Focus on Belgium 2019

Belgium DI PLOM ACY

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COM M E RC E

PR E S E N T S

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S PA The word “spa”, that’s being used to talk about places to relax and get wellness treatments, comes from the Belgian city Spa.

CASTLE Belgium is the country with most castles per square kilometer in the world.

BELGIAN C H O C O L AT E The Belgian chocolate industry is almost 400 years old.

SA XO P H ON E In 1846, Belgian instrument maker Adolphe Sax invented the saxophon.

M U S I C F E S T I VA L S Belgium has some of the best music festivals in the world.

Tomorrowland, Rock Werchter, I Love Techno, etc.

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There is Always Room to Step Up

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H . E . KO E N A DA M Ambassador of Belgium to Serbia and to Montenegro

The visit of the high level delegation has once again given us the opportunity to reiterate Belgium’s support for Serbia’s European membership perspective t the beginning of November a high level delegation of the Belgian Ministry of Foreign Affairs came to Belgrade for political consultations with the Serbian authorities. We mutually came to the conclusion that our bilateral ties are excellent and that there are no problems whatsoever in our bilateral relations. Our bilateral trade figures are in a constant upward trend, we have established a good partnership on the level of police cooperation and the judiciary, and recently a new resident Defense Attaché has reinforced the Embassy team. Furthermore, Bel-

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gian cultural products and performers have found their way to Belgrade on numerous occasions in the past year” says in the interview H.E. Koen Adam, Ambassador of Belgium to Serbia and to Montenegro.

Where do you see a possibility for more robust cooperation between our countries?

— We have taken good note of some of the suggestions made during the bilateral consultations, with regard to cooperation in the field of scientific research and agriculture. These proposals will have to be looked at by our Regional

I believe that the constitution of a new Belgian-Serbian Parliamentary friendship group could pave the way for new exchanges between the two parliaments

authorities, who have specific competences in these fields.

There is always room to step up our bilateral high level contacts, also to boost, promote and give visibility to the European agenda in Serbia. It is clear, however, that we will have to wait for the dust to fall on the post electoral political situation in Belgium, and the forming of a new government. I also believe that the constitution of a new Belgian-Serbian Parliamentary friendship group could pave the way for new exchanges between the two parliaments.

Since last year we are going through an extraordinary experience in terms of parliamentary democracy in Belgium, where the search for adequate legislative majorities is obliging parties to collaborate across the traditional parliamentary divide. I am sure our parliamentarians are ready to share their ‘best practices’ in that respect.

How interested are Belgian companies in investing in Serbia, and what can Serbia do to attract more Belgian investment?

— Belgian companies traditionally need some encouragement to explore markets that are not in immediate reach: Even

though we are the 11th biggest exporter of goods in the world, 75% of our exports go to neighboring countries, which is logic, also given the specific SME profile of many of our companies. But at the same time it is obvious that more and more companies are attracted to doing business in and with Serbia. This is due to the presence of a well-qualified labor force, but also to a slowly but steadily improving business climate. Serbia has already established a stable macro-economic environment, and is doing serious efforts in the area of infrastructure.

There is however still a lot of room for improvement in the area of the rule of law and good governance, also in the economic sphere. Business will thrive in an environment where the judicial branch is trusted to act independently and efficiently, where corruption is effectively tackled, where level playing fields are assured, also in relation to the government policy towards state owned enterprises. In other words : combined with the good experience of already established Belgian companies, a continuous effort to make Serbia more attractive, through implementation of the necessary reforms, will almost automatically increase the Belgian economic operators’ interest in this market.

As a member of the EU, Belgium actively supports Serbia on its way to joining the EU. How would you rate the results Serbia has made so far in that respect and how do you see the current state of economic and political relations of our two countries?

— The visit of the high level delegation has once again given us the opportunity to reiterate Belgium’s support for Serbia’s European membership perspective. In October, the former Belgian Prime Minister and First President of the European Council Herman Van Rompuy reconfirmed our commitment in that respect, and encouraged Serbia to continue its reform agenda. There is no need to be distracted or discouraged by the ‘non decision’ taken recently regarding the opening of accession talks with other Balkan countries. Serbia’s macroeconomic figures are excellent, also in comparison with some EU member states. We now expect Serbia to show equal determination in pursuing the reform agenda in the area of rule of law, and to create an enabling environment for democratic principles and values to take firm root, with media freedom, a well performing Parliament and an independent and efficient judiciary.

We have also companies with specific expertise in waste water treatment, ready to explore opportunities in the many Serbian cities that still require basic investments in that field

Do you think that the EU will manage to find a sustainable formula to continue existing as it is, despite Brexit and Euroscepticism both within and beyond the Union?

— I am profoundly convinced that inside the EU we will be able to find a new equilibrium, also after the departure of UK. The EU has time and again proven in the past to be resilient to even the most impacting internal and external shocks. I don’t see why this would be any different today.

But to ‘keep our act together’ will require the continued resolve and focus of those who believe in the European project. Brexit, intrinsically a very sad episode indeed, did paradoxically already have a positive effect on the preservation of European unity : all member states agree that we have to protect the European acquis, in the first place its internal market, and look beyond the proper national interests. Similarly it is obvious that only with European unity, solidarity and cooperation, the big challenges of these times can be tackled, be it in the field of climate change, migration, the fight against terrorism or our position in the world, when talking about trade or the EU foreign and security policy. ‘Unity brings strength’ (L’ Union fait la force’) is written in the Belgian national coat of arms, and I am confident that the new European President, our former Prime Minister Charles Michel, will do his utmost to project this Belgian DNA into the deliberations at the European Council.

Belgium was traditionally very active in our country in various fields, from education, social inclusion, culture, to ecology and other areas. Could we announce any new activities of the Embassy in Serbia?

