90% of goods will be tariff-free! China's 29th free trade partner has arrived

On October 17th, China's Minister of Commerce, Wang Wentao, and Serbia's Minister of Internal and Foreign Trade, Momić, signed the "Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Serbia."

This marks China's first free trade agreement with a Central and Eastern European country and is China's 22nd such agreement. Serbia becomes China's 29th free trade partner. The signing of the China-Serbia free trade agreement is a significant step in implementing the consensus of the leaders of both countries. It expands the network of high-standard free trade areas with a global focus and is a notable achievement of the Third Belt and Road International Cooperation Summit Forum.

Negotiations for the China-Serbia free trade agreement began in April 2023 and were substantially completed by the end of September. After the agreement is signed, both sides will undergo their respective domestic legal approval processes to facilitate its early implementation.

Key points of the China-Serbia free trade agreement regarding goods trade include:

1. High Level of Liberalization: China and Serbia will mutually cancel tariffs on 90% of tariff lines, with over 60% of these tariff lines immediately having tariffs removed upon the agreement's entry into force. The proportion of import values under zero tariff lines will reach approximately 95% for both sides.

2. Wide Coverage of Products: Serbia will include products of interest to China, such as automobiles, photovoltaic components, lithium batteries, communication equipment, machinery, refractory materials, and some agricultural and water products, under zero tariffs. The tariffs on these products will gradually decrease from the current 5%-20% to zero. China, in turn, will include products of interest to Serbia, such as generators, electric motors, tires, beef, wine, and nuts, under zero tariffs, with their tariffs gradually decreasing from the current 5%-20% to zero.

3. Implementation of Facilitation Measures: Both countries will enhance customs cooperation, strengthen information exchange and communication coordination, and specify regulations for simplifying trade procedures, risk management, transparency, advance rulings, "certified operators," cooperation, and consultations. Particularly, the agreement introduces the principle of self-declaration of origin, making it more convenient for businesses to benefit.

The China-Serbia agreement to promote trade liberalization and facilitation is not only beneficial for expanding bilateral trade but also for promoting investment cooperation and industrial chain integration. It allows each side to leverage their comparative advantages and enhance their international competitiveness.

In the first eight months of this year, the total value of bilateral trade between China and Serbia reached 19.8 billion Chinese yuan, representing a cumulative growth of 21.9% compared to the same period last year. Specifically, China's exports to Serbia amounted to 12 billion yuan, a 19.5% increase, and its imports from Serbia were 7.8 billion yuan, a 25.7% increase.

According to the China-Serbia free trade agreement, in the fields of investment and services, both China and Serbia agree to cooperate in promoting investment and simplifying investment processes, including sharing and exchanging investment information, improving the transparency of investment environments, and streamlining application and approval procedures. Additionally, both parties will strive to achieve progressive liberalization and market openness in service trade in line with the World Trade Organization's General Agreement on Trade in Services, aiming to reach a service trade liberalization agreement between the two nations.

In the domain of intellectual property protection, both sides will adhere to the principles and regulations of the World Trade Organization's Agreement on Trade-Related Aspects of Intellectual Property Rights. They will enhance cooperation in the field of intellectual property protection through coordination and negotiations.

Regarding competition, on the basis of recognizing the independence of competition law enforcement, both parties will establish rules for adhering to corporate competition rules. Furthermore, they have agreed to strengthen cooperation in the fields of healthcare and traditional Chinese medicine.