Turkey and Syria have agreed on a roadmap to resolve trade disputes, following customs duty hikes by the new Syrian government. The discussions include reassessing trade barriers and reviving the Turkey-Syria Free Trade Agreement. Experts stress the need for transparency and maintaining Syria’s economic autonomy amid increased Turkish competition in local markets.
The Turkish Ministry of Trade recently unveiled a roadmap to resolve trade disputes with Syria, which intensified following the recent suspension of Bashar al-Assad’s government. This political shift led to a significant increase in customs duties on Turkish imports by the new Syrian administration, raising tariffs by up to 300 percent. As a result, Turkish exporters and some Syrian business owners expressed dissatisfaction, given that Turkey’s annual exports to Syria are valued at approximately $2 billion.
Historically, Turkey has played a pivotal role in Syria, supporting opposition forces for over thirteen years. However, this involvement has generated domestic contention, particularly due to the pressure from hosting around three million Syrian refugees. Amidst this backdrop, Turkish trade representatives engaged in discussions with their Syrian counterparts in Damascus to address these issues.
The trade ministry confirmed that the two nations have agreed to reassess customs duties to facilitate smoother trade operations. Additionally, there is a commitment to negotiate a revival of the Turkey-Syria Free Trade Agreement (FTA), which has been on hold since 2011. Collaborative efforts will focus on various sectors including industrial and agricultural trade, transit transportation, and enhancing the contracting services necessary to revitalize Syria’s economy.
Furthermore, both Turkey and Syria plan to enhance coordination around border customs management due to improved trade flows following the political shakeup. Experts view this roadmap as a chance for fostering a balanced trade relationship. However, they caution against potential risks associated with trade dependency on Turkish imports and the need for transparency in customs adjustments to ensure sustainable economic development in Syria.
Comments from Sinan Hatahet, an investment and social impact expert, highlight the importance of maintaining Syria’s economic autonomy throughout this process. He pointed out the necessity of tailoring adjustments in customs duties to favor essential raw materials necessary for local industries, as opposed to creating over-reliance on imports that could undermine Syrian manufacturers. Hatahet also underscored the risks of sudden market liberalization potentially overwhelming local businesses with Turkish goods.
Turkey is expected to play a considerable role in the reconstruction of Syria, with estimates suggesting a cost of approximately $360 billion to restore infrastructure and housing. Hatahet noted that cooperative ventures between Turkish and Syrian businesses could enhance capacity-building within Syrian enterprises while securing job opportunities and economic benefits locally. He called for the government to ensure adequate regulation to prevent Turkish monopolization of important sectors and maintain a balance of economic power.
This recent agreement arises against a backdrop of escalating tension between Turkey and Syria following a significant political shift in Syria, which prompted new trade barriers. Historically, Turkey’s trade with Syria has been substantial, significantly influenced by the Syrian civil war and Turkey’s involvement in supporting opposition factions, while at the same time managing a complex refugee situation. The recent hike in customs duties highlighted the fragile nature of their trade relationship and the importance of economic cooperation between the two nations.
In summary, the agreement between Turkey and Syria aims to revitalize bilateral trade through a comprehensive roadmap addressing customs duties and fostering a renewed Free Trade Agreement. By improving economic ties, both nations stand to benefit from cooperative ventures that bridge gaps left by previous trade disruptions. However, maintaining economic sovereignty for Syria and ensuring transparency in trade practices will be crucial for sustainable development moving forward.
Original Source: www.middleeasteye.net