— Our interest and indeed knowhow in the area of ecology remains vivid : our windfarm companies for instance are eager to invest in new fields, once the government releases new quota for renewable energy. We have also companies with specific expertise in waste water treatment, ready to explore opportunities in the many Serbian cities that still require basic investments in that field.

In culture and education we are benefiting from the activities developed by our two, -French and Dutch-, lecturers in the Belgrade University.

They are actively promoting our double language related cultural heritage, including through translations of Belgian authors, and events organized in the framework of the month of the Francophonie. The collaboration between our Royal Library and the university library Svetazor Markovic will culminate next year in a literary exhibition. As in the past Belgium will be present in some of the outstanding cultural festivals in Serbia such as Bitef, Belgrade Dance Festival (with the exquisite contemporary dancer Liesbeth Gruwez), the Jazz Festival, Beldocs… . And we are already looking ahead as well to our participation in the Novi Sad Cultural Capital of Europe program.

Last month Paul Dujardin, the CEO of Brussels’ famous Bozar-art centre participated in the Creative Europe conference in Belgrade, together with the organizer of the Balkan Trafik festival.

That music festival, hosted by Bozar, will - with the support of the Embassy - put the limelight on Serbia in its 2020 edition. It is indeed important to maintain people to people contacts in two directions, an enrichment and indispensable human component of our bilateral relations.

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New Investors Bring New Technologies The BSBA takes the role of facilitator in “people-oriented-matters”

he Belgian Serbian Business Association is the heart of a growing network with access to a variety of companies and institutions directly involved with prospects and business in Serbia and in Belgium. The BSBA wants to create a forum for the Belgian-Serbian economic community in the country. Next year, this association celebrates 10 years of doing business in Serbia. Hugo van Veghel, President of the Belgian-Serbian Business Association (BSBA), talks about how Belgian companies are happy with their business here, which is a comparative advantage of Serbia and other topics.

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How many Belgian companies do currently do business in Serbia? According to your findings, how satisfied are they with their business activities in Serbia?

— 130 Belgian companies operate in the territory of Serbia, and Belgium is 30th

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in terms of investment in the country.

As far as we know, our companies are pretty satisfied with their business activities in Serbia. We note considerable manufacturing expansion activities in Metech (Experts in total concepts – metal sheet processing, Smederevo), Blockx (Industrial big bag production, Bački Petrovac) and Talent 4 Blinds (Production of window decorations, Zrenjanin). Some red tape issues, related to RAS and finalising subvention issues still exist, but we are sure that they will be resolved very soon.

According to your data, what did the trade between Belgium and Serbia amount to last year? What did Serbia import the most and what did it export the most to Belgium?

— Compared to the same period last year we notice a 10 % growth, with a deficit that is still on the Serbian side.

For 2019 the trade value will exceed EUR 600 million. Serbia exports to Bel-

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H U G O VA N V EG H E L President of the BelgianSerbian Business Association (BSBA)

Our companies are pretty satisfied with their business activities in Serbia

gium, the most frozen fruits (especially the “red gold” –raspberries) and vegetables but also cables, while importing a wide range of products, from tobacco to pharmaceuticals and chemicals.

The most significant number of investments from Belgium into the country is in the food, metal and construction sectors. The digitalisation process in Serbia does not go unnoticed. We see also Belgian newcomers in this sector.

How important is the existence of the Belgian-Serbian Business Association (BSBA) for the strengthening of business connections between the two countries and to what extent is the Embassy involved in the BSBA operations?

— The BSBA was established in 2010, meaning that next year we will celebrate our 10th anniversary. Being on the block for a decade means that there was not only a reason for its existence but that it also delivered the support

the members expect. That support is complementary to the excellent work of and cooperation with the Embassy and its Economic & Trade Office. The Ambassador is an Honorary Chairman and, the Economic & Trade Counsellor is a member of the board of the BSBA. At all times, we coordinate and cooperate in all our activities. Their reporting on our work is for years a positive influence in our requests for an annual subvention from the Belgian Federal Offices. Whereas the Embassy and the Economic & Trade Office deal with primary issues, like governmental contacts and linkage to institutions, providing statistical and legal information, the BSBA takes the role of facilitator in “people-oriented-matters”. New and exploring investors want to know figures and legal frameworks but also how the potential social environment looks like in the area they might settle. We provide not only information but sometimes go with them in the field. Understanding of some cultural and societal aspects cannot come from statistics and reports. Most essential for them is to meet our members on one of the seminars, breakfast or working lunches, Speed B2B or networking

cocktails, activities that we often share with other bi-lateral chambers or business associations. First-hand information from peers is essential in final decision making.

What are the biggest advantages of Serbia when it comes to attracting investments? What are its flaws and what issues do you see as the most urgent?

— On the last Belgian Day, organized by the Embassy, the Economy & Trade Office, the BSBA and CCIS, our Ambassador said: “It is very important for Belgian companies to be present in the Serbian market. We believe that we can make a concerted effort in many spheres because we have a lot to share in the innovation and technology sector”. Many Serbians perceive the low-cost-workforce as the main attractor to investors.

It plays a role, but the BSBA is highlighting the work-willingness of the people in the country. In this sense, talking to exploring Belgian investors, we point at the importance of attitudes towards the people you employ; take care of your employees and, they will take care of you and your company. Some well-established Belgian companies, like Me-

The BSBA takes the role of facilitator in “peopleorientedmatters”

tech and Blockx, will confirm that. The legal framework for PPPs is improved and, municipalities are getting better in dealing with potential foreign investors.

On the other hand, despite all previous and ongoing efforts, there is still a deficit in a skilled workforce and a weak SME contingent. New investors bring new technologies, often unseen before in Serbia. Companies will train selected potential employees, but, you cannot put all on the back of a company.

