Agreement on free trade between Serbia and Russia expanded – automobiles excluded from the list

Serbia and Russia have signed the protocol that expands the Agreement on free trade between the two countries, which now encompasses 95% of products, excluding automobiles.

The negotiations about determination of the quota for duty-free export of automobiles from Serbia and Russia will be resumed in the following months, but the Deputy Prime Minister of Serbia, Ivica Dačić, and the Minister of Emergency Situations of Russia, Sergej Šojgu, said that that had not been the subject of the recent talks.

The Minister of Emergency Situations of Russia pointed out that foreign automobile companies should not be allowed to have the corridor built through Serbia in order to be able to export vehicles to Russian market free of duty. When asked to comment on export of "Fiat" automobiles to Russia, Šojgu asked what the difference was between "Fiat", "Honda" or "Hyundai" automobiles. He added that the export of "Ikarbus" buses to Russian market can be the subject of the negotiations.

The Deputy Prime Minister of Serbia, Ivica Dačić, said that Russian Federation was the main foreign-trade partner of Serbia and that the value of exchange in 2008 had amounted to about 4 billion USD, 1 billion USD more than in 2007.

The Protocol, which has been put in effect immediately, additionally liberalizes export of all drugs, slaughterhouse products, confectioneries and wine, and it also includes revoking of duties on refrigerators, freezers and other cooling appliances.

Washing and drying machines, certain kinds of carpets, wooden office furniture, all soaps, wool fabrics, mattrasses, bed linens, apple juice and malt beer are now in the free trade regime.

Even after expansion of the Agreement, the list still does not include automobiles, sugar, meat, cigarettes, wooden furniture other than office furniture, glucose syrup, non-denaturated ethyl alcohol, champagnes, yarns and cotton fabrics, some air pumps, tractors, cash registers, TV sets and monitors.