On 3 April 2017, Serbian and Mexican officials agreed on further development of bilateral trade and investment relations between the two countries. Such move represents a step further in the integration of Serbia back into the economic and trade world order. After a series of economic sanctions, isolation and the economic transition, Serbia seems to continue to weave a thick web of international treaties commenced by the former Yugoslavia.
Even though diplomatic relations between these two very different countries started in 1946, it seems that recent developments will greatly contribute to a reinforced trade exchange.
The Memorandum of Association between Serbia and Mexico was signed this Monday in the premises of the Serbian Chamber of Commerce by Serbian and Mexican officials. This agreement should further develop commercial exchange and investment activities between the two countries. According to available data, the value of such cooperation in the last year was only 38 million USD which is an amount that can be increased in the years to come. Such predictions were expressed by both parties to the Memorandum, especially taking into consideration the full potential of Mexican economy in the future.
According to an analysis published by the UK Government as well as the World Bank, Mexico has great chances of becoming one of the leading 5 economies worldwide in the next couple of decades. More precisely, the World Bank predicted that Mexico will attain the position of the 5th leading economy by 2050. Its principal exporting potentials revolve around software engineering and technology, while it has interest in importing goods and technologies in the sector of agricultural industry, car and metal industry, and creative industry. Besides, rubber and other similar raw materials are already exported from Serbia to Mexico. Serbian agricultural industry might attract attention as well.
Serbia is an emerging economy actively working on removing of all types of unnecessary trade and administrative barriers. As published in the World Bank’s annual analysis “Doing Business in” guide, Serbia is placed on the 47th position in 2017, mostly thanks to approaching to the European Union and work on the fulfillment of all conditions prescribed by the EU integration process. Serbian accession to the World Trade Organization is also one of the preconditions in the EU accession process. Therefore, its active networking with emerging economies on the global level can only contribute to these goals by improving its financial health and stability. Serbia has also entered into the Free Trade Agreement with the EFTA members in 2009. Mexico has entered into the free trade agreement with the EU in 2000.
According to the recently published data, Mexico invested about 10 billion USD only last year in Europe and has a big investment potential. Serbia, on the other side, is a new economy with a Government funded system of incentives for foreign investors, good climate, and favorable geographic position. Taking into consideration the size of the Mexican market and relative popularity of Spanish language and culture in Serbia, it seems that cooperation between these two countries really might flourish in the years to come.