Unused advantages of Free Trade Agreement with Russia

Belgrade, Feb. 25, 2010 (Source: Tanjug) - Serbian Chamber of Commerce (PKS) President Miloš Bugarin said that Serbia has failed to fully exploit the advantages of its free trade agreement with Russia.“The quantity of goods and continuity of their delivery by Serbian exporters have not met the demands of the huge Russian market”, Bugarin told the Tuesday edition of Belgrade daily Blic. Asked if the political situation in Serbia is the reason why the Russian Duma has still not ratified the agreement, Bugarin said that “what is important for Serbia's export economy is that the arrangement can be implemented in full.” Bugarin said “Serbia needs to focus on the customs union which will be formed by Russia, Belarus and Kazakhstan and which will create a market of 200 million consumers.” “If we could up production both in Serbia and the region, the sky would be the limit for food exports to this market. The trade liberalization is far greater with Belarus than with Russia, and it is time we start negotiating free trade with Kazakhstan,” Bugarin assessed. Bugarin said “energy is the cornerstone of Serbia and Russia's strategic cooperation, and that this does not comprise only the privatization of oil company NIS, but also the South Stream gas pipeline, the oil pipeline, the gas storage in Banatski Dvor and the establishment of a mixed company for insurance and risk sharing in the Serbian and Russian markets.” There is also talk of building hydropower plants and restoring thermal power plants. “Serbia must improve its energy efficiency, because it ranks lowest in Europe,” Bugarin said.