The trade and investment relations between Serbia and Japan have been evolving significantly, especially in recent years. This development is marked by increased Japanese investment in Serbia and a growing bilateral trade exchange.
**Investment and Economic Partnership:**
1. **Historical Context**: The foundation of Japanese-Serbian relations dates back to 1882, beginning with a simple letter exchange between the first king of Serbia and Japan’s Emperor Meiji. Over the years, the partnership strengthened, surviving two world wars and supporting each other through various challenges.
2. **Current Investments**: As of 2022, Japanese investments in Serbia reached around 200 million euros, with more than half of this amount invested in the past two years. The sectors benefiting from these investments include agriculture, automotive, and IT.
3. **Trade Exchange**: Despite geographical distance and logistical challenges, the foreign trade exchange between Serbia and Japan has grown to approximately 400 million euros
4. **Japanese Companies in Serbia**: There are more than 30 Japanese multinational brands operating in Serbia, with around 7,000 employees. Prominent Japanese companies like Daikin and Toyo Tire have established significant operations in Serbia. Toyo Tire, for instance, opened a large manufacturing site in Indjija in 2022.
**Strategic Significance and Future Prospects:**
1. **Serbia’s Strategic Location**:
Serbia’s central location in Europe and its qualified workforce are key factors attracting Japanese companies. These factors position Serbia as an ideal hub for manufacturing and business operations targeting European markets.
2. **Sector Opportunities**: Opportunities for cooperation and growth are particularly notable in the food industry, new technologies, electric vehicle production, and IT services.
Support and Cooperation Initiatives
The Western Balkans Cooperation Initiative, launched by Japan in 2018, has played a significant role in fostering these economic ties. This initiative supports the EU accession of Western Balkan countries and has led to high-quality investments in Serbia.
The continuous efforts of Serbian central and local governments to improve the business environment have been a key driver in attracting Japanese investments. Serbia offers a range of support mechanisms for foreign investors at both national and local levels
Cultural and Diplomatic Aspects
– The bilateral relations extend beyond economic aspects, encompassing cultural and diplomatic cooperation. Both countries celebrate over 140 years of friendship and have supported each other in various international contexts.
In conclusion, the Serbia-Japan trade relations are characterized by a robust partnership, growing investments, and expanding trade exchange. The mutual interests in technological advancement, strategic geographic positioning, and cultural ties have contributed to strengthening this relationship, paving the way for future economic growth and cooperation.
