The Free Trade Agreement (FTA) between Serbia and China, signed in October 2023, officially came into effect on July 1.

The deal, which encompasses over 20,000 products and grants Serbian producers preferential access to the vast Chinese market, is expected to boost exports, enhance investment and production capacities, and increase overall economic activity and competitiveness in Serbia. 

Minister of Finance Sinisa Mali highlighted the agreement's immediate impact, noting that 60% of the covered goods will be duty-free starting today, with an additional 30% of goods to be included over the next five to ten years.

"Our economy can now sell fresh fruits and vegetables, pharmaceutical products, and products from the chemical and mechanical industries to China on much more favourable terms," Mali stated on Instagram. He emphasised the competitive edge this will give to Serbian exports such as fresh apples, blueberries, prunes, and beef.

Minister of Trade Tomislav Momirovic described the FTA as the most significant opportunity for Serbian companies in the last 25 years, urging businesses to leverage the advantages offered by the agreement. Momirovic predicts that Serbia's exports to China, currently valued at €1.2bn, will soon double, spurring new investments, job creation, and higher wages in Serbia.

Despite the optimism, experts caution that over 90% of Serbia's current exports to China consist of copper and copper products mined by the Chinese mining company Zijin. A rule on the accumulation of origin, which requires that over 50% of a product be produced in Serbia to qualify for reduced or abolished customs duties, also poses challenges for the export of industrial products dominated by foreign companies, particularly in the automotive sector.