Belgrade: South Korea and Serbia have struck a comprehensive economic partnership agreement (CEPA), aiming to strengthen trade ties and address global economic uncertainties, the trade ministry announced. Trade Minister Yeo Han-koo signed the agreement in Belgrade alongside Serbian counterpart Jagoda Lazarevic, marking the culmination of negotiations that began in September 2024.
According to Yonhap News Agency, this agreement represents South Korea's first trade accord with a Balkan nation. The CEPA is designed to enhance South Korea's export capabilities, particularly in semiconductors, electric vehicles, and auto parts, by providing increased access to the Serbian market. This move is expected to expand trade and investment opportunities for businesses in both countries.
The CEPA stands out as a form of free trade agreement that not only focuses on market access but also on broader economic cooperation and exchanges. Under the terms of the agreement, tariffs will be eliminated on 90 percent of traded goods between the two nations. Serbia's strong manufacturing base in automobiles and machinery, coupled with its proximity to the European Union market, makes it a strategic partner for South Korea.
Moreover, the partnership will see the removal of tariffs on Serbian imports of critical materials like lithium, cobalt, and nickel, crucial for stabilizing supply chains in advanced industries such as semiconductors and secondary batteries. The trade ministry emphasized that this agreement comes as a strategic response to global protectionism and the restructuring of supply chains.
Minister Yeo highlighted the potential of the CEPA to facilitate the opening of markets and to establish cooperative platforms in areas such as supply chains, energy, minerals, artificial intelligence, and biotechnology. He assured that the government is committed to swiftly implementing the agreement so that both nations can reap its benefits.
The agreement will now proceed to a legal review and official translation, followed by ratification by the National Assembly, ensuring that it meets all legislative requirements before coming into full effect.