How trade agreements, innovation, and sustainability are shaping the next phase of economic cooperation
Over three decades, Dragica Tomčić, Economic Affairs Officer at the Swiss Embassy in Serbia, has witnessed the transformation of Swiss-Serbian economic relations. From early challenges to strong trade and investment ties, she reflects on key milestones, Swiss business adaptability, and future opportunities in sectors like innovation, sustainability, and technology.
Over your 30 years of service, how would you describe the evolution of economic relations between Switzerland and Serbia?
Over the past three decades, the economic relationship between Switzerland and Serbia has transformed significantly, evolving from a phase of uncertainty and minimal engagement to one of robust and growing cooperation. In the early years, due to the regional conflicts, political instability, and the imposition of sanctions, the economic ties were limited. However, Switzerland’s consistent support for Serbia during this time, particularly through humanitarian aid and development programs, laid the foundation for future growth. The most defining moments of this relationship have been the signing of the EFTA Free Trade Agreement in 2009, which drastically reduced trade barriers and spurred the flow of goods between the two countries, and the establishment of the Swiss-Serbian Chamber of Commerce in 2014, which further promoted business networking, market access, and mutual collaboration. These initiatives, alongside the unwavering commitment from both governments to foster deeper economic ties, have led to significant achievements in trade, investment, and institutional cooperation. Today, Switzerland is one of Serbia’s most important economic partners.
Reflecting on your early years at the Embassy, what were some of the major challenges and opportunities in establishing economic ties with Serbia?
The initial years were fraught with challenges that stemmed from the fallout of the Yugoslav Wars, hyperinflation, and the harsh sanctions imposed on the region, which isolated Serbia from the international community. These factors created a volatile economic environment where foreign investors were cautious about entering the Serbian market. At the same time, Serbia was undergoing a period of transition, shifting from a socialist to a market economy, and this created opportunities for engagement, though it was difficult to navigate the bureaucratic red tape, corruption, and lack of regulatory clarity. The administrative hurdles, weak institutional frameworks, and lack of trust in the system created barriers to foreign investments. However, the democratic transition in 2000 marked a pivotal moment, enabling Serbia to initiate reforms and welcome foreign investments, particularly following the signing of the Stabilization and Association Agreement (SAA) with the EU in 2008. Swiss businesses slowly began to take notice of Serbia’s market potential, and by the mid-2000s, they started exploring opportunities, especially in sectors like manufacturing, retail, and telecommunications.
Switzerland and Serbia moved from uncertainty to strong economic cooperation
Which key milestones or turning points do you believe have most significantly shaped the robust economic partnership we see today?
Several milestones stand out in shaping the robust economic partnership between Switzerland and Serbia. One of the most crucial turning points was the signing of the Free Trade Agreement with EFTA in 2009. Another major milestone was the creation of the Swiss-Serbian Chamber of Commerce in 2014, which served as a bridge for Swiss businesses seeking to enter the Serbian market and for Serbian companies looking to expand to Switzerland. Additionally, Switzerland’s longstanding development aid to Serbia, which has amounted to over 440 million Swiss francs, has been instrumental in supporting Serbia’s economic and institutional reforms, focusing on sectors such as governance, financial sector stabilization, and private sector development.
How have Swiss investors and businesses adapted to the shifting political and economic landscape in Serbia during your tenure?
Swiss investors and businesses have demonstrated remarkable adaptability to Serbia’s shifting political and economic landscape over the past three decades. In the early days of transition, Swiss companies were hesitant to invest due to the uncertainties caused by the wars, sanctions, and the initial lack of regulatory clarity. However, as Serbia’s political climate stabilized, Swiss investors began to cautiously re-enter the market, with many focusing on industries that offered long-term growth potential, such as consumer goods, construction materials, and pharmaceuticals. The Swiss government also provided important financial and advisory support to help Serbian authorities modernize the regulatory environment and streamline processes, making it easier for businesses to navigate the market. With Serbia’s gradual integration into the European Union, particularly after signing the SAA, the environment became more conducive to foreign investments, which allowed Swiss firms to expand further. Over the years, Swiss businesses, including Nestlé, Holcim, and ABB, diversified their investments to include sectors like manufacturing, IT, and sustainable energy.
Adaptability has kept Swiss-Serbian economic ties strong through change
What lessons learned over these three decades do you think will be crucial for guiding future collaboration between our two countries?
The collaboration between Switzerland and Serbia over the last three decades offers a wealth of lessons that will be crucial for guiding future relations. One of the most important lessons is the need for flexibility and adaptability in the face of changing political and economic conditions. Switzerland’s ability to adapt to Serbia’s evolving political climate and regional dynamics, especially during times of conflict and transition, has been crucial to maintaining a strong partnership. Another lesson is the importance of continuous investment in innovation and technology transfer. Switzerland’s strong, innovation-driven economy has been a valuable resource for Serbia, especially in sectors like clean energy, IT, and engineering. Moving forward, both countries can benefit from focusing on deepening innovation partnerships and fostering the development of Serbia’s tech ecosystems. Sustainability is also a key area of focus. Switzerland’s expertise in clean energy solutions and environmental management has helped guide Serbia’s green transition, and both countries can continue to collaborate on renewable energy infrastructure, smart cities, and green technologies. Furthermore, strengthening human capital development, skill-building, and institutional capacity will be essential for long-term success. Future cooperation should prioritise these areas, ensuring that both countries remain resilient and competitive on the global stage.
Which sectors do you see as most promising for future growth in bilateral trade and investment, and how might these opportunities be best leveraged?
The future growth of bilateral trade and investment between Switzerland and Serbia holds enormous potential in several strategic sectors. Technology and innovation, particularly in AI, fintech, biotech, and automation, are key areas for future expansion, leveraging Serbia’s rapidly growing IT sector and Swiss expertise in precision industries. Renewable energy is another sector that holds immense promise, with opportunities for Swiss companies to invest in Serbia’s solar, wind, and hydropower projects. The green energy sector, in particular, offers a huge potential for collaboration between the two countries. Additionally, Serbia’s skilled labor force and favorable trade agreements make it an attractive location for Swiss companies to set up production facilities, particularly in high-tech industries. Startups and innovation hubs present an exciting opportunity for joint research and development (R&D) projects between Swiss and Serbian universities, which can lead to groundbreaking innovations. Furthermore, the Swiss-Serbian Chamber of Commerce can play a vital role in strengthening business networks and facilitating matchmaking events, trade delegations, and investment forums that attract more Swiss SMEs to Serbia. These sectors, along with the continued focus on innovation and sustainable growth, will be crucial for the future of the bilateral economic relationship.
Swiss investments have played a key role in Serbia’s economic transition and growth