The Serbian parliament ratified the Central Europe Free Trade Agreement, CEFTA in short, on Monday, news reaching here from Belgrade reported.

The regional agreement, which replaces 32 free trade agreements, aims to establish a free trade zone in the region by Dec. 31, 2010.

The ratification of the agreement should boost competitiveness of Serbia and attract foreign investment, Serbia's official news agency Tanjug reported.

The agreement was signed on Dec. 19, 2006, by Albania, Moldova, Bosnia-Herzegovina, Croatia, Macedonia, Montenegro, Serbia and the UNMIK on behalf of Kosovo, and has been ratified by all the others except Serbia.