Lazarevic: Strategic dialogue contributed to Serbia’s exemption from new US tariffs

The decision of the United States to exempt Serbia from the new package of customs measures is the result of months of work and preparations for the establishment of a strategic dialogue between the two countries, and not a coincidence, Minister of Domestic and Foreign Trade Jagoda Lazarevic told RTS.

Relief for domestic exporters

Lazarevic, in an interview with RTS’s Morning News program, pointed out that the decision had come just a few days after the launch of the strategic dialogue in Washington, but that it had been prepared for much longer.

– It was certainly quick, but it did not come by itself. It was prepared in accordance with the preparations for the initiation of the strategic dialogue. These are important and long-term processes that require the engagement of both sides – said Lazarevic.

She reminded that, last year, Serbia was among the countries hardest hit by the US reciprocal tariffs of 35%, which had posed a serious problem for domestic exporters.

– The US has not imposed any new tariffs on us, and that is a big difference. That makes our position stronger and better – the minister emphasized.

Serbia’s new position

Lazarevic explained that the US administration, following the Supreme Court’s decision that invalidated previous reciprocal tariffs, had launched several extensive trade investigations that covered dozens of economies around the world.

She added that Serbia had not been included in any of these investigations.

– Serbia is definitely excluded from a serious and large package and is not included in any of these investigations. This did not happen by chance, but is based on long-term work and serious policy – Lazarevic emphasized.

According to her, Serbia’s new position will significantly strengthen the negotiating basis in future talks with the US on specific trade concessions, but will also bring direct benefits to a large number of domestic companies.

– I believe that more than 700 companies will benefit directly, because when you open a market, the number of exporters increases. The difference between a zero percent tariff for Serbia and ten or twelve percent for other countries makes a big difference in the price competitiveness of our products – said the minister.

Benefits for the entire economy

Lazarevic also noted that the decision would be of particular importance for companies that traditionally exported to the US market, such as Prvi partizan from Uzice, Zastava oruzje from Kragujevac and Valjaonica bakra Sevojno, but also for numerous small and medium-sized companies that were linked to their supply chains.

– This practically means a quick return of the Serbian defense industry, in the segment of production for civilian purposes, to the US market. These are partnerships that have been in place for decades, and I believe that the companies will manage to regain their position – assessed Lazarevic.

The minister emphasized that the benefits would be visible not only for exporters, but also for the entire economy.

– Export-oriented companies provide new production, wages for workers, jobs for subcontractors, revenues in the state budget and contribute to GDP growth. Everything is interconnected – said the minister.

A strong signal to foreign companies for investment

Speaking about investments, Lazarevic assessed that Washington’s decision was a strong signal to foreign companies that Serbia was a safe place to invest.

– This is an additional incentive for all investors who want to produce in Serbia and see the American market as one of their key export destinations. Along with macroeconomic stability and investment rating, this is another strong asset of Serbia – the minister emphasized.

Referring to the issue of energy security, Lazarevic said that she expected a successful completion of the negotiations between Serbia, Russia and Hungary on the supply of energy resources, emphasizing that a secure energy supply was a prerequisite for further economic growth.

– Energy security is an absolute prerequisite for the further development of our economy. The most important thing is that the agreement is thorough, sustainable and in the interests of Serbia and its citizens – said Lazarevic.

Stanic: Abolition of US tariffs is good news

Bojan Stanic, Director of the Sector for Strategic Analysis, Services and Internationalization of the Serbian Chamber of Commerce, believes that the abolition of US reciprocal tariffs on goods from Serbia represents a positive signal for the domestic economy.

However, he says that “it is necessary to use the newly opened strategic dialogue with the US in order to ensure long-term stability of economic relations.”

Stanic emphasized that the decision of the US administration was the result of several factors, including the decisions of the US Supreme Court and changes in Washington’s trade policy.

– Serbia is now in favor of the issue of strategic dialogue. The signal that came from Washington and Belgrade is very important for the economic environment in our country – said Stanic.

Speaking about the potential for cooperation, he stated that Serbia had the greatest opportunity on the US market in the export of IT services and higher value-added products.

However, he warned that developments in US-EU relations would continue to have a strong impact on the Serbian economy, given that the Union was by far Serbia’s most important foreign trade partner.

Ministarstvo unutrašnje i spoljne trgovine Republike Srbije

Prvi partizan a.d. Užice

Zastava oružje a.d. Kragujevac

Valjaonica bakra a.d. Sevojno

Privredna komora Srbije

CCIS

Bojan Stanić

Jagoda Lazarević

customs duties

export