Uganda aims to reactivate 1963 trade deal with Serbia

KAMPALA, October 26, 2024 — State Minister for Trade Gen. Wilson Mbadi Mbasu has led a delegation to Serbia for a Joint Commission for Trade Cooperation session in Belgrade. This trade mission aims to reactivate the 1963 trade agreement signed between Uganda and Yugoslavia, prior to Serbia’s separation from the Balkan state.

The discussions will also reinforce other agreements made between President Yoweri Museveni and Serbian President Aleksandar Vucic in July 2023, including a bilateral air services pact.

The Joint Commission builds upon the trade agreements established between the Government of the Socialist Federative Republic of Yugoslavia and Uganda, signed in Entebbe in September 1963. The Republic of Serbia continues to honour these agreements, which provide preferential tax treatment for Ugandan products.

According to a press release from the ministry, the delegation includes officials from the Ministry of Trade, Industry and Cooperatives, Ministry of Foreign Affairs, Ministry of Works and Transport, Ministry of Agriculture, Animal Industry and Fisheries, the State House Diaspora Affairs Unit, Uganda Exim Limited, Uganda Civil Aviation Authority, and Uganda Airlines.

Upon arrival in Serbia, the delegation was received by Uganda’s Trade Representative in the Balkans, Bratislav Stoiljkovic, and visited the Uganda Connect Hub in Belgrade, a vibrant marketplace promoting Ugandan products. They also toured the Museum of Yugoslavia, known as the House of Flowers, which houses the resting place of former President Josip Broz Tito, offering insights into Serbia’s rich history and cultural heritage.

The decision to revitalise the agreement comes in light of recent trade figures. In 2023, Uganda’s total exports to Serbia were valued at approximately Shs 18.5 billion [about US$5 million], primarily consisting of coffee, tea, and spices. Conversely, Uganda imported goods and services from Serbia worth about Shs 1.1 billion, mainly machinery and pharmaceuticals. These figures highlight a strong trading relationship with significant growth potential.

Most of Uganda’s exports to Serbia are agricultural products, particularly coffee, which accounts for over 90% of total exports. With global coffee demand on the rise, establishing a stronger presence in Serbia could facilitate access to European markets.

Odrek Rwabwogo, Chairman of the Presidential Advisory Committee on Exports and Industrial Development (PACEID), emphasized the potential of the agreements for broader East African Community trade opportunities. “Reviving the 1963 treaty is an economic breakthrough, not only for Uganda but for the region,” he said. “By leveraging Serbia’s market and strategic location, Uganda stands to gain access to a stable European market, diversify its export base, and acquire valuable goods that could bolster its economic growth.”

Efforts to revive the 1963 trade agreement mark a significant step toward establishing a robust economic partnership that could greatly benefit both Uganda and Serbia in the years to come.

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