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The Government of the Republic of Serbia

In the service of citizens

Proposal of measures for export promotion presented

Belgrade, 20 May 2004

Serbian Minister of International Economic Relations Predrag Bubalo and Deputy Minister Ljubisa Jovanovic have presented a proposal of measures to improve exports this year, with the aim to create conditions for export growth through a changed structure of domestic products meant for sales in foreign markets, which, along with attracting foreign investment, is one of the Serbian government’s top priorities.

From left: Ljubisa Jovanovic and Predrag Bubalo

Bubalo told a press conference that foreign trade deficit represents one of the main problems in domestic economy, and he explained that this proposal, though not designed to remove all the problems, represents a move forward given that it introduces measures which did not exist in the past.

Deputy Minister Ljubisa Jovanovic said that the sluggish production, lack of goods intended for foreign markets, unchanged structure of products for exports, inadequate regulations, poor quality control system, inefficient banking sector, and poor transport infrastructure have been the main characteristics of Serbian exports so far.

According to him, this has resulted in too high costs of shipping of goods abroad and, as an end result, a low competitiveness of Serbian goods in foreign markets.

Jovanovic added that the solution lies in systemic measures, which include export-oriented agricultural, industrial, and trade policies, the adoption of related budgets, preparation of regulations and standards in line with the European Union and World Trade Organisation (WTO) rules, and the defining of competencies of ministries with the aim to boost exports and raise the efficiency of state administration, particularly the customs services.

As systemic measures, Jovanovic also mentioned adequate subsidies for strategic agricultural products meant for exports, the regulation of quality standards, and procedures for issuing certificates, as well as defining of all forms of non-tariff measures in accordance with the WTO regulations, the creation of clusters on the national level, and modernization of transport.

Jovanovic also said it is necessary to raise the efficiency of the banking sector when it comes to financing the production of goods and services meant for exports and also to promote and speed up the opening of the Fund for insurance and financing of foreign trade deals and the Serbian Guarantee Fund. It is also necessary, according to Jovanovic, to create and advertise domestic brands intended for sales abroad and adopt a national policy with measures to encourage the development of new brands and technologies.

He explained that structural measures include efforts to attract foreign direct investment, promote production cooperation and joint ventures and to boost the volume of agricultural and industrial production and encourage the services sector. He also named Russia, China, and the EU as chief target markets for Serbian exporters in the future. He said that the promotion of small and medium sized business in Serbia should result in a total of 400,000 small and medium sized enterprises in five years from now.