On October 17, China's Minister of Commerce Wang Wentao and Serbia's Minister of Domestic and Foreign Trade Momirović, representing their respective governments, signed the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Serbia.
This is the first free trade agreement China has signed with a Central and Eastern European country, China's 22nd signed FTA, making Serbia China's 29th free trade partner. The signing of the China-Serbia FTA is a key step in implementing the consensus reached by the leaders of both nations, another significant practice in expanding China's high-standard free trade area network globally, and an important outcome of the third Belt and Road Forum for International Cooperation.
Zero-Tariff Products to Reach 90% for Both Sides
First, a high level of liberalization. China and Serbia will each eliminate tariffs on 90% of tariff lines, with over 60% of tariff lines becoming duty-free immediately upon the agreement's entry into force. The import value covered by zero-tariff lines will reach approximately 95% for both sides.
Second, extensive product coverage. Serbia will grant zero tariffs on products of key interest to China, including automobiles, photovoltaic modules, lithium batteries, communication equipment, machinery, refractory materials, and certain agricultural and aquatic products, with tariffs on these products gradually reduced from the current 5%-20% to zero. China will grant zero tariffs on products of key interest to Serbia, including generators, electric motors, tires, beef, wine, and nuts, with tariffs also gradually reduced from the current 5%-20% to zero.
Third, concrete facilitation measures. Both sides will deepen customs cooperation, strengthen information exchange and communication coordination, and establish specific provisions on trade procedure simplification, risk management, transparency, advance rulings, the Authorized Economic Operator (AEO) system, and cooperation and consultation. In particular, self-declaration of origin will be introduced to facilitate enterprises' enjoyment of preferential treatment.
The China-Serbia efforts to advance trade liberalization and facilitation will not only help expand bilateral trade but also promote investment cooperation and industrial chain integration between the two countries, allowing each to better leverage its comparative advantages and jointly enhance international competitiveness.
Negotiations for the China-Serbia FTA were launched in April 2023 and substantively concluded by the end of September. Following the signing, both sides will complete their respective domestic legal approval procedures to facilitate the agreement's early entry into force and implementation.
Bilateral Trade Valued at Nearly RMB 20 Billion in First Eight Months
According to an official from the Department of International Trade and Economic Affairs of the Ministry of Commerce, Serbia is a key partner in China's Belt and Road cooperation. In 2022, bilateral trade between China and Serbia reached USD 3.56 billion, up 10.1% year-on-year. Through the FTA, both sides will achieve a high level of mutual openness, establishing new institutional arrangements for bilateral economic and trade cooperation, creating a more preferential, convenient, transparent, and stable business environment for enterprises of both countries, and injecting new momentum into high-quality Belt and Road cooperation and the deepening of the China-Serbia comprehensive strategic partnership.
Customs data show that from January to August this year, the total import and export value between China and Serbia reached RMB 19.80 billion, representing a cumulative year-on-year increase of 21.9%. Of this, China's exports to Serbia amounted to RMB 12.00 billion, up 19.5% year-on-year, while imports from Serbia reached RMB 7.80 billion, up 25.7%.
China and Serbia to Strengthen Cooperation Across Multiple Sectors
Under the China-Serbia FTA, in the areas of investment and services, both sides have agreed to cooperate in investment promotion and facilitation, including sharing and exchanging investment information, improving investment environment transparency, and simplifying application and approval procedures. Additionally, both sides will work toward the progressive liberalization and market opening of trade in services in accordance with the WTO General Agreement on Trade in Services, with a view to reaching a trade in services liberalization agreement between the two parties.
In the field of intellectual property protection, both sides will adhere to the principles and provisions of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and strengthen cooperation in IP protection through coordination and consultation.
In the area of competition, both sides have established provisions on corporate competition rules to be observed, while recognizing the independence of competition law enforcement. Furthermore, both sides have agreed to strengthen cooperation in the fields of health and traditional Chinese medicine.
Content compiled from the Ministry of Commerce website, General Administration of Customs website, China Securities Journal, Zhejiang Trade Promotion, and other sources.