Serbia has signed a Bilateral Protocol with the EU which is viewed as an important step in the process of Serbia’s admission into the World Trade Organization or WTO.

Serbian Deputy Prime Minister Mladjan Dinkic and the EU Trade Commissioner Karel De Gucht both agreed that the signing of the Bilateral Protocol on market liberalization between Serbia and the EU represents an important step.

“Serbia has made significant progress towards WTO membership, and the EU will continue to strongly support the country’s joining this organization,” De Gucht is quoted as saying after the signing ceremony.

Minister Dinkic said that the signing of the Bilateral Protocol represents “the most important step on the pathway leading to WTO membership, since 60 percent of Serbia’s overall trade and services is realized with the EU member countries,”

“A lot of work still remains to be done, but I am convinced that the talks can be finalized in the next couple of months,” Dinkic said.

Dinkic said that talks are already underway with the US, Brazil, Switzerland, Salvador and Ukraine.

“As for other big countries, I do not think there will be any problems in reaching agreement,” Dinkic said.

World Trade Organization membership reduces barriers to trade thus increasing choice of goods available to produce and consume. Many believe that WTO creates incentives for good governance, economic growth and rising income.

Dinkic also met with the European Commissioner for Regional Development Johannes Hahn to talk about the implementation of the Danube Development Strategy.

Hahn expressed his support for Serbia in implementing this plan.

After the meeting, Dinkic said that “the experiences of European policy in assisting underdeveloped regions in Serbia can teach us a lot, given that in its current budget, and it will stay that way in the EU’s future budget, 10 times more funding have been allocated to underdeveloped areas of the EU.”

“We in Serbia would be advised to follow suit because the regional differences here are a lot bigger than in other states in the EU,” Dinkic said.

Critics say that Danube Development Strategy is not laced with EU funds so it should be of no interest to Serbia.

However, Dinkic replied by saying that “Commissioner Hahn recommended that we take after Poland when using EU funds, because it made the best use of accession funds, and later the EU’s cohesion funds.”

“There is money, but it is important that we here in Serbia know how to attract this money and use it purposefully and help the citizens,” Dinkic added.

Meanwhile, Serbia’s Trade and Services Minister, Slobodan Milosavljevic, said that Serbia needs predictability on the movement of its national currency because predictability allows companies to draw up profitable plans.

“What we certainly need is stability and predictability or at least a higher level of predictability in the movements of the dinar so that we can draw up better plans and monitor and analyze measures implemented in companies and the economy,” said Milosavljevic.

Inflow of foreign funds determines, to a great degree, the value of Serbia’s currency and Milosavljevic believes that such fund inflows depend on investment inflow and privatization.

“A lot will depend on the amount of real funding that will arrive through investment and some further privatizations during the course of 2011. We are expecting somewhere around 3 billion euros in investment,” said Milosavljevic.

Nomura Securities analyst recently noted that Serbia is a great place to invest.

January 12, 2011
SERBIANNA

• A Permanent Economic Emergency