Since June 1, Serbia’s free trade agreement (FTA) with the United Arab Emirates (UAE) has been in force, allowing both countries to sell around two-thirds of agricultural and industrial products duty-free immediately. After a five-year phase-in period, approximately 96 percent of tariff lines will be completely duty-free, opening extensive opportunities for Serbian exporters.
Minister of Internal and Foreign Trade Jagoda Lazarević told RTS that this agreement is especially significant for Serbia’s economy, as it enables the export of strategic products such as fresh apples, berries, and various industrial goods to the UAE market with reduced or eliminated customs duties.
“This agreement is part of a new generation of modern FTAs, which, unlike similar deals with Turkey, China, or Egypt, achieve customs duty elimination faster,” Lazarević explained. “It also covers not only goods but services, which is crucial given the UAE’s trade structure.”
The phased liberalization period for this agreement is shorter than for China’s FTA, where tariff reductions span up to 15 years. With the UAE, about 64 percent of goods were duty-free from day one, and this figure is expected to reach over 95-96 percent within five years. Only a small portion of highly sensitive products remains exempted from the deal.
Lazarević emphasized that the agreement offers preferential market access and increased competitiveness for Serbian companies, benefiting those already trading with the UAE and encouraging newcomers to explore this market. The initial tariff cuts focus mainly on fruits and vegetables.
On the topic of services, she noted that negotiations are complex because countries tend to protect sensitive sectors and restrict market access accordingly, similar to goods. The agreement balances these considerations while opening new opportunities.
The agreement’s early implementation phase already allows Serbian exporters to ship key products duty-free, boosting trade relations. Lazarević called it an excellent foundation for expanding exports across agricultural, food, and industrial sectors, offering Serbian companies a gateway into the dynamic UAE market.
