Serbia steps up on climate policy and regional trade

European parliament extends trade preferences for Western Balkans until 2030

The European Parliament has approved a proposal to extend trade preferences for certain agricultural products from Western Balkan countries until 2030. The proposal, presented by rapporteur Kris Van Dijck, received overwhelming support from Members of the European Parliament.

Under current EU regulations, which expire at the end of this year, fruit and vegetables exported from the Western Balkans to the EU are exempt from customs duties. Van Dijck’s report notes that trade under these preferences grew by more than 125% between 2018 and 2024, rising from EUR 60.5 million to EUR 137 million annually.

The European Parliament emphasized that extending these measures aligns with the EU Growth Plan for the Western Balkans, designed to bring the region closer to integration into the EU single market. To benefit from the preferences, countries must comply with rules of origin, avoid raising tariffs or imposing restrictions on EU imports, and respect human rights, democracy, and the rule of law. The European Commission may propose full or partial suspension of trade privileges if a country fails to meet these obligations.

However, LAN team Serbia has raised concerns that the Serbian Ministry of Agriculture’s selective and time-consuming approval of import licenses for EU meat and dairy products could constitute a possible non-tariff barrier that could be considered contradictory to the recommendations provided by Mr. Van Dijck

Trade between the EU and Western Balkan countries exceeded EUR 83 billion in 2024, with the EU remaining the region’s largest trading partner, accounting for nearly 78% of total exports and 59% of imports.

Serbia to introduce carbon tax in January 2026

Serbia will introduce a national carbon tax in January 2026, setting a rate of EUR 4 per ton of CO₂ emissions, Radio Television of Serbia reported. The measure will be formalized through two laws—one covering domestic greenhouse gas emissions and another imposing a tax on imports of carbon-intensive products.

The initiative aligns with Serbia’s upcoming inclusion in the EU’s Carbon Border Adjustment Mechanism (CBAM), which adds charges to carbon-heavy goods entering the European market. Together, the measures are designed to bring Serbia closer to EU climate standards.

According to Željko Marković of the Serbian Energy Engineers Association, the primary objective of the carbon tax is to mitigate the impact of climate change. Public consultations on both draft laws were completed at the end of October.

Marković noted that the domestic tax will mainly affect carbon-intensive industries, including producers of nitrogen fertilizers, iron and steel, ferroalloys, cement, and electricity. The tax will be calculated based on the volume of CO₂ emitted, while other greenhouse gases will be converted to CO₂ equivalents. The second law will apply the same EUR 4 per ton levy to the embedded emissions of carbon-intensive goods imported into Serbia.

He emphasized that the introduction of the carbon tax reflects Serbia’s commitments under the Paris Agreement and its ongoing efforts to align with EU climate policy. “The aim is to encourage CO₂ emitters to invest in cleaner technologies and introduce measures that reduce pollution,” Marković said, noting that the EU began regulating greenhouse gas emissions as early as 2005.

A research conducted by PwC and NALED Analysis of Carbon Footprint of Primary Agricultural Production, analyzing the carbon footprint of Serbia’s agricultural sector from “field to table”, found that agriculture generates six million tons of CO₂ annually, with 66% originating from primary production and 24% from processing. These findings reinforce why LAN team Serbia prioritizes regenerative agriculture, which protects natural resources while significantly reducing emissions associated with primary agricultural production.

New investments in pet food production in Serbia

Italian manufacturer Farmina Pet Foods will invest EUR 20 million over the next two years to expand its production facility in Inđija, Vojvodina, the company’s largest plant worldwide, the Ministry of Agriculture announced. The project includes new production lines for dog dental treats and cat creams.

Farmina Pet Foods has invested more than EUR 50 million in Serbia since 2010 and currently employs 415 workers. The Inđija plant exports to more than 40 markets and the company expects exports to grow by 15% this year. Pet food ranked as Serbia’s third most exported primary agricultural product in 2023, following frozen raspberries and mercantile corn.  The company exports 97% of its output from Serbia, reaching markets across Europe, North and South America, the Middle East, Russia, and Japan. It has also secured approval to export to China, and an inspection for the Australian market is expected this month, according to the ministry.

Farmina’s majority owner and CEO, Angelo Russo, emphasized Serbia’s strategic role in the company’s global operations: “With the support of the Ministry of Agriculture, bilateral agreements have been established with more than 50 countries, allowing us to export to all continents.”

As  reported a year ago by LAN team Serbia, the country’s pet food sector is one of its fastest-growing export industries, now exceeding EUR 200 million annually. Strong performance is driven in part by competitive pricing, high product quality, and the absence of GMO ingredients.

Open Balkan Wine Vision 2025: fourth edition announced

The fourth edition of the Open Balkan Wine Vision Fair will take place from November 22–25 at the Belgrade Fair, the Serbian Chamber of Commerce (PKS) announced. This year’s event will gather more than 600 exhibitors, showcasing wines, spirits, delicatessen products, and tourism offerings from Serbia and the region, as well as wines from famous regions from all continents.

Over four days, Belgrade will become a hub for wine professionals, enthusiasts, restaurateurs, and traders, celebrating the idea that wine and food bring together people, cultures, and traditions. The program includes a diverse lineup of educational sessions, workshops, masterclasses, competitions, panel discussions, and exclusive tasting events. A number of prominent wine experts are expected to attend, among them holders of the prestigious Master of Wine (MW) title, including Rod Smith MW, president of the Institute of Masters of Wine—one of the world’s leading wine organizations. The event will culminate with the announcement of the winner of the Open Balkan Wine Trophy, a major regional competition featuring wines from Serbia, North Macedonia, and Albania. Entries will be evaluated by an international jury that includes five Masters of Wine, with the panel once again chaired by Caroline Gilby MW, one of the most influential wine authorities in the region. Organizers will also reveal the results of the Rakija Trophy, the annual competition recognizing the Balkans’ top brandy producers.