The agreement can bring numerous benefits to Serbian producers, the chamber of commerce says. The Far Eastern country with a population of 1.4 billion could be a new market for processed meats and wines, among other products. Serbia's exports to China have increased 152-fold in 10 years, and this can be further expanded by the planned deal, which was agreed on by the Serb and Chinese presidents earlier this year. The details of the deal are being hammered out by a task force led by the finance minister.

Chinese investors to arrive in Serbia

The conclusion of the free trade agreement can bring countless advantages for producers in Serbia, the B92 news portal writes. On the one hand, businesses and farmers can gain access for their products to this market with huge potentials, and on the other, the Balkan country can also benefit from it. With the signing of the agreement, Serbia can become one of the most attractive European countries for Chinese investors.

As a result of the free trade agreement, the import and export of most products will be tariff-free or the lowest possible tariffs will apply to them. This will further expand the exchange of goods, Novosti writes.

Beijing is Belgrade’s most important foreign trade partner in Asia, and this can be further strengthened with the planned agreement. Work on the draft of the free trade deal began months ago, with the finance ministry setting up a special task force for the job. Finance Minister Sinisa Mali pointed out that

„the agreement will enhance the competitiveness of Serbia’s economy. It will increase exports and open new doors for foreign investors. In the last ten years, that is, during the period from 2012 to 2022, the volume of goods exported from Serbia grew by 152-fold.”

The turnover is growing by the year, and exports last year almost reached 1 billion dollars, Ms Mali added.

Chamber of Commerce also backs agreement

Bojan Stanic, Deputy Director of Strategic Analysis at the Serbian Chamber of Economy, said that the chamber supports the government’s idea, but stressed the importance of elaborating the details.

„The agreement should be developed with the participation of a wide range of professionals, and it is essential that we consult our own entrepreneurs. Creating a free trade agreement between two economies that are not of the same weight is a complex task. In such a scenario, the smaller country is usually in a subordinate position,”

the expert pointed out. According to the Chamber of Commerce, it is also important that the agreement covers not only trade, but also investment, providing assistance to Serbian investments in China, and vice versa. Experts are also in favour of Chinese companies coming to Europe to hire local workers and cooperate with local companies.

Serbia used to be a leader in metal and timber exports to China. Now the country is seeking to expand its export to include raw and processed meat products, wine and other alcoholic beverages. Bojan Stanic underlined, that

living standards in China have seen a sharp rise of late. People’s purchasing power has increased and they are happy to spend their money on European products, be it cars, cheese or wine.

Photo: President of Serbia

The leaders of the two countries, Aleksandar Vucic and Xi Jinping, agreed on a free trade agreement in February this year. In Europe, only Switzerland and Iceland have previously concluded such cooperation deals with China, with Norway and Moldova now mulling the possibility of a similar agreement.