Damas, 29/10/2003 (Agence Europe) - Syria and the EU plan to conclude their negotiations for an association agreement based on free trade before the end of this year, confirmed the Syrian Prime Minister at the opening of the 'EU-Mashreq Partnership'. The event, from 23-25 October, organised jointly by the European Commission (with MEDA resources) and the authorities and Chambers of Commerce and Industry of Syria, Jordan and Lebanon, aims to encourage European industrial, services and trade firms and the three countries to form useful contacts with a view to the mutual opening up of markets. The approach is also meant to encourage Syrian, Jordanian and Lebanese firms to work together more with a view to sub-regional integration and as part of plans for a free trade zone between Europe and the Mediterranean, planned for 2010, said Frank Hesske, European Commission representative and head of the delegation in Damas. The Commission also hopes that this will help the Mashreq region improve its ability to attract foreign investment, said Mr Hesske. Frank Hesske also confirmed that the recent rounds of technical negotiations between Brussels and Damas (mid October) on an association agreement, allowed appreciable progress to be made after six years of cautious talks, on the Syrian side, regarding the opportunity of opening up the national market to foreign competition. "99% of the discussion points have been settled" said Mr.Hesske. The remaining points concern the pace for tariff dismantling, which Brussels hopes will be faster at the start of the process, unlike Damas, which wants the process to be spread out over the planned twelve years of transition. Amongst the other matters to be settled there is also the issue of access regulations for agro-industrial products.
On the Syrian side, Sami Habash, Vice Minister for the Economy and Trade, points out that his country intends to continue discussions on the chapter on political dialogue, the question of the pace of tariff dismantling and that of Syrian tariff peaks to be reduced once the agreement comes into force, and also hopes for flexibility in European Union requirements over convertibility of the Syrian pound and the freedom of transfer of returns on investment for European operators. The Syrian banking system- where there are no private establishments- is being restructured, as is the country's entire economy, the minister said, expressing his government's wish to speed up the process of reforms underway.
Syria, according to Mr. Habash, also hopes that trade in cotton (which the country produces) will be dealt with. Syrian exports to the EU are currently subject to a monitoring system, which Damas wants to make more flexible. All these matters will be dealt with during a further- and perhaps final- meeting in November. The agreement could be signed in Brussels in December, and sources in Damas are talking of the possibility of President Bachar El Assad paying a visit to Belgium on this occasion.