Turkey and Syria are working to resolve trade disputes following new customs regulations by the Syrian government that raised duties on Turkish imports by 300%. A Turkish delegation is negotiating a roadmap to revive the suspended Free Trade Agreement (FTA) from 2011, aiming to enhance bilateral trade and economic cooperation. Experts emphasize the need for careful management of trade policies to protect local industries and maintain economic autonomy for Syria.
The Turkish Trade Ministry recently announced a strategic framework aimed at resolving trade disputes with Syria, following the installation of a new Syrian government. This change led to a steep increase in customs duties on Turkish imports, effacing most trade activity. Turkish exporters and many Syrian traders expressed discontent due to the 300 percent increase in customs, which significantly impacted Turkey’s annual exports to Syria, previously valued at $2 billion.
In an effort to rejuvenate bilateral trade, Deputy Minister Mustafa Tuzcu led a delegation to Damascus for discussions with Syrian officials, including his counterpart, Mahir Khalil al-Hasan. The two sides have agreed to reassess the current customs duties affecting Turkish products and to negotiate the revival of the Turkey-Syria Free Trade Agreement (FTA), which has been inactive since 2011. The goal is to foster economic partnership and smooth trade in industrial and agricultural goods, transportation, and contracting services.
Turkey has played a significant role in Syria’s affairs, supporting the Syrian opposition during the ongoing conflict, while simultaneously managing internal pressures, notably from the three million Syrian refugees within its borders. Recent developments have created a surge in cross-border trade, necessitating improved customs coordination at their shared borders due to the heightened traffic.
Sinan Hatahet, Vice President of the Syrian Forum, identified the bilateral roadmap as a potential catalyst for a balanced trade relationship, albeit with some concerns regarding Syria’s economic autonomy. He emphasized that examining customs duties is vital for reducing production costs and promoting trade, yet stressed the importance of transparency in this re-evaluation to protect local industries from an influx of imports.
Hatahet cautioned against a sudden lifting of trade barriers, as it could inundate Syrian markets with Turkish goods, harming local sectors. He advocated for a phased approach to the FTA that would allow Syrian manufacturers adequate time to adjust. He also noted that previous complaints from Jordan and Lebanon regarding Turkey’s trade advantages highlight the need for balanced competition in the region.
Turkey is anticipated to play a pivotal role in Syria’s reconstruction, with estimated costs running up to $360 billion for rebuilding infrastructure and homes. Hatahet noted the importance of collaboration between Turkish and Syrian enterprises, particularly in agriculture and technology, to enhance local capacities without creating dependency on foreign businesses.
Ensuring that Turkish companies collaborate with Syrian counterparts will be essential in maintaining profits, job creation, and skills development within Syria. Hatahet concluded that while the expansion of Turkish firms into various regions of Syria holds promise, it must be managed to protect Syrian economic integrity and autonomy, thus allowing both nations to prosper together.
The relationship between Turkey and Syria has been complex, particularly during the Syrian civil war, which has lasted over a decade. Turkey has been a significant supporter of opposition forces, leading to socio-economic challenges, including the acceptance of numerous Syrian refugees. Recent shifts in the political landscape, notably with the rise of a new Syrian government, have brought trade discussions to the forefront as both nations strive to stabilize and grow their economies amidst competing interests and regional pressures.
In summary, the recent agreement between Turkey and Syria marks a pivotal attempt to revitalize trade relations post the customs duties hike. With an eye on transparency and economic stability, both nations aim to collaboratively bolster sectors crucial for growth. However, safeguarding Syrian autonomy amidst increased Turkish trade presence must remain a priority to ensure balanced and sustainable economic development.
Original Source: www.middleeasteye.net
