Serbia Looks to Join Eurasian Economic Union’s Free Trade Area

Russia and Serbia have developed close ties since the Yugoslav Wars. Source: AP

Serbian officials began talks to enter a free-trade agreement with the Russian-led Eurasian Economic Union on November 3. Such a move would strengthenSerbian ties with the former Soviet bloc, even as Serbia contemplates accession into the European Union.

Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia joined together in 2015 to form the Eurasian Economic Union in order to further integrate their economies. This new organization features a single market, the Eurasian Economic Sphere, and the Eurasian Customs Union, which sets a common tariff on all goods imported from outside the union.

Serbia currently has three different free trade agreements with Russia, Kyrgyzstan, and Belarus. The plan currently being discussed would unify these treaties into a single agreement with all EEU member countries, allowing Serbia greater access to the common market.

While talks have been planned since May 2016, progress was made in November when the Serbian Foreign Minister met with EEU leaders in Russia to discuss the matter.

Serbia stands to gain in exports of several luxury goods, including Fiat automobiles, to a market of over 180 million people. This would also officially open up a new market for Russian oil and natural gas.

The move towards a closer economic relationship between Serbia and Russia comes as closer military ties are pursued: the Slavic Brotherhood military exercises between the two states and Belarus, which concluded on November 13, are seen as a response to NATO exercises in Montenegro.

This agreement acts as a definite threat to Serbia’s chances of joining the EU. The European Union requires prospective members to match the Union’s foreign policies, which include trade sanctions on various goods.