Looming Balkan trade war over Croatia's import taxes

Four Balkan countries have threatened to retaliate if Croatia does not revoke its decision to raise taxes for fruit and vegetable imports.

Serbia, Bosnia, Macedonia and Montenegro — which are not part of the European Union — issued an ultimatum to Croatia on Monday after a meeting of government officials in the Bosnian capital of Sarajevo.

They demanded that Croatia revoke its decision to drastically raise the import fees. According to the new rates imposed by Croatia last week, a border sanitary inspection certificate for fruit and vegetables now costs 270 euros per truck, from 12 euros previously.

Serbian Trade Minister Rasim Ljajic says Croatia's neighbors don't want a trade war, but warned of retaliatory measures if Croatia doesn't return to the previous taxes by the end of this week.