Abstract: In addition to Yugoslavia's commitment to the issue of paying off war debts to the United States, bilateral trade negotiations played a pivotal role in Yugoslav-American relations in the interwar period. This paper will attempt to reconstruct the interpretation of the 1881 treaty between Serbia and the United States, in the context of relations between the new Yugoslav state and the United States. Despite intentions to enhance trade relations by both sides, obstacles such as divergent economic policies, the limited significance of bilateral trade within the overall foreign trade volume of both countries, and Yugoslavia's clearing system hindered the treaty's conclusion.

Keywords: Yugoslavia, United States, trade agreement, clearing, tariffs

Summary

The paper analyzes Yugoslav-American trade negotiations during the interwar period with a particular focus on the validity of earlier agreements and the challenges of drafting a new treaty amidst economic difficulties and political obstacles. After the formal recognition of the new Yugoslav state by the United States and mutual intentions to enhance economic cooperation, the process of concluding a new trade agreement faced numerous difficulties. The Yugoslav government and the American administration sought to reach an agreement that would suit the evolving international conditions but legal barriers and conflicting interests complicated the process. United States adhered to an economic policy designed to apply uniformly across European countries while Yugoslavia concentrated on protecting its national interests, often shaped by political circumstances arising from relations with other states. The bilateral relations were significantly influenced by the United States’ protectionist trade policies, the issue of war debts, and Yugoslavia’s reliance on the international clearing payment system. During negotiations, the United States advocated free trade and the application of the most favored nation clause while Yugoslavia approached the proposals with caution due to the potential consequences the treaty’s provisions could have on its relations with Italy. Despite numerous attempts, by 1936, no comprehensive trade agreement had been concluded and the negotiations remained burdened by economic disagreements and diverging interests.