10 July 2025
Kosovo and European Union held the 7th Stabilisation and Association Agreement Sub-committee on Trade, Industry, Customs and Taxation
Officials from Kosovo and the European Union convened a meeting in Pristina on 10 July 2025 to discuss developments in the areas of Trade, Industry, Customs and Taxation. The discussion was held in the framework of the Stabilisation and Association Agreement (SAA), which entered into force in April 2016. The meeting marked the first SAA Sub-committee since June 2023 when Stabilisation and Association bodies had been suspended in the context of EU measures vis-à-vis Kosovo. In December 2024, Council Conclusions paved the way for a gradual lifting of these measures in parallel with further steps by Kosovo to de-escalate the tensions in the north.
During the meeting, officials exchanged views on various areas, including trade, industry and SME policy, customs, taxation and the free movement of goods. In all areas, the European Union and Kosovo agreed on the importance of implementing the priorities of the Economic Reform Programme, the Growth Plan for the Western Balkans and the accompanying Reform Agenda, as well as the recommendations from the Commission’s 2024 Kosovo Report.
In the area of customs and taxation, Kosovo made progress in meeting the SAA requirements on removal of non-tariff barriers by expanding the use of publicly operated customs terminals, and significantly reducing customs terminal fees for all consignments entering Kosovo. The EU encouraged Kosovo to continue working in this regard, until full alignment with the SAA requirements is achieved. The EU also welcomed Kosovo’s constructive CEFTA chairmanship. The EU stressed the importance of ensuring that the Tax Administration of Kosovo has the adequate administrative and professional capacities required to fulfil its tasks, while also encouraging Kosovo to further engage on the alignment with international OECD standards in the area of taxation.
In the area of trade, progress was marked by Kosovo’s commitment to implement the CRM mobility agreements, in particular the decision of January 2025 to grant visa free entry with ID to citizens from Bosnia and Herzegovina. In this area, the issue of limited capacities was also discussed, in particular in relation to the Ministry of Industry, Entrepreneurship, and Trade, as well as related institutions. This is vital in order to ensure effective engagement on all matters related to trade and regional economic cooperation. The EU also urged Kosovo to prioritise the long overdue ratification of CEFTA Additional Protocols 5, 6 and 7, as soon as the Assembly is constituted.
On industry and SME policy, the EU congratulated Kosovo for ratifying the Single Market Programme in 2024. Kosovo informed the EU about the establishment of the new agencies for export promotion and for support for SMEs. These agencies aim to better support investments and the private sector.
On free movement of goods, discussion focused on increasing the capacity of institutions and further alignment of legislation with the EU acquis in order to improve the quality infrastructure in the areas of standardisation, accreditation, conformity assessment, metrology and market surveillance.
Background information
• The Stabilisation and Association Agreement (SAA) is the framework for the EU and the Kosovo administration to regularly discuss technical and policy issues in relation to the EU-related reforms. The SAA bodies include the Stabilisation and Association Council, assisted by the Stabilisation and Association Committee, as well as SAA Sub-Committees, which cover a wide range of the EU acquis. The meetings of the SAA bodies provide direct input into the European Commission’s annual reports.
• Each Sub-Committee meeting monitors and accompanies Kosovo’s delivery on reforms and identifies how the EU can assist in this process.
• There are seven areas covered through sectorial meetings of sub-committees, on Justice, Freedom and Security; Innovation, Information Society, Social Policy, Education and Culture; Trade, Industry, Customs and Taxation; Internal Market, Competition, Consumer and Health Protection; Agriculture, Fisheries, Forestry, Food Safety; Transport, Environment, Energy, Climate Change and Regional Development; Economic and Financial Issues, Statistics.
• Two other areas covered through the meetings of special groups are the reform of the public administration and normalisation of relations between Kosovo and Serbia.
• SAA Committee and Sub-Committee meetings are co-chaired by the European Commission and Kosovo. Each meeting results in jointly agreed follow-up actions to be taken by the Kosovo authorities.
The time between the meetings allows for the implementation of the recommendations and agreed follow-up actions.
