Turkey and Syria discussed matters of trade cooperation and customs operations, agreeing to work out the possibility of resuming the free trade agreement, ABC.AZ reports, referring to the Turkish Ministry of Trade.
“The parties agreed to launch negotiations with view to renew the free trade agreement, which expired in 2011, in order to form a more comprehensive approach to economic relations,” the Ministry said.
“It was decided to review customs duties for certain goods, which will be applied in the same amount by both sides at all border points,” the Ministry of Trade informs.
Turkiye is aiming to achieve a $10 billion bilateral trade volume with Syria as part of its short and medium-term goals with the country, as relations with the new Syrian authorities continue to advance.
According to Turkish media outlets, the head of the Turkiye-Syria Business Council for the Turkish Foreign Economic Relations Board (DEIK), Ibrahim Fuat Ozcorekci, the trade volume between the two countries had reached $2.5 billion by 2024 – a sharp rise from the pre-civil war years when the trade volume reportedly numbered between $250 million and $300 million.
Earlier this month, the new Syrian government raised customs duties on Turkish imports by up to 300 percent, aiming to unify rates across its borders. This move sparked anger among Turkish exporters and some Syrian businesspeople. Turkey has long been a key player in Syria, supporting the Syrian opposition for the past 13 years, and she expects some trade favors.
On Friday, the trade ministry announced that a delegation led by deputy minister Mustafa Tuzcu travelled to Damascus this week, holding talks with his Syrian counterpart, Mahir Khalil al-Hasan, and Deputy Foreign Minister Ahmed Duhan.
The ministry said that, as part of the roadmap, both sides agreed to reassess the customs duties applied to Turkish products in an effort to streamline disrupted trade in the coming weeks.
“It was agreed to initiate negotiations to revive the Turkey-Syria Free Trade Agreement (FTA), which was suspended in 2011, with a broader understanding of economic partnership,” it said.
According to Ragip Soylu, writing for Middle East Eye, ““Both sides decided to cooperate in areas such as the trade of industrial and agricultural products, transit transportation, bilateral shipments, and contracting services to revitalize the Syrian economy.”
Sinan Hatahet, vice president for investment and social impact at capacity-building NGO the Syrian Forum, described the roadmap as a promising opportunity to create a balanced trade relationship between the countries, but highlighted some caveats.
“Without proper checks and balances, Syria risks losing its economic autonomy,” Hatahet told Middle East Eye.
“Adjusting customs duties is critical to lowering production costs and encouraging trade. However, this process must be conducted transparently, ensuring that reductions target raw materials and inputs needed to revive Syrian industries rather than fostering over-reliance on imports.”
Hatahet added that while a free trade agreement (FTA) could open new markets for Syrian products, a sudden and unrestricted opening of borders could flood markets with Turkish goods, overwhelming local industries.
He suggested that a phased FTA, with clear timelines for reducing tariffs, should be implemented to allow Syrian manufacturers and farmers time to rebuild and compete.
An expert told MEE last week that one of the main reasons for the customs duty hike on Turkish products by the Syrian authorities was that Turkish goods were flooding markets across Syria, including cities like Hama, Homs, and Damascus, with a distinct price advantage due to previously low import taxes.
This development triggered complaints from Jordanian and Lebanese businesses about unfair competition caused by Turkey’s customs advantage.
Turkey is expected to play a major role in Syria’s reconstruction. Estimates from 2017 indicated that rebuilding two million homes and restoring basic infrastructure would cost up to $360bn.
Hatahet noted that reconstruction efforts could benefit both Turkish and Syrian businesses by fostering joint ventures and building capacity for local firms to become independent rather than dependent on foreign entities.
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