As the Ministry of Trade, Industry and Resources said on Friday, South Korea and Serbia have signed a comprehensive economic partnership agreement (CEPA), a broader form of free-trade agreement.
Finally, South Korean Trade Minister Yeo Han-koo and his Serbian counterpart Jagoda Lazarević signed the document in Belgrade. It took the sides about two years to negotiate about all the details.
In addition to tariff reductions, economic and supply-chain cooperation, opening new opportunities for exports and access to critical minerals used in batteries and other strategic industries are included in the broader deal.
Nowadays, Serbia has become an increasingly important manufacturing hub in Southeast Europe, despite its relatively small population of seven million. It is due to significant reserves of lithium, copper, zinc and other minerals used in batteries and other high-tech industries.
Tariffs on more than 90 percent of traded goods, covering over 96 percent of import value, will be eliminated, according to the agreement.
Especially, South Korean technology exporters expect to get a particular benefit. The reason is elimination of tariffs of up to 25 percent on Serbian semiconductors and electronic products. Serbia has agreed to do this, because the country is not part of the World Trade Organization’s Information Technology Agreement (ITA).
Also, immediate removal of expanded tariffs on all automotive parts and market access for electric and hybrid vehicles are beneficial for South Korean automakers.
Moreover, South Korean exports, including instant noodles, roasted seaweed, ginseng, cosmetics, pharmaceuticals and defense-related goods will get a broader access to the Serbian market.
Also, supply chains for advanced industries are expected to be strengthened by the agreement. It will eliminate tariffs on Serbian raw materials, including lithium, cobalt, nickel, graphite and rare-earth elements, immediately or phased out within five years. This measure will support South Korea’s battery and advanced manufacturing sectors.
Clearing imported goods within 48 hours of arrival and express shipments processed within six hours would also increase business efficiency. Efforts to curb online infringement are another measure to strengthen intellectual property protection.
Yeo said that the agreement marks a major step forward in economic cooperation between the two countries. He added that it creates a platform for collaboration not only in trade but also in supply chains, energy, critical minerals and future industries such as AI and biotechnology.
NH Logistics SER has been offering IOR Importer of Record and EOR Exporter of Record services since 2001 and is a market leader in Serbia and Eurasia, supporting many clients with their import/export shipments.
Source Link