Thewesternbalkans
The Free trade agreement (FTA) which is part of a comprehensive Serbia-China partnership called “Shared Future”, come into effect on July 1 as both countries have completed respective domestic approval processes.
According to the agreement signed in October 2023, approximately 90 percent of the products traded between Serbia and China will be exempted from tariffs within the next five to ten years, while over 60 percent of them will enjoy zero tariffs immediately after the FTA goes into effect on July 1.
The agreement covers about 20 000 products, such as electric generators, electric motors, tires, beef, wine and nuts.
The implementation of the FTA will further release the potential of trade and investment cooperation between China and Serbia and raise the quality and level of economic and trade cooperation between the two countries, according to the statement of the China’s Commission for Customs Tariffs.
Comment: The coming into force of the FTA would result in deepening the economic and political ties between Belgrade and its second-largest trading partner.
The agreement should lead to a significant increase in Serbian exports, an expansion of investment and production capacity in Serbia, as well as an increase in competitiveness and general economic activity.
However, Belgrade was already warned by the EU that the FTA with China violates EU accession rules and should cease to apply on the day Serbia becomes a member of the EU.
The benefit for China, on the other hand, is clear. The Agreement with Serbia is the first that China has concluded with a country in central or eastern Europe, a region that is otherwise turning its back on the Beijing.