Not only technology or IT knowledge are in question, (and this is also valid in Europe), social behaviour at work and willingness as well as readiness to learn are assessed and should get more attention in formal and non-formal education. By now there are 40 incubators in Serbia, and a vast majority is focusing on IT. Business however, must be observed more holistically. Investors are also looking for cooperation opportunities, availability of sub-contractors, suppliers. Hence, it requires more efforts in financial and structural measures for skills and entrepreneurship/ SME development for building a support-structure for larger entities. Let's never forget that it always turns around people. People make value chains possible.

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Serbian Companies Have a Lot to Offer to Belgium We invest a lot of effort into better representing the Serbian market to Belgian business people, and to point them to segments or industries which provide extremely favourable business opportunities

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ast year, Serbia and Belgium recorded the highest growth of their foreign trade, totalling EUR 581.6 million. We talked about the further potential for cooperation between the two countries with Marijana Milošević Tufegdžić, Economic and Trade Counselor at the Belgian Embassy.

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Economic cooperation between Serbia and Belgium has been growing in recent years, and this year, the value of the external trade between the two countries will exceed 600 million euro. Where do you see room for further cooperation?

— It makes us happy to see the volume of external trade between the two countries increase year-on-year. Belgian economy largely relies on external trade, and despite the country’s modest size, it has managed to become one of the world's most important external trade stakeholders. Belgium is also a leader in a number of different sectors and fields such as chemical, IT, environmental, pharmaceutical, infrastructure,

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logistics, food; the list is really long.

Belgium mostly exports to Serbia the following products - various types of machinery, chemical products, plastics, different transport equipment and vehicles. I believe that opportunities for further cooperation are numerous, especially in areas such as the environment, where Belgium has vast experience and numerous successful and innovative solutions and can help Serbia overcome the challenges in this area.

Also, a sector like IT provides different opportunities for collaboration, as well as the circular economy and renewable energy sectors. I also think there is plenty of room for cooperation through the use of the Belgian experiences and the transfer of the know-how of Belgian companies from various economic segments.

There are currently 130 Belgian companies operating in Serbia. How often are you contacted by new Belgian investors who are interested in investing in Serbia?

M A R I JA NA MILOŠEVIĆ T U F EG DŽ I Ć Economic and Trade Counsellor at Belgian Embassy

Serbia exports to Belgium mostly food, namely agricultural products; especially the famous Serbian raspberries

— Depending on which statistical parameter you apply, you will get different information on the number of Belgian companies operating in Serbia. In any case, the most important thing is that this number is increasing year-on-year.

In general, there is a positive trend in economic cooperation and trade between Belgium and Serbia. Our office in Serbia represents the three Belgian regional agencies specialized in foreign trade - Brussels Business Support Agency www.hub.brussels/en/ Wallonia Foreign Trade and Investment Agency (www.awex.be) and Flanders Investment and Trade www.flandersinvetsmentnadtrade.com). They are focused on supporting Belgian companies that want to internationalize their business and offer their products, services or technologies to foreign markets. Belgian investments in Serbia are quite diversified, and Belgian investors are present in various sectors such as metal processing, food processing, retail, construction, chemical industry, IT and the like. The Belgian companies that

contact us and are interested in the Serbian market are usually initially interested in commercial cooperation while investing comes later. In order to increase their number, it is important to constantly work on improving the business environment, reducing and eliminating some administrative barriers and bolstering the rule of law. Needless to say, Belgian firms hold stability, predictability and transparency of the business environment as particularly important. Potential investors want to get accurate information on various administrative and legal procedures and tax policies, as well as precise information on estimated costs, before making such an important strategic decision.

Also, the best reference for potential investors comes from existing investors and their success stories. Positive experiences from existing investors are a sure way to attract new ones.

Which industries are crucial for cooperation and why? — As I pointed out earlier, Belgium is a leader in a number of sectors and there are various areas where cooperation can be significantly enhanced.

Our goal is to bring the Belgian and Serbian business community closer together and allow them to get to know each other through various activities we organize each year

Our goal is to bring the Belgian and Serbian business community closer together and allow them to get to know each other through various activities we organize each year, such as seminars, presentations, meetings with our local Serbian partners, etc. Recently, we organized a seminar on doing business with Belgium together with the Chamber of Commerce and Industry of Serbia and the Belgian-Serbian Business Association, which has attracted a lot of attention from Serbian companies. On that occasion, Belgian companies operating in Serbia and Serbian companies active in Belgium shared their experiences. We have also presented the opportunity to test Brussels as a business location by using HUB Brussels Foreign Investor Hub. Also, we expect two delegations of Belgian companies next year and hope they will result in new contracts and partnerships. If I were to single out some of the branches that have special potential for cooperation, these would certainly be environmental protection, renewable energy and energy efficiency, the ever-so-present IT, as well as industrial machinery and

equipment sales. Plus, there are many innovative solutions in branches such as agriculture, food processing, metal processing, etc.

How familiar are Belgians with Serbian products? — We invest a lot of effort into better representing the Serbian market to Belgian business people, and to point them to segments or industries which provide extremely favourable business opportunities. We also regularly cooperate with the Chamber of Commerce and Industry of Serbia (CCIS), Serbian Development Agency and other Serbian institutions. Serbia exports to Belgium mostly food, namely agricultural products; especially the famous Serbian raspberries. The Belgian market is very demanding and competitive, but I am confident that Serbian companies have a lot to offer in different sectors. Serbian companies, which are successfully operating in Belgium, shared their experiences at our seminar which took place at the CCIS in late October. I am sure many more Serbian companies will follow down the same path to success.

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HyperPersonalization of Products

We, at Puratos, are proud of our ability to recognize, understand and use these trends to plan the successful future of our company, as well as the successful future of our customers

C O R P O R AT E

jubomir Milošević has been appointed Managing Director of Puratos Serbia in July 2018, thanks to his long and successful career which he developed in various managing positions at international FMCG companies. Puratos, an international, family-owned company, is one of the global leaders in innovative solutions and production of ingredients for bakers, confectioners and chocolate makers. With its vision based on the importance of quality nutrition, Puratos is constantly investing in market research based on which it comes up with new ideas for developing business with its customers. Closeness in work and education of their customers are the company’s main postulates, as is a unified appearance in front of consumers to whom the company offers maximum quality.

