CEFTA's Role in Harmonizing the Market and Competition with Local Products Case: Taxation Against Serbia and Bosnia and Herzegovina

Abstract

By researching various literature and publications we have managed to summarize a proper structure related to this topic. CEFTA (Central European Free Trade Agreement) is a free trade agreement in which eight countries of the Western Balkans region participate. CEFTA was established with the aim of eliminating payments for mutual trade between member states; creating favorable conditions for the development and diversification of trade; promoting trade and economic cooperation; intensification of economic relations for mutual benefit and for the contribution to the EU integration process; contribution to the development of EU trade relations and integration into the multilateral trading system. in the EU. Although not mandatory, CEFTA is the inevitable path for all EU aspiring countries. It is also one of the conditions for Kosovo to integrate into the EU, but from the research we reach a conclusion that the Cefta Agreement was not favorable for Kosovo and the Trade that it conducts with the Balkan countries. Also, the presence of Kosovo in Cefta as a representative of UNMIK and not as an independent state like the Republic of Kosovo provides an overview that Kosovo in Cefta is conditional starting from its absence as a state and then in the space provided in market, states that do not recognize Kosovo's citizenship are a barrier to Kosovo's integration into this agreement. In terms of trade, Kosovo is obliged to start these barriers set by non-recognizing states of its citizenship and to act with the same currency, these states especially Serbia and Bosnia have constantly hindered the development of Kosovo economy which aim only to benefit from Kosovo which trade policies link to the political status that these countries develop towards each other. As Kosovo does not have the expected benefits from this agreement, some advice and recommendations are given to change the situation, but it is not a solution to set obstacles, as the very purpose of integration in this agreement has been the release of barriers and cooperation between member countries. Since the commitment to implement CEFTA is also included in the Stabilization and Association Agreement signed between Kosovo and the European Union, the opportunity for Kosovo is to renegotiate this agreement together with other member states. Keywords: Tax (tarrif), Export, Import, Market, Economic Report, Domestic Products, Competition