newsletter no.6

Newsletter No.6Dear reader, First of all, we hope that you have enjoyed your summer holidays and that you are ready now to facilitate your business opportunities. As you have been informed in previous publication of our Newsletter about 49th AGRA International Fair of Agriculture and Food and 44th International Trade Fair (MOS) which in that time were about to be held, now both of fairs are successfully finished.

Our association is delighted with number of participants from Kosovo cca.30 participants in each event. We are especially satisfied with those who obtained opportunity to get in contact with future Slovene partners to what we are looking forward will happen very soon. More information about these two fairs and many other news as well you can find as following our publication.

General Secretary, Enver Ferati

Slovensko-Kosovsko Poslovno ZdruženjeShoqata Afariste Slloveno-KosovareSlovene-Kosovo Business AssociationSlovenačko-Kosovsko Poslovno Udruženje


LATEST NEWSMTI introduces Progress Report findings, and announces that the European Parliament has approved the resolution on Kosovo export preferential statusMinister of Trade and Industry (MTI) Mimoza Kusari-Lila, through the media conference have introduced latest development after the European Commission has published the Progress Report, and European Parliament has voted the resolution that will enable extension of Kosovo trade preferential measures.

Minister of Trade and Industry informed that at the European Parliament is approved the continuation of preferential trade measures for Kosovo, with retroactive effects from January 2011, as she announced several times before. “By this step to the Kosovar produces is returned back the right to export to the European Union countries, without customs duties. Also, taking into account the effects of this retroactive measure, which means that all those companies that have exported to EU countries, meanwhile will have the opportunity through importers of those countries to reimburse the funds that have been paid for customs duties”, said Minister Kusari-Lila.

She also stated that within a few weeks will be functioning of this measure, since the European Parliament decision taken by majority will pass the Council of Ministers, and the decision on retroactive effects will be formalized.

In terms of Progress Report evaluation, the minister Kusari-Lila said that the MTI is estimated in total 10 areas, where in eight of those areas has achieved relatively good progress, respectively positive appraisal, there is a limited progress in one area, while in one area there was no visible progress. She mentioned some of the areas on which the Ministry of Trade and Industry had improvement. “A limited progress we had in standardization, while in regard to the consumer protection legal frame, no progress is achieved according to the European Commission Progress Report. In eight other areas, including conformity assessment, accreditation, metrology, market surveillance, the legislative framework in the field of free movement of goods, company law, legal aspects of property rights, industrial property rights and the small and medium enterprises has reached a positive progress”, has announced Minister Kusari-Lila.

Kusari-Lila has added that despite the progress, still remains many challenges, the MTI is confident and will continue to work on addressing those challenges although some improvements has been identified, still all stapes that are undertaken towards those challenges not mentioned. “Therefore we have a positive motivation from the Progress Report evaluation, we are also confident for challenges that are waiting, and those that needs to be addressed with an additional tempo, considering as well the fact that we are in the middle of implementation of the economic development strategy document, approved by the Kosovo government”, said Minister Kusari-Lila.

Source: Ministry of Trade and Industry


44th International Trade Show (MOS) visited by over 137,000 visitorsThe 44th MOS was visited by 137,158 people in eight days, which is 8 percent less than in 2010. “If harsh economic times haven’t affected the number of exhibitors, they have, though, affected the number of visitors,” said Executive Director of Celje Fair Plc Breda Obrez Preskar a day after the trade fair closed its doors. Despite this and thanks to the positive response of exhibitors who expressed nothing but satisfaction with the visit of the right target groups, the organizer sees the trade fair as a success. This is a proof that for exhibitors fewer visitors do not necessarily mean worse results. The 44th MOS has confirmed the trend of International Trade Fair becoming a business event which is visited by more home and foreign business audience every year. ved by the Kosovo government”, said Minister Kusari-Lila.

