(Yicai) May 10 -- Serbian apples, blueberries, and wines are expected to enrich Chinese food markets while China-made cars, solar panels, and lithium batteries will be exported to the southeastern European country at a lower cost due to a new free trade agreement.

China's first FTA signed with a country in central and eastern Europe will take effect on July 1. The deal was officially signed last October. It means that the nations will cancel tariffs on 90 percent of taxable items, some 60 percent of which will immediately become zero-tariff. The FTA also means that the import levy on Serbian wine will be reduced by 20 percent each year, eventually reaching zero.

China is willing to increase its imports of Serbian special and high-quality agricultural products. The two sides have completed the procedures for importing dried plums and blueberries. Before this, China approved Serbian apples to enter the country so the first batch is expected to arrive in August.

The Balkan nation produces about 500,000 tons of apples per year, according to the local chamber of commerce and industry. Fruit and vegetables account for a quarter of Serbia’s total agricultural exports, half of which go to the European Union, but the nation is also exploring the Middle East and East Asia.

The FTA could narrow Serbia's trade deficit with China. Last year, foreign trade between the two countries tallied CNY30.6 billion (USD4.2 billion), based on Chinese customs data. China exported CNY19 billion of goods while importing CNY11.6 billion of Serbian products.

Some of the China-made items that currently carry import duties of 5 to 20 percent but will gradually become zero-tariff in Serbia are cars, photovoltaic modules, lithium batteries, communication equipment, machinery, refractory materials, and some agricultural and aquatic products.

Moreover, China welcomes Serbia to add a direct flight between Belgrade and Shanghai and encourages airlines to open routes from the capital city to Guangzhou.

Editor: Emmi Laine