TRAVEL REPORT The Hon. Michael Atkinson MP Attorney-General ...

Australia formally recognised the state now known as SiM on 27 September,1996 and has maintained an Embassy in Belgrade since 1967 .High Level VisitsMr Ruddock, Minister for Immigration and Indigenous and Multicultural Affairs,visited Belgrade in August, 2002, during which time he signed a Memorandumof Understanding on Information Exchange and Co-operation to CombatPeople Smuggling .Bilateral TradeBefore the break-up of the former Yugoslavia and the imposition of U .N .sanctions, Australian exports were about A$76 .5 million per annum, with wool,hides and skins being the most important items . The sanctions halted directtrade . The unsettled state of SiM's external relations and the weakness of thedomestic economy have continued to be serious obstacles to its revival .In 2002, Australia's merchandise exports to SiM were valued at A$3.5 million,consisting primarily of computers and medical instruments . In the sameperiod, the import profile of A$1 .3 million consisted mainly of preserved fruitand preparations, arms and ammunition, and medical instruments .Political OverviewFederal levelThe Federal Republic of Yugoslavia (F.R.Y .) was officially dissolved on4 February, 2003, after the Federal Parliament adopted a new ConstitutionalCharter and proclaimed the establishment of the state of 'Serbia andMontenegro' (SiM) . SiM consists of two republics, Montenegro and Serbia(which includes two autonomous provinces - Kosovo and Metohija, andVojvodina), which effectively function independently of each other . The newState Union has been designed to increase co-operation between the tworepublics, to create a single market and to ensure a more equitable balance ofpower and responsibility . However, because of Serbia's substantially largerpopulation, the Serbian Government is in many respects a significantly morepowerful entity than either the Federal or Montenegrin governments .The Government of SiM is a presidential parliamentary democracy . Itscompetencies include foreign affairs, defence, economic relations (bothinternal and international), and human and minority rights . The President, whois popularly elected for a four-year term, leads the executive branch of thegovernment and is head of the Council of Ministers . The current President,Svetozar Marovic, was elected the first President of SiM on 7 March, 2003(see below) .The legislative branch of government, the SiM Parliament (Skupstina), is aunicameral assembly . It was constituted for the first time on 4 March 2003 .The Assembly has 126 seats, with 91 allocated to Serbia and 35 toMontenegro . Members of the new Assembly were chosen by the parliamentsof the two republics and will serve for two years . A direct election is scheduledfor 2005 .Travel Report, Hon. Michael Atkinson, MP. and Ms. Vini Ciccarello M.P., August, 2004 8 5