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WASHINGTON:  An agreement between Serbia and Kosovo to work on economic ties, hailed by US President Donald Trump on Friday as a “major breakthrough,” reaffirmed pledges to establish highway and railway links but left movement on political normalisation on hold.

Both countries – part of the former Yugoslavia – agreed, for a year, to freeze campaigns advocating for and against normalising political ties. Speaking in the Oval Office flanked by the two countries’ leaders, Trump said Serbia had also committed to moving its embassy to Jerusalem and Kosovo and Israel had agreed to normalise ties and establish diplomatic relations.

Serbian President Aleksander Vucic told reporters there were still many differences between Serbia and its former province, which declared independence in 2008, but said Friday’s agreement marked a huge step forward.

He later told Serbian media that Serbia’s agreement was with the US, not Kosovo.

Measures welcomed

Kosovo Prime Minister Avdullah Hoti also welcomed the measures, and said they should lead to mutual recognition between the two countries, the key issue dividing them.

 “Serbia and Kosovo have each committed to economic normalisation,” Trump said. “By focussing on job creation and economic growth, the two countries were able to reach a major breakthrough.”

Friday’s events, which came after two days of talks among the leaders and senior Trump aides, was originally scheduled to take place in the White House’s Roosevelt Room, with two tables set up for the leaders to sit at. It was abruptly moved to the Oval Office, with Trump’s desk between the two tables.

The Serbian and Kosovo leaders appeared to sign separate documents, not one. Trump, meanwhile, signed letters acknowledging that the two countries would work together.