Syria is trying to reinstate its crucial trade with Iraq, but political hesitations in Baghdad impede progress. Despite fulfilling security and customs requirements, Iraq demands political stability in Syria before normalizing relations. Currently, limited trade exists, with ongoing economic challenges arising from sanctions and lack of banking cooperation. Key sectors like pharmaceuticals face tight barriers, underscoring difficulties in restoring former trade volumes.
Syria is attempting to revive its vital trade ties with Iraq, yet political indecision in Baghdad has left businesses feeling frustrated. Despite Syria meeting essential border security and customs protocols, Iraq hesitates to fully re-engage economically. Ibrahim Shalash from the Syria-Iraq Business Council reported that Syrian officials are ready to resume trade but face delays from Iraqi authorities due to the latter’s demand for political stability in Syria before reinstating formal trade agreements.
The trade stall is rooted in Iraq’s insistence on political resolution in Syria before normalizing relations. Current trade exchanges are hindered by the absence of official banking avenues and Iraqi security concerns, making large-scale commercial cooperation nearly impossible. Although government-level negotiations are stalled, limited private sector exchanges continue, primarily consisting of Iraq exporting agricultural and industrial products to Syria, while Syria sends back sweets, fruits, and medical supplies.
Shalash highlighted the burden economic sanctions place on Syrian exporters, such as the Caesar Act and international restrictions. The slow recovery of trade is further complicated by the lack of banking cooperation, pushing traders to resort to the black market. This informal system drives up costs, resulting in Syrian products being more expensive compared to those from Iran, Jordan, Turkey, and others.
Historically, Syrian-Iraqi economic relations have fluctuated due to political tensions, especially after the 2003 US invasion of Iraq, which negatively impacted bilateral trade. While some re-engagement occurred post-ISIS, the uncertainty following the fall of Al-Assad’s government has raised new concerns. Iraq’s cautious approach maintains diplomatic ties, but stability in Syria remains a priority for resuming formal trade.
Syrian officials remain assertive about their readiness to restart trade routes, with Border customs and logistics already established. Shalash lamented the potential growth of Syrian industries hindered by ongoing political barriers. Iraqi Trade Ministry spokesperson Mohammed Hanoun reiterated that no trade will advance without a politically stable environment in Syria and completion of requisite bilateral committee evaluations.
Pharmaceutical trade, previously a critical sector, faces major challenges as Iraq has recently blocked new Syrian firms from entering its market. Despite existing Syrian companies in Iraq, new registrations are at a standstill due to security and quality concerns. This situation further complicates Syria’s ambitions to revive its economic standing through Iraq.
Syria identifies Iraq as a key component of its economic recovery strategy, intending to restore trade levels from before the war and improve logistics. The Iraq-Syria Business Council’s Hassan Al-Sheikh confirmed that Iraq prepared to re-establish trade but is waiting for Syria to develop an integrated border system. Limited trade persists meanwhile, reflecting ongoing complexities in the bilateral relationship.
The trade relations between Syria and Iraq remain complex and impeded by political issues in Baghdad. Despite Syria’s readiness to renew bilateral trade, Iraq’s demands for political stability and secure banking channels hinder significant economic cooperation. While limited trade exists on a smaller scale, both sides must confront barriers to revitalize their historically significant economic partnership. Without mutual agreement, effective trade recovery appears challenging.
Original Source: shafaq.com
