Balkan cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) in The Hague remains an issues of ongoing U.S. and international concern. Full cooperation with ICTY has long been a key prerequisite to advancing the shared goal of closer association with and eventual membership in the European Union and NATO for the western Balkan countries. This policy of conditionality has affected Serbia the most, but also other western Balkan countries to varying degrees.

On February 17, 2008, Kosovo declared its independence from Serbia. On February 18, the United States recognized Kosovo as an independent state. Britain, France, Germany, Italy, and most other European Union countries have also recognized Kosovo. Serbia and Russia have heatedly objected to the recognition of Kosovo's independence. Independent Kosovo faces many challenges, including its relations with Serbia and Serbs in Kosovo, as well as weak institutions and an underdeveloped economy.