The bilateral agreement on the promotion and protection of investments between the Republic of Serbia and Japan will enter into force on July 30, 2026, establishing a comprehensive legal framework for Japanese investors in Serbia.
The treaty applies not only to future investments but also to those already made prior to its entry into force, thereby safeguarding Japan’s existing economic presence in Serbia (Article 31(3)), covering all events in regards to those investments after the Treaty enters into force (Article 31(5)). In case of termination, protections continue for ten years with respect to investments acquired before termination (Article 31(4)).
Dispute resolution is a central feature. Investors may initiate proceedings against the host state if they believe their rights under Chapter I have been violated — for example, in cases of expropriation (Article 12) or restrictions on transfers (Article 15), but also denial of fair and equitable treatment, or other treaty violations, along with reimbursement of damages that resulted from such violation. Such disputes are first subject to consultation and negotiation, but if unresolved, they may be submitted to international arbitration under ICSID, UNCITRAL, or other agreed rules (Article 24(2–4)).
Importantly, claims must be filed within three years from the date the investor first acquired knowledge of the breach and resulting loss (Article 24(7)). A formal notice of intent must be delivered at least ninety days before arbitration, specifying the alleged breach, legal basis, and relief sought (Article 24(3–4)).
Signed in Belgrade, the accord is expected to strengthen investor confidence, safeguard existing Japanese investments, and encourage new capital inflows. For Japanese investors, the Agreement significantly improves legal predictability. For Serbia, it sends a clear signal that the country is positioning itself as a serious Western Balkans hub for long-term, technology-intensive investment.