NOVI SAD, Serbia, July 1 -- Serbian Minister of Domestic and Foreign Trade Tomislav Momirovic has said that the free trade agreement (FTA) with China, which took effect Monday, will enhance trade, foster investment cooperation and integrate industrial chains, to ultimately maximize economic benefits for both nations and boost their international competitiveness.

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

The tariffs on over 95 percent of the products will be gradually reduced to zero, according to China's Ministry of Commerce.

Momirovic made the remarks at a launch event for the FTA in Novi Sad, Serbia's second-largest city. He emphasized the agreement's significance for Serbia's economic development while affirming Serbia's commitment to a "steel friendship" with China, according to a press release issued by the government.

"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 U.S. dollars) in Serbia, making it one of the country's largest investors.

At the event, Chinese Ambassador to Serbia Li Ming praised the timely implementation of the "high-quality" agreement, which he said reflects "a high degree of political trust."