UDC 339.54(497.11:470)
Biblid: 0543-3657, 71 (2020)
Vol. 71, No 1178, pp. 51-72
DOI:

Original scientific paper
Received: 28 Feb 2020
Accepted: 28 Mar 2020

IMPACT OF THE BILATERAL FREE TRADE AGREEMENT ON THE FOREIGN TRADE EXCHANGE OF THE REPUBLIC OF SERBIA WITH THE RUSSIAN FEDERATION

Jelisavac Trošić Sanja (Viši naučni saradnik, Institut za međunarodnu politiku i privredu, Beograd), sanja@diplomacy.bg.ac.rs
Mladenović Dejan (Doktorand, Geoekonomski fakultet, Megatrend Univerzitet, Beograd), dejanmladenovic.ljig@gmail.com

The establishment of free trade relations between the Republic of Serbia and the Russian Federation has been in force for 19 years through signed agreements and protocols. In the meantime, the political movements and transformations of both countries, the development of the economy, the signing of agreements with third countries, entry into regional integrations, the global economic crisis, and many other events have left their mark on the trade relations of the two countries. In the paper we explore the starting hypothesis that the Agreement had a positive impact on the growth and diversification of trade between the Republic of Serbia and the Russian Federation. Given that a sufficient period of time has passed for the implementation of the Free Trade Agreement, it is authors intention to analyze its impact, what changes it has brought, and what concrete effects it has had on the trade between the two countries. Several trade trends were identified through the analysis: the trend of Serbia’s constant trade deficit in exchange with Russia, the trend of energy import dependence of Serbia, the significant presence of low-level agricultural products in Serbia’s exports, and others. The entire period of 19 years is analyzed in the paper, with a particular focus on the last 10 years. During the analysis, the period of the global economic crisis was singled out, as well as the impact of fluctuations in the price of oil and natural gas on changes in the value of trade, as they explain part of the changes in the foreign trade. The introductory considerations highlight the essential features of the Agreement itself, as well as the changes it has undergone over the years. Then, an analysis of the total value of trade, percentage participation and comparison with other major Serbian trade countries. Finally, the paper presents an analysis of the most important sectors and then of the products that participate in the foreign trade relations of the two countries. The conclusion provides an overview of the trends observed, provides some recommendations for incentive measures, as well as guidelines for improving Serbia’s trade relations with the Russian Federation.

Keywords: Republic of Serbia, Russian Federation, Free Trade Agreement, Foreign Trade, Free Trade, Market, Exchange, Natural Gas, Agricultural Products