As consumers’ needs and expectations evolve, the needs of customers change too. That is why we are dedicated to anticipating and responding to these changes through a process of constant innovation. Whatever Purtatos customers need, they approach the challenge with their high levels of efficiency and experience. Whether it

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is about cleaner label solutions, hoping to develop new products and concepts, or aiming to improve the taste, texture, shelf life or nutritional value of your existing products, their dedicated Business Development teams are always at your service. To fuel the engine that drives innovation, Puratos also invest 2.1% of our turnover in R&D. At Puratos, they know that people around the world care more and more about the quality of their food. By observing and analysing the world around them, with regards to what makes the essence of their group – our DNA – they have defined their vision of the future on which relies their company’s long term strategic direction.

How would you rate the current situation in the bakery and confectionery market in Serbia and how do you see its further development?

— At present, the bakery market in Serbia is transitioning from simple products to value-added products, i.e. products that offer consumers a higher quality and the concrete benefit that comes from their purchase. Most often it is a benefit related to consumer health and well-being consumers (less sugar, less

LJ U B O M I R MILOŠEVIĆ Managing Director of Puratos Serbia

The way we work entails sharing our knowledge and ideas for improving our business with our customers

fat, more fiber…), which is in line with the current global trends. I think that the time when bakeries offered mostly “fast food” assortment (pizza slices, the simplest puff pastries and similar) is gone and that true artisans are getting more opportunities to showcase their skills and develop. The similar situation is in the confectionery market too because there are more and more options available that offer benefits in line with trends without compromising on the product taste. The artisan approach to baking is extremely important. Even industrially made products are created to look as "artisanal" as possible, as if they were handmade.

This is great news for independent bakers and pastry chefs as it gives them a chance for further meaningful and long-lasting development through the presentation of their skills and qualities to the customers and consumers who find this increasingly important.

Puratos also invests heavily in educating its customers and partners. In which business segments do you see room for advancement in Serbia?

— We, at Puratos, believe that constant learning and improvement are

the way to last a long time in the market. “Taste Tomorrow” and “Sensobus” are projects through which we collect the most valuable and up-to-date information on consumer attitudes and desires for which we are recognized worldwide. The way we work entails sharing our knowledge and ideas for improving our business with our customers. I think that the room for ad-

vancement lies primarily clearly defining the product range and communicating with customers in shops. Each product should have its place and role within the selected range, and relevant product information should be communicated to customers at the point of sale. With such setting, customers have more information and make purchasing decisions easier, which increases sales and

The new production plant in Serbia should become operational in 2021

overall success of a particular retailer.

Of course, we, at Puratos, have specific ideas on how to implement this.

Puratos’ research divisions ‘Taste Tomorrow’ and ‘Sensobus’ are constantly active. What are the current trends in the baking sector in Europe?

— We are proud of projects like “Taste tomorrow” and “Sensobus” because they allow us to stay in touch with current and relevant trends in our industry. The information gathered in this way is critical for the development and planning of the future success of the company.

As for the trends themselves, there are those that are "traditional" such as taste, freshness or health impact on the consumer. These trends are always present, but they are now coupled with some more recent and increasingly important trends such as the artisan style of baking and product appearance, ethically sourced raw materials and transparency regarding all the ingredients that make the product. Customers are increasingly making their purchasing decisions based on how satisfied they are with the quality of information they have received regarding these trends. In the future, trends related to the shopping experience itself – the appearance of the shop, the ease of shopping, digital solutions and such - will become increasingly important.

Hyper-personalization of products like special (sub)types of bread or specific pastry (vegan, for example) is also one of the trends that are becoming increasingly important. We, at Puratos, are proud of our ability to recognize, understand and use these trends to plan the successful future of our company, as well as the successful future of our customers.

When are you planning to open a new factory in Serbia and what can your customers in Serbia and the region expect?

— The new production plant has been in Puratos' development plans for several years and much has been done on the matter. The relevant land plot has been purchased, a project has been drafted, financing provided and we are currently in the phase of obtaining the documentation needed to begin construction. If all goes according to plan, the plant should become operational in 2021. With the new factory, we will increase our production capacity, introduce new products and make the top quality Puratos range, for which we are recognized globally, even more accessible to our customers.

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Best is Yet to Come

Increasingly better cooperation between Serbia and Belgium, the value of external trade 600 million euro

C O O P E R AT I O N

ccording to the state officials from both countries, the possibilities for improving the business cooperation between Serbia and Belgium are great. In 2018, the highest growth was recorded in trade between the two countries, totalling EUR 581.6 million. The upward trend in imports and exports continues to move in a positive direction. The two-month trade in goods in the eight months of this year saw a growth of 10 per cent over the same period last year.

There are 130 Belgian companies operating in Serbia, and Belgium ranks 30th in terms of the value of investments in our country. Serbia mostly exports to Belgium frozen fruits and vegetables and cables, while it imports a wide range of products, from tobac-

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Serbia mostly exports to Belgium frozen fruits and vegetables and cables, while it imports a wide range of products, from tobacco to pharmaceuticals and chemicals

co to pharmaceuticals and chemicals.

Most of the Belgian investments in Serbia were made in the food, metal and construction sectors. About 20 per cent of companies in Serbia that are owned or co-owned by Belgian natural or legal persons are engaged in consulting, and it is precisely consulting, lobbying and mediation services that our companies have found as very important.

Belgium also gives great support to Serbia in the EU integration process, guided by the principle that the progress of each candidate country depends on the results achieved in the accession process, but also on the strict implementation of the Copenhagen Criteria and the fulfilment of the commit-

ments stemming from the Stabilization Agreement.

