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Free trade with EFTA, small figures and big expectations

Free trade with EFTA, small figures and big expectations

The free trade agreement with the European Free Trade Association (EFTA) is being assessed very positively by the economic sector, but it is certainly not a substitute for the assistance that the state should provide to local producers so that we have something to sell to the world. In the export-import ratio, trade with Switzerland, Iceland, Norway and Iceland is symbolic, for ten years 600 million euros.

Customs tariffs, taxes, and all trade barriers between Kosovo, Switzerland, Iceland, Liechtenstein, and Norway were removed with a signature on paper.

The free trade agreement with EFTA, which includes these four countries, is being considered a good opportunity for local producers, but also vice versa.


"There may be a doubling or tripling, there may be, but we must not forget that this agreement does not automatically increase our production, we must also have internal policies, we also need internal fiscal reforms to help our production and to expand and export abroad," said the president of the Chamber of Commerce, Lulzim Rafuna.

But what is the trade relationship with EFTA?

In the period 2013-2023, that is, for 10 years, Kosovo imported about 40 billion euros of goods.

Of this figure, only 301 million euros come from EFTA.

What does Kosovo benefit from the Free Trade Agreement with EFTA?
Read too What does Kosovo benefit from the Free Trade Agreement with EFTA?

Regarding exports or sales of goods, out of about 5.4 billion euros in exports, only 371 million are in EFTA.

The vast majority of symbolic trade exchange takes place with Switzerland, while Iceland, Norway, and Liechtenstein have a very small percentage with zero cases.

For example, during 2023, Kosovo exported 76 million euros of goods to EFTA countries and imported products worth 99 million euros.

Otherwise, Kosovo signed an agreement with the European Free Trade Association (EFTA) on January 22, after negotiations that lasted more than two and a half years.

If a local Kosovar producer has been forced to pay an additional 10 percent customs duty to export his goods to a country with a large diaspora, like Switzerland, from now on he will not only not pay an additional price, but he will not pay any customs duty at all.

The agreement offers many opportunities, including for importing and exporting goods. Consumers and companies can enjoy cheaper prices, while domestic companies can sell their products more easily in foreign markets.

The agreement allows companies in contracting countries similar or better access than their competitors from third countries, according to EFTA.

Kosovo Prime Minister Albin Kurti expressed confidence after signing the agreement in Davos, Switzerland, that it "will bring benefits to businesses, industries and citizens of all [participating] countries."Dukagjin/