The American Chamber of Commerce in Kosovo expresses its position that the normalization of relations between Kosovo and Serbia would bring significant benefits to the business community in Kosovo, including increased opportunities for trade and investment, which would help create countries of work and economic growth.
According to the announcement, the American Chamber calls on both countries to engage in constructive dialogue and implement the commitments of all previous agreements, from which both Kosovo and Serbia would benefit.
“Despite Kosovo’s efforts to attract foreign direct investment, by taking significant steps in recent years to improve its investment climate by reducing bureaucracy and implementing reforms to facilitate doing business, the country has faced difficulties in attracting significant levels of investment”, says the announcement of OEAK.
According to the chamber’s communique, the ongoing political tensions between Kosovo and Serbia have had a significant impact on Kosovo’s ability to attract foreign direct investment.
“Unresolved issues between the two countries have created an unstable environment that is discouraging for foreign businesses to invest in Kosovo, as investors are reluctant to invest their money in a country with a high level of political uncertainty, which increases the risks that related to their investments. In addition, the lack of a formal agreement between Kosovo and Serbia has created obstacles for businesses in terms of logistics, transport and trade, which further hinders foreign investments throughout the region”, the announcement further states.
In addition, according to OEAK, the unresolved issue with Serbia has led to the loss of opportunities for Kosovar businesses, especially in terms of trade and investments. The current situation has limited the opportunities for Kosovar businesses to reach partnerships with foreign investors and to expand their operations. The loss of investment opportunities has hindered the growth of Kosovar businesses, which has had a negative effect on the country’s overall economic development.
“The lack of a formal agreement between the two countries has resulted in trade barriers making it difficult for Kosovar businesses to export goods and services to Serbia, as well as hindering their ability to compete with Serbian businesses in the region. This has led to the loss of business opportunities for Kosovar companies, which has hindered the economic growth and development of the country”.
The American Chamber strongly believes that normalizing relations would create a more predictable political environment, which would increase investor confidence and encourage more foreign direct investment, which is critical to the country’s economic growth and development.
“On the other hand, this would create employment opportunities, improve living standards and further reduce poverty, which would benefit the people of Kosovo. The American Chamber of Commerce in Kosovo reiterates that the normalization of relations would increase commercial and economic integration between the two states, which would create new opportunities for businesses in Kosovo to enter larger markets, benefiting from economies of scale. This would help diversify Kosovo’s economy and reduce its dependence on the service sector and remittances from the diaspora. Ultimately, normalizing relations would also have significant political and social benefits by reducing tensions and promoting regional stability, which would improve the quality of life for all people in the region.”