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The Government of the Republic of Serbia

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Protocol on cooperation signed between trade ministries of Serbia, Republika Srpska

19 October 2007

Belgrade, Oct 19, 2007 –Representatives of the trade ministries of Serbia and Republika Srpska signed today in Belgrade a protocol on cooperation to deal with effects of reduced agricultural produce due to drought.

From left: Radovan Samardzija, Predrag Gluhakovic, Predrag Bubalo and Slobodan Damnjanovic

The protocol was signed on behalf of the two countries by Serbian Minister of Trade and Services Predrag Bubalo and Minister of Trade and Tourism of Republika Srpska Predrag Gluhakovic, Director of the Directorate for Commodity Reserves of Serbia and Director of the Directorate for Commodity Reserves of Republika Srpska Radovan Samardzija.

The protocol defines cooperation between the two directorates for commodity reserves in the areas of storage space, lending or selling goods from goods reserves, milling and purchase and sale of goods.

Bubalo told a press conference that the protocol was designed in the spirit of the agreement on parallel relations between Serbia and Republika Srpska, and the initial reason for signing it was reduced produce of corn and the decision of the Serbian government on borrowing 5,000 tonnes of corn from the Republika Srpska during the summer.

He said that the Serbian Directorate for Goods Reserves has the capacity to help the Commodity Reserves Directorate of Republika Srpska which is still not adequately organised, and it is possible that they jointly purchase produce since larger quantities cost less.

The Minister pointed to the fact that existing reserves in Serbia are enough for critical situations and recalled that according to EU directives a country must have reserves for 90 days regarding the most important products.

Speaking on the decree on the temporary ban on export of wheat and corn, Bubalo said that this ban should be extended for a further 120 days, whereas sunflower and soya are exceptions in the decree since all surplus quantities have been purchased by processors.

The decree will also determine import quotas for wheat flour and other processed corn products so that there are no shortages in the domestic market until the next harvest, he said and added that relevant ministries will make efforts to apply the ban to export of non-refined edible oil as well.

The Minister explained that even though exact statistics on this year’s produce are still not known the decree on export ban should be extended since all preliminary estimates show that experts’ forecast of a significantly smaller harvest has been proven true.

He said that the amended decree will be presented to the Serbian government before November 3, when the decree valid for three months will become void, but the Minister could not specify whether this issue will be discussed at the next session.

Republika Srpska could be given special treatment for the duration of the ban and this will regard only lending with the obligation that the same quantity is returned, said Bubalo.

Gluhakovic said that cooperation between the two directorates is very important due to enforcement of the Central European Free Trade Agreement which the countries should be prepared for in the sense of formal, legal and normative regulations.

Damnjanovic said that the Serbian Directorate plans to increase wheat and corn reserves, which were particularly affected by drought.