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AGRICULTURE, TRADE, AND POVERTY IN SYRIA 149


Table 6.5 Comparison of official and parity producer prices in Syria, 2003


Product


Import product Soft wheat Barley


Sugar beets


Export product Lentils


Chickpeas Cotton


Source: Westlake (2003). Note: SYP, Syrian £.


Official producer price (millions of SYP/year)


10,800 7,500 2,150


16,000 17,800 29,290


Import parity price at the


farmgate (millions of SYP/year)


6,497 7,316 746


18,799 28,852 22,291


Official price as a percentage of the import parity price


166 103 288


85 62 69


respectively, and in 2005 it signed an FTA with Tunisia. In October 1997, Syria formally started negotiations on the association agreement with the E.U. An agreement was reached in 2004 but has not yet been ratified by the European countries and so has not entered into effect. At the multilateral level, in October 2001 Syria requested accession to the WTO, but few advances have been achieved toward accession.


The FTA signed between Syria and the E.U. (which has not entered into effect) calls for reinforcement of the trade relationship between Syria and the E.U. This will require significant reform in Syrian trade policy and in the application of instruments of protection in Syria. The main provisions of the Syria-E.U. association agreement relate to trade in agricultural products and are in four sections. The first section relates to E.U. imports of Syrian agri- cultural products. Accordingly, annual tariff quotas have been set for Syrian exports of selected horticultural products (Table 6.6).


For fresh tomatoes, a reduction of 60 percent applies to the MFN duty for quantities above the quota, although for products to which entry prices apply, this entry price is maintained. For other products, at the entry into force of the agreement the ad valorem duty will be set at zero for unlimited quantities. A list of these products has been annexed to the agreement. For a certain number of other products, at the entry into force of the agree- ment the ad valorem duty will be set at zero under a tariff quota covering tradi- tional trade. A list of these products has also been annexed to the agreement. Finally, for a number of products, at the entry into force of the agreement the


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