Korea strikes free trade deal with Serbia, first with Balkan nation
Trade Minister Yeo Han-koo speaks at a seminar in Tokyo, Japan, April 22. Courtesy of Ministry of Trade, Industry and Resources
Korea and Serbia struck a comprehensive economic partnership agreement (CEPA), which is expected to help the two nations bolster trade ties and address global economic uncertainties, the trade ministry said Friday.
Trade Minister Yeo Han-koo signed the agreement in Belgrade with his Serbian counterpart, Jagoda Lazarevic, some two years after the two countries kicked off negotiations in September 2024.
It marks the first trade agreement signed by Korea with a Balkan nation.
"The CEPA will allow Korea's key export goods, including chips, electric vehicles and auto parts, greater access to the Serbian market, which will expand trade and investment opportunities for companies in both countries," the Ministry of Trade, Industry and Resources said in a release.
"This will establish a stable and predictable business environment," it added.
The CEPA is a type of free trade agreement that emphasizes a broader scope of economic cooperation and exchanges in addition to market opening.
Korea and Serbia will remove tariffs on 90 percent of the items traded.
The trade ministry added Serbia boasts a strong foundation in the manufacturing industry covering automobiles and machinery, while offering close access to the European Union market.
The CEPA will also remove tariffs on imports of key materials from Serbia, including lithium, cobalt and nickel, which will help stabilize supply chains for cutting-edge industries such as chips and secondary batteries, the ministry said.
"Amid the spread of protectionism and the reshuffling of global supply chains, the CEPA will help the two countries open their markets and jointly build platforms for economic exchanges covering supply chains, energy, minerals, AI and biotechnology," Yeo said.
"The government intends to promptly carry out follow-up steps so that companies and people in both countries can feel the benefits of the agreement," he added.
The bilateral CEPA will undergo a legal review and official translation, along with ratification by the National Assembly.