Life in Kosovo: The Crisis Facing Domestic Producers
25 12 2008 This week “Life in Kosovo” debated the problems facing producers in Kosovo.
Why is imported milk less expensive than the domestically produced variety? Does the country produce quality products that can be sold abroad? Who controls the final products in Kosovo and how is their quality guaranteed?
To discuss these issues, were:
Lutfi Zharku, Minister of Trade and Industry,
Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development,
Samir Lleshi, expert in product standardization,
Fatmir Selimi, agro economist,
Ernest Jusufi, of Devolli company,
Genc Meraku, of Zero Positive company.
A report prepared by Jeta Abazi opened the discussion. The journalist bought five litres of oil in different gas stations, to see whether what she bought had the same amount and value.
Of the five gas stations, only one was controlled by the Ministry of Trade and the department of metrology.
While the report revealed that many gas stations are not controlled by the ministry, officials from the ministry argued that they could not perform their responsibilities due to the lack of professionals.
The Minister of Trade and Industry said the calibration of gas stations in Kosovo was a long process that could not be accomplished over the short term.
Samir Lleshi said that while an agency for standardization existed in Kosovo, it was not carrying out its tasks properly owing to a lack of human resources and good will.
“Most of those doing the standardization are representatives of businesses rather than from institutions; this doesn’t provide for a good outcome”, Lleshi said.
Asked about the situation with the standardization of agricultural products, the Minister of Agriculture said some controls and calibrations were being implemented by the relevant institutions.
“Most producers have their own controlling systems… before they send off their products for sale”, Idriz Vehapi said.
Ernest Jusufi, from Devollli company, said some products were being sent to Macedonia, The Netherlands and other countries for expert analysis, owing to the lack of a proper authority in Kosovo.
“Most products sent abroad for analysis lack properly accredited national institutions that can carry out the analysis”, agreed Lleshi.
Genc Meraku, of Zero Positive, said domestic producers needed to develop their own ethics of production and trade, which would be repaid with the trust of consumers.
“The Ministry of Trade has an agency of accreditation and standardization, which is to be separated very soon owing to a conflict of interest,
” Zharku said. “The European Commission is to supervise the whole process in order to ensure proper work.”
While most of Kosovo’s domestic products are accused of poor quality, the sustainability of producers is also jeopardised by the unequal competition of cheaper imports coming from abroad.
“We have free trade, as stipulated in the constitution, while price regulation and price intervention is prohibited by law,” Zharku said.
“We must be able to intervene… to ensure better quality,” he added.
According to him, an anti-dumping law was now being studied in Kosovo in order to ensure more equal competition between imports and domestic producers.
The Minister of Agriculture noted that while countries in the region subsidised the agricultural sector, this was not possible in Kosovo, following advice from the IMF.
Zharku said that Kosovo could not impose taxes on imports while at the same time asking the EU to allow in its own products without taxes.
A report prepared by Muhamet Hajrullahu reported on several domestic businesses. It showed that both producers and workers were complaining about the difficulties of succeeding in the trade.
Syzana Aliu, manager of Magic Ice, a company producing ice cream, said it was very difficult to succeed in the market, due to unequal competition.
“Foreign producers sell their products without paying taxes on the border, which contributes to an unequal competition with our products,” he said.
Producers cited in the report complained of the lack of a proper economic strategy aimed at supporting domestic producers.
Genc Meraku noted the lack of an orgnisation of domestic businesses. He also noted that in order to promote domestic products, a campaign was needed to raise people’s awareness of the need for economic patriotism.
“It is not possible to impose quotas today, but we could decide not to buy imported goods”, he said.
After the debate, “Life in Fushe-Kosove” municipal debate was shown.
Life
in Kosovo is a co-production between Kosovo Public Television, RTK and the
Balkan Investigative Reporting Network, BIRN. It is broadcast every Thursday,
starting at 20:20.
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