The Chamber of Commerce of Kosovo (OEK) called for measured policy-making in relation to the effects of national policies on local businesses and their competitiveness in relation to the region.
"The decision to apply the protective measure for fruits and vegetables has not only disrupted the local market, but has also directly affected the final price of products for processing and trading companies, whose raw material falls into the category of protected products". it is stated in the communique of OEK.
Always according to the Chamber of Commerce of Kosovo, OEK is committed to understand the effect of this decision directly from the companies of the relevant industry, where it has been reported that the average price increase for the products affected by the protective measure is 21.6%, this is because the price has increased of raw material and import cost for trading companies.
"As a measurable result of this decision, a decrease in the profit margin and the amount sold has been observed. In addition, most of the businesses of the industry have emphasized that there is not enough local production to meet the needs of consumers for fruits and vegetables and that the decision was not taken at the appropriate time", the communique further states.
While it is implied that the main purpose of this decision was to support local production, the Chamber of Commerce of Kosovo would like to emphasize that the decision did not take into account a major segment of the processing and commercial industries. Consequently, any positive effects observed in manufacturing companies are outweighed by negative effects in processing companies.
"The Chamber of Commerce of Kosovo appeals that before making similar decisions in the future, detailed analyzes and studies should be done regarding the chain effects that follow, on which the success of such a policy depends. Moreover, according to the data provided by the Kosovo Customs regarding the import of fruits and vegetables for 2018, it appears that the decision in question does not make sense even from this aspect, since no increase in imports has been reported. Statistically, there has been no increased volume of import for fruits and vegetables, which calls into question the need for this protective measure, at least not so quickly and without prior consultation with the stakeholders", says OEK's reaction.
As an illustration, as a result of the protective measure, the import for 2018 for the days during which the measure was applied, compared to the same days in 2017, recorded a slight decrease of €40,000. However, the Chamber of Commerce of Kosovo expresses its readiness to be a partner of the Ministry of Trade and Industry in understanding the real needs of local businesses as well as in coordinating activities to fulfill these needs. /Telegraph/
