study, absolutely also your contribution as academics and economists, and belong to the future but the near future. In the present, our focus is taking steps and achieving concrete results for our economies, for the benefit of enterprises, the private and public economy, for the benefit of all our citizens.
I thank you very much for your hospitality and attention and I congratulate you for this very appropriate initiative, such as this activity that gathers minds, ideas, studies, research and valuable thoughts to contribute with criticism and proposals in such a priority area for all of us, as is the economy. To conclude with a word from the Roman orator, Cicero, economic thought itself is wealth, and we are interested in cultivating and growing this wealth.
Thank you.
Last modified: October 9, 2023