SYRIA CONTINUES WTO ACCESSION EFFORTS

C O N F I D E N T I A L DAMASCUS 000194

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/19/2017
TAGS: ECON EFTA ETRD PREL SY
SUBJECT: SYRIA CONTINUES WTO ACCESSION EFFORTS

REF: A. DAMASCUS 0017

B. 05 DAMASCUS 5327

Classified By: CDA Michael Corbin, for reasons 1.4 b/d


1. (U) Summary. The SARG is agitating to advance its 2001
application to join the WTO. So far, the SARG's new effort
on behalf of its stalled WTO application seems to have much
more to do with its effort to break out of its political
isolation than it does with any new commitment to economic
liberalization. End Summary.


2. (U) Since the summer of 2006, the SARG has held workshops,
some supported by UNDP, as well as conferences, to raise the
profile of the SARG's desire to join the WTO. In late 2006,
the SARG established a body it called "The Administration for
the World Trade Organization and Trade Reform. In early
2007, Syria joined a WTO lobbying group of some 40 countries
which includes Brazil, South Africa, Turkey, China, India and
Pakistan. The SARG's basic argument, on behalf of its WTO
application, was captured in a February 5 editorial in
"al-Ba,ath", a regime mouthpiece, by journalist Ghassan
al-Saleh, who wrote that Syria is being &immorally8 blocked
by the U.S. from WTO membership.


3. (C) Still, local UNDP contacts tell us it is far too early
to discuss a formal initiating memo for Syria which would
launch the WTO process. The SARG must first build capacity,
conduct a comprehensive review of its trade policies, and
formulate a plan for liberalizing them, they say. One UNDP
contact involved in the negotiation training commented to us
that most of the people the SARG sent for UNDP-sponsored
training don,t speak English and are not at the appropriate
policy level to represent the SARG during the actual
negotiation process.


4. (C) A local economic and political analyst (and Ba,ath
Party reformer),Ayman Abdel Nour, commented to us in early
February that for the SARG, the negotiations themselves are
the desired goal. Even if negotiations were to start, WTO
accession is unlikely any time in the near future because of
the lack of SARG preparedness for negotiations, but the SARG
could point to the on-going negotiations as evidence of
Syria,s re-emergence on the global stage, he said. As with
the recent Free Trade Agreement signed with Turkey, and the
on-going EU association agreement discussions, the benefits
are entirely political, he added. Nour also said that the
new WTO Directorate sounds impressive, but is staffed only by
one official and a secretary. The goal for this office is
capacity-building and preparation for &corporatization8 of
public sector entities; &privatization8 would never sell
here, he said.


5. (C) Comment. Although Syria may arguably be interested in
using its renewed effort at WTO accession to highlight
further its efforts at economic reform, it is more likely an
attempt to create additional evidence that Syria is
succeeding in breaking out of its international isolation.
While WTO accession is a long way off, the SARG,s latest
moves allow President Asad to claim progress on both the
economic and political fronts. However, WTO requirements
regarding financial market transparency, allowance of foreign
ownership of companies, and repatriation of profits must all
be addressed if the SARG's effort to advance its application
is to be taken seriously.
CORBIN