Serbia and China’s free trade agreement, which officially takes effect on July 1, marks a significant milestone for economic cooperation between the two nations. Covering a vast array of over 20,000 products, the agreement promises to open up new opportunities for Serbian producers to access China’s expansive market of 1.4 billion consumers. Signed in Beijing in October 2023 by Serbia’s Trade Minister Tomislav Momirović and China’s Minister of Commerce Wang Wentao, the agreement encompasses 10,412 Serbian products and 8,930 Chinese products.
Initially, 60 percent of goods will be exempted from customs duties on the agreement’s first day, with a gradual reduction in tariffs planned over the next five to ten years. Particularly sensitive products, primarily in agriculture, will continue to receive protection. This phased approach includes a yearly reduction of tariffs by 20 percent for goods set to become duty-free in five years, and by 10 percent annually for those transitioning over a decade.
Starting July 1, Serbian exporters will benefit from duty-free access to China for products such as fresh fruits, vegetables, pharmaceuticals, and items from the chemical and mechanical industries. To qualify for these benefits, companies must demonstrate that at least 50 percent of the exported product’s value was created in Serbia.
China stands as one of Serbia’s most crucial economic partners and the largest investor in its economy, with investments exceeding 5.5 billion euros from 2014 to 2023, comprising 17.5 percent of total investments during that period. Last year, bilateral trade between Serbia and China reached 6.09 billion dollars, with Serbia exporting goods worth 1.2 billion dollars.
Minister Tomislav Momirović emphasized the agreement’s potential to significantly boost Serbia’s economy, particularly highlighting opportunities for agricultural products from regions like Južnobački District to access new markets in China. This development is expected to enhance farmers’ incomes, stimulate rural development, and further strengthen Serbia’s agricultural sector.
According to the Serbian Chamber of Commerce, the leading Serbian exports to China include copper ores, cathodes, processed beech wood, frozen beef, and engines. Conversely, major imports from China to Serbia consist of boilers, smartphones, portable machinery, air conditioning units, and colored sheet metal.
Currently, 1,560 companies with majority Chinese capital operate in Serbia, employing nearly 20,600 workers. Chinese investments accounted for nearly a third of foreign investments in Serbia last year, highlighting the robust economic ties between the two nations.
