The US Department of Commerce International Trade Administration (ITA) has selected Serbia and Montenegro as the Market of the Month for January 2006. This is a result of joint effort made by American Embassy Belgrade Commercial Section and Serbian Export and Investment Agency (SIEPA). The Market of the Month feature is designed to promote the upcoming markets through Department of Commerce network of 120 local and 150 international offices. The information about Serbia and Montenegro will also be forwarded to a database of over 14,000 companies.

With a population of 8.5 million people, the SCG market is among the largest in Southeastern Europe (SEE), second only to Romania. Export-oriented companies have access to the SEE Free Trade Area market of 55 million people, while Serbia is the only country outside of the Commonwealth of Independent States that has a free trade agreement with Russia.

Since 2001, Serbia-Montenegro has undertaken aggressive reforms to reassert itself as a regional center. GDP per capita has doubled to almost USD 3,000, ahead of most countries in the region. Furthermore, the local economy reached a record growth rate of 9.3 % in 2004 and is expected to maintain growth rates of around 6% in the coming years. Foreign direct investment has jumped from virtually zero in 2000 to USD 4.5 billion in 2005, and US companies invested over USD 1.3 billion over the past five years, making the US the largest investor nation in the country.

The political risk attached to doing business in Serbia and Montenegro is still high compared to other countries in Central Europe, but it is “decreasing daily.”

This is another important step in strengthening of commercial ties between the U.S. and Serbia and Montenegro and it is expected to attract more U.S. companies to do business in this country.