Kosovo signs Free Trade Agreement with EFTA

2025-01-22 19:04:00, Kosova & Bota CNA

Kosovo signs Free Trade Agreement with EFTA

Photo taken during the signing ceremony of the agreement between Kosovo and the EFTA states.

Kosovo has signed a Free Trade Agreement with the countries of the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway and Switzerland.

At the signing ceremony in Davos, Switzerland, EFTA members and Kosovo Prime Minister Albin Kurti said that this agreement will bring mutual benefits.

The agreement offers numerous opportunities, including for the import and export of goods. Products originating in Kosovo will be able to be exported to EFTA countries and local companies will not need to pay customs duties on them.

Until now, local producers have been forced to pay up to 10 percent additional customs duty.

The agreement was reached after more than two years of negotiations and, according to EFTA Chairwoman Cecilie Myrseth, Kosovo is the first country in the Western Balkans region to include services in this agreement, at its request.

Kosovo Prime Minister Albin Kurti said that this agreement opens the chapter of strengthening economic relations, but also of advancing trade relations between his country and EFTA members.

"The agreement we are signing today establishes a framework for trade relations between the EFTA states and Kosovo and will create new opportunities by giving Kosovo access to EFTA markets. This opens up new export opportunities for our businesses and deeper integration into the European economic framework, enabling us to compete on a larger scale," Kurti said during the signing ceremony.

The Kosovo Prime Minister said he is convinced that this agreement will bring benefits to businesses, industries and citizens.

EFTA Chairwoman Cecilie Myrseth said that this agreement is a major achievement for Kosovo's integration into the global system.

"I am convinced that this will drive economic growth, creating opportunities for new businesses and citizens on both sides," she said.

Last year, Kosovo recorded economic growth of around 4 percent and a decline in inflation. However, the country faces a high level of imports compared to exports.

Myrseth from EFTA said that in recent years, trade between EFTA states has increased significantly and reached over 176 million euros.

"With the conclusion of the Free Trade Agreement, we can expect trade to increase even more," she emphasized.

EFTA said that in addition to financial services, intellectual property rights are also included.

Kosovo said that with such agreements it aims to attract foreign investors to invest in the country.

EFTA was created in 1960 with the aim of promoting free trade.

Kosovo has also signed a Free Trade Agreement with the Central European Countries (CEFTA). This agreement, which includes the Western Balkan countries and Moldova, aims to increase trade in goods and services, eliminate trade barriers between the parties and attract investment./REL