The Publicly Declared Customs Union Between Albania and Kosovo (1244 Security Council Resolution)

Leaders of Albania and Kosovo have publicly declared that they plan to create a customs union in order to abolish the traditional borders between them. They also claimed that the abolition of borders will inevitably occur with the accession of Albania and Kosovo to the EU. The aim of the paper is to examine whether such a union is possible and assess if this move primary reinforces economic integration or it is the means of fulfillment of foreign policy objectives. Testing the validity of the theoretical framework, according to which regional trade agreements and even more bilateral free trade areas allow stronger states to further influence weaker states, I examine the case of the creation of the customs union between Albania and Kosovo (under the 1244 Security Council Resolution). First, I analyze the economic conditions under which the potential customs union is going to be made and to what extent basic principles of the background theory is satisfied for a successful endeavor. More precisely, I use and analyze macroeconomic indicators and bilateral economic relations. In addition, I analyze the economic and political motives of the creation of the customs union through a quantitative and qualitative analysis. I conclude, that the creation of the customs union between Albania and Kosovo is more the first step for the fulfillment of Albania’s foreign policy goals rather than an effort of the economic upgrade of a Balkan country which struggles to become a member of the EU.