The Serbia and Montenegro strategy is that regional free trade zone creation should be the first step towards acceding to the EU, by establishing cooperation between the countries of the Balkan Peninsula, that is, FYR of Macedonia, Albania, Bulgaria, Turkey, Serbia and Montenegro (Serbia with the UN protected region of Kosovo), Bosnia and Herzegovina, Croatia, Romania and Moldova, on the one hand, and the EU, on the other. This plan would be implemented through mini-regional concept or the "Dayton Triangle" (Serbia and Montenegro, Bosnia and Herzegovina, and Croatia), and overall as a fully regional concept - countries that make up the Stability Pact for Southeastern Europe (EU Initiative). From the other hand Serbia and Montenegro admission in EFTA (European Free Trade Association) would enable Serbia and Montenegro to indirectly join the European Union before it officially becomes a member.

Following these objectives, the Serbia and Montenegro has signed a Memorandum of Understanding on Trade Liberalization and Facilitation together with other Southeastern European countries in Brussels on 27 June 2001. The main goal of the Memorandum of Understanding is to complete the network of Free Trade Agreements (FTA) in the region by the end of 2002, thereby opening the potential of a 55 million consumer market. The agreements will be fully in line with the WTO rules and with relevant obligations of each signatory country vis-a-vis the EU. FTA with Bosnia-Herzegovina was signed on 1 February 2002. The Serbia and Montenegro has entered into the final phase of FTA negotiations with Croatia. Serbia and Montenegro and Hungary signed an Agreement on Free Trade on 8 March 2002 (Hungary permitted asymmetry in favor of the other party). The first steps in view of negotiations were undertaken with Albania and Romania, while an existing FTA with FYROM is under revision. Serbia and Montenegro and Slovenia opened the first round of talks on a free trade agreement (11 March 2002) with a legal framework for bilateral economic cooperation expected to be completed by the end of the year. All the above activities are paving the way for the establishment of a wider free trade zone in Southeastern Europe.

Therefore, the current goal is to implement the Memorandum on Trade with a view to completing the network of 21 bilateral Tree Trade Agreements by the end of 2002 and removing obstacles to private investment and improving investment climate by means of the Stability Pact Investment Compact.

FR Yugoslavia has signed free trade agreements with Macedonia (1996), Hungary (2002), Bosnia and Herzegovina (2002) and with the Russian Federation (2000), which facilitates the lifting of trade barriers between former FR Yugoslavia and these countries.

In the process of elaboration are free trade agreements with Albania, Bulgaria, Croatia, Moldova, Slovenia and Romania.

Usefull Links

OVERVIEW OF AGREEMENTS, CONTRACTS AND PROTOCOLS (The Ministry of Foreign Affairs)