72776 v1 World Trade Indicators 2009/10 Syrian Arab Republic Trade Brief Trade Policy negative list which prohibits the import of a number of goods. Based on its 19.6 percent simple average of the MFN applied tariff in 2002 (the latest year for which In the context of the food crisis and in an attempt to internationally comparable Syrian tariff data is ensure domestic food security, in August 2008 the available) the Syrian Arab Republic had a trade regime Syrian government banned exports of wheat-based more open to trade than an average Middle East and products and legume crops.2 North Africa (MNA) country (27.3 percent) but more restrictive than that of an average lower-middle- income country (15.8 percent). But if preferences are External Environment taken into account, it appears that the trade regime is The simple average of the overall rest of the world slightly more liberal since its simple average of the tariff (including preferences) faced by Syria’s exports is applied tariff was 14.7 percent. While the majority of 9.9 percent. However, Syrian exports have good access other countries in its comparator groups are more to international markets, as reflected by Syria’s protective of their agricultural goods than of their weighted rest of the world tariff (including non-agricultural ones, in Syria the two goods have preferences) of 1.3 percent, which is somewhat lower similar levels of protection. The MFN applied tariff than the regional and income group averages of 1.6 for the first was 20.6 percent in 2002, and for the latter and 2.9 percent, respectively. Similar to other MNA it was 19.5 percent. On one hand, the 0.6 percent countries, Syria’s agricultural products face a less share of tariff lines with zero MFN duties in 2002 was favorable trading environment (with a rest of the among the lowest in the region, where the average was world tariff of 10.8 percent) than its non-agricultural 11.6 percent. On the other hand, Syria’s 35.6 percent products (0.2 percent). share of tariff lines with duties higher than 15 percent (international peaks) was also below the regional Syria initialed an Association Agreement with the EU average of 52.7 percent. A recent World Bank study, in December 2008, signed a Bilateral Investment using data from the Customs Directorate, estimates Promotion and Protection Agreement with India in the average MFN tariff for all goods at 14.3 percent in June 2008, and negotiated a Preferential Trade 2008, with an average tariff of 18.2 percent for Agreement with Iran.3 Moreover, Syria is a member of agricultural goods and 13.5 percent for manufactured the Greater Arab Free Trade Area (GAFTA) through goods. The country’s trade regime comprises of ten which it receives full exemption of customs duties to tariff bands, as well as more than 50 different border 16 other member countries since January 2005. taxes which are levied only on imported products.1 Additionally, Syria has several non-tariff barriers to trade, such as non-automatic licensing, a public Behind the Border Constraints monopoly in the trade of certain products, and a In terms of the conduciveness of its institutional environment to business, Syria remained in the bottom 25 percent in 2009, being ranked 143rd out of 183 countries in the Ease of Doing Business index. Unless otherwise indicated, all data are as of August 2009 Additionally, Syria’s Logistics Performance Index and are drawn from the World Trade Indicators 2009/10 score, which reflects the extent of trade facilitation in the country, is below the regional and income group Database. The database, Country Trade Briefs and averages, reflecting a less conducive climate for trade. Trade-at-a-Glance Tables, are available at Syria scores 2.09 on a scale of 1 to 5, with 5 being the http://www.worldbank.org/wti. highest score, while the regional and income group If using information from this brief, please provide the averages are 2.42 and 2.47, respectively. Syria ranked following source citation: World Bank. 2010. ―Syrian 135th out of 150 countries and 9th in the MNA region. Arab Republic Trade Brief.‖ World Trade Indicators Its strongest logistics indicator is domestic logistics 2009/10: Country Trade Briefs. Washington, DC: World costs, while it needs more improvement in the areas of Bank. Available at http://www.worldbank.org/wti. World Trade Indicators 2009/10 Syria Trade Brief ease and affordability of arranging shipments and the Notes ability to track and trace them. 1. World Bank. 2009b, pp. 20–23. 2. FAO, 2009. Trade Outcomes 3. European Commission, 2009; Economic Times. August 8, 2008; World Bank, 2009b, p. 36. Syria could not maintain its trade growth momentum 4. World Bank, 2009a; EIU, July 2009, p. 8. of 11.8 percent over the 2005–07 period with a real (in 5. IMF, August 2009. constant 2000 U.S. dollars) growth of trade in goods and services of only 0.1 percent in 2008. This is expected to turn negative in 2009, with trade falling by References 1.4 percent. The deceleration was caused by a drop in the real growth of imports from 11.5 percent over the Economic Times. August 8, 2008. ―Bilateral Investment 2005–07 period to 2.5 percent in 2008, and a steeper Promotion and Protection Agreement between decline in exports which fell by 2.4 percent in 2008 India, Syria.‖ Bilaterals.org. July 29, 2009. after an average growth rate of 13.9 percent over the . Economist Intelligence Unit (EIU). July 2009. Country In nominal terms, trade growth accelerated in 2008 to Report: Syria. EIU. an estimated 29.7 percent from an estimated 15.0 European Commission. 2009. ―Syria.‖ European percent in 2007. An exporter of crude oil (which Commission. July 29, 2009. . and importer of refined oil products,4 both Syria’s Food and Agriculture Association of the United Nations nominal exports and imports increased in 2008 on the (FAO). 2009. ―Policy Measures Taken by back of the high fuel prices. Its export growth Governments to Reduce the Impact of Soaring accelerated to an estimated 27.9 percent in 2008 from Prices (As of 15 December 2008)‖. FAO. June 26, an estimated 12.0 percent in 2007, and its import 2009 . an estimated 18.2 percent. As oil prices have fallen International Monetary Fund (IMF). August 2009. from their peak of US$147 per barrel in July 2008, ―Direction of Trade Statistics.‖ IMF, Washington, both exports and imports are predicted to contract. DC. Already in the first quarter of 2009, based on partner World Bank. 2009a. ―Country Brief 2009: Syrian Arab countries aggregate trade data collected by the IMF, Republic.‖ July 29, 2009. World Bank, Washington, exports plummeted by 36 percent on year on year basis and imports by 21.9 percent.5 DC. . ———. 2009b. ―Trade Reforms and Export Diversification in Syria: A Diagnostic Review.‖ World Bank, Washington, DC.