Brussels, 21 December 2004– The European Union and Serbiainitialed in Brusselsthe Textile Agreement, which abolishes all restrictions on the export of Serbian textile to the EU. Serbian Minister for International Economic Relations, Milan Parivodić, afterwards said that the Agreement should come into force on 1 May 2005, although the restrictions are abolished by the sole act of initialing the Agreement.
Minister Parivodić has pointed out that this agreement between Serbiaand the EU is of great economic and political importance.
Serbian minister has explained that from the economic aspect this means that our economy has now become equal with its competition in the textile sector and that it can rightfully compete on the European market.
According to minister Parivodić, the political aspect reflects in the fact that the Agreement is a part of Stabilisation and Association Process. In fact, this is the first agreement that Serbiaand the EU have concluded following the recently introduced ‘twin-track approach’.
Singing this agreement is of great importance to Serbiaconsidering that the European Commission has decided to abolish customs duties on the textile imported from Chinaas of 1 January 2005– Chinais one of the biggest and cheapest textile producers and exporters.
Serbiawill conclude this agreement with the EU firstly because almost all of state union production comprises Serbian textile industry and finishing operations with the partners in the EU.
When the ‘technical agreement’ between the Serbian Government and European Commission was made early this year, it was agreed that the temporary safeguard duty on the import of textile from the EU to Serbiashould be 14. 25%. This safeguard duty would gradually be abolished by 2008, when it is estimated that Serbian textile industry technology and capacities will be reviatilised.
Experts in the Serbian Government estimate that it is realistic to expect that Serbiawill attract considerable foreign investment in this sector, bearing in mind that almost all of textile industry is moving from Western to Central and Eastern Europe.
