Syrian economy and the GATT
Syria, Economics, 6/11/1999

There is still a persisting question that poses itself concerning the ability of the Syrian foreign trade sector, despite the progress it has made, to withstand local, regional and international challenges and the hard conditions of adaptation required for Syria's entery into the GATT (General Agreement on Tariff and Trade), and concerning the ability of the slow corrective measures to give a strong enough push to the Syrian economy so it can step strongly and vigorously into the 21st century.

There is no doubt, however, that this depends to a large extent on the degree of carrying on with the policy of renewal pursued by the government to correct the flaws in certain economic changes.

But how can this be attained on the ground? And what is the size of the role that can be given to the foreign trade sector amidst those challenges? Will this sector resume the role of leading the process of economic growth in Syria as it did in numerous periods of history? Before giving a judgement, some bold and all-out measures must be taken in order that the efficiency of the Syrian economy might be boosted and its resources developed.

Of these mention may be made of:

1. Serious and top-level discussion of Syria's reentry into the GATT, and taking the decision that allows Syria to benefit from the agreement and protect itself from its negative effects. This decision must be combined with comprehensive corrective measures and steps to develop the mechanism of economic action and upgrade its standard, keeping abreast with international scientific development in the areas of services, investment, stock exchange and inter-state trade.

2. Reviving the role of banks in financing foreign trade operations, developing it and raising its standard, as well as opening joint stock banks to finance exportation and reactivate the interest rate as suits market demands.

3. Providing strong and well-studied support for exportation, and exempting direct and indirect export operations from all taxes and fees over successive stages in order to support the competitiveness of Syrian exports.

4. Developing the methods of foreign markets and raising the ability of Syrian exports to adapt to foreign demands.

5. Simplifying the regulations of foreign trade and unifying the exchange rate of foreign currency in order to meet the demands of foreign trade.

6. Keeping on with the process of developing the industrial sectors that have relative distinctiveness such as textiles and food industries and developing their specifications, raising the percentage of material of Syrian origin so that they can get benefit from the advantages entertained by the economic cooperation agreement with the European Union and the Generalized System of Preferences (GSP).

7. Encouraging the production and export of value-intensive industrial commodities that have high-income flexibility which protects them against external crises and fluctuations.

8. Concentrating on the building of expertise -- both scientific and practical -- and of high efficiency, whether on the level of modern techniques or management, in order to absorb advanced knowledge which can be a good backup force for the continued success of economic action.

Last but not least, such measures will never be complete unless economic cooperation is deepened with other Arab states and through serious endeavors, both on the level of the government and of businessmen to speed up the establishment of the Arab common market, which through the exchange of commodity and services, can create a high degree of economic growth for the majority of Arab states, which can also benefit from the advantages and exemptions provided by the GATT to economic blocs and which consider exchange within these blocs as internal exchange to which the general GATT conditions do not apply.

Previous Stories:
  Middle solution for Syrian debts to Iran   (6/10/1999)
  Syrian advantages for Arab foreign investors   (6/8/1999)
  Special: Oil and the Syrian economy   (6/4/1999)
  special: Syrian foreign trade sector   (5/28/1999)

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