Serbia: Background and U.S. Relations Page: 16 of 18
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Serbia: Background and U.S. Relations
Victoria Nuland, it was announced that Serbia had agreed to allow two Guantinamo inmates, one
Yemeni and one Tajik national, to be transferred to Serbia.4' Relations between the United States
and Serbia continued to improve and in June 2017, President Vucid visited Washington and met
with Vice President Mike Pence. Some Members of Congress expressed concern over the meeting
because of Serbia's relations with Russia, and it was reported that Vice President Pence raised the
issue of Russia and Russia's "humanitarian" center in Nis, Serbia, with Vuci&.
U.S. foreign aid to Serbia has fluctuated for several years, perhaps reflecting overall U.S.
budgetary stringency, changing U.S. global priorities, and the expectation that Serbia would
receive increased aid as an EU membership candidate. The United States provided $22.9 million
in aid to Serbia in FY2014, $14.2 million in FY2015, and $16.8 million in FY2016. For FY2017,
the Obama Administration requested approximately $23 million, including $16 million in
economic support funding (ESF), $1.8 million in Foreign Military Financing (FMF), and $1
million in International Military Education and Training (IMET). The FY2018 budget submission
from the Trump Administration requested $12.1 million, including $8 million in economic
support and development assistance (ESDA) and $1.0 million in IMET. The Senate Foreign
Operations and Related Agencies appropriations bill included $12.9 million in economic support,
along with $1 million in IMET and $1.8 million for Foreign Military Financing (FMF).
According to the U.S. Department of State, targeted U.S. assistance will focus on helping Serbia
further integrate into the EU as it moves forward with negotiations and opens additional chapters
in the accession process. Assistance will focus on strengthening democratic institutions and the
rule of law; reducing corruption; increasing the capacity of civil society organizations and
independent media; fostering broad-based, inclusive economic progress; enhancing export and
border controls; and building good relationships with neighboring countries. According to the
Administration, support will also help build Serbia's resilience in the face of external pressure
from Russia.
Other U.S. aid is targeted at strengthening Serbia's export and border controls, including against
the spread of weapons of mass destruction. U.S. military aid helps Serbia participate in NATO's
Partnership for Peace program and prepare for international peacekeeping missions. The Ohio
National Guard participates in a partnership program with Serbia's military.
Among the leading U.S. investors in Serbia are KKR, Philip Morris, Ball Packaging, Coca-Cola,
PepsiCo, Cooper Tire, and Van Drunen Farms. There has been increased interest from U.S.
technology companies in Serbia, with specific emphasis on opportunities in e-government, cloud
computing, digitization, systems integration, and IT security. Microsoft signed a $34 million
contract to provide software to Serbian government offices in 2013. Imports from Serbia have
increased since 2013, when Fiat began shipping cars manufactured in Serbia to the United States.
According to the U.S. Department of State's 2017 Trafficking in Persons report, Serbia is a
source, transit, and destination country for men, women, and children subjected to sex trafficking
and forced labor. The Department of State has indicated that the government of Serbia has
demonstrated significant efforts to address trafficking by operationalizing a permanent human
smuggling and trafficking law enforcement task force, identifying more victims, and providing
guidelines to prosecutors and judges. However, Serbia remains listed as a Tier 2 country because
the State Department has determined that the Serbian government has not yet fully complied with
the minimum standards for the elimination of trafficking.42
41 Op. cit. BalkanInsight, July 19, 2016.
42 U.S. Department of State annual Trafficking in Persons report, 2017.Congressional Research Service
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Morelli, Vincent L. Serbia: Background and U.S. Relations, report, September 19, 2017; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc1042360/m1/16/?q=terrorism: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.