Syria is attempting to restore its trade relations with Iraq, but political hesitance in Baghdad impedes progress. Despite meeting security and customs standards, Iraqi reluctance persists based on Syria’s political stability. While limited trade exchanges continue, lack of banking cooperation exacerbates the situation.Iraq’s Ministry of Health has also restricted Syrian pharmaceutical registrations, significantly impacting previously strong trade ties.
Syria is striving to reinstate its previously robust trade relationship with Iraq, yet political hesitance in Baghdad has left businesses dissatisfied. Despite Syria having fulfilled essential border security and customs requirements, Iraq remains hesitant to fully re-engage. Ibrahim Shalash of the Syria-Iraq Business Council reported that the Syrian side is prepared to receive Iraqi vehicles, but the border remains closed due to Iraq’s reluctance.
At the crux of the matter is Iraq’s insistence that formal trade agreements hinge upon Syria achieving political stability. The lack of official banking channels, stringent trade policies, and security concerns from Baghdad contribute to the stagnation of significant economic cooperation. Nonetheless, limited exchanges persist between private businesses, with Iraq exporting various goods to Syria while Syria supplies items like fruits and medical supplies.
Economic factors have compounded the challenges for Syrian exporters, who are hindered by sanctions such as the Caesar Act and other international restrictions. However, as Shalash emphasizes, the primary concern affecting trade with Iraq remains the absence of banking cooperation, forcing traders to depend on the black market. Iraq serves as a crucial trade partner for Syria, having accounted for a significant portion of Syria’s exports prior to the civil war.
Historically, economic ties between Syria and Iraq have fluctuated between collaboration and political strife. The signing of a free trade agreement in 2001 aimed at regional economic growth shifted dynamics dramatically following the 2003 US invasion of Iraq. Post-invasion, trade relations suffered, especially as Syria opposed the war and Iraq’s new government accused it of harboring terrorists, leading to further diplomatic and economic isolation.
The emergence of ISIS prompted a reluctant security cooperation between the two nations, which partially revived trade relations. Despite this, the political landscape post-2024 remains uncertain, and full-scale cooperation remains elusive due to security and financial instability. Syrian officials assert they have taken all necessary measures to reopen trade routes, but Iraq’s caution continues.
Shalash highlights the positive attributes of Syrian industry, which boasts high-quality goods compared to its regional competitors. Even with an intent to resume trade, hurdles such as inadequate banking cooperation prevent progress. The Iraqi Trade Ministry has reiterated that government-level trade cannot resume until Syria stabilizes, further complicating matters for Syrian exporters.
The pharmaceutical sector, formerly a stronghold of Syrian exports to Iraq, has been severely affected, particularly following restrictions from the Iraqi Ministry of Health. Reports indicate that numerous new Syrian companies have sought registration but face barriers due to security concerns. Existing Syrian pharmaceutical factories registered in Iraq still struggle to navigate the complex registration and export approval process.
For Syria, Iraq remains a pivotal outlet for economic recovery, and enhancing trade levels to pre-war status is crucial. Hassan Al-Sheikh of the Iraq-Syria Business Council noted the need for Iraq to establish operational guidelines for border crossings to prevent illegal activities. Ultimately, despite these discussions, trade remains limited, and the future of Syria-Iraq economic relations hangs in the balance as both sides grapple with political realities.
In conclusion, the trade relationship between Syria and Iraq is currently impeded by political uncertainties and security concerns within Iraq. While Syria has prepared itself to re-establish trade, the absence of formal banking cooperation and ongoing political instability complicate any potential agreements. This situation highlights the importance of addressing political barriers to revitalize economic partnerships and ensure mutual benefits for both nations in the future.
Original Source: shafaq.com
