Turkey and Syria agree on roadmap to revive trade

The Turkish trade ministry has announced a roadmap to resolve disputes between Turkey and Syria following the fall of Bashar al-Assad's government last month, which brought bilateral trade to a halt due to a sudden increase in customs duties.
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’s annual exports to Syria amount to $2bn.
Turkey has long been a key player in Syria, supporting the Syrian opposition for the past 13 years.
However, this stance has been controversial domestically, as Ankara faces pressure due to the presence of three million Syrian refugees.
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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.
“Both sides decided to cooperate in areas such as the trade of industrial and agricultural products, transit transportation, bilateral shipments, and contracting services to revitalise the Syrian economy.”
The ministry also noted that both countries would coordinate to allow Turkish companies, which have so far only operated in Turkish-held areas of northern Syria, to expand operations across the country and invest there.
In addition, both sides agreed to strengthen coordination to better manage customs at the border, where traffic has significantly increased since the ousting of Assad.
Economic autonomy
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.
“Syria has certain sectoral advantages, such as in agriculture, but it lacks equipment and technology,” he explained.
“For example, Syria could focus on agricultural production and food processing while Turkey provides equipment and technology. This complementary relationship would ensure that both economies grow together.”
Hatahet emphasised that while the expansion of Turkish companies into other parts of Syria is good news, their involvement must be tied to partnerships with Syrian businesses to ensure that profits, jobs and skills remain in Syria.
“The government must also regulate market access to prevent Turkish companies from monopolizing key sectors,” he said.
“If properly managed, the presence of Turkish companies can stimulate growth and modernise infrastructure, but only if Syrian autonomy and economic capacity are preserved.”
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