Serbian Prime Minster Ana Brnabic said in Vienna that Pristina with additional taxes on goods from Serbia, discriminates everything that is Serbian, KIM Radio reports today.

Speaking at a press conference, following the working breakfast of the EU chair, Austrian Chancellor Sebastian Kurtz with prime ministers from the Western Balkans, Brnabic noted that Serbia is focused on the future, but unfortunately the region is going backwards.

“Belgrade expects the European Commission to exercise pressure upon Pristina institutions in order to lift taxes increased by 10 percent on Serbian goods,” Serbian Minister of Trade, Tourism and Telecommunications, Rasim Ljajic said, KIM Radio reports.

Alternative to it, would be that Kosovo leaves the CEFTA agreement, Ljajic added.

He stressed “it would not be Serbia’s failure, but rather the failure of the European Union, that through the Berlin Process promoted as one of the main goals establishment of a common economic zone in the Western Balkans.”

The European Union has said Pristina’s decision to raise import taxes on goods from Serbia and Bosnia-Herzegovina in response to what it feels is Serbia’s destructive behaviour, was unexpected and the bloc has demanded an immediate explanation of the move, media reported on Wednesday.

The 10 percent higher import taxes were imposed on milk and milk products, water, biscuits, construction materials and fruit juices.

Kosovo has today officially taken over chairmanship over the Central Europe Free Trade Agreement (CEFTA) and Kosovo’s Minister of Trade and Industry, Bajram Hasani, said on the occasion that Kosovo will play a constructive role during this period. “As minister of the Kosovo government and chairperson of CEFTA we will make utmost effort to fulfill our obligations, achieve our objectives and, most importantly, focus on implementation of agreements reaches so far and those to be reached in the future,” Hasani said.

Good cooperation between the chambers of commerce of Serbia and Kosovo is an exception in the relations between Belgrade and Pristina, says the president of the Kosovo Chamber of Commerce Safet Gerxhaliu, KiM radio reports.

"Trade is like water, it finds its own paths," he says in the "Dogovor!?" TV show of KIM Radio Television.

Next year Kosovo is expected to chair the Central European Free Trade Agreement (CEFTA). Kosovo’s Minister for Trade and Industry, Bajram Hasani, told Radio Free Europe that Kosovo will be presiding only under the name Kosovo, without UNMIK acronym. He added that representatives of the United Nations Mission in Kosovo will not be participating at CEFTA meetings either.

A few weeks ago official Pristina threatened that it would leave CEFTA if presented as UNMIK.

Serbian Minister of Trade Rasim Ljajic says that Serbia will be increasing and strengthening counter measures towards Kosovo, until the authorities in Pristina do not abolish taxes on imports of flour from Serbia, reports RTK2, quoting the Beta news agency.

"We have some announcement that this decision will be abolished, but it is not said when," Ljajic said.

The week of CEFTA starts today in Belgrade, while Kosovo is expected to take over the chairmanship from Serbia in the CEFTA Secretariat meeting, KoSSev portal reports today.

Deputy President of the Government of Serbia and Minister of Trade, Tourism and Telecommunications, Rasic Ljajic will open the week of CEFTA that would last till 23 November.

Creation of a regional economic area and harmonization of CEFTA market would be the focus of the event, KoSSev further reported.

As Kosovo’s government mulls withdrawing from CEFTA, citing its unequal treatment, economists warn that a halt to regional free trade will result in price rises.

Kosovo’s recent announcement that it may withdraw from the Central European Free Trade Agreement, CEFTA, due to what it sees as its unequal treatment, has triggered a lively argument about this plan and its possible consequences.

Kosovo’s Minister of Trade and Industry, Bajram Hasani, said to the members of the Kosovo Assembly’s committee on economic development that Kosovo should be represented as a country in the meetings of the Central European Free Trade Agreement (CEFTA) and no longer through UNMIK. “We will review the position on whether to pull out from CEFTA,” Hasani said.