Serbia and Uzbekistan are preparing to move toward formal free-trade negotiations alongside a broader programme of industrial cooperation, creating a potential new trade route between Serbia and Central Asia. Uzbekistan has indicated readiness to begin the process toward a free-trade agreement with Serbia, which would make Serbia the first European country to enter such a track with Tashkent. The move followed the first session of the bilateral economic commission in Belgrade and the signing of a 2026-2028 industrial partnership action plan.
The cooperation agenda covers pharmaceuticals, industrial components, textiles, agriculture, food processing, critical minerals, digital geology, artificial intelligence, 5G and export-oriented IT. Uzbekistan has also expressed interest in participating in the modernisation of Serbia’s railway infrastructure, including a section of approximately 200 kilometres.
Trade ties and Central Asian market access
Current bilateral trade remains relatively small, limiting the immediate macroeconomic impact of a potential FTA. The agreement’s commercial importance would instead depend on whether it supports new investment, production and supply chains. Serbia is already deeply integrated with the European Union, its main export and investment market, while also expanding economic relations with China, Turkey, the Eurasian Economic Union and other markets.
A preferential trade arrangement with Uzbekistan would extend that network into Central Asia. For Serbia, the potential value lies not only in Uzbek demand but also in using Uzbekistan as a gateway toward a broader regional market. Uzbek companies could likewise use Serbia as a production and distribution base closer to European markets. Potential areas include pharmaceuticals, food processing, machinery, electrical equipment and information technology.
Logistics remain a key constraint
Serbia has used preferential market access as part of its investment proposition, allowing foreign manufacturers to combine production in the country with access to multiple export destinations. The effectiveness of a Serbia-Uzbekistan trade framework would depend on more than tariff reductions. Rules of origin, customs procedures, transport costs, certification and financing would determine how efficiently companies can use the agreement.
Distance presents a structural challenge. Uzbekistan is landlocked, while Serbia is separated from Central Asia by several transit jurisdictions, requiring many goods to travel long distances by rail or road and pass through multiple border procedures. This could limit the benefits for lower-value or bulky products. Higher-value goods such as pharmaceuticals, specialised industrial components, software, electronics and engineering services are better positioned to absorb transport costs.
Industrial cooperation expands beyond trade
Pharmaceuticals are among the potential areas for cooperation. Serbia has an established medicines and healthcare-products industry, while Uzbekistan is developing domestic pharmaceutical and healthcare manufacturing. Possible cooperation could include exports, contract manufacturing, distribution and joint production.
Food processing offers another potential channel. Serbia has agricultural and food-production capacity, while Uzbekistan has a large agricultural base and is investing in processing and export infrastructure. This creates opportunities involving technology, equipment, processing and packaging, rather than only commodity trade. Critical minerals and digital geology could provide another strategic area. Uzbekistan has significant mineral resources and is seeking foreign investment in exploration, extraction and processing, while Serbia has developed an increasingly important European mining sector. Cooperation in geological data, digital mapping, exploration technologies and mining services could therefore generate commercial links without relying solely on raw-material trade.
Technology and railway cooperation
The inclusion of artificial intelligence and 5G reflects a wider technology component in the bilateral agenda. Serbia is developing data-centre, AI and software capabilities, while Uzbekistan is also promoting digitalisation and technology exports. Government-backed cooperation could create additional opportunities for Serbian IT companies in Central Asian public-sector and corporate projects. Railway infrastructure could represent a larger potential investment channel. Uzbekistan has raised the possibility of participating in the modernisation of an approximately 200-km section of Serbia’s rail network.
No financing structure, contractor arrangement or project value has been defined, leaving the proposal at a preliminary stage. If advanced, Uzbek participation would add another foreign partner to Serbia’s diversified infrastructure model, which already includes cooperation with Chinese, European, French, Japanese, Azerbaijani and other partners across roads, railways, energy and urban infrastructure.
Origin rules will affect manufacturers
Serbia’s expanding trade network also creates more complex rules of origin. Products assembled in Serbia may qualify for preferential access to one market but not another, depending on the origin of components and the extent of local processing. This could become particularly relevant to Serbia’s expanding manufacturing base involving batteries, robotics components, automotive parts and electronics. The commercial value of a Serbia-Uzbekistan FTA would therefore depend partly on whether such products meet the applicable Serbian origin requirements. Greater local value creation through domestic components, engineering and processing would increase the usefulness of Serbia’s preferential trade network, while assembly heavily dependent on imported inputs would provide fewer advantages.
Investment will determine the outcome
The FTA initiative is linked to Serbia’s broader industrial-policy effort to develop higher-value manufacturing, engineering and technology alongside its existing manufacturing base. Uzbekistan could provide a new export market, but Serbian companies would need to develop a commercial strategy to enter it. Private-sector investment and supply contracts will therefore be important alongside government agreements.
Key indicators will include whether Serbian and Uzbek companies conclude investment or supply agreements, whether bilateral trade increases materially and whether the proposed railway cooperation develops into a financed project. For Uzbekistan, Serbia provides a European production and commercial base outside the EU, with preferential access to several markets and economic relationships with both Western and Asian investors. For Serbia, Uzbekistan represents another potential source of capital and export destination. The relatively small starting trade base and demanding logistics mean that the economic relationship is likely to develop gradually. A free-trade framework could reduce trade barriers, while the industrial action plan provides a structure for identifying projects. Corporate investment, procurement and the development of actual projects will determine whether the framework translates into sustained trade and industrial activity.