Bosnia and Herzegovina recognizes Kosovo’s Customs StampsOn October 18

Ministry of Trade and Industry officially is informed from the Government of Bosnia and Herzegovina on joint decision, taken by the Ministerial Council and the Presidency of the Bosnia and Herzegovina on acceptation of the Customs Stamps of the Republic of Kosovo.

The Government of Bosnia and Herzegovina express the confidence that through this Decision, are met all conditions for abolishing “the decision on trade relation reciprocal measures”, adopted by Kosovo’s administration, with respect to goods with origin from Bosnia and Herzegovina.

Ministry of Trade and Industry very soon will take the next steps in response to this decision, and always in accordance with trade regime regulated with CEFTA agreement.

Government of the Republic of Kosovo on 20 July 2011 had taken the decision, to impose the reciprocity measures in trade relations with CEFTA member states, since Bosnia and Herzegovina has applied custom tax of 10 percent to all goods imported from Kosovo.

Parliamentary elections set for 4th of December 2011!Parliamentary elections for the 90 deputies to the National Assembly of Slovenia will be held on 4 December 2011. This would be the first early election in Slovenia’s history. The election was previously scheduled to take place in 2012, four years after the 2008 elections. As stated in the constitution, the National Assembly has to elect a new Prime Minister within 30 days and a candidate has to be proposed by either members of the Assembly or the president within seven days after the fall of a government. If this does not happen, the president dissolves the Assembly and calls for a snap election. The leaders of most parliamentary political parties have expressed opinion that they prefer an early election instead of forming a new government. As no candidates were proposed by the deadline, President Danilo Türk announced that he will dissolve the Assembly on 21 October and that the election will take place on 4 December.


Germany strongly supports KosovoThe Minister of Economic Development, Besim Beqaj, received today the Ambassador of the Federal Republic of Germany in Kosovo, Ernst Reichel, for an introductory meeting, in which the latter reiterated the determination of this country to support Kosovo in all spheres.

Initially, Minister Beqaj underlined that Kosovo is very grateful to Germany for its role and for the support it provided in the development of democratic processes of our country and in the sphere of economic development.

At the occasion, he emphasized that Kosovo welcomes the very important support that the German state has provided in further Kosovo developments, especially the statement of Chancellor Angela Merkel on the resolution of problems that Serbia is causing in relation to Kosovo.

Minister Beqaj further informed Ambassador Reichel on the country’s economic development priorities, stressing that the Government of Kosovo has established the timelines for their accomplishment.

Ambassador Reichel expressed his support for Kosovo’s developmental orientations and emphasized that Germany will support our country in the advancement of democratic processes, enforcement of rule of law, fight against corruption and organized crime and said that he will be especially engaged in Kosovo’s economic development processes.

Source: Ministry of Economic Development

49th InternationalAgricultural - Food FairThe economic importance of the event was shown by the participation of 1710 exhibitors from 27 countries and their presentations of agricultural machines from producers from all around the world, of the food and food-processing industries, seed, plant health and protection, as well as a wide range of consumer goods. The professional aspect of the trade fair was shown by numerous specialised exhibitions, conferences and quality assessments. Current issues of agriculture and agricultural policy were in the focus of the more than 50 conferences, lectures and round table discussions of this year’s trade fair. More than 1300 products from eight different countries participated in the trade fair’s quality assessments. The social aspect of the event could be measured by the more than 100 happenings and competitions, such as the national wood chopping competition of wood owners, trotting races, ploughing competitions and many other entertaining events as well as the amusement park.

Current issues of agriculture and agricultural policy were in the focus of the more than 50 conferences, lectures and round table discussions of this year’s trade fair. More than 1300 products from eight different countries participated in the trade fair’s quality assessments. The social aspect of the event could be measured by the more than 100 happenings and competitions, such as the national wood chopping competition of wood owners, trotting races, ploughing competitions and many other entertaining events as well as the amusement park Certainly the 50th trade fair will offer opportunities to look back into the past, but only to prove that tradition is the best foundation for building a future.


