The European Union (EU) and Serbia have recently signed a historic free trade agreement (FTA) that promises to strengthen economic ties between the two regions. The deal covers a wide range of sectors, including agriculture, services, and industrial goods, and is expected to bring significant benefits to both parties.
The agreement was signed on October 29, 2019, after seven years of negotiations, and entered into force on February 1, 2021, following its ratification by the EU and Serbia. The FTA aims to boost trade and investment between the EU and Serbia, eliminate tariffs and other trade barriers, and promote regulatory convergence.
One of the main benefits of the FTA is increased market access for both EU and Serbian businesses. Serbian exporters will now have better access to the EU`s market of over 500 million consumers. This is particularly important for Serbia`s agricultural sector, which has long been a key exporter of products such as berries, meat, and dairy to the EU. The FTA will also provide new opportunities for Serbian companies in sectors such as automotive, pharmaceuticals, and textiles.
In return, EU exporters will benefit from improved access to Serbia`s market of almost 7 million consumers. The FTA will eliminate tariffs on almost all goods traded between the EU and Serbia, which will make EU products more competitive in the Serbian market. This is expected to boost EU exports in sectors such as machinery, chemicals, and processed food.
The FTA also includes provisions on services, which will allow EU and Serbian companies to provide services to each other`s markets more easily. This is especially important in sectors such as telecommunications, finance, and transport, where cross-border trade in services is growing rapidly.
Another key aspect of the FTA is regulatory convergence. The agreement includes provisions to align Serbia`s regulatory framework with that of the EU, in areas such as competition policy, intellectual property rights, and consumer protection. This will make it easier for EU companies to do business in Serbia and will ensure a level playing field for all businesses.
Overall, the EU-Serbia free trade agreement is expected to bring significant benefits to both parties. It will boost trade and investment, create new opportunities for businesses, and help to strengthen economic ties between the EU and Serbia. The agreement also demonstrates the EU`s commitment to supporting Serbia`s strategic goal of joining the EU in the future.
