Tashkent and Belgrade have begun drafting a free trade agreement that would establish zero tariff rates on goods on a reciprocal basis, Investment, Industry and Trade Minister Laziz Kudratov said, responding to a question from journalist Jakhongir Olimov following a meeting of the intergovernmental commission.
He said the two sides expect to finalize the draft agreement and sign it in the near future.
"We have begun work on a free trade agreement. We'll complete the draft shortly and sign it. This will create attractive conditions for Uzbek products on the Serbian market," the minister said.
Kudratov noted that the agreement would explore applying zero tariffs to the full range of goods on a mutual basis.
"We have thoroughly analyzed Serbia's economy, and we can say with confidence that the economies of Uzbekistan and Serbia are not competitors — they can complement each other. That's why this agreement will benefit both sides," he said.
The two countries also adopted a separate industrial cooperation program covering projects in light industry, agriculture, pharmaceuticals, geology, metallurgy and IT.
According to the minister, two months of online negotiations with Serbian companies took place ahead of the visit, involving not only government agencies but also major private businesses on the Uzbek side. In-person talks are set to continue at a business forum.
Kudratov also commented on plans to launch direct flights between Uzbekistan and Serbia. He said negotiations are ongoing, with discussions focused on creating the necessary conditions for both Air Serbia and Uzbek carriers.
"We've also reached agreement on this issue and have already begun work toward signing an intergovernmental agreement as soon as possible and launching flights on both sides," the minister said.
Serbian President Aleksandar Vučić said earlier that flights are expected to launch within seven to eight months.
Another potential area of cooperation is rail projects in Serbia involving Uzbekistan Railways and Uzbek construction firms.
According to Kudratov, transport agencies from both countries are discussing two projects along two routes, with a corresponding protocol expected to be signed following a meeting between the two presidents.
"This will be the first project to give Uzbek builders access to the European market and let them take part in construction projects in Europe," the minister said.
He added that successful implementation of these projects could lay the groundwork for further participation by Uzbek companies in similar infrastructure projects elsewhere in Europe.
Earlier during the visit, the two sides announced plans to launch direct flights between Tashkent and Belgrade within seven to eight months. Uzbekistan also decided to open a separate diplomatic mission in Belgrade ahead of establishing a full embassy.
President Shavkat Mirziyoyev called on Serbian companies to move beyond trade toward localizing production and transferring technology to Uzbekistan, naming auto components, electrical engineering, pharmaceuticals, textiles, agricultural projects and IT among the priority sectors. Negotiations with Serbian companies are already underway in several of these areas.
Vučić has previously said Serbia is ready to cooperate with Uzbekistan on defense industry projects, including long-range ballistic missiles, which Belgrade expects to begin producing in about a year.
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