# Presentation: 686790

## 
EU Accession
Status of  Serbia and other Western Balkan Countries

**EU Accession**
*Status of  Serbia and other Western Balkan Countries*

## Serbia (and) Montenegro in Europe

- SERBIA

- MONTENEGRO

***Serbia (and) Montenegro in Europe***

- ROMANIA

- GREECE

- ITALY

- POLAND

- GERMANY

- R
- USSIA

## Western Balkans

## Stabilization and Association Process/ Stabilization and Association Agreements

| Country | GDP Per cap.$ | Population,  2006 in mill. | Relationship w/ EU | Pre-Accession Assistance in 2007 in mill. E |
| --- | --- | --- | --- | --- |
| Albania | 2,769 | 3.2 | Stability and Association Agreement signed on June 12, 2006 | 61 |
| Bosnia & Herzegovina | 2,352 | 3.9 | Negotiations on Stability and Association Agreement are ongoing | 62 |
| Croatia | 8,744 | 4.5 | Candidate country. Negotiations ongoing. | 139 |
| Montenegro | 3,271 | 0.65 | Montenegro decided to be independent on May 21, 2006. Negotiations for a Stability and Association Agreement were started in September 2006. Preliminary signing of SAA on March 15, 2007. | 31 |
| Serbia without Kosovo | 3,525 | 7.5 | Opened talks on Stability and Association Agreement in October 2005. | 187 |
| Kosovo | 1,565 | 2 | The status of Kosovo has not yet been determined. Kosovo is an observer in the EU governmental bodies. | 63 |
| FYR Macedonia | 2,556 | 2 | Stability and Association Agreement into force in April 2004. EU Council decision to grant candidate status in December 2005, but without determining a date for when negotiations can start. | 60 |

## Foreign Direct Investment in 2006

| Country | Population in mill. | GDP Growth (%) | FDI 
in $ billion |
| --- | --- | --- | --- |
| Serbia without Kosovo | 7.5 | 5.8 | 3.5 |
| Croatia | 4.5 | 4.5 | 2.9 |
| Romania | 21.5 | 6.4 | 9.1 |
| Bulgaria | 7.6 | 6.5 | 4.1 |

## Regional Integration

**CEFTA****  - ****A good signal to foreign investors**
**	****31 – bilateral agreements – market of 30 million people**
**Serbia is the only country outside the CIS******** that has an FTA with the Russian Federation – market of 150 million people**
**- Serbia is in the middle of the SEE Free Trade Area – duty free access to a market of 60 million people.**
** **

## Macroeconomic Data 2006

**GDP: $ 25.5 Billion**

**GDP per Capita: $ 3,525**

**Unemployment: 27.0%**

**Inflation: 6.5   %**

**Currency: DINAR**

**Credit rating: BB-**

_***Serbia***_

**FDI: $ 4 billion**

**Real GDP growth: 5.8%**

_***Montenegro***_

**GDP: $ 1.9 Billion**

**GDP per Capita: $ 3,271**

**Real GDP growth: 5%**

**Inflation:    1.8%**

**Unemployment: 20.0%**

**FDI : 620 $ **

**Currency: EURO**

**Credit rating: BB+**

## Latest Developments

**At the end of 2005, ****EU**** ****announced**** ****a positive Feasibility Study and the start of negotiations on the Stabilization and Association Agreement**** **

**The World Bank’s guide “Doing Business in 2006” named Serbia the top global reformer**

**EBRD**** ****rated Serbia as having t****he highest graded structural reform progress in Central and Eastern Europe**

**The F.T.**** ****awarded**** ****Belgrade as the “City of the Future” in Southern Europe for 2006/2007**

**U.S. Department of  Commerce named Serbia and Montenegro “Market of the Month” in January 2006**

## Legal Reform

## Major U.S. Investors 2003-2006

**  ****Phillip Morris, 2003, EUR 700 million **
**    ****Largest Foreign Investment**

**  ****U.S. Steel, 2003, EUR 250 million**
**    ****Largest EX/IM in Serbia**

**  ****Ball Corporation, 2004, EUR 80 million**
**    ****Largest Greenfield Investment**

**  ****NewsCorp, 2006, EUR 70 million**
**    ****First Foreign TV Broadcaster in Serbia**

## Advantages of Doing Business in Serbia

**Unsaturated Market**

**South ****E****ast Europe**** Free Trade Zone**** **

**Favorable Taxes**** **

**Positive FDI Track Record**

**Privatization Opportunities (Public Companies)**

## Leading Sectors for U.S. Export and Investment

**Telecommunications equipment and services **

**Airport and ground support equipment**

**Pharmaceuticals**

**Computer hardware and peripherals**

**Energy**

**Pollution control equipment**

**Medical equipment**

**Financial services**

## U.S. Commercial Service

**Maria J. Andrews, **
- Regional Senior Commercial Officer
**U.S. Commercial Service**
**American Embassy Belgrade**

**       ****www.buyusa.gov/yugoslavia/en**