Content Group 3 of Syrian Arab Republic

Multinational Trade Agreements

Active

• Syria is a member of the Pan-Arab Free Trade Area (PAFTA): PAFTA's signatories consist of Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen. PAFTA was established in order to create an Arab economic bloc that could effectively compete with other countries while ensuring that each country increased trade with one another. PAFTA entered into force on January 1, 1998. The most important aspect of the agreement was that over the next 10 years (to 2008), each member country would seek to reduce customs fees by 10% per annum as well as gradually eliminate trade barriers. In March 2001, the member countries decided to reduce the period over which the reductions in tariffs could be made so as to speed up the process, and in January 2005 the elimination of most tariffs among the PAFTA members was enforced. The agreement covers trade in goods.

• Syria-EU Co-operation Agreement: This bilateral agreement between the EU and Syria entered into force on July 1, 1977, and it covers trade in goods. However, because it dealt with trade in crude oil and petroleum products, gold, precious metals and diamonds the agreement is suspended. An association agreement between Syria and the EU has been negotiated, but put on hold because of the internal situation in Syria, where internal repression has led to restrictive measures by the EU that have had a significant impact on bilateral trade. Compared to 2011, imports from Syria have dropped by 97% and exports by 85%, and where once they consisted of fuel and mining products they now consist mainly of agricultural products.

• Turkey-Syria Free Trade Agreement (FTA): This bilateral FTA between Turkey and Syria entered into force on January 1, 2007, and it covers trade in goods.

Sources: WTO Regional Trade Agreements database, European Commission, Fitch Solutions