Ukraine and Serbia resume negotiations on a free trade agreement
On May 21, the Office of the Vice Prime Minister of Ukraine announced the start of the process of concluding a new free trade agreement with Serbia. The renewed negotiations aim to strengthen economic ties between the two countries.
In Belgrade, Ukraine’s Deputy Prime Minister Taras Kachka and Serbia’s Minister of Internal and Foreign Trade Jagoda Lazarevic signed a Joint Declaration on the resumption of negotiations aimed at creating conditions for closer economic cooperation. According to Kachka, the agreement will not only open markets for goods but will also promote the creation of regional production chains. This will allow companies from both countries to integrate their resources while maintaining tariff preferences.
The agreement envisages the application of diagonal cumulation, which will allow producers to use components from third countries without losing preferential status. This step could significantly enhance the competitiveness of Ukrainian and Serbian manufacturers’ products.
The agreement is expected to promote export growth, improve conditions for goods entering the markets of Ukraine and Serbia, and create new jobs. It could also become an important stage in the development of industrial integration between the countries.
The context for resuming negotiations was the growth in Ukraine’s trade turnover, which at the beginning of the year amounted to 46.1 billion dollars. In the first three months of 2023, imports to Ukraine amounted to 32.2 billion dollars, while exports were 13.9 billion dollars.
| Country | Import (billion USD) | Export (billion USD) |
|---|---|---|
| Ukraine | 32.2 | 13.9 |
