Syria and the path to economic integration

Dr Muhammad Alimadi.

Dr. Alimadi started his presentation with a reminder about the history of Syria as a country who systematically encouraged all unified Arab actions in the interest of the power of the Arab nation. He explained that these efforts went in two directions:

· To strengthen bilateral ties and relationship with Arab countries in all domains.

· To participate in all collective efforts aiming at pushing for the implementation of Arab unity, and particularly economic unity.

This nationalistic belief was behind all agreements signed by Syria and the acts that try realizing this belief into reality.

Dr Alimadi explained that Syria participated in all Arab economic commissions, establishments and councils, in addition to being a member in all specialized Arab unions established by the council for economic unity. The private and public sector companies participate actively in the union of chamber of commerce and industry and agriculture and the union of Arab banks and the Arab investment company.

Economic relationship between Syria and Arab countries:

Dr. Alimadi stressed the importance Syria attached to the relationship with other Arab countries. He described the establishment of joint committees to play the role of common reference for discussing the development and improvement of bilateral ties. These committees were initially presided by economy ministers in both countries, and in some cases by foreign affairs ministers, and finally committees were presided by prime ministers.

Trade between Syria and Arab countries:

The activity of import and export of goods in Syria was estimated at 30% of the total national production. This figure does not include crude oil and raw materials. If crude oil is added the figure will jump to 44%, and with raw materials it would become 64%.

The lecturer emphasized the deficit in the food and alimentary products commerce, as Syria exported about 20.3 billion SP value and imported about 27.8 billion SP value of alimentary products. Imports included sugar, tear, rice, ghee, and meat. He noticed that Syria was dependant on external world for the importation of alimentary products, raw materials necessary for industry, tools and machines, and transport vehicles.

While the first trade partner with Syria was the EU, seconded by third world countries, Arab countries came in third place. But if we take oil out of the equation, as Syrian exports to Arab countries do not contain oil, we will notice that trade with Arab countries would then constitute more than 63% of the overall Syrian trade. Which shows clearly the importance of trade with other Arab countries.

Problems limiting inter-Arab commercial trade

Dr Alimadi classified the problems related to inter-Arab trade into three categories:

§               First: problems related to governments, as some governments may take some actions aiming at limiting the access to certain products to their local market in order to protect its national products.

§               The second category is related to the exchanged goods. The lack of any unified Arab specification for the produced goods despite the existence of an Arab standardization body, creates several problems related to the differences between the legal contracts clauses and the actual products, or the difficulty of defining compliance requirements.

§               The third category is related to people dealing with trade who do not know the commercial rules applied in other countries and goods available there. In addition to the difficulty of finding the names and addresses of importers and exporters, the lack of big banks with branches in all Arab countries capable of opening letters of credits and facilitate the financing of trade activities, and finally the personal character of trade in the Arab world in general and the focus on personal relationship instead of the work of companies and establishments.

The need for competitiveness

The last major point in the presentation was the insistence on the need of increasing the competitiveness of our local products as competition is becoming extremely aggressive and does not target the gain of market share only, but also the total elimination of the competitors. The lecturer affirmed the need of  the adoption of Information and Communication technologies and the used of advanced production techniques as a mean to increase productivity and reduce costs. While reminding people that the open market gives the power to the purchaser and does not tolerate deficiencies and lack of  adaptability from the producers.

The lecturer concluded his presentation by a reminder the great inter-Arab free trade zone which is currently being implemented is the best way to realize economic Arab unity. He finally presented an overview of the Syrian commercial balance for the years 2000-2001-2002.