Stanic: EFTA is significant because it forms the European Economic Area with the EU

The Assistant Director of the Sector for Strategic Analyses, Services, and Internationalization at the Serbian Chamber of Commerce, Bojan Stanic, stated that Serbia's economic ties with EFTA members are important and continue to develop thanks to the Free Trade Agreement and Serbia’s growing capacity as an export-oriented economy. He noted that significant investments from EFTA countries – primarily from Switzerland and, to a lesser extent, Norway – are flowing into Serbia.

Last year, foreign direct investments from EFTA members amounted to nearly €200 million, he added.

"Serbia collaborates most with Switzerland, which is by far the strongest economy among EFTA members. However, it's not just about duty-free trade in goods between EFTA and Serbia – services are also experiencing significant growth. For Serbia, it is particularly important that we have a very high surplus in the exchange of services, mainly thanks to the IT sector. For example, in 2023, the surplus in service exchange with EFTA was around €500 million, and in the first 11 months of 2024, it was around €300 million. On the other hand, when it comes to goods, we have a trade deficit, but our exports to the EFTA market have significantly increased," Stanic emphasized.

He also points out that EFTA is significant because, together with the European Union, it forms the European Economic Area (EEA), a single market.

"If EU membership is not a realistic prospect in the near future, an alternative could be accession to the European Economic Area. Through EEA membership, you gain access to a single market of nearly 500 million people," Stanic explained.

When comparing EFTA and the EU, he added that EFTA countries tend to have slightly higher growth rates than the EU, demonstrating greater resilience to economic crises affecting Europe.

Stanic notes that the EFTA market has a population size similar to that of the Western Balkans,  around 15 to 16 million people, but with much higher purchasing power and a highly developed economy, industry, and competitive production.

Serbia exports tobacco products, certain metal structures, corn, and frozen fruit to the EFTA market, while it imports luxury goods, pharmaceuticals, and IT equipment.

Serbia signed its Free Trade Agreement with the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, in 2009, while Kosovo signed a similar agreement on January 22, 2024.