Potential Export Markets March 2015 Potential Export Markets for Food Processing, Agriculture, Wood Processing, Con- struction Materials, Tourism and Artisanal Crafts Sectors March, 2015 ACKNOWLEDGMENTS Financing provided by the Ministry for Foreign Affairs of Finland in the framework of the Aid for Trade project. Report prepared by: Gëzim Tosuni – Author Visar Vokrri – Author Special contributions provided by: United Nations Development Programme (UNDP) Kosovo Quality Assurance: Teuta Purrini Xhabali, Project Manager, Aid for Trade Artane Rizvanolli, External Consultant Anita Smailovic, Project Associate, Aid for Trade Erëblina Elezaj, Research Analyst, Policy, Research, Gender and Communication Team Iris Duri, Data Wrangler Statistician, Policy, Research, Gender and Communication Team Burbuqe Dobranja, Communications Associate, Policy, Research, Gender and Communication Team Danijela Mitić, Communication Analyst, Policy, Research, Gender and Communication Team There is no copyright on this document; therefore its content may be partially or fully used without the prior permission of UNDP. Its source, however, must be cited. The analysis and recommendations expressed in this report are those of the authors and do not rep- resent the official position of United Nations Development Programme and the Ministry for Foreign Affairs of Finland. TABLE OF CONTENTS LIST OF ABBREVIATIONS......................................................................................................................5 1. INTRODUCTION ................................................................................................................................7 2. TRADE EXCHANGES ..........................................................................................................................8 3. TRADE REGIME ...............................................................................................................................10 3.1. Central European Free Trade Agreement (CEFTA)..............................................................................11 3.2. EU Autonomous Trade Preference (ATP)................................................................................................12 3.3. Free Trade Agreement with Turkey..........................................................................................................12 3.4. U.S. Generalized System of Preferences (GPS)......................................................................................12 4. POTENTIAL EXPORT MARKETS ......................................................................................................13 4.1. European Union..............................................................................................................................................13 4.1.1. Overview........................................................................................................................................13 4.1.2. Relations with Kosovo...............................................................................................................14 4.1.3. Market Overview.........................................................................................................................15 4.1.3.1. Food Processing.......................................................................................................15 4.1.3.2. Agriculture..................................................................................................................15 4.1.3.3. Wood Processing......................................................................................................15 4.1.3.4. Construction Materials ..........................................................................................16 4.1.4. EU General Import Procedures...............................................................................................16 4.1.5. Tariffs, Duties, Quotas and Rules of Originu ......................................................................18 4.1.6. Technical and Environmental Requirements ....................................................................20 4.1.6.1. Technical requirements .........................................................................................20 4.1.6.2. Environmental requirements...............................................................................21 4.1.7. Sector Requirements.................................................................................................................22 4.1.7.1. Food Processing and Agriculture.......................................................................22 4.1.7.2. Export Requirements for Food Processing and Agriculture.....................24 4.1.8. Wood Processing.........................................................................................................................25 4.1.9. Construction Materials .............................................................................................................26 4.2. CEFTA Countries..............................................................................................................................................27 4.2.1. Albania ...........................................................................................................................................27 4.2.1.1. Political and Economic Overview ......................................................................27 4.2.1.2. Relations with Kosovo............................................................................................27 4.2.1.3. Market Overview .....................................................................................................28 4.2.1.4. General Import Procedures..................................................................................30 4.2.1.5. Tariffs, Duties, Quotas and Rules of Origin......................................................31 4.2.1.6. Technical and Environmental Requirements.................................................32 4.2.1.7. Sector Requirements..............................................................................................33 4.2.2. Former Yugoslav Republic of Macedonia (FYRoM).........................................................34 4.2.2.1. Political and Economic Overview ......................................................................34 4.2.2.2. Relations with Kosovo............................................................................................34 4.2.2.3. Market Overview......................................................................................................35 4.2.2.4. General Import Procedures..................................................................................36 4.2.2.5. Tariffs, Duties, Quotas and Rules of Origin......................................................37 4.2.2.6. Technical and Environmental Requirements.................................................38 4.2.2.7. Sector Requirements..............................................................................................39 4.2.3. Montenegro..................................................................................................................................41 4.2.3.1. Political and Economic Overview ......................................................................41 4.2.3.2. Relations with Kosovo ...........................................................................................41 4.2.3.3. Market Overview .....................................................................................................42 4.2.3.4. General Import Procedures .................................................................................43 4.2.3.5. Tariffs, Duties, Quotas and Rules of Origin......................................................44 4.2.3.6. Technical and Environmental Requirements.................................................45 4.2.3.7. Sector Requirements..............................................................................................46 4.2.4. Serbia...............................................................................................................................................48 4.2.4.1. Political and Economic Overview ......................................................................48 4.2.4.2. Relations with Kosovo ...........................................................................................48 4.2.4.3. Market Overview .....................................................................................................49 4.2.4.4. General Import Procedures..................................................................................50 4.2.4.5. Tariffs, Duties, Quotas and Rules of Origin.........................................................51 4.2.4.6. Technical and Environmental Requirements.................................................52 4.2.4.7. Sector Requirements..............................................................................................54 4.2.5. Bosnia and Herzegovina (BiH)................................................................................................54 4.2.5.1. Political and Economic Overview.......................................................................54 4.2.5.2. Relations with Kosovo............................................................................................54 4.2.5.3. Market Overview .....................................................................................................55 4.2.5.4. General Import Procedures .................................................................................57