16 May 2012
| Syria hits Turkey back |
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The new measures taken by the Syrian government include imposing a tariff estimated at 30 percent of the value of all Turkish goods imported to Syria, implementing a transit fee in euro on both loaded and empty Turkish trucks, and a tax of SYP 80 (USD 1.50). The additional fee represents the difference in the average price of fuel between Syria and Turkey. These measures came "in response to Turkey's imposition of economic sanctions on Syria in a way that would harm the Syrian people's interests, and are based on retaliating in the same manner and preserving national interests," Zoubi declared. After the Syrian decision, around 700 Turkish trucks were stopped for five days at the Bab al-Hawas border gate and were not allowed to enter Syria. Similar events occurred at many other Syrian border gates, according to an official statement released by the Turkish International Transporters' Association. According to the association, the Syrian authorities claimed that they were updating their computer systems on December 1, which caused the delay in the cargo transit. These difficulties marked a further deterioration in the formerly warm relations between the two countries. In December 2004, Syria and Turkey signed a free trade agreement, which was followed five years later with 47 cooperation agreements. Visa requirements between the countries were also lifted in attempt to create what Turkish Prime Minister Recep Erdogan described as a "regional Schengen". In the 2010 Annual Report of Investment Climates in Arab Countries, Turkey was projected as Syria's largest trade partner. Bilateral trade between the two countries rose by approximately 30 percent annually, from USD 1.7bn in 2009 to USD 2.2bn in 2010. With 32 projects in 2010 either completed or underway, 19 of them in the industrial sector, Turks ranked first among investors in Syria. "Turkey was the major beneficiary of the agreement, as is obvious from the trade balance between the two countries," Vice President of Damascus Chamber of Commerce Basel Hamwi told Syria Today. Hani Tarabichi, an economist and businessman, pointed out that Turkey imposed fees of up to 40 percent on exported agricultural and food products, with the justification that this tax supported the poor. Syrian furniture and textile industries were the most affected by the trade agreement. "The local market had been flooded by Turkish goods, while many Syrian factories shut down," Hamwi explained. However, the transport and transit industry may suffer due to the new decision. "Syria might lose some income from transit fees on Turkish goods going through it to the Gulf countries," Tarabichi told Syria Today. He pointed out that "customers in the Gulf region are reluctant to do business with their Syrian counterparts due to uncertainty." The role of Syria in intra-regional trade is of particular concern. Exports from Turkey to Iraq and the Gulf typically go overland through Syria, a crucial route that the new Arab League restrictions will disrupt. Furthermore, on November 30, Turkey added to the pressure on Syria by suspending all financial credit dealings with the Syrian government, freezing its assets, blocking weapons deliveries to Syria, and ending all dealings with the Central Bank of Syria. This came just three days after the Arab League imposed similar harsh sanctions. On December 8, Turkey also decided to charge a 30 percent tax on goods from Syria, local Turkish newspaper Hurriyet Daily News reported. |
16 May 2012
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