By Qabil Ashirov
Turkish business people engaged in trade with Syria are facing significant headwinds due to new unified customs rates that came into force on January 11. Thus, the Syrian Interim Government increased customs rates on imported products by 300 to 500 percent, bringing Turkish exports to Syria to a standstill.
According to local media outlets, hundreds of trucks carrying products have amassed on Turkiye’s side of the border, waiting to enter Syria.
To put this into perspective, during the Syrian civil war, different duties emerged at different border crossings. For example, duties at the borders with Lebanon, Iraq, and Jordan were higher, while the northern part of Syria, controlled by opposition forces, had minimal duties at Turkish border crossings. In other words, these border crossings were controlled by different groups, resulting in varying duties.
On January 11, the Interim Syrian Government announced plans to unify customs duties across its borders. However, the Interim Government reduced duties on goods from Arab countries by 60 percent and even exempted duties at Jordanian border crossings. These measures have sparked ambiguities and stirred discontent among the Turkish public.
Effects of the Tariffs
Turkish exports to Syria amounted to roughly $2 billion, and there are concerns that the new tariffs could cause reductions in exports, which would impact the southern provinces of Turkiye. Besides, according to UN figures, the budget required for post-war reconstruction in Syria could exceed $400 billion, necessitating international cooperation and major investments. Turkish companies are keen on participating in this reconstruction effort, and even following the decoupling of Assad, the shares of cement companies rose on the Borsa Istanbul.
On the other hand, Syria’s share in Turkish exports is very small. In 2024, Turkiye’s total exports amounted to $262 billion, with the Syrian market accounting for less than one percent. Therefore, Turkiye has little to lose in this trade dispute.
As for the losses Syria might face, it should be borne in mind that together with Israel, Turkiye is one of the two industrialized countries in the region. Taking into account the Israeli-Syrian relation, exports from Israel are not reasonable. So that, for Syria, Turkiye is the only country that can produce nearly everything from soup to nuts in the region.
Tarnishing relations with Turkiye would not benefit Syria; on the contrary, it would likely exacerbate inflation in the country, which would not be favorable for the new government.
The unified customs rates implemented by the Syrian Interim Government have introduced significant challenges for Turkish exporters. The implications of these tariffs extend beyond immediate trade disruptions, potentially affecting long-term economic relations and reconstruction efforts in Syria. Both countries stand to gain more from cooperation than from conflict, and it remains to be seen how these tensions will be resolved.
