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The Government of the Republic of Serbia

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Tariffs for products with low protection rate to be abolished as soon as stabilisation agreement becomes effective

Belgrade, 21 December 2005

Serbian Deputy Prime Minister and head of Serbia's negotiating team in negotiations with the EU Miroljub Labus said late on Wednesday that the custom tariffs for products with low protection rate should be abolished as soon as the Stabilisation and Association Agreement with the EU (SAA) becomes effective.

Author: Fonet

Speaking at a press conference held after the first round of technical talks with the European Commission on harmonisation of tariffs of industrial and agricultural products, Labus said that all industrial products with protection rate between one and three percent can be freed from customs tariffs as soon as SAA comes into force, while that period will be much longer in the case of very sensitive and extremely sensitive products.

He said that a few days ago Serbia gave to the European Commission the first offer of the list of industrial products, and that the details of that offer were discussed today, as well as the effects it could have on the entire economic system of the country.

Labus said that the possibilities of including concessions which Serbia enjoys under the asymmetric trade measures into the SAA were also looked at.

He added that in line with the agreement reached with the European Commission, Serbia will now not give offers for agricultural products, but will do that by the end of January next year.

Labus said that the European Commission's team recommended a framework for that offer, while Serbian representatives spoke about technical preparations, databases and criteria for the offer, and added that particular types of products were also discussed such as wine, beef and fish, as well as primary and processed agricultural products.

“We are aware of their tough agricultural policy and must take care to find the best solution within its framework,” said Labus.

He said that Serbia will get better treatment, because at the end of the adjustment period it will not have to liberalise all products, which means that 20 percent of very sensitive products will still be allowed to remain on some lists of special protection.