Thirteen years post-signature, the Iran-Syria Free Trade Agreement (FTA) languishes, yet to be operational. Urgency characterizes calls from Mahdi Zeyghami, Iran’s deputy industry minister, for expedited activation. This agreement promises to rejuvenate bilateral trade dynamics, leveraging robust political affiliations between the nations.
Currently, Iran commands a notable 10 percent stake in the Syrian market, with aspirations to escalate exports to an ambitious $500 million within the current Iranian calendar year. This ambition reflects Iran’s strategic pivot towards Syria as a primary export destination, amid endeavors to diversify economic alliances.
Abdolamir Rabihavi, leading the West Asia Office at Iran’s Trade Promotion Organization (TPO), signals plans for a forum to showcase Syrian market prospects, facilitating exports of technical and engineering services. This initiative underscores Syria’s pivotal role in Iranian export strategies, augmented by Rabihavi’s invitation to Syrian economic entities for engagement in Iran Expo 2024. This platform anticipates fostering direct connections between Iranian and Syrian business communities, enhancing trade potentials.
Scheduled for April 27, Iran Expo 2024, marking its 6th iteration, represents a critical juncture for economic interactions. Concurrently, a TPO-convened conference dubbed ‘Reconstruction of Syria’ witnessed participation from both nations’ officials and business representatives, indicating a new phase of economic cooperation. Rabihavi’s revelation of a prospective $5.0 billion market for Iranian ventures in Syria underscores the magnitude of latent economic opportunities.
A significant development, the Central Bank of Iran (CBI)’s consent to establish a joint banking venture with Syria, aims to facilitate operations beyond international sanctions. This initiative, coupled with the anticipated FTA execution in the forthcoming Iranian calendar year, aims for a mutual trade target of $500 million.
Rabihavi highlights tariff reductions to zero, anticipated to catalyze trade by diminishing cost impediments. The synergy between Iran and Syria, buoyed by solid political relations, fosters an optimal environment for economic interaction. This is further supported by Iran’s $50 million budget commitment to aid exporters targeting the Syrian market.
Reflective of these concerted efforts were the four documents inked between Iran and Syria in 2022, aiming to enhance trade and industrial connections. These agreements, ratified during a high-profile visit by an Iranian delegation to Damascus, manifest the mutual determination to augment economic cooperation, leveraging the firm foundation of their political alliance for collective economic advancement.
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