Serbia Signs Trade Deal with Eurasian Union

Serbian signed a free trade agreement with the Eurasian Economic Union in Moscow. (Kremlin)

On October 25, Serbian Prime Minister Ana Brnabic signed a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) in Moscow, following warnings from the European Union (EU). This accord will also extend the existing free-trade deal between Russia, Belarus and Kazakhstan to Kyrgyzstan and Armenia, potentially impacting a combined population of 180 million people.

The agreement is expected to provide for "instant savings in customs payments" in trade between Serbia and the EAEU’s members, according to a statement issued by the Russian Prime Minister Dmitry Medvedev's office. Serbia's Trade Ministry told the media that the free-trade deal would allow about 95.5 percent of Serbian products to be exported to the regional grouping free of any customs duties.

Serbia and Russia are also strengthening military cooperation: Serbia has accepted fighter jets and other weapons from Russia as gifts.

Serbia's new free trade deal with EAEU has raised alarm among members of the EU and has put it at odds with Brussels, since Serbia is still a candidate for EU membership. Although Serbia has shown consistent interest in joining the EU, it has kept close ties with Russia. For instance, Serbia did not follow the EU in sanctioning Russia for its annexation of Crimea in 2014.

Despite criticism and warnings from the EU, Brnabic insisted that the deal would not impact Serbia’s integration process: “This is no way contrary to our [pro] European politics; I think this is complementary to our European politics and our EU path. Because it is in the EU’s interest to have an economically stronger … Serbia … and a free trade agreement with the EAEU will provide us those chances.”

The EU argued otherwise. Maja Kocijancic, the European Commission spokeswoman, said that the EU would monitor the negotiations and that Serbia “is expected to progressively align with the EU Common Foreign and Security Policy.”

Serbian trade minister Ljajic disclosed that once Serbia becomes an EU member state, this trade deal will and must cease to be valid.

Timothy Less of the U.K. based Centre for Geopolitics and Grand Strategy told Bloomberg the deal is “a reminder that Western inaction leaves the door open for Russian and Chinese influence… The EU no longer has a viable plan for stabilizing the Balkans, meaning others are having to solve the problems left unfinished by the Europeans.”