The China-Serbia free trade agreement (FTA) came into effect on Monday and a launch event for the FTA was held in Novi Sad, Serbia's second-largest city.

Under the deal signed in October 2023, about 90 percent of the products traded between China and Serbia will be exempted from tariffs, while over 60 percent of them enjoying zero tariffs immediately after the FTA goes into effect.

Serbian Minister of Domestic and Foreign Trade Tomislav Momirovic and Chinese Ambassador to Serbia Li Ming attended the launch event.

Momirovic emphasized the agreement's significance for Serbia's economic development while affirming Serbia's commitment to an "ironclad friendship" with China. He said that the FTA will enhance trade, foster investment cooperation and integrate industrial chains to maximize economic benefits for both nations and boost their international competitiveness.

"This is a major development for the Serbian economy. We are looking at a market of 1.4 billion consumers," Momirovic said, adding that China has invested 5.5 billion euros ($5.9 billion) in Serbia, making it one of the country's largest investors.

Ambassador Li praised the timely implementation of the agreement, noting it took less than one and a half years from negotiation to finalization, which he said reflects "a high degree of political trust" and an "ironclad friendship" between China and Serbia.