Baush: Kosovo’s agreement with EFTA could boost the production of quality goods

Economic analyst Abil Baush from Skopje says that Kosovo’s Free Trade Agreement with EFTA will benefit export-oriented companies in Kosovo by easing export barriers, while imports from EFTA members will bring high-quality products. Additionally, he believes this agreement will encourage Kosovo to produce better-quality goods that can compete in its domestic market.

EFTA members include Iceland, Liechtenstein, Norway, and Switzerland, and Baush points out that every country would like to be part of this market, adding that Kosovo likely has the strongest ties with Switzerland.

North Macedonia signed its Free Trade Agreement with EFTA in 2000, but Baush notes that the country has struggled to take full advantage of its competitive opportunities.

"For example, if Serbia knows how to produce and sell agricultural products that meet Swiss market standards, we in North Macedonia do not do the same, or our agriculture is not modernized enough to compete in these markets. On the other hand, due to the limited measures we took during inflationary shocks, we are now receiving low-quality imported products. We need to work more on developing a startup ecosystem where our products can compete in the market," Baush told Kosovo Online.

Regarding Serbia’s cooperation with EFTA members, he said that Serbia has strong economic ties with Switzerland, particularly in exporting industrial and agricultural products that meet Swiss standards, while importing high-quality goods in return.

Albania, which signed its Free Trade Agreement with EFTA in 2009, has effectively leveraged this deal in the construction and tourism sectors, according to Baush. The country has attracted tourists from EFTA countries and started building high-quality hotels.

"Everything they built complied with EFTA standards and other international agreements they had signed. Serbia and Albania have successfully capitalized on these opportunities, while unfortunately, North Macedonia has lagged behind other Western Balkan countries. It is now up to North Macedonia to make better use of these agreements," Baush concluded.