From Agreement to Implementation: The Future of the Sino-Serbian Free Trade Deal

Zakić, Katarina (2025) From Agreement to Implementation: The Future of the Sino-Serbian Free Trade Deal. In: Risks for Serbian Foreign Policy in the Fragmentation of the International Order — Actors, Processes, and Outcomes. Institut za međunarodnu politiku i privredu, Beograd, pp. 178-202. ISBN 978-86-7067-363-2

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Abstract

Free trade agreements became a prominent trademark of the globalisation process during last decades of the 20th century. China and Serbia had positive orientations towards agreements in the past, which resulted in China’s sixteen and Serbia’s seven agreements until 2023. The improvement of trade relations between Serbia and China, exemplified in signed Sino-Serbian free trade agreement, was due to previously signed bilateral diplomatic agreements, of which the most important one was the Comprehensive Strategic Partnership Agreement, signed in 2016. The Sino-Serbian free trade agreement effectively started in June 2024. Within the agreement, each party nominated around 10,000 products, which will reach zero tariffs in the next fifteen years. Agreement is important not just in an economic sense, but also in a political sense. For China, the main benefit is a diplomatic victory, since it signed a free trade agreement, besides Switzerland and Iceland, with the third country in a row in Europe. For Serbia, the gain is both political and economic. Serbia is proving to be a loyal partner of China, a stance that is not typical for many European countries, especially those aspiring for European Union membership. Although the trade agreement provides good opportunities for both parties, there are numerous challenges on the Serbian side in order to improve its bilateral trade relations through the agreement. The main limitations for Serbia in implementing the agreement are volume of the production, transportation cost, highly competitive Chinese market, unknown market for Serbian domestic companies and lack of institutional support. Nevertheless, Serbian products that have export potential include frozen and processed fruit products (made out of apples, raspberries, plums and prunes), oilseeds, cheese, wine, rakija, pet food, mineral fuels, fertilisers, tanned leather and leather products.

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