Minister Mujota and Croatian homologues Popijaç, have signed an international agreement between Kosovo and Croatia24 August 2011In the presence of Primeminister of Kosovo Hashim Thaci, Primeminister of Croatia Jadranka Kostor, Minister of Ministry of Infrastructure Fehmi Mujota and his homologous from Croatia Duro Popijaç, an agreement for International Transport of People and Goods has been signed.Moreover, this is the first international agreement signed between two countries. This Agreement regulates-organizes International road transport of people, goods and transit inside territory of two parties. Main goals of agreement:- To promote transport cooperation between two countries within the economy market, free movement of people and goods. - To advance development of free movement of people and goods and economic relations between two countries. - To add security level in road communication and- To facilitate administrative procedures and to eliminate all administrative difficulties that may occur for transportation agencies in two countries.

Source: Ministry of Infrastructure

WHY TO INVEST IN KOSOVO?Gross Domestic Product (GDP): In 2009: € 3.792 billion, Per capital: € 1,731. Inflation: On average 2.2% per annum over the past five years.Financial Sector: Two tier banking system consisting of Central Bank of the Republic of Kosovo and eight private Banks, 10 Insurance companies and two pension schemes.Enterprises: over 40,000 active SMEs in 2009, app. 50% of total SMEs engaged in trade industry. 500Socially Owned Enterprises of which 400 already privatized.Budget: In 2010 totaling app. € 1.461 billion.Tariff duties: 10% customs duties on imports, no duties on raw materials, capital and intermediary goods;Excise tax on fuel, to-bacco alcohol and luxury goods. No duties and taxes on exports. The New Customs Code is based on EU customs code, and is fully compliant with WCO agreed rules on customs procedures and the Harmonized Commod-ity.Tax System: VAT 16 %, Corpo-rate Profit Tax 10%, Personal Income Tax progressive max. 10%.Free trade: Customs-free ac-cess to the EU market based on the EU Autonomous Trade Pref-erence (ATP) Regime,Central European Free Trade Agree-ment – CEFTA, over 25 million consumers.Labour market: Average labour cost 292 euro in 2010, skilled and well educated work force. Currency: EURO, since 1 January 2002

FOREIgN INVESTmENT• According to the Law on Foreign Investments of Kosovo, foreign investors have the same rights and obligations as residents of Kosovo and are treated equally.• Foreign investors are protected against expropriation and nationalization and have the rights of compensation• A foreign investor has the right to convert any local cur-rency lawfully in use in Kosovo into a freely convertible currency, and to convert any freely convertible currency into any local currency lawfully in use in Kosovo.• A foreign investor has the right to transfer freely con-vertible currency in and out of Kosovo, including, but not limited to, amounts received in a conversion transaction• A foreign investor have the right to execute employment and other contracts with physical persons who are citizens or permanent residents of a foreign state or a geographic ter-ritory outside Kosovo for the purpose of engaging such persons to provide or perform, in Kosovo, professional, management, administration, supervision, or consultancy services or skilled technical functions.• Foreign investors may own real estate in Kosovo and enjoy the same property rights in respect to real estate as Kosovo citizens and legal entities.• Fully described Law of Foreign Investments you can find on web-site of Privatisation Agency of Kosovo.

Kosovo map

Lake of GazivodaBrezovica


HOW SLOVENES LIVE IN KOSOVO “I have experienced life in Kosovo for more than two years. Generally speaking, the life in Kosovo is very challengeable! We can learn a lot from people kindness, patience and hostility. I like the way, how people communicate and stick together and give lots of attention to children. Pristina area is of course not comparable with other regions of Kosovo. Other regions are much more tradition oriented. Thanks to international donor contribution and Kosovo Government programs, all regions are becoming more efficient and connected. Most of the time, I am dealing with young population of entrepreneurs who represent the future of this nation. I have more and more friends among successful entrepreneurs and we are helping them to raise the standards and find some partnership abroad. They just need better business support infrastructure. Kosovars need more positive role models from the business area and should be more knowledge oriented

society. Slovenes are always prepared to support creative and innovative ideas. Moreover, I really respect Kosovars relationship to all Slovenes!

