On July 15, 2024, Serbia and Egypt signed a historic free trade agreement (FTA), promising significant economic benefits for both countries. This agreement provides opportunities for Serbian and Egyptian companies and opens new avenues for international businesses, including European enterprises, to enter the growing markets of Egypt and Africa. Companies from the Benelux can now seize this strategic opportunity to serve all of Egypt and Africa from Serbia. Below is a detailed analysis of the benefits and reasons why entrepeneurs should act quickly.
The free trade agreement between Serbia and Egypt includes tariff reductions, simplification of customs procedures, and harmonization of trade regulations. These measures will reduce trade costs and facilitate access to both markets.
- Reduced Tariffs: By abolishing or reducing import and export tariffs, products become cheaper for consumers and businesses in both countries.
- Faster Customs Procedures: Simplification of customs procedures means less administrative hassle and faster processing times for goods.
- Harmonization of Trade Rules: Uniform trade rules make it easier for companies to comply with legal requirements in both countries.
- Strategic Geographical Position of Serbia: Serbia is strategically located at the crossroads of Europe and Asia, making it an ideal logistical hub. Belgian companies can leverage Serbia's developed infrastructure and favorable trade relations with the EU, Russia, China, the United States, and now Egypt (SeeNews) (Srbija.gov.rs).
- Access to the Egyptian Market: Egypt, with its population of over 100 million people, offers a vast market for consumer goods, technology, and industrial products. The free trade agreement makes it easier for Belgian companies to enter this market and compete with local producers (Serbian Monitor) (Xinhua).
- Expansion into the African Market: Egypt often serves as a gateway to the broader African market, thanks to its geographical location and membership in the African Union and COMESA (Common Market for Eastern and Southern Africa). Belgian companies can leverage Egypt to benefit from favorable trade terms with other African countries.
- Construction and Infrastructure Projects: Serbian companies have a long-standing tradition in construction, supported by highly skilled engineers and a robust infrastructure sector. Belgian construction companies, in cooperation with Serbian firms, can more easily participate in infrastructure projects across Egypt and Africa. Joint ventures with Serbian companies enable a rapid expansion for Belgian entrepreneurs (Daily News Egypt) (EgyptToday) (Egyptian Gazette).
- Agro-Industry: The agro-industry is one of the key sectors in both Serbia and Egypt. Belgian companies in this sector can benefit from the fertile land and favorable climatic conditions in Serbia for production, and then serve the Egyptian market where the demand for imported food is high.
- Technology and Innovation: With a rapidly growing technology and innovation sector, Serbia offers opportunities for Belgian companies in ICT, software development, and innovative products which are meant for Egypt and Africa.
- Sustainable Energy: Both Serbia and Egypt are investing in sustainable energy to diversify their energy mix and reduce CO2 emissions. Belgian companies with expertise in renewable energy can capitalize on this.
The free trade agreement between Serbia and Egypt creates a unique opportunity for Belgian companies to expand their operations and enter new markets. By leveraging Serbia's strategic position and economic benefits, Belgian companies can operate more efficiently and compete in Egypt and the broader African market. The time is ripe for Belgian enterprises to seize this opportunity and strengthen their presence in these promising regions.
