ANALELE ŞTIINŢIFICE ALE UNIVERSITĂŢII „ALEXANDRU IOAN CUZA ” DIN IAŞI Număr special Ştiinţe Economice 2010 TRADE EXCHANGE OF KOSOVO WITH BALKAN’S REGION COUNTRIES

Kosovo, within the ten years period, has moved from a post conflict country to a country consi-dered to be in transition. Kosovo has passed from its determination for reconstruction of the country to the orientation towards economic development and integration to European structures. But eco-nomic development is not yet sufficient in order to address challenges that Kosovo is facing, such as high percentage of unemployment and high trade deficit. Trade exchange in Kosovo during 2007 ar-rived at 1.6 billion Euros or 67 % of Kosovo’s Gross Domestic Product, an indicator which is higher than in any of the South East European countries and proves a realization of wide efforts for an open market economy and international trade approach. In fact in 2007 import of goods in Kosovo arrived at 1.5 billion Euros, marking an increase of 20.8%, while exports arrived at 96.4 million euro, mark-ing also an increase of 35.2 % in comparison to 2006. While, imports coverage by exports improved in 2007 to 6.4%, up from 5.7 % in 2006. Within the framework of trade liberalization and integration with the countries in the region, during 2006, Kosovo finalized two new free trade agreements (with Bosnia & Herzegovina and Croatia) and revised the existing free trade agreement with Albania. All these agreements entered in force by the end of the year. During December 2006, Kosovo and all th