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Serbia suffers 281 mln euro damage from Kosovo's higher import tariffs - trade min

Author Radomir Ralev
Serbia suffers 281 mln euro damage from Kosovo's higher import tariffs - trade min Rasim Ljajic; Source: Serbian Government

BELGRADE (Serbia), August 12 (SeeNews) - Serbia has suffered a 280.8 million euro ($313.7 million) damage so far from the increase of Kosovo's import tariffs on all goods produced in Serbia and Bosnia, Serbian trade minister Rasim Ljajic said.

The tariffs may cost Serbia 0.8% of its annual gross domestic product (GDP) if none of the Serbian exporters to Kosovo find an alternative destination for its products, Ljajic said in a government press release on Sunday.

Serbia has been suffering a damage of 1.075 million euro per day since the introduction of the higher tariffs late last year, Ljajic said.

On November 21, the government in Pristina increased import tariffs on all goods produced in Serbia and Bosnia to 100% from 10% set earlier that month, saying the move aimed to protect Kosovo's sovereignty and interests. The scope of the new import tariffs was expanded on December 29 to include products manufactured under international brands in Serbia and Bosnia.

Kosovo, considered to be a potential candidate for EU membership by the European Commission, unilaterally declared independence from Serbia in 2008 and has so far been recognised by more than half of the 193 UN member states. Serbia and Bosnia both do not recognise the independence of Kosovo.

($ = 0.895148 euro)

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