Sept. 4 (UPI) -- Kosovo and Serbia agreed to normalize economic relations Friday during a signing ceremony at the White House.
Serbia also plans to open an embassy in Jerusalem as part of the talks.
Kosovo Prime Minister Avdullah Hoti and Serbian President Aleksandar Vučić signed a brokered agreement which will see the construction of a rail line and highway between the two Balkan countries.
U.S. President Donald Trump oversaw the signing ceremony after two days of brokered meetings in Washington, D.C.
"After a violent and tragic history and years of failed negotiations, my administration proposed a new way of bridging the divide," Trump said in a statement. "By focusing on job creation and economic growth, the two countries were able to reach a real breakthrough on economic cooperation across a broad range of issues."
As part of the agreement, Serbia plans to open an office in Jerusalem later this month and move its embassy there in July.
Israel claims Jerusalem as its capital but most of the international community has embassies in Tel Aviv. Trump moved the U.S Embassy to Jerusalem in May 2018 over the objections of Palestinians, who consider the land to be theirs.