Economic aggression against FRY in the form of sanctions, blockade and permanent pressures of the West continues even after formal lifting of sanctions of the UN Security Council and signing of the Agreement on the Solution to the Kosovo Crisis. This aggression also caused difficulties in the production and export of Yugoslav medicinal plants and products thereof. It prevents or hampers Yugoslav export of medicinal plants, above all to the EU and markets of developed Western countries, and bans import of new processing technologies.

NATO aggression on Yugoslavia caused enormous damage assessed at over US$ 100 billion. In addition to material damage, use of prohibited chemical and other weapons resulted in environmental pollution with unforeseeable consequences. That will inevitably reflect on the production and export of medicinal plants.

In spite of economic blockade Yugoslavia has considerable comparative advantages in the area of production and processing of medicinal plants. Therefore, search for adequate strategy of export and import of medicinal plants is an economic and social task of paramount importance.

Owing to its geographic and climatic characteristics, the extent of forests, bare mountainous terrain, pastures, unproductive and barren soil, ecologically pure oases and chemically unpolluted areas, Yugoslavia abounds in different medicinal and aromatic plants.

In the absence of new assessments and research, for the assessment of production and export potentials of medicinal plants one may partly use the data from the period of relatively stable and quiet situation until the outbreak of crisis in former Yugoslavia in 1991.

According to the data on the sale and purchase in the territory of former Yugoslavia, until its breakup some 6,000 tons of medicinal and aromatic plants have been collected annually. In Serbia only some 50 species of medicinal and aromatic plants have been purchased.

In regular circumstances, income from medicinal and aromatic plants was a significant item in Yugoslavia's foreign-currency income. Chamomile, mint, linden flower and juniper accounted for the greatest share of export. The biggest importers of these products were FR Germany, France, USA, Switzerland and Italy. Until 1991 these five countries accounted for nearly 90% of the total export of medicinal plants from ex-Yugoslavia.

In spite of continuous economic aggression against Serbia and FR Yugoslavia, export of medicinal plants and preparations made of medicinal plants from FR Yugoslavia on the markets of aggressor countries did not stop, particularly export of preparations necessary for their pharmaceutical and cosmetic industry. Export of medicinal herbs and preparations thereof from FR Yugoslavia in 1998 equaled some 2400 tons, with foreign currency receipts totaling approximately US$ 3.3 million. The major importing countries for Yugoslav medicinal plants and preparations were Germany, Macedonia, Switzerland, Italy and France. Export of medicinal plants and preparations accounted for 1.5% of the Yugoslav export in 1998.

Serbia and FR Yugoslavia have great possibilities for the development of production and sale of these products, primarily on the biggest markets of these products - European Union and USA. Of course, organized effort of the entire society is necessary to regain former position on these markets. First of all, it would be necessary to adjust standards of production, processing and sale to the standards prevailing on these markets. In doing this, the focus of attention should be on the quality of production and processing of medicinal and aromatic herbs, securing standard export quantities and stable sale on foreign markets, good marketing preparation for selling on the world market, with particular attention to the markets of major importers, etc.

This task of national importance not only in terms of generation of necessary foreign currency income, but also from the point of economic and overall security of the country can be achieved only by concerted effort within the single national strategy for the export of medicinal and aromatic plants, which should be scientifically and professionally worked out as soon as possible. On the other hand, involuntary suspension of export and import of medicinal and aromatic plants should be used to prepare for future sales efforts, above all on the single EU market, and to train the staff in organizations engaging in the production, purchase and sale of medicinal and aromatic plans and products thereof, who in regular conditions will be the main persons in charge of carrying out this responsible task in an economically efficient way.

Key words: FR Yugoslavia, medicinal plants, export, export strategy, European Union, NATO, economic aggression, economic blockade.