To remind, the formal diplomatic relations between Serbia and Belgium were established as early as 1886. The long history of diplomatic and bilateral economic relations between the two countries is built on mutual support and in doing business. The uniqueness of these relations also stems from the fact that Brussels, the capital of Belgium, is at the same time the seat of the European Union, where the development of diplomatic, political, economic and business relations takes place at multiple levels, thus creating a good environment for the Serbian companies to enter this country.

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It's Easier With Mediation Patent, design, copyright, domain name and trademark issues are well suited for mediation because issues regarding IP infringement can usually be resolved successfully outside courts in an efficient manner and in various ways, such as crosslicensing, cooperation agreements, IP sharing strategies and joint projects

opović, Popović & Partners is one of the oldest working law firms in Serbia. It was established in 1933 by Miodrag P. Popović. Ever since, the family practice has continued to provide the highest level of legal assistance. Attorney Natalija Popović Maksimović has been working for the Popović, Popović and Partners law firm since 2016, and is also a licensed mediator with special training in intellectual property.

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What are the benefits of business mediation in Serbia?

— Mediation is a voluntary form of conflict resolution that is becoming increasingly popular in the world. It is cost efficient and usually manages to find a creative solution to a problem,a solution satisfactory to both parties, more so than the legal norm that would apply in court or arbitration, but still within the framework of the legal system. Furthermore, mediation is usually much faster than all other conflict resolution alternatives. This in particular is useful for businesses in Serbia, because litigation procedure can be very lengthy – on average, the first instance court's decision arrives after two years of process. Together with the appeal procedure, the final legally binding decision can take up to around five years. This can also result in high cost, both in official and legal fees.

Why are IP matters especially suitable for mediation?

— Patent, design, copyright, domain name and trademark issues are well suited for mediation because issues regarding IP infringement can usually be resolved successfully outside courts in an efficient manner in various ways, such as cross-licensing, cooperation agreements, IP sharing strategies and joint projects. A competent mediator would be able to inspire conflicting parties to create great new business opportunities from a conflict situation. Therefore, mediation not only saves money and time, but can also potentially create profit for both parties.

Is IP mediation obligatory in Serbia?

— No, mediation is always voluntary.

However, the courts, in particular Belgrade Commercial Court and Higher Court of Belgrade (that has jurisdiction for IP matters, if the Commercial court is not the competent authority) are obliged to refer the parties to the possibility of mediation in the beginning of the court procedure. Moreover, since November 2019, the Serbian Intellectual Property office (IPO) has signed a mutual understanding, that courts will refer all IP cases to mediation, in particular to mediators who have special training in IP matters (this can include trainings by the World Intellectual Property office).

The list of such mediators is also available online on the web site of the IPO.

C O R P O R AT E

NATA L I JA P O P OV I Ć M A K S I M OV I Ć Attorney at Popović, Popović & Partners

Mediation procedure is informal and confidential, and the mediator, as a neutral third party, helps parties to find a mutual solution that is satisfactory for all of them

Could you give a short overview of mediation procedure?

— The first step would be to find a competent mediator and all parties should sign an agreement to mediate. It is noteworthy to mention that mediation is even more successful before the court procedure, because in practice, in such scenario all parties are more ready and willing for cooperation and readily seek a mutually satisfactory solution. Therefore, it is advisable for the parties to seek mediation as soon as they realize that a business conflict exists. When the agreement to mediate is signed, the mediator's fee is customarily split equally between all parties. Mediation procedure is informal and confidential, and the mediator as a neutral third party helps parties to find a mutual solution that is satisfactory for all of them. If the mediation is successful the parties sign a mediation settlement. This settlement is not legally binding in the same way as a court or arbitration decision, but parties usually abide by it, because it is beneficial for all involved.

If the mediation was not successful, the parties may proceed to seek other forms of conflict resolution, while details of the case and all shared information during the mediation proceedings remain confidential. Parties may return to mediation at any other point in the court procedure, and in this case the courts will temporarily stop the procedure.

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Secret of Success

ECONOM Y

From the founder of the European Union to $47,000 of GDP per capita

ccording to the World Bank data, and considering it has GDP per capita of $47,000, Belgium is considered one of the wealthiest countries in the world. It is located in the heart of Western Europe, and its open economy has made it one of the world's largest exporters, viewed per capita. Exports account for as much as 80 per cent of Belgium's GDP. As the founder of the European Union, Belgium has always played an important role internationally.

Headquarters of numerous multinational companies are located in Belgium. About 120 international organizations, over 180 consulates, approximately 5,000 diplomats and 1,000 lobby groups are housed in Brussels. Thanks to its location and excellent transport links - air, road, maritime and rail there are numerous logistical and dis-

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tribution centres in Belgium too. 72% of Belgian exports end up in the EU countries, 6% in the US and 2% in India and China. In terms of imports, 63 per cent come from the EU Member States, 8 per cent from the U.S. and 4 per cent from China. There are rather large regional disparities in Belgium, so after the diminished significance and role of large metallurgical centres and the closure of the Wallonia mines since the 1970s, there has been a relative impoverishment of that region in Belgium.

Flanders, on the other hand, has been on the rise and its economy, based on modern technologies, has been flourishing since the 1960s.

Machines and materials, chemical products and processed products account for about 60 per cent of Belgian exports. Belgium has an important place in the automotive industry and

Belgium has approved a tax reform plan to ease corporate tax rates, which should be reduced to 25 per cent by 2020

is the ninth-largest exporter of cars in the world. Belgium is also the world's largest exporter of diamonds, and one of the biggest exports of chocolate, margarine and glass. The Belgian workforce is among the most productive in the EU which is owing to the quality of the country’s education system and multilingualism. About 35 per cent of the workforce has at least one college degree, which is above the OECD average. Belgium's GDP grew 1.7 per cent last year and the budget deficit was 1.5 per cent of the GDP. Unemployment stands at 7.3 per cent, but the unemployment rate is lower in Flanders (4.4 per cent) compared to Wallonia (9.4 per cent), due to the already mentioned disparities in the structure of the economy of the regions. The current Belgian government has pledged a further deficit reduction in response to the EU’s pressure to reduce Belgium's high public debt of about 104 per cent of the GDP. The government has promised to continue the reform programme to further boost Belgium's competitiveness, including making changes to the labour market rules and social benefits.

