Serbian exhibitors taste wine with Chinese buyers at the China-CEEC Expo in East China's Ningbo on May 16, 2023. Photo: VCG

China signed a free trade agreement (FTA) with Serbia on Tuesday, the first FTA signed between China and a Central and Eastern European country, and the 22nd FTA China has signed, making Serbia China's 29th free trade partner.

The deal was announced at the ongoing third Belt and Road Forum for International Cooperation held in Beijing, witnessed by both countries' top leaders.

Negotiations on the FTA started in April and were substantially completed at the end of September, after two rounds of formal negotiations and nearly 30 working group meetings.

China and Serbia will achieve a high level of mutual openness with the agreement, which will establish new institutional arrangements for bilateral trade cooperation, and create a more preferential, convenient, transparent and stable business environment for enterprises from both countries, China's Ministry of Commerce (MOFCOM) said on Tuesday.

It will push forward the high-quality joint construction of the Belt and Road Initiative and deepen the comprehensive strategic partnership of the two countries, the MOFCOM said.

China and Serbia will mutually cancel tariffs on 90 percent of taxable items. Among them, more than 60 percent of taxable items will be tariff-free after the agreement takes effect, and the final import volume proportion of both sides with zero-tariff items will reach about 95 percent, according to the agreement.

Serbia has put automobiles, photovoltaic modules, lithium batteries, communication equipment, machinery and equipment, refractory materials and some agricultural and aquatic products into the zero-tariff category. Tariffs on relevant products will gradually be reduced to zero from the current 5 to 20 percent.

China put generators, electric motors, tires, beef, wine and nuts on the list of zero tariffs. Tariffs on relevant products will also be gradually reduced to zero from the current 5 to 20 percent.

The promotion of trade liberalization and facilitation by the two countries will help expand bilateral trade, promote investment cooperation and industry chain integration, and enhance international competitiveness, the MOFCOM said.

Serbia is applying to join the WTO, and both parties have committed in the FTA that the rights, obligations, measures and practices in relevant fields should comply with WTO rules. This fully reflects the common will and firm determination of China and Serbia to actively support the multilateral trading system and economic globalization, the MOFCOM added.

The two countries also agreed to cooperate in investment promotion and facilitation, including sharing investment information and improving investment transparency. The two sides will also make efforts to realize the gradual liberalization and market opening of trade in services, with a view to reaching an agreement on liberalization of trade in services.

After the agreement is signed, both parties will implement their respective domestic procedures to promote the early entry into force and implementation of the agreement.

Bilateral trade reached $3.56 billion in 2022, a year-on-year growth of 10.1 percent, data from the MOFCOM showed.

Global Times