For reinforced trade practices

The European Union allocated 15 million Euros to facilitate the exportation of Syrian products to European and international markets. This programme seems to be much more ambitious with multiple aims and objectives.

Samar Izmishli - Damascus, Eurojar

“Easier, faster and less expensive”, these are the factors taken into account by the Trade Enhancement Programme, funded by the European Union with a total budget of 15 million Euros. The aim is to support Syrian public institutions, reinforce international competitiveness of Syrian services and products and create employment opportunities.

The ambitious programme focuses on several objectives, precisely, helping in the reduction of poverty, creating a better work environment for the private sector, facilitating trade exchanges between Syria and the rest of the world, according to the chief of project David Fenning, who notes that the project aims as well at supporting the Ministry of Economy and the Customs administration in Syria.

Three main components
Fenning explains that the programme operates according to three main components: the first component targets “trade policies”, aiming at reinforcing the capacity of Syrian trade institutions to analyze trade-related issues, design and coordinate trade policies, and then draft trade-related laws and regulations. The programme also focuses on introducing modern legislative drafting techniques, strengthening the Ministry of Economy and Trade and increasing its capacity in terms of managing and implementing trade instruments and agreements.

The second component focuses on facilitating commercial activities through a better homogenization of Syrian custom procedures in compliance with international standards, or precisely through simplifying custom procedures and their coordination. Modern custom schemes are being adopted, including: custom clearance, risk assessment, modern warehousing system, transparency of customs forms and documents, reinforced customs valuation, management of rules of origin and measures against piracy and forfeiting, as well as the enforcement of international standards in the area of Sanitary and Phyto-sanitary requirements.

The third component targets a revised trade regime. It aims at strengthening the directorates at the Ministry of Economy and Trade, responsible for revising and simplifying trade legislations (import and export licensing, intellectual property, e-commerce, dispute settlement, hygiene norms, etc.). The measures aim as well at examining possibilities for establishing an import and export guarantee system and, if relevant, providing the necessary technical support for the establishment of such system. The goal is also to establish a transparent system to access trade-related information, including access to legislation (in Arabic and English).

Support in decision-making
Fenning underlines that the project completed a strategy to create a Centre for analysis of trade policies, in an effort to help concerned officials in the Ministry of Economy as well as in affiliated institutions to undertake trade negotiations with other countries. The centre will be responsible of providing Syrian trade negotiators with case studies. He also welcomed the support of the Minister of Economy and Trade, Lamia Assi, to the project. He saluted her efforts in choosing the adequate officials who should work in the centre, which will open its gates in July 2010.

The project plans as well at reinforcing the capacities of the recently established agency for promoting exports, in an effort to enforce international standards adopted by similar agencies in the world. Fenning considers that all enterprises willing to export could benefit from this agency.

According to the European expert, the project will put an end to some irregular practices, in cooperation with the Ministry of Economy, by establishing a charter that gathers all the laws related to trade in Syria (some hundred texts), in addition to the support for enhancing the capacities of concerned personnel for drafting laws.

An international customs system
The programme cooperates with the Customs administration in order to help its personnel establish the Asycuda World customs system. It is an international system that provides faster and more efficient customs operations and reduces the risk of fraudulent actions.

Thus, the cargo can electronically send all the information to the port prior to its departure, reducing by this all risks and facilitating formalities. Fenning notes that the programme will be implemented in all fixed and mobile border posts, including at the Iraqi border. Yet, he underlines that the implementation requires an important telecommunication infrastructure as well as an open policy for the exchange of information. These factors are being currently evaluated to be executed at a later stage and ensure a secure way for exchange of information in customs administration. He also highlighted that Lebanon began the application of this system last year.

More than 2000 officials trained
According to Syrian experts, it is worth noting that the project of trade consolidation is not limited to technical and material support. It is rather based on the training of officials and the sustainability of the training project, noting that it offers 6500 working days conducted by experts who will transfer their experience to officials, not only in the Ministry of Economy and the customs administration, but to all the ministries concerned by trade, such as the Ministries of Agriculture, Tourism, Transport, Industry and Health. More than 2000 employees will be trained thanks to this programme.

Fenning underlines that the importance of the project does not reside only in the financial support that the EU is providing, but in the fact that it is part of a global European commitment to help Syria. This project is complementing other projects such as the Quality project executed in the Ministry of Industry, or the Business Environment Simplification Programme (BESP) which aims to assist the economic reform process in Syria, and the Support programme to SMEs.

The programme constitutes thus part of the help provided to Syria by the EU, or other international partners, such as the United Nations Development Programme (UNDP), the Japanese agency JICA, and the German agency for technical cooperation (GTZ).

The programme, executed by the Syrian Enterprise and Business Centre (SEBC) and managed by the Belgian division of Cardno Emerging Market, gathers 19 international experts. It was launched last year following the signature of an ad hoc accord in February 2008. It will last until December 2012.

While Syria is getting ready to negotiate its accession to the World Trade Organization, the European expert assured that the programme will support Syria in these negotiations, noting that the project is flexible and is able to adjust in case of any changes agreed upon by the board of directors, headed by the Minister of Economy and Trade, and made up of representatives from the public and private sectors, as well as from the International Chamber of Commerce and Damascus Chamber of Commerce.

Finally, Fenning calls to put an end to red tape in Syria and to facilitate the integration of young entrepreneurs and women to the business world, with the opening up of the Syrian economic system to the world. Several other opportunities are waiting to be well exploited.

Refer to the project fact sheet: Trade Enhancement Programme (TEP) (Syria)