Belgium has approved a tax reform plan to ease corporate tax rates, which should be reduced to 25 per cent by 2020.

The tax reform introduces new innovation-related benefits, as well as benefits for small and medium-sized entrepreneurs with the aim of boosting competitiveness and private investments.

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The New Generation of Soil Amendment Belgian company Carmeuse, as one of the leaders in the production of limestone, lime and calcium based products worldwide, for different industries and agriculture, has been operating successfully for over 150 years

armeuse's name isn't new to agriculture. In the EU and North America, for more than 35 years, the name Carmeuse represent a leader in the production and placement of calcium-based products for agriculture, animal feed and the food industry.

Accordingly, company Carmeuse has decided to continue investing in Balkans region. Investments were started in early 2019. and it is planned that a complete portfolio of agricultural products will be produced in the Balkans by the end of 2020. year. As a result of the first investments in Serbia, production of part of the agricultural program has already been launched and the first product - TerraCalco 95, has appeared on the market. This product is well known to EU and American farmers for over fifteen years.

TerraCalco 95 is a product designed to modify and improve soil quality through changes in physical and chemical soil properties, with a major impact on soil biological activity. Application of TerraCalco 95 product eliminates the appearance of soil acidity, significantly improves soil structure, improves water-air potential, increases the utilization of applied mineral fertilizers, accelerates the mineralization of organic matter, promotes the development of

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Investments were started in early 2019. and it is planned that a complete portfolio of agricultural products will be produced in the Balkans by the end of 2020. year

bacteria and other rhizosphere organisms necessary for normal root growth and development and ultimately significantly increases yield (up to 30%) and profit.

This is a new generation of soil amendment, which, after application, produces rapid results, visible in the field immediately after application. The TerraCalco 95 product is water-soluble, applied in small doses - contains more than 98% of the active substance, it's granulated, so the application itself is simple and quick with the use of standard mineral fertilizer spreaders. A network of distributors spread throughout the region makes product availability for all farmers.

The fact that it contributes to the

improved utilization of mineral fertilizers by the plants implies its significant impact on both profit and environment protection as it reduces the level of groundwater pollution caused by the leaching of unused mineral fertilizers, as well as the reduction of nitrogen emissions into the air due to evaporation.

For these reasons, in light of the increased emissions of greenhouse gases and increasing climate change, the Association of European Mineral Fertilizers has issued a recommendation to apply 100 to 120 kg of calcium oxide every 100 kg of nitrogen fertilizer to reduce the amount of nitrogen which evaporates in the air, and reduces farmers' profits from nitrogen losses.

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Successful year for BSBA These are the most significant events this year for the Belgian business community in Serbia bying in Serbia for the first time. The presentation was in the hand of prof. dr Ana Bovan, member of the Board of the BSBA. ANNUAL MEMBERS AND FRIENDS EVENING 2019 After the summer break, BSBA organized another Annual Members and Friends Evening at the IN Hotel. The event gathered BSBA members, friends and associates, as well as the representatives of the Embassy of Belgium. Mr. Hugo van Veghel, President of the BSBA used the opportunity to announce the launch of the new BSBA website and 2020 as the year of marking 10 years of existence and operations of the BSBA in Serbia.

Business opportunities for belgian companies in serbia

SEMINAR “BUSINESS OPPORTUNITIES FOR BELGIAN COMPANIES IN SERBIA” The first BSBA event in 2019, that gathered around 60 representatives of Belgian and Serbian companies, was organized in cooperation with the Development Agency of Serbia (RAS) and Economic and Trade Office – Embassy of Belgium. The aim of the event was to present the Regulation on terms and conditions for attracting direct foreign investments and to give guidance on the subsidies and support programs the Development Agency of Serbia is providing to the Belgian companies interested in setting up or expanding their presence in Serbia. As an example of good practice when it comes to both RAS support and support given by the municipalities, a presentation was given by the Belgian company “Metech”, a member of the BSBA. WORKSHOP “WAITING FOR THE NEW DATA PROTECTION LAW: WHAT EMPLOYERS SHOULD EXPECT AFTER AUGUST 21?”

The event, organized in cooperation with the law office Živković Samardžić, a BSBA member, was held at the Belgian Residence and hosted by H. E. Mr. Koen Adam.

The workshop was a great opportu-

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nity to hear and learn more about the GDPR and what the new Law brings, especially in the Employment Context, as well as the guidelines for safeguarding the future of the businesses in that respect and to share experiences and opinions concerning the topic.

RESENTATION “THE NEW LAW ON LOBBYING IN SERBIA SUCCESSFUL INTEREST REPRESENTATION AND LOBBYING” H. E. Mr. Koenraad Adam hosted one more member meeting before the summer break, in which the members of the BSBA had an opportunity to hear more and to discuss the New Law on Lobbying in Serbia that entered into force on August 13th, 2019, regulating lob-

Benelux Cocktail

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SEMINAR “DOING BUSINESS WITH BELGIUM” Seminar “Doing business with Belgium” jointly organized by the Chamber of Commerce and Industry of Serbia, the Embassy of Belgium – Economic and Trade Office and the Belgian-Serbian Business Association gathered more than 70 representatives of Serbian and Belgian companies.

