FREE TRADE AGREEMENT SERBIA – TURKEY Ministry of Economy and Regional Development Government of the Republic of Ser

1. FREE TRADE AGREEMENTSERBIA –TURKEYMinistry of Economy and Regional Development Government of the Republic of Serbia

2. Signing ceremony 1st June 2009 in Istanbul • Entered into force September1st,2010

3. Objectives of the Agreement • Trade liberalization; • Lliberalization of public procurement markets; • Protection of intellectual property; • Liberalization of services and investment; • Creation of fair conditions for competition; • Encouragement of mutual investment and cooperation in 3rd country markets.

4. Liberalization of industrial products Asymmetrical model based on SAA EU – Serbia • Duty free export to Turkey for all industrial products - Pan European Rules of Origin • Duty free export to Serbia for industrial products - Pan European Rules of Origin – exceptions apply to lists A,B, C

5. Liberalization of industrial products

6. Exception list in relation on SAA Serbia - EU

7. Liberalization of agricultural products • Animal origin products – excluded from duty free regime • Plant origin products – duty free regime • Quantitative quotas agreed upon for 68 products or clusters of products • Preferential tariff rate • 50% reduction by Serbian side • 50% to 90% reduction by Turkish side • Trade in products which are not covered by tariff quotas is carried out under the MFN regime.

8. Liberalization of agricultural products • Preferential import tariffs for Turkish products • sea fish; • pomegranate, hazelnuts, pistachios; • dried figs; • oranges; • mandarins; • grapefruit; • lemon; • grapes, • dried apricots; • olive oil; • canned tomato.

9. Liberalization of agricultural products • Preferential import tariffs for Serbian products • wheat; • corn, flour and soy mince fine; • frozen strawberries, raspberries, blackberries; roses; forest plants; • seed potatoes; • cabbage; • fresh peas, beans and string beans; • sweetcorn; • dried leguminous vegetables; • sugar-added sweet and sour cherries; • prunes; • anise seeds; • juniper berries; • other spices; • birdseeds; • beet seeds; • forage seeds; • vegetable seeds; • forest seeds; • volatile non-etheric plant oils, raw; • children’s food products; • canned cucumbers and pickles; • fruit juices; • soups and stews; • ice-cream; • protein concentrates, other not mentioned food products and wine.

10. Liberalization of agricultural products • Symmetrical preferential tariff quotas, approximately at the same level • tomato; • leek and other onion-type plants; • paprika; • margarine; • sugar products; • chocolates; • pasta and other bakery products with or without cocoa and cookies.

11. Protocol on Rules of OriginPan European Rules • Diagonal cumulation SER-Serbia, CRO-Croatia, MK-Macedonia, BA-Bosnia&Herzegovina, MNE-Montenegro, XK-UNMIK/Kosovo, MD-Moldova, AL-Albania, EU-European Union, EFTA-Norway, Swiss, Island, Lichtenstein, TR-Turkey

12. FTA Serbia - Turkey Economicand commercial advantages • Enhancing economic and commercial relations; • Abolishing trade barriers increase trade + mutual investments; • Promoting bilateral and regional preferential trade – cumulation of origin mechanism; • Predictability - transparent and regulated business environment; • Opportunities to improve production, sales and employment.

13. Serbia - Unique Export Potential EU EFTA Countries CEFTA Countries Free Trade Agreements Initiative to start negotiations with • EU • CEFTA • EFTA • Russia • Belarus • Turkey

14. Future economic cooperation • FTA Investments • Textıles& Clothıng ındustry • Automotıve and Auto-parts ındustry • Infrastructure • Energetic • Agriculture • Tourısm

15. www.merr.gov.rs Ministry of Economy and Regional Development Bulevar kralja Aleksandra 1511000 Belgrade, Serbia Phone: +381 11 2855-187 Fax: +381 11 2855-171