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Serbia Turkey Free Trade Agreement: An Overview

In August 2020, Serbia and Turkey signed a free trade agreement, marking an important milestone in their bilateral relations. The agreement envisions the elimination of tariffs on a wide range of goods and services and aims to boost economic cooperation between the two countries.

The Serbia Turkey Free Trade Agreement (STFTA) covers various sectors such as agriculture, textiles, automotives, construction, and energy. It sets the framework for the removal of tariffs on 97% of the traded goods and aims to increase trade between the two countries, which currently stands at around $1.2 billion per year.

The agreement is expected to have a positive impact on both economies. Serbia will benefit from increased access to the Turkish market, which is one of the largest in the region. Turkey, on the other hand, will gain access to the Serbian market, which has a population of over 7 million and offers opportunities for investment and trade.

The STFTA also includes provisions for the protection of intellectual property, the promotion of e-commerce, and the resolution of disputes. These measures aim to create a more favorable business environment for both Serbian and Turkish companies, thereby promoting economic growth and job creation.

The STFTA is part of a broader effort by Serbia to strengthen its ties with countries in the region and beyond. The country has signed free trade agreements with other countries such as Russia, Belarus, Kazakhstan, and the European Union. These agreements aim to enhance Serbia`s position as a hub for trade and investment in Southeast Europe.

The implementation of the STFTA is expected to be gradual, with tariffs on some items being phased out over a period of several years. The agreement will also require the adoption of new regulations and procedures, which may take time to implement.

In conclusion, the Serbia Turkey Free Trade Agreement is a significant step forward in the economic cooperation between the two countries. It is expected to create new opportunities for trade and investment, promote job creation, and contribute to the growth of the economies of Serbia and Turkey. As the implementation of the agreement progresses, it will be interesting to see how it impacts the bilateral relations between the two countries and the broader regional dynamics in Southeast Europe and beyond.