Türkiye warns Syria on inflation, leading to tariff cuts on Turkish export products
Syrian officials agreed to review tariffs on 269 Turkish export products following a warning from Turkish officials that high customs duties could drive up inflation, Turkish Trade Minister Omer Bolat stated Tuesday.
In an interview with the Anadolu Agency (AA) on Jan. 28, Bolat remarked that the Syrian civil war had profound effects, including migration, terrorism and disruptions to Türkiye’s trade routes with the Middle East and Gulf regions.
Recalling the collapse of the Assad regime following last month’s public uprising in Syria, Bolat said, “The new administration is working closely with Türkiye. In this new era, there will be significant progress in economic, trade, investment and reconstruction efforts between Türkiye and Syria.”
Highlighting a notable rise in exports to Syria under the new government, Bolat stated, “From Jan. 1 to Jan. 25, 2024, our exports to northern Syria amounted to $161 million. This year, during the same period, exports increased by 35.5%, reaching $219 million.”
Turkish export products will play a role in Syria’s development
Bolat noted that during the civil war, Syria did not impose substantial customs duties on essential goods such as food and construction materials because of urgent needs. However, the new administration, aiming to generate revenue for public expenditures, made adjustments to 6,302 tariff lines on Jan. 11.
As part of these changes, Syria introduced a unified customs regime across its borders, including those with Türkiye, Jordan, Lebanon and Iraq. Bolat explained: “Some items saw increased customs duties, while others experienced reductions.”
Following these developments, Turkish officials engaged in discussions with their Syrian counterparts. Bolat emphasized that the decision was not targeted specifically at Türkiye but was a general policy to support public spending.
Providing insights into the meetings with Syrian officials, Bolat said:
In 2007, Türkiye and Syria signed a Free Trade Agreement. However, the agreement was suspended by both parties because of the civil war. We proposed reviving it in its broadest form, convening to address product-specific issues. The Syrians expressed positive views, signaling mutual agreement.
Secondly, we warned that increased customs duties on basic necessities could lead to high inflation in Syria. We advised them to lower these duties to prevent inflation. Following discussions, Syrian officials informed us that, under the leadership of their deputy minister, they decided to significantly reduce customs duties on 269 essential products, including milk, eggs, flour, steel, and plastic goods needed for the food and construction sectors.
On Jan. 24, the Turkish Trade Ministry announced that its delegation had reached an agreement with Syria’s new administration to bolster economic collaboration aimed at supporting Syria’s economic recovery, including enhancing trade and business partnerships with Turkish firms.