Montenegro Responds Wisely to Serbian Wheat Ban

Serbia and Russia have imposed export bans on wheat in an attempt to reduce domestic prices in the face of rising consumption and temporary production shortages. Montenegro imports ninety percent of it’s wheat and flour from Serbia, for which it pays approximately €35 million a year.

The Montenegrin government is wisely choosing not to initiate a trade war with Serbia by imposing it’s own state controls on imports and exports in response to this ban. Wheat and flour are fungible commodities and they can be sourced from many exporting nations across the globe.

The best move for Montenegro, long term, is to continue to develop a robust economy which creates the wealth necessary to import goods and services which can be provided more inexpensively from outside of the country. The landscape of Montenegro is not well suited for grain production; industries like tourism and mining are much better ways for the nation to utilize it’s natural resources.

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