Turkey and Syria have reached a preliminary agreement to reevaluate customs duties and revive trade relations after a significant increase in tariffs. The Turkish trade ministry’s delegation proposed reviving the Turkey-Syria Free Trade Agreement, focusing on cooperation in agricultural and industrial sectors. While promising, experts warn about the importance of maintaining Syria’s economic autonomy to prevent over-dependence on imports and ensure local industry protection.
Turkey and Syria have reached an agreement to revive trade relations following recent tensions marked by significant increases in customs duties by the new Syrian government, which raised rates on Turkish imports by up to 300 percent. In retaliation, Turkey, which exports approximately $2 billion annually to Syria, initiated a dialogue to reassess these duties in an effort to restore trade flow.
A delegation led by Turkey’s Deputy Minister of Trade, Mustafa Tuzcu, visited Damascus for discussions with Syrian officials to lay out a roadmap for cooperation. The nations agreed to consider a revival of the Turkey-Syria Free Trade Agreement (FTA), originally suspended in 2011, with commitments to enhance economic partnerships and address customs management to facilitate smoother border operations.
Experts suggest that while this agreement offers potential for a balanced trade relationship, there are critical risks involved, particularly concerning Syria’s economic autonomy. Sinan Hatahet from the Syrian Forum warned about the dangers of over-reliance on imports and stressed the need for a transparent process that supports local production capabilities rather than flooding the market with Turkish goods.
The reconstruction of Syria, estimated to cost around $360 billion, presents an opportunity for collaboration between Turkish and Syrian firms. By aligning investments, both nations can bolster their economies through joint ventures, particularly in the agricultural sector where Syria has a comparative advantage but lacks modern technology and equipment.
While Turkish companies aim to expand their presence beyond Turkish-held regions in Syria, it is paramount that there are partnerships with Syrian businesses to secure local job creation and skill development. Effective regulatory measures must also be established to prevent monopolization of key sectors by Turkish entities, thereby fostering a healthy economic environment that respects Syrian autonomy.
The recent roadmap agreement between Turkey and Syria follows a period of heightened tensions stemming from the abrupt elevation of tariffs on Turkish imports by the new Syrian government. Historically, Turkey has been a significant player in Syria, supporting opposition factions while dealing with challenges such as managing the influx of Syrian refugees into its borders. The initial phase of increased tariffs has strained bilateral relations, prompting both nations to seek a resolution to restore economic ties and streamline trade processes.
The agreement between Turkey and Syria to reassess customs duties and revive trade relations signifies a critical step towards economic revitalization for both countries. While the initiative to reinstate the FTA may yield numerous benefits, careful management and transparency are vital to prevent adverse impacts on Syria’s economic autonomy. Strong regulatory frameworks to maintain market balance and promote collaborative ventures can enhance both nations’ economic prospects, especially in agriculture and reconstruction efforts.
Original Source: www.middleeasteye.net
