First step towards forming Balkan union made - “Protocol Five” on facilitated goods trade to come into effect in 2017

Deputy Prime Minister and Minister of Trade Rasim Ljajic said that the first step towards forming a Balkan union, whose ultimate goal is economic association of the markets of Serbia, Montenegro, Macedonia, B&H, Albania and Kosovo and Metohija, had been made.

We have defined the so called “Protocol Five”, which entails facilitated goods trade. Everyone has signed it and it should come into effect by the end of the year, Ljajic said for Srpski Telegraf.

According to him, “Protocol Six”, entailing the liberalization of service trade, was also defined in principle.

Step by step, we are moving towards the customs union as the ultimate goal, Ljajic said and emphasized that it was in no way a substitute for the EU, but the way for the region to prepare itself for an easier accession to the European community.

Each market is small by itself and as such not interesting enough for big foreign investments, and the companies cannot compete with big multinational companies in the global market, he said.

This means that we need to join the capacities together, as it's not the same being a market of several million people and being a market of nearly 22 million people, Ljajic said.

The newspaper reports that the idea originated with President Aleksandar Vucic and that it was supported by European Commissioner Johannes Hahn, and then by Europe and Germany, which are prepared to set aside money for the realization.

Ministarstvo turizma i omladine Republike Srbije

Vlada Republike Srbije

Balkan customs union

Rasim Ljajic

Aleksandar Vucic

Johannes Hahn

Protocol Five

Protocol Six

goods trade

liberalization of service trade