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A few days ago, the European Commission adopted a package of proposals to increase trade between the EU and 20 neighboring countries, including Serbia. The goal, as they say, is a faster recovery from the economic consequences of the Kovid 19 pandemic. What does this mean for our country and can we expect an increase in the volume of trade with the EU after this?
This issue is especially important because of the comments that could be heard in the public after this news that, during the current crisis, it has been shown that some European countries are not capable of providing food security, but also that such movement is a form of reduce dependency. of imports of goods from America and China.
As Jadranka Joksimović, Minister of European Integration, told “Politika”, the revised EMP rules mainly cover the interests of most of the economic branches of our country, as well as of our most important trading partners. Especially considering the dominant importance of the European market for the total volume of our foreign trade, and especially in terms of competitiveness and leveling of conditions to do business in the international market.
– The rules have been simplified and made more flexible in terms of the conditions for acquiring the origin of goods and have been modernized in terms of adapting to the requirements of the world economy. Of special importance, and our exporters will know it, is the introduction of the institute of total accumulation of origin and the abolition of the prohibition of returns and exemption of tariffs on non-originating materials (except textiles), which significantly facilitates preferential trade – said Joksimovic. The modified rules, he adds, will allow Serbian companies to more easily export to the EU on preferential terms and vice versa.
She believes that more flexible accumulation rules will contribute to easier economic integration and the development of integrated supply chains in the countries of the region that apply them. As he explained, these trade incentives for the development of a greater volume of trade with the EU, on the other hand, lead to an increase in the competitiveness of the EU in the region. According to him, in a procedural sense, the EU Council should adopt the proposals, which will allow the EU to agree with trading partners to introduce new rules in the relevant agreements.
The European Commission recently recalled that goods with preferential origin meet the import conditions with lower customs rates or even zero rates, depending on the preferential tariff treatment. The European Commission’s proposals now, as stated, will modernize preferential trade agreements with 20 countries in the pan-European-Mediterranean region (EMP).
It should be recalled that Serbia has already signed a Stabilization and Association Agreement (SAA) with the EU, which abolished the payment of customs duties on all industrial and agricultural products exported from Serbia to the EU, through the application of autonomous trade measures, except for some agricultural products. they are protected by preferential tariff quotas (sugar, beef, wine, some types of fish).
In that sense, the commercial privileges that Serbia previously received are significant. Does the aforementioned new liberalization mean a possible change in parts of the SAA or the abolition of quotas on certain products?
Joksimovic recalls that at the ninth meeting of the Joint Committee of the Regional Convention on Pan-Mediterranean Preferential Rules of Origin (PEM ZK), held on November 27, 2019, the Republic of Serbia voted in favor of PEM ZK’s decision on amendments to the regional convention, which is not the case for all partners. .
– Regarding the answer to your question, in this case, the essence is not in the quotas, but, according to the procedure provided, in the revision of the SAA. Amendment means the adoption of amendments to Protocol Three of the SAA – the definition of the concept of “originating products” and methods of administrative cooperation. That AEA annex does not refer to quotas, but covers all kinds of goods, raw materials and products, explains Joksimović.
As he himself says, the essence of this decision and the advantages it brings may be better explained with a concrete example. Thus, certain agricultural products, such as plants, fruits and vegetables, coffee, tea and the like, grown or harvested in the territory of a Contracting Party, will originate in that Contracting Party, even if they are grown from seeds, bulbs, rootstocks. , buds or other parts of live plants imported from the other Contracting Party. The new rules are more flexible and liberal, especially with regard to the height of the content of non-originating materials, which will facilitate the acquisition of origins. For industrial products (except textiles), the revised rules provide significant incentives to acquire origin.
Joksimović also emphasizes that a large number of specific rules have been removed and the possibility of using an alternative rule to acquire origin has been provided, giving the exporter the opportunity to choose an easier condition to acquire origin.
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