Turkey and Syria Forge Trade Revival Agreement Amid Economic Challenges
Turkey and Syria have reached an agreement to address trade disputes arising from new customs duties imposed by Syria, which have negatively impacted bilateral trade valued at $2 billion. Discussions led to a roadmap focusing on reevaluating customs obligations and reviving the Turkey-Syria Free Trade Agreement, allowing for expanded economic cooperation in various sectors. Expert opinions emphasize the need for careful management to ensure local industries are not overwhelmed by Turkish imports, thereby maintaining Syrian economic autonomy.
Turkey and Syria have established a framework to address their trade disputes following significant changes in Syria’s government leadership. The recent administration in Syria raised customs duties on Turkish imports by as much as 300 percent, resulting in a halt of bilateral trade, which has historically been valued at around $2 billion per year. This measure has provoked dissatisfaction among Turkish exporters and Syrian business leaders alike due to its economic implications.
In response, Turkey’s trade ministry dispatched a delegation, led by Deputy Minister Mustafa Tuzcu, to engage in discussions with Syrian officials, including Mahir Khalil al-Hasan, the Syrian Trade Minister. The dialogue resulted in an agreement to reevaluate current customs duties on Turkish goods and to reconsider the previously suspended Turkey-Syria Free Trade Agreement from 2011 to foster increased bilateral trade in various sectors.
The roadmap includes commitments to southern economic cooperation, focusing on industrial and agricultural trades, transit transport, and construction services to bolster Syria’s economic landscape. Moreover, the arrangement intends to grant Turkish firms access beyond the regions previously under Turkish control, promoting investment opportunities throughout Syria.
Experts have expressed cautious optimism regarding the initiative. Sinan Hatahet of the Syrian Forum highlighted the need for a careful approach in adjusting customs duties to avoid economic dependence on imports while ensuring that enhancements serve to stimulate local production and competitiveness for Syrian industries.
The anticipated trade revival is significant, especially considering the concerns that unregulated influxes of Turkish products could easily saturate the Syrian market, potentially stifling local businesses. As Turkey is poised to contribute greatly to Syria’s reconstruction efforts, creating a balanced trade relationship could ultimately benefit both nations.
Hatahet underscored the importance of integrating Syrian industries into the process to ensure sustainability and retain economic autonomy while fostering partnerships that promote mutual growth and operational efficiency. The shared commercial prospects could pave the way for technological advancements in agriculture and other sectors, provided that regulations remain intact to protect local markets from monopolistic practices by Turkish enterprises.
The context of this agreement arises from the historical complexities surrounding Turkey-Syria relations, particularly against the backdrop of Syria’s ongoing civil conflict and Turkey’s role in supporting opposition forces. For over a decade, this geopolitical tension has influenced trade policies and economic cooperation. The recent escalations in customs duties significantly hindered trade activities, emphasizing the importance of these discussions in restoring economic ties between the two nations.
In conclusion, the agreement between Turkey and Syria to establish a roadmap for trade revival marks a significant advancement amidst a challenging economic landscape. The efforts to reevaluate customs duties and foster cooperation through a free trade agreement could nurture both economies. However, careful execution is required to ensure that Syrian economic autonomy is preserved while allowing both countries to benefit from enhanced commercial relations.
Original Source: www.middleeasteye.net
