EU extends trade preferences to Balkans

(BRUSSELS) - The European Union on Friday renewed trade preferences to the western Balkans until 2015, giving nearly all products from the region duty-free access to the 27-nation market for four more years.

The measure will benefit of Albania, Bosnia, Croatia, Macedonia, Montenegro, Serbia and Kosovo.

The trade advantages had expired on December 31, 2010, but the EU later decided to extend them for another four years. Exporters will be able to claim compensation for duties paid in 2011.

The "exceptional autonomous trade preferences" come on top of a Stabilisation and Association Agreement (SAA) between the EU and Balkan nations that only gives preferential tariffs to wine, sugar and certain beef and fish products.

"These trade preferences support economic integration with the EU and hence foster political stability and economic progress in the entire region," the European Commission said in a statement.

The special trade preferences are particularly advantageous to Kosovo since it has not signed an SAA with the EU. Kosovo declared independence from Serbia in 2008 but Belgrade refuses to recognise it.