FREE TRADE AGREEMENTS

A Free trade Agreement (FTA) is an agreement between two or more cooperating countries to form a free-trade area, where the countries agree on certain obligations that affect trade of goods and services, and protections for investors and intellectual property rights, among other topics. There are two types of trade agreements: bilateral and multilateral.

Bilateral trade agreements occur when two countries agree to loosen trade restrictions between the two of them, generally to expand business opportunities.

Multilateral trade agreements which are the most difficult to negotiate and agree, are agreements among three or more countries.

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Serbia is contracting party of several Free trade Agreements, which puts it in perspective for investors, allowing preferential customs regimes with partnering countries. The status of a ‘transshipment base’ between the East and the West is definitely the main advantage of the jurisdiction that distinguishes it from other European countries.

Currently active Free trade Agreements applicable in trade with companies from Serbia:

• CEFTA - Serbia

• EFTA - Serbia

• EU - Serbia (Stabilization and Association Agreement)

• Eurasian Economic Union (EAEU) - Serbia

• Türkiye - Serbia (bilateral)

• United Kingdom - Serbia (bilateral)

Serbia is also a contracting party of Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention) which allows application of diagonal cumulation between the CEFTA, EU, EFTA States. It is based on a network of Free Trade Agreements having identical origin protocols.

The rules of the PEM Convention are under revision. A large number of PEM contracting parties already apply these revised rules on a bilateral basis, pending the adoption of the revised Convention by all PEM Contracting Parties. These so-called “transitional rules” apply alternatively to those of the current PEM Convention, which would remain in full application among all PEM Contracting Parties.