2010年-世界发展银行全球_Deepening_Trade_Reforms_in_Syria_for_Improving_Competitiveness_and_Promoting_Non-Oil_Exports_22页_222kb

Summary of "Deepening Trade Reforms in Syria: For Improving Competitiveness and Promoting Non-Oil Exports" (World Bank, September 2010)

Core Content

This report by the World Bank evaluates the progress of trade reforms in Syria, particularly focusing on the promotion of non-oil exports as a key strategy to address the anticipated balance of payments and fiscal deficits resulting from the decline in oil production and exports. The reforms, initiated during the 10th Five-Year Plan (2006–2010), have contributed to increased non-oil export growth and diversification. However, further reforms are necessary to enhance competitiveness and sustain this momentum.

Main Objectives of Promoting Non-Oil Exports

• Generate foreign exchange to support essential imports for non-oil sector development.
• Create external demand to complement domestic demand and absorb expanding production.
• Enhance employment in labor-intensive sub-sectors.
• Encourage foreign direct investment to expand productive capacity in the non-oil sector.

Progress in Trade Reforms

Import Regime

• Tariff reductions: Tariffs were reduced from 255 to 60 percent, but the system remains complex with multiple tariff bands and high maximum rates.
• Non-tariff barriers (NTBs): The "negative list" is unclear, leading to discretion and inefficiencies. State monopolies on certain exports (e.g., cotton, wheat grain) also persist.
• Recommendations: Simplify tariff bands, reduce maximum rates to 20–25 percent, replace the current tax system with VAT and excise tax, and define the "negative list" at the 8-digit level.

Export Incentives

• Export incentives are lacking, which hinders competitiveness.
• Recommended instruments:
  • Tariff and tax drawback/exemption: Allow for refunding or exemption of taxes on imported inputs used in export production.
  • Manufacturing under bond: Enables imported materials to be stored without tariffs until used in production.
  • Free zones and bonded warehouses: Offer tax and duty exemptions, but contribute little to local production due to commercial focus.
  • Export processing zones (EPZs): Suggested as the most appropriate option, especially for existing export companies. Single-factory EPZs are preferred over fenced areas due to lower costs and existing industrial infrastructure.

Financial Sector Capacity

• The financial sector has made progress in becoming more liberal and open, but remains too small and underdeveloped.
• Weaknesses:
  • Limited access to medium to long-term financing.
  • Lack of dedicated credit for SMEs and exports.
  • High reliance on public sector for credit and deposits.
  • Excess liquidity needs to be efficiently utilized, especially for SMEs and export-oriented companies.
• Recommendations:
  • Improve accounting and bookkeeping practices in the private sector.
  • Develop a credit information system and risk assessment skills.
  • Expand the range of financial instruments.
  • Establish a Loan Guarantee Institute (LGI) with contributions from public and private banks.
  • Encourage foreign banks and domestic financial institutions to relocate to Syria.
  • Increase foreign ownership in the banking sector up to 60 percent and consider 100 percent in certain cases.

Customs Administration

• Improvements: Most customs posts are now computerized, and ASYCUDA II is implemented.
• Challenges: System still lacks full implementation of modern concepts such as risk management, transparency, and valuation. Discretion and corruption persist.
• Reforms: Ongoing under EU's Trade Enhancement Project (TEP) to introduce modern clearance procedures, automate processes, and move toward company audits. These reforms should be completed quickly to reduce costs for businesses.

Health and Safety Standards

• Syrian products often fail to meet international health and safety standards, particularly in the EU.
• Current system: Disbursed responsibilities between SASMO and other institutions, leading to poor coordination.
• Recommendations:
  • Restructure the standards system to offer internationally recognized services.
  • Improve policy, regulatory, and institutional frameworks.
  • Enhance laboratory infrastructure and skills through technical assistance.
  • Complete the EU's Quality Management Program to prepare for international accreditation.

Promotional Activities

• The Syria Enterprise and Business Center (SEBC), supported by the EU, has been implementing export promotion initiatives such as consultancy, market identification, and training.
• The Export Development and Promotion Agency (EDPA), established in 2009, has shown progress in promoting exports through trade fairs, training, and a dedicated website.
• The Syrian Export Development Strategy (2010–2015) outlines three components: an Export Fund, promotional activities, and an Export Loan Guarantee Facility.

Conclusion

The report emphasizes the need for continued and deepened trade reforms to improve Syria's competitiveness and promote non-oil exports. These reforms should be aligned with WTO rules, and their implementation must be revenue-neutral. Key areas for reform include simplifying the import regime, enhancing export incentives, strengthening the financial sector, improving customs efficiency, and upgrading health and safety standards. The Syrian Export Development Strategy is a critical tool for achieving these goals, and its successful implementation will be vital for long-term export growth and economic diversification.