Ms. Jelena Jovanovic, Chamber of Commerce and Industry of Serbia, H. E. Mr. Koen Adam and Ms. Marijana Milosevic Tufegdzic, Economic and Trade Counselor briefed the attendees on an overall picture of the Belgian market, on Belgium as a business partner and on conditions for doing business with Belgium. BSBA President Mr. Hugo Van Veghel presented the work of the Belgian-Serbian Business Association as a

International Networking Cocktail

tives. This, now already traditional annual event, continues to serve as a platform for enhancing business cooperation among the members of the associations, as well for strengthening the cooperation among the bilateral business associations.

Members Evening

Speed Business Meeting

platform that has been bringing together the Belgian and Serbian business community in Serbia for almost a decade.

BSBA member companies Blockx, Cordeel and Dataplan shared their stories and experiences as examples of good practice of Belgian companies operating in Serbia. Ekofungi and Termovent Komerc shared their experiences as Serbian companies doing business with Belgium and being active at the demanding Belgian market. Additionally, the well-attended event provided an excellent opportunity for networking.

COOPERATION WITH OTHER CHAMBERS AND BUSINESS CLUBS IN SERBIA ACTIVE EMPLOYMENT MEASURES PRESENTATION The BSBA and its members, together with the colleagues and members from other business clubs, participated in the event organized by the Foundation Ana and Vlade Divac in cooperation with the National Employment Service. Representatives of the National Employment Service presented the active employment measures, as well as the public calls aimed at implementing the active employment policy measures for 2019 and the participants had the opportunity to exchange their experi-

Seminar “Doing Business with Belgium”

ANNUAL AUTUMN BUSINESS BREAKFAST – TAX SEMINAR Another annual Autumn Business Breakfast organized by Confida Consulting, supported by the Belgian-Serbian Business association, German-Serbian Chamber of Commerce (AHK Serbia), Commercial Section of the Austrian Embassy and six other business associations, attracted almost 150 representatives of the member companies.

The presentation and panel discussion “Changes in tax regulations – what can we expect in 2020?” were held by members of the Tax team of CONFIDA Consulting and the following aspects were addressed: the most important amendments to the Law on VAT, tax treatment for lump sums entrepreneurs, tax relief for new employees, as well as the New Accounting Law and Audit Law.

Tax Seminar Confida

ences of using various employer benefits offered by the Service.

BENELUX NETWORKING COCKTAIL BSBA and its colleagues from the Dutch-Serbian Business Association had their first joint event – Benelux Spring Networking Cocktail at Hilton Belgrade.

Presidents of the DSBA and BSBA welcomed the guests – around 50 representatives of member-companies and the ambassadors of Belgium and the Netherlands, stressing the importance of promoting, encouraging and expanding business relations between Benelux countries and Serbia. The initiative was warmly welcomed by the guests, marking a successful beginning of a future tradition of various Benelux events.

INTERNATIONAL NETWORKING COCKTAIL The third International Networking Cocktail, jointly organized by the BSBA, Hellenic, Canadian-Serbian (CANSEE) and Dutch-Serbian Business Associations, German-Serbian (AHK), Swiss-Serbian, Italian-Serbian, French-Serbian and British-Serbian Chambers of Commerce, Japanese and Nordic Business Alliances and Croatian and Slovenian Business Clubs, gathered more than 300 company representa-

ANOTHER SUCCESSFUL SPEED BUSINESS MEETING Hotel Royal Inn had an opportunity to host over 40 representatives of companies gathered by four international business associations: BSBA, Italian-Serbian Chamber of Commerce, Swiss-Serbian Chamber of Commerce and the Croatian Business Club.

Through direct short meetings, the participants were given the opportunity to present their companies, products and services to potential business partners, to share experiences and expand their business networks. After the formal part, a mini cocktail was organized as an additional networking opportunity for further business dialog.

Živković Samardžić Data Protection

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Sparkling Fantasy Belgium is famous for great beers, but it also produces fantastic, award-winning wines; it’s particularly famed from its white and sparkling varieties T R A DI T ION

his year, a Belgian sparkling wine was selected by the judges of the international wine competition in Brussels to win the 2019 International Revelation Sparkling wine award, over several French champagnes. The 2014 Cuvée Prestige from Chant d’Éole in Quévy was named this year’s “revelation” at the Concours Mondial de Bruxelles, beating 730 submissions, including several French champagnes for the first time in the competition’s 26-year history. The 15-hectare Chant d’Éole estate, where the winning wine came from, was established in 2011 and now has 130,000 vines, producing 80,000 bottles of wine a year.

Although, this award upset the wine world, for Belgium, it was an exceptional moment.

Belgium is famous for great beers, but it also produces fantastic, award-winning wines; it’s particularly famed from its white and sparkling varieties. The two main wine regions in Belgium are Flanders and Wallonia. The wine produced in Flanders is called Vlaamse Landwijn, while the Wallonian wine is known as Vin de pays des Jardins de Wallonie.

The Belgians have been producing wine since around 9th century when land either side of the Meuse River was intensively cultivated as it offered well-exposed hillsides. Evidence of historic vinicultural can be found in many cities in Belgium in the form of local place names, such as Wijnberg, (mount of vines) Wijngaard (Dutch vineyard) Vivegnis and Vinalmont.

The first Belgian vineyards were cultivated in abbeys, so that the monks had

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The first Belgian vineyards were cultivated in abbeys, so that the monks had something to drink at their many celebrations

something to drink at their many celebrations. Unfortunately for wine lovers, beer became more and more popular in Belgium and eventually surpassed wine as the most common tipple.

Many different wine styles are produced in Belgium, but like its neighbours - Luxemburg, Holland, the UK and most of Germany - Belgium is a cold-climate wine country, producing mainly sparkling and white wines.

The 50 different grapes Belgium grows range from Chardonnay and Pinot Gris to Riesling and Pinot Noir. The majority of grapes are grown in warmer areas like wall-enclosed vineyards, south facing slopes, near rivers, or near patches of forests that offer protection from the cold. There are only about 185 hectares of vineyards in the country, which makes Belgium the world's smallest wine producer.

