Serbia will sign a free trade agreement with China on Tuesday – covering 10,412 Serbian tariff lines or products and 8,930 on the Chinese side, as President Aleksander Vučić snubbed the Berlin Process Summit meeting in Tirana to head east.
An exchange of notes with the Chinese side is required within 90 days, with the agreement being expected to come into force by May or June, eliminating all tariffs. This would mean no more high tariffs on Serbian apples, plums, peaches, and soybean oil, among Serbia’s best-selling products.
“We must pursue so-called preferential arrangements for our products in agriculture and industry, conquering new large markets to avoid an excess of raspberries and apples, wines, and brandies,” said Vučić, adding that the procedure for the agreement will be completed in Serbia by the end of March.
He added that there will be no tariffs on frozen raspberries, which have seen a 350% increase in sales compared to the previous year, and on beer, water, carbonated water, and almost all pharmaceutical and industrial products.
“Wine will be completely duty-free within five years, as the tariff will gradually decrease by 20% over the next five years, while today, they have to be included and constitute 30% of the total price. It will be 0% after five years, and our winemakers will have a much better price on that market,” says Vučić. Additionally, tariffs on brandy will be abolished over ten years, decreasing by 10% each year.
According to Vučić, this free trade agreement demonstrates the efforts made to improve the position of agricultural producers and industrial sectors. He informed journalists that this crucial agreement was in the works for six months, involving negotiations by six working groups.
Meetings between both nations will begin on Tuesday morning. In addition to a bilateral meeting with Xi Jinping, a multi-hour meeting with Van Hu Ning, the head of the National Council, the most important political body advising the Chinese leadership, is scheduled.
Vučić was not present at the Berlin Process Summit in Tirana, which brought together regional and EU leaders to sign agreements on regional cooperation trade, and to move forward with EU integration. Instead, he sent Prime Minister Ana Brnabic, who, according to Kosovo Prime Minister Albin Kurti, refused his offer to sign the two EU-facilitated agreements from 2023- the basic implementation agreement and the Ohrid agreement.
The absence of Vucic fuelled rumours amongst EU diplomats that he did not want to face difficult questions on the 24 September terrorist attack in north Kosovo, possible measures from the EU, and calls to reduce ties with Russia and China.
(Jelena Nikolić | Euractiv.rs, Alice Taylor | Euractiv.com)
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