Jordan Berginc PhD is an entrepreneurship expert of EU-KOSVET VI. project in Kosovo, www.eukosvet6.com, co-founder of Slovene-Kosovo Business Association www.slo-kos.org and co-founder of Kosovo Association of Young Entrepreneurs www.smart-idea.org and is contributing some other NGOs.

My first impressions when I arrived in Kosovo were to be divided, but after several months of work and life on Kosovo, but now it is already 7 months I have to say that the work and life in Kosovo is very interesting and dynamic, in particular, I am very impressed by the openness people to chat as well as in business well into the latter is sometimes a little disturbing.

In business, I must say I was pleasantly surprised at the fact that we both Slovenians and Slovenian companies are very honorable, and that the Kosovar entrepreneurs desire for cooperation with Slovenian companies are very large.

Above all, I must say that this market is not only very dynamic but at its very difficult due to strong competition but also due to poor infrastructure, regardless of the last but I’m a little surprised that the Slovenian craftsmen and entrepreneurs give too little attention to

this market, primarily because of durating we Slovenes as well as the very low-cost legislation and taxation.

Aljosa Fiegl


You can find more information about doing business in Kosovo as follows:

Kosova Chamber of Commercewww.oek-kcc.org

Ministry of Economy and Financewww.mef-rks.org

Ministry of Trade and Industrywww.mti-ks.org

IPAK-Investment Promotion Agency of Kosovo

www.invest-ks.orgPrivatisation Agency of Kosovo

www.pak-ks.orgCentral Bank of Republic of Kosovo

www.bqk-kos.orgStatistical office of Kosovo

http://esk.rks-gov.net/Kosova Customs

www.dogana-ks.orgNewspapers

www.kohaditore.comwww.kosova-sot.info

www.zeri.info

“ Newsletter No.7 will be published in December 2011”

• VOXMEDII• LESNA• BREWERY PEJA• NLB-Nova Ljubljanska banka• FACTOR BANKA

SKBA COMING EVENTS: • “ Preaccession period for Kosovo in EU - Challenges

for 2012 “ in November 2011.

For more details about this activities you will be informed on time!

Slovene-Kosovo Business Association is part of JAPTI from Slo-venia (Public Agency for Entrepreneurship and foreign Invest-ments) network of Business clubs, where Ministry of Economy is partly co-financing our activities.We wish a very pleasant welcome to our new members in Au-gust and September 2011:

Agrocelina-Rahovec, Servisi Vellazerit Hyseni, NT Burimi, NLB Prishtina, RIMA Engineering, Albi-Mc sh.p.k, NNT Brezi Kufitare, NN Valoni, NTSH Pesticidet, Autoservice Kollari, Daci Commerce, NTSH Metaliku-a, NNT Fitimi, NTSH Electra, Besholli Commerce, Celjski Sejem d.o.o, Hit Flores, Audit Group shpk, Labena d.o.o, Hlevska Oprema Kobal, Pivka Oprema.

We are very thankful for trust and reliability that is given to us from our members. We strong believe in closed cooperation with all members of SKBA, and also believe that working togeth-er is one of the crucial keys in nowadays for business success.In case you have any additional question, request, or suggestion please feel free to visit us in our office, Square Mother Teresa nr.20, 10000 Pristina (Kosovo Chamber of Commerce building) or by contacting us on:

Tel: +386 43 726 074Fax: +386 43 726 084E: [email protected]: www.slo-kos.org

Our main sponsors:• Ministry of Economy of Slovenia• JAPTI (Public Agency for Entrepreneurship and foreignInvestments).• IPKO

newsletter no.6

Documents

limited progress

good progress

visible progress

progress report findings

european parliament

european union countries

kosovo cca

ministry of trade