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400 Years of the Symbol Manneken Pis has become of the most important landmarks in Brussels

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he earliest mention of Brussels' Manneken Pis, as we know it today, was on 13 August 1619. The capital city will be celebrating this anniversary until 15 May 2020, with a comprehensive and varied festive programme around the history of its bronze fountain figure. Sculptor Jeroom Duquesnoy was commissioned by the Brussels municipal authorities on 13 August 1619 to make a bronze replica of the 15th-century urchin, which had been destroyed and broken down into rubble. This involved a new pillar, water basin and statue. A good enough reason to put Manneken Pis in the spotlight for the next few weeks and months.

It’s easy to overlook Brussels’ Manneken Pis between the tourist shops and waffle stands. Located at the corner of Rue de l’Étuve and Rue du Chêne, there is no clear explanation as to why the statue stands there. One of the more whimsical versions of how the statue came to be involves a witch catching a boy peeing on her front door. Furious, she cursed him so he would pee for eternity. Luckily, a man who had seen everything quickly replaced the boy with a statue. In another version, the witch succeeded, not only cursing the lad with a forever full bladder but also turning him into stone. A more believable tale details Manneken Pis as a boy

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who went missing during festivities in the city. His panicked parents searched for days until they found him peeing on the street corner. Sometimes the father in this story is a wealthy merchant who then decided to put the statue on the very corner he found his beloved son.

There are two stories in which Manneken Pis is actually the young Duke Godfrey III of Leuven. In the first one, he ran away from his father’s castle so he could play with other children in Brussels and was finally found on the famous street corner.

The more fantastical of the two legends say, however, that the young Duke was tied to an oak tree during battle.

When Godfrey was two years old, his

Sculptor Jeroom Duquesnoy was commissioned by the Brussels municipal authorities on 13 August 1619

father died and two noblemen from the house of Berthout declared war.

Godfrey’s guardians asked the Count of Flanders for help. The count agreed, but his troops were unsure, demanding to see who exactly they were fighting for. To satisfy his army, the infant was shown and taken to battle. There, Godfrey was placed in a basket that hung from an oak tree as a symbol of encouragement for the troops. And encourage them he did – every now and then the little Godfrey stood up and peed on the heads of the Berthout enemies. Godfrey’s allies won the battle and celebrated in Brussels, where they planted the oak tree. Legend states that this is why the street next to Manneken Pis is named Rue du Chêne, meaning ‘oak street.’ And, of course, next to the oak, they erected a statue of the young peeing lord.

It’s a tradition in Brussels to dress the little bronze statue on special occasions. His wardrobe, which comprises more than 800 costumes, including the expensive outfit gifted by Louis XV of France, is kept at the Maison du Roi. The first clothes Manneken Pis ever received were gifted by Maximilian II Emanuel, Elector of Bavaria, who was the governor of the Austrian Netherlands. As well as historical clothing, the wardrobe also contains modern costumes, such as a Mickey Mouse and Santa Claus costume.

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n case you didn’t know, a time machine does exist and it’s called Bruges. This town’s authentic medieval architecture, narrow cobbled streets, the silence interrupted only by the clamour of horsedrawn carriages, flower-market squares and lace motifs behind every corner, and tree-lined avenues that reflect in water have the power to charm you to the point that you might think you've returned straight to the past.

The testament of Bruges’ beauty lies in the fact that this was one of the first cities in the world to start attracting tourists. Namely, as early as the 19th century, the wealthy British and French tourists flocked to it.

I All the Fairy-tale-like TOURISM

Qualities of Belgium in One City We present you “The Venice of the North”

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According to the relevant figures, every year, about three and a half million tourists enjoy the magic of this fairytale city

Bruges is located in the northwest of Belgium, in the Flanders region, in the province of West Flanders, to be more exact. According to the relevant figures, every year, about three and a half million tourists enjoy the magic of this fairytale city, which nickname – „The Venice of the North“ - also testifies to its beauty. The town got this nickname from the magically pretty channels on which it lies. When you find yourself in Bruges, you won't be able to discern if you have found yourself in an openair museum or whether that "setting" is permanently there. Oh, trust is, it is!

This is the reason why, in 2000, the historic centre of Bruges was included in the UNESCO list of cultural heritage.

half hour. There are 47 of them and they are located at the very top, so for 3 euros, which is the cost of the ticket, you can see from up close. Although, the tower itself leans one metre to the east, when you are standing on top of it you don't feel out of balance at all.

On the other side of the square is the old District Court building, which also charms with is patina.

Another square, called the Burg, is sure to win you over. Its biggest trump card is the City Hall, built from 1376 to 1420, which you can also see if you buy a very affordable ticket. With its surrounding Gothic and Renaissance buildings, it forms that historic part of this UNESCO-listed city. There is also the Church of the Virgin Mary, the Gothic Hall, the Town Archives...

When you visit the churches, which will have you in awe with their proud stature, you will find that there is a relic from the First Crusade in the Basilica of the Holy Blood, which, as legend says, contains a few drops of Christ's blood.

The Church of the Virgin Mary is one of the tallest buildings made of yellow brick, and if you spend 4 euro to see its interior, you will be amazed by the marble sculpture of the Madonna - the only Michelangelo's work that "came out" of Italy during his lifetime. Interestingly, the bell tower of this building is the second tallest brick tower in the world.

You will probably start touring the city from the main square called the Markt. It got its name because back in the day and nowadays, people put up their stands so the square turns into a market. Its charm stems from the fact that it was built in the 13th century when construction activities began, and also due to the attractiveness of buildings there. At any time of the day or night, the Belfort Tower will undoubtedly attract your attention - both with its physical appearance and the sounds it produces. It is a symbol of the city and a representative of the medieval architecture that dominated Bruges. The bells of this octagonal tower, which is almost seven centuries old, ring every

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