Serbia’s Minister of Internal and Foreign Trade, Tomislav Momirović, announced today at the Chamber of Commerce of Serbia the upcoming implementation of the Free Trade Agreement (FTA) with China, effective from July 1. He emphasized that this agreement will significantly benefit Serbian companies compared to their European and regional counterparts, granting them privileged access to a market of over 1.4 billion people.
The FTA covers approximately 20,000 products, with immediate tariff-free access for about 60% of them. Over the next five to ten years, tariffs on an additional 30% of products will gradually decrease annually from 20% to 10%. Momirović underscored that tariffs on the most sensitive 10% of products will remain protected permanently.
The primary objective of establishing the FTA with China, according to Momirović, is to facilitate preferential access to the Chinese market for Serbian-origin products. This is expected to significantly boost exports, expand investment and production capacities within Serbia, enhance competitiveness, and strengthen overall economic activity.
Momirović highlighted that Serbia, with a population of approximately 6.5 million in Central Europe, needs to explore and promote free trade to compensate for its limited domestic market size. He pointed out the significant contribution of trade to Serbia’s GDP growth, noting that last year, the GDP increased by about 2.5%, with 2.3% attributed to trade. Export growth slightly exceeded 1.5%, while imports contributed approximately 0.8%, indicating the pivotal role of trade in economic upliftment.
Prior to the FTA with China, Serbia had concluded several agreements primarily with closer markets and countries that are major sources of investment, including the EU Association Agreement, the CEFTA Agreement, agreements with the Eurasian Union, and preferential arrangements with the United States and Japan.
Momirović emphasized that by signing the FTA with China, Serbia has opened its market of 6.5 million people, while China, with its market of 1.4 billion people, provides a vast opportunity that surpasses Europe nearly threefold.
Through this agreement, Momirović aims to cultivate a new business elite in Serbia, encouraging entrepreneurs and business leaders to capitalize on opportunities and further stimulate the economy. He also announced plans to soon sign FTAs with Egypt and the UAE to continue expanding market access for Serbia’s economy.
Mihailo Vesović, Director of Strategic Analysis, Services, and Internationalization at the Chamber of Commerce of Serbia, described today’s session as the beginning of a series of presentations on the FTA with China. He emphasized that the agreement’s implementation on July 1 is the most significant economic news for Serbia this year.
Vesović highlighted that from July 1, 60% of all products will enter duty-free trade, presenting a substantial opportunity for Serbian products already partially present in the Chinese market to increase their presence, reduce costs, and enhance competitiveness. He emphasized that Serbia’s FTA with China distinguishes it from many European countries, making it highly attractive to potential investors.
Furthermore, Vesović pointed out that Serbia can position itself as a logistical hub for Southeastern Europe, which presents excellent business prospects for the country.
