Amman, Dec. 30 (Petra) – The Jordan Strategy Forum (JSF) issued a policy paper on Monday titled “Prospects for Trade and Economic Cooperation Between Jordan and Syria: A Launchpad for Joint Arab Integration.”
The paper highlighted the economic and trade ties between Jordan and Syria, emphasizing their role in fostering joint Arab cooperation through trade exchange and the transport sector and identifying the comparative advantages of the two countries’ exports.
The JSF pointed to the modest level of intra-Arab trade, which totaled approximately $405.3 billion, accounting for only 14.9% of total Arab external trade. In contrast, trade among European Union economies represents 58% of their total external trade. The JSF stressed that bilateral partnerships could serve as a foundation for comprehensive Arab integration and sustainable regional development.
Trade Relations Between Jordan and Syria
The JSF noted that trade exchange between Jordan and Syria reached significant levels between 2004 and 2011, surpassing $500 million in some years. However, it sharply declined to $182 million in 2023 due to the political instability affecting Syria’s economy.
Jordan’s national exports to Syria dropped from 5.4% of total national exports in 2007 to below 1% in 2023, while imports from Syria decreased from 2.7% to 0.2% of total Jordanian imports during the same period.
Strategic Geographic Importance
The paper underscored the geographic significance of both countries. Jordan and Syria serve as key land corridors for exports traveling between Asia, particularly the Gulf countries, and Europe or Turkey. Jordan acts as a gateway to European and Turkish markets for Syria, while Syria is a critical land route for Jordan to the Gulf markets.
Reconstruction Opportunities
The JSF emphasized Jordan’s potential role in Syria’s reconstruction efforts, citing its geographic proximity and advanced capabilities in various supporting sectors. The Jordanian industrial sector, particularly in construction-related fields like cement, steel, insulation materials, paints, and electrical cables, was identified as having exceptional production capabilities.
Recommendations for Enhanced Cooperation
The JSF concluded with several recommendations to strengthen economic and trade ties between Jordan and Syria:
1. Partnership Agreements: Establish partnerships and memorandums of understanding to enhance trade relations and enable Jordan’s participation in Syria’s reconstruction, particularly in promising sectors like industry, energy, financial services, and real estate.
2. Trade Policy Revisions: Reassess restrictions on importing and exporting specific products and revise trade quotas and conditions imposed on traders and industrialists from both countries.
3. Customs and Transport Automation: Support Syria in reactivating its customs system (as per ASYCUDA) and automating transport services to streamline the movement of goods between the two countries.
4. Unified Transit Fees: Reactivate the 1999 Jordan-Syria bilateral transport agreement, which standardized transit fees for freight trucks regardless of distance or weight. Additionally, assist Syria in reopening the Bab al-Hawa border crossing with Turkey to ensure secure transit of goods.
5. Review Tariffs and Transit Fees: Evaluate customs duties and transit fees imposed on exports to facilitate smoother trade operations.
By addressing these areas, the JSF believes Jordan and Syria can improve trade dynamics, bolster regional economic integration, and capitalize on their geographic and economic complementarities.
//Petra// AF
30/12/2024 22:16:50
