Source: Encyclopedia Britannica

Serbia, a country of over ten million people with a unique cultural background and ties to two different global powers, is a key player in US foreign policy. Serbia is a country that has existed as the battleground between Europe and Asia. Serbia was part of the Austria-Hungarian Empire, Ottoman Empire, and Yugoslavia. The breakup of Yugoslavia and the following Yugoslav wars saw the US intervene through NATO and the United Nations. Relations following the war were strained due to the US-led support for the independence of Kosovo, a region full of Albanians who declared independence in 2008. Relations are also strained with the west due to Serbian ties to Moscow and the drawn-out process of joining the EU.  

Fact Sheet

• Population: 10,533,871
• Capital: Belgrade
• System of Government: Parliamentary republic
• Chief of state: President Aleksandar Vucic
• Head of government: Prime Minister Ana Brnabic
• Primary Language: Serbian (official) 88.1%, Hungarian 3.4%, Bosnian 1.9%, Romani 1.4%, other 3.4%
• Ethnic demographics: Serb 83.3%, Hungarian 3.5%, Romani 2.1%, Bosniak 2%, other 5.7%,
• Religious populations: Orthodox 84.6%, Catholic 5%, Muslim 3.1%, Protestant 1%, atheist 1.1%, other 0.8%
• Real GDP: $125.8 billion (2021 est.)/ GDP per Capita: $18,200 (2020 est.)
• Gini index: 34.5
• Freedom score: 62-Partly Free

Brief History with the U.S.

Following World War I, the United States under President Woodrow Wilson helped to establish the Kingdom of Serbs, Croats, and Slovenes, known as Yugoslavia. The United States was the first major power to establish relations with Yugoslavia on February 6, 1919, which lasted until the country was invaded in 1941. The United States along with the United Kingdom unsuccessfully pressured Yugoslavia to side with Allied forces, despite Germany being Yugoslavia’s main trading partner. Yugoslavia eventually joined the Axis. The rise of Communist leader Joseph Tito, caused the US to distance itself from Yugoslavia. Tito eventually distanced Yugoslavia from the USSR, and the US provided some military and economic aid.

Following Tito’s death, the different ethnic groups in Yugoslavia struggled to find a balance of power, eventually leading to the Yugoslav wars and the dissolution of the country. The United States intervened through NATO and the United Nations initiatives. Clinton oversaw the first use of NATO force which was a controversial decision, as NATO up until that point had behaved as a defensive, not offensive military alliance. President Clinton oversaw the Dayton agreement which ended the conflict and led to the creation of independent nations out of former Yugoslavia around ethnic and linguistic identities.

Serbian leader Slobodan Milošević lost power (he was later convicted of war crimes), and the United States began providing development aid amounting to 1.1 billion dollars to stimulate economic development and support democratic institutions. Relations began to improve until 2008 when Kosovo, with backing from the US and EU, declared independence under a new constitution. Modern-day US-Serbian relations focus mainly on the issue of Kosovo, and its close ties to Moscow 

U.S. Strategic Interests:

• Trade: The United States has a total trade and investment relationship with Serbia amounting to $1.6 trillion every year. Major US businesses invested in Serbia include Coca-Cola, Microsoft, and Panasonic. Much of this investment and growth is thanks to US and EU efforts following devastating periods including the end of the Yugoslav wars, the great recession of 2008, and a crippling storm season in 2014 that ended in negative GDP growth. The United States can leverage this economic reliance on foreign investment to help ensure Serbian cooperation with US interests, such as providing economic benefits in exchange for recognizing Kosovo or implementing sanctions against Russia. 
• Military: The US has recognized Kosovo as an independent nation since 2008 and relations between Kosovo and Serbia have been slowly improving. However, recent Kosovan policies have exacerbated tensions. A new set of laws requires those traveling from Serbia to Kosovo and Serbs living in Kosovo to carry identification documents to separate themselves from Serbia. The NATO-led Kosovo Force (KFOR) made an official statement that it would intervene if the stability of the region is threatened. The US is in a difficult position as it wants to keep strong relations with Serbia due to its strategic position in the Balkans.

Diplomatic: Serbia criticized the Russian invasion of Ukraine, but has not implemented sanctions against Russia. Serbia has also been on a slow EU accession process, and may be less enthusiastic about siding with the US and EU allies because the prospect of joining now feels remote and onerous.