Turkey and Syria have initiated discussions to restore trade relations following a sharp rise in customs duties imposed by Syria’s new government, which had caused trade disruptions. A roadmap was agreed upon, involving a reassessment of duties and potential revival of the Turkey-Syria Free Trade Agreement. While this presents an opportunity for improving trade, experts emphasize the need to maintain Syria’s economic autonomy and protect local industries from Turkish market oversaturation.
Turkey and Syria have come to an agreement on a roadmap intended to rejuvenate their trade relations, following the recent governmental changes in Syria. The Turkish Trade Ministry disclosed that negotiations took place in Damascus, led by Deputy Minister Mustafa Tuzcu, regarding customs duties, which had surged by up to 300 percent earlier this month due to adjustments imposed by the newly established Syrian government. These tariffs significantly halted trade activities, provoking discontent among Turkish exporters as well as some Syrian business stakeholders.
In response to these challenges, both countries have decided to review the customs duties applied to Turkish imports, aiming to facilitate trade disruption in the coming weeks. They also expressed intentions to revive the suspended Turkey-Syria Free Trade Agreement (FTA) from 2011, seeking to establish a comprehensive economic partnership that encompasses industrial, agricultural, and transit sectors. Coordination efforts will be strengthened to improve customs management at their shared border to accommodate the increased traffic since the change in Syria’s leadership.
Sinan Hatahet from the Syrian Forum regards this roadmap as a potentially beneficial avenue to foster a balanced trade relationship, yet he cautions against the risk of Syria losing its economic autonomy. He urged for transparency in the adjustment of customs duties, advocating for reductions that specifically target raw materials essential for reviving Syrian industries while avoiding excessive reliance on Turkish imports. He proposed the implementation of a phased FTA with definitive timelines for reducing tariffs to enable Syrian manufacturers time to recover.
Experts have pointed out that the previous low tax rates on Turkish imports had been detrimental, resulting in market saturation with Turkish goods, which raised complaints from neighboring countries about unfair competition. Turkey’s pivotal role in reconstructing Syria is recognized, with funding estimates for rebuilding efforts potentially reaching $360 billion. Hatahet posited that collaboration between Turkish companies and Syrian businesses could be mutually beneficial, especially in agriculture, where Turkey can provide necessary technology and equipment.
While the expansion of Turkish enterprises across Syria is seen positively, Hatahet emphasized that partnerships with local businesses are crucial to ensure that economic benefits remain within Syria. The involvement of Turkish companies must be regulated to avoid monopolization of critical sectors, ensuring a balance between growth and the preservation of Syrian economic capacity and autonomy.
The recent diplomatic discussions between Turkey and Syria followed escalated tensions due to the new Syrian government’s significant increases in customs tariffs on Turkish imports. Turkey has historically been a major trade partner for Syria, with annual exports valued at approximately $2 billion, and the alteration in trade dynamics raised concerns about economic stability. The commitment to revise the customs duties and negotiate a new Free Trade Agreement signifies not only an economic strategy but also a political effort to stabilize relations between the two nations, particularly in the aftermath of Syria’s altered governmental landscape. The Syrian economy has been heavily impacted by the ongoing conflict and external pressures, establishing a pressing need for collaboration and reconstruction. With millions of Syrian refugees in need of support, Turkey’s role as a facilitator in this rebuilding phase may prove essential, albeit with necessary precautions to maintain Syrian economic sovereignty. By restoring and enhancing trade ties, both regions may benefit economically while addressing broader geopolitical concerns in the region.
The agreement reached between Turkey and Syria marks a significant step toward reviving weakened trade relations, with forthcoming negotiations aiming to establish better customs protocols and potentially reinstate the Free Trade Agreement. While optimistic that these developments could revitalize Syria’s economy, it remains essential to ensure that local industries are adequately shielded from becoming overly dependent on Turkish imports. Collaborative efforts could foster a more balanced economic landscape, supporting the reconstruction of Syria while preserving its economic autonomy.
Original Source: www.middleeasteye.net
