Syria aims to revive its trade relationship with Iraq, but Baghdad’s political hesitations impede progress. Despite fulfilling border security requirements, crucial banking cooperation is lacking, leaving trade largely stalled. Limited exchanges continue among private businesses, but the broader economic partnership remains fragile and uncertain due to ongoing political instability in Syria.
Syria is striving to revitalize its historically significant trade connection with Iraq, but delays in Baghdad’s political decisions are causing frustration among businesses. Although Syria has addressed vital border security and customs requirements, Iraq shows hesitance to proceed with full re-engagement. Ibrahim Shalash, a board member of the Syria-Iraq Business Council, claimed that the Syrian border in Al-Bukamal has been ready to receive Iraqi trucks for 15 days, yet the border remains closed from the Iraqi side.
Central to the impasse is Iraq’s insistence that trade agreements cannot resume until Syria attains political stability. Existing issues such as the lack of official banking channels and restrictive trade policies inhibit substantial economic collaboration. Despite the challenges, limited exchanges occur between private businesses, with Iraq exporting various goods to Syria, while Syria supplies food items, sweets, and medical supplies. However, these exchanges constitute only a fraction of previous trade volumes.
Shalash noted that Syrian exporters face ongoing economic challenges, including sanctions that are beginning to ease, yet the absence of banking cooperation poses a more significant obstacle. No official bank transfers leave traders dependent on the black market. Iraq constitutes a critical trade partner for Syria; prior to the civil war, Iraq accounted for 22.7% of Syria’s exports in essential sectors, but that avenue has nearly vanished.
Historically, trade relations between Syria and Iraq oscillated between cooperation and conflict. In 2001, they signed a free trade agreement with Egypt and Libya, which bolstered commerce until the US invasion of Iraq in 2003 disrupted these ties. The rise of ISIS in 2014 prompted a partial re-engagement, but concerns about security and political instability have stalled significant cooperation in recent years.
Despite efforts from Syrian authorities to reopen trade, Iraq remains unmoved, voicing the need for political stability in Syria before any formal trade cooperation can materialize. Shalash expressed frustration at this sentiment, highlighting the competitive quality of Syrian industries across various sectors. The Iraqi Trade Ministry echoed this stance by reiterating the necessity of securing stability in Syria before advancing trade relations.
The pharmaceutical industry, once a major trade component, has also suffered significantly, particularly after the Iraqi Ministry of Health blocked new registrations for Syrian pharmaceutical companies due to security concerns. Shalash emphasized the existing 50 registered Syrian pharmaceutical factories in Iraq, which continue to face regulatory hurdles for new market entrants.
Currently, Syria regards Iraq as a vital aspect of its economic recovery strategy, pushing to restore its pre-2011 export levels and enhance logistical frameworks. Hassan Al-Sheikh of the Iraq-Syria Business Council stated that while Iraq is ready to renew trade relations, it requires Syria to establish a fully integrated border post to curb smuggling. As the situation develops, limited trade continues, yet the future of irrefutable cooperation remains uncertain.
In summary, the trade relationship between Syria and Iraq is significantly hindered by political uncertainties and a lack of banking cooperation. Despite Syria’s readiness to resume trade and establish necessary security measures, Iraq maintains reservations tied to Syria’s political situation. This ongoing stalemate limits trade to minor exchanges, with key industries suffering amid regulatory complications. The potential for revitalized economic ties exists, but it is contingent upon political developments in Syria and an easing of restrictive measures by Iraq.
Original Source: shafaq.com
