Iran and Serbia Move towards FTA

During a meeting with the Iranian delegation headed by Foreign Minister Manouchehr Mottaki, the Deputy Prime Minister of Serbia, Mladjan Dinkic stated that both countries had good and stable bilateral ties, and could be further strengthened by greater economic co-operation through an FTA. They are understood to have identified the sectors of co-operation such as petro-chemical, metal, food and pharmaceuticals.

Dinkic remarked that Serbian exports to Iran had increased by two and half times in 2008 as compared to the previous year to reach $40mn. Whereas, Mottaki stated his country was looking forward to Serbia for participation in infrastructural development projects. Besides, Iran will be interested in the Serbian-made auto parts, railway carriages and buses.

Both parties felt liberalization of trade policies would further boost bilateral trade and are contemplating to sign the FTA in a reasonable time frame. According to a statement issued by the Ministry of Economy and Regional Development of Serbia, the country has recorded a trade surplus with Iran.

During the forthcoming summit of Mixed Commission for Economic, Trade and Technical Cooperation in April, Dinkic and Iran’s Minister of Commerce, Masud Mir–Kazemia are likely to meet in Belgrade as a prelude to signing of the FTA between both countries. It has been learned that an Iranian technical delegation will visit HIP-Petrohemija, the largest Serbian petrochemical complex which produces around 800,000 tons of petrochemicals per year prior to the summit. According to sources, Iran has shown interest in buying a fertilizer factory off-Belgrade.

After the successful trade talks, Mottaki met both Serbian Prime Minister Mirko Cvetkovic and Foreign Minister Vuk Jeremic to extend his greetings and discuss various other issues beyond trade.

By Jose Roy