Ukraine and Serbia have been developing their trade relationship over the past few years. Both countries have been working towards increasing bilateral trade, and there are many opportunities for further economic cooperation. In this article, we will explore the trade relationship between Ukraine and Serbia, including its history, current state, and future prospects.
History of Ukraine – Serbia trade relationship
The trade relationship between Ukraine and Serbia dates back to the 19th century. At that time, the two countries were part of the Austro-Hungarian Empire, and their trade relations were mostly limited to agricultural products. During the Soviet era, trade between the two countries was managed through the Council for Mutual Economic Assistance, which facilitated economic cooperation between the Soviet Union and its satellite states.
After the collapse of the Soviet Union, both Ukraine and Serbia went through a period of economic transition. During this time, trade between the two countries declined significantly. However, in recent years, both countries have been working to rebuild their economic relationship.
The current state of Ukraine – Serbia trade relationship
The trade volume between Ukraine and Serbia has been steadily increasing over the past few years. In 2019, the trade volume between the two countries was $417 million, an increase of 24.6% compared to the previous year. The main exports from Ukraine to Serbia are agricultural products, machinery, and equipment, while Serbia exports primarily pharmaceuticals, metals, and furniture.
One of the main obstacles to increasing trade between the two countries is the lack of direct transportation links. Currently, goods are transported through third countries, which increases transportation costs and makes trade less competitive.
Future prospects for Ukraine – Serbia trade relationship
There are many opportunities for further economic cooperation between Ukraine and Serbia. One area of potential collaboration is in the agricultural sector. Ukraine is one of the largest producers of grain in the world, while Serbia has a strong agricultural industry. By working together, the two countries could increase their competitiveness in the global agricultural market.
Another area of potential collaboration is in the energy sector. Ukraine is a major transit country for Russian gas, while Serbia is a potential market for Ukrainian gas exports. By working together, the two countries could increase their energy security and reduce their dependence on Russian gas.
To further develop their economic relationship, both countries have been working towards signing a free trade agreement. The agreement would eliminate tariffs and other trade barriers, making it easier for businesses to conduct trade between the two countries. The negotiations for the agreement are ongoing, and it is hoped that the agreement will be signed in the near future.
Conclusion
The trade relationship between Ukraine and Serbia has a long history, and both countries have been working to rebuild their economic ties. Despite the challenges, the trade volume between the two countries has been increasing, and there are many opportunities for further economic cooperation. With the signing of a free trade agreement, it is hoped that the trade relationship between Ukraine and Serbia will continue to grow and strengthen in the coming years.
