Lebanon, Turkey, Syria and Jordan join new economic forum

2011-01-03 By Ayoub Khaddaj in Beirut

Turkish PM Erdogan (left) and Lebanese PM Hariri recently announced a free trade agreement between the two countries [Mohamed Azakir/Reuters]

Lebanese Prime Minister Saad Hariri announced in late December the formation of the Mashreq (Levant) Business Forum, which includes Lebanon, Turkey, Syria and Jordan. The forum's goal is to promote free trade in the region.

Fourteen sectors were identified as being a priority including industry, agriculture, science, finance, tourism and oil. The forum will represent the private sector in the four countries, which have agreed to tighten economic ties between representatives of their private sectors.

The volume of trade between the four countries amounts to $12 trillion.

"We, as governments, cannot work in isolation from the aspirations and ambitions of the private sector in our countries. For any initiative among our governments to succeed it must meet these aspirations and ambitions," Hariri said.

Hariri said integration, trade liberalisation and expansion of markets, if adopted in a sound manner, would accelerate economic growth and create new job opportunities, thereby improving the standard of living for all.

Lebanon signed a free trade agreement with Syria and Jordan in 1998 that was implemented in 2002. Another agreement was reached with Turkey in November 2010.

In November, during a conference in Beirut titled "Toward the Schengen Bloc Banking System in the Middle East, Turkey, Syria and Lebanon" participants discussed banking co-operation between the three countries, the risks of cross-border banking and the future of investment banks.

Economic studies released during the conference revealed that establishment of free trade areas between Lebanon, Syria, Jordan and Turkey would enhance the investment climate in these countries.

Jacques Sarraf, head of the Association of Lebanese Industrialists and vice president of the Lebanese - Turkish Business Council, called for "the establishment of mixed companies between these countries working in the region, because integration requires a partnership joining companies from different countries".

Sarraf told Al-Shorfa, "These countries, especially Turkey with its capacity, could benefit from the sophisticated services sector in Lebanon."

Sarraf said Lebanon, Syria, Jordan and countries such as Egypt and Iraq would like to enter the Turkish market because it is one of the largest consumer societies in the region. "It is important to provide completely free exchange between individuals, institutions and businesses to create an integrated region, because today it is difficult to close the border," he said.

Sarraf added, "The economic and trade partnership with Turkey is paving the way for establishment of political and security interests along with it."

"The modern economy is no longer likely to be a closed economy isolated from the outside world, and all economies around the world are opening up in a way that is very well thought out, not through an absolute opening of borders," Elie Yashui, a Lebanese economist, told Al-Shorfa.

As to whether Lebanon is ready for such openness, Yashui said Lebanon is opening up with trepidation. He urged Lebanon to "implement financial and monetary policies that encourage investment, avoid contraction and provide job opportunities."

He said, "This would lead us to open up without fear," stressing that, "Monetary stability is a product of investment economy, not high interest [rates]."

WHAT DO YOU THINK OF THIS ARTICLE? (TOTAL VOTES: 3)

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READER COMMENTS

ابو ياسر

2011-1-28

Personally, I welcome the strong economic convergence between the Arab countries and Turkey over the past years.
عيسى عبدالعزيز

2011-1-27

The Arab states have to improve their cooperation with Turkey at all levels, including the economic fields, which are in the interest of the Arabs and Turkey at the same time. However, I do not recommend that the Arab countries depend solely on Turkey and sever their relations with the West. Quite the contrary, I support the strategy of opening horizons of cooperation with all other countries, according to the interests of our Arab countries.
جميل الحمالي

2011-1-27

I think that all the parties will benefit from this convergence, which will not be in the interest of any party at the expense of another. Personally, I prefer Turkey, because it is a Muslim country, and it took good positions in supporting the Arabs during the recent years. Turkey has supported the Arab states all the time; hence I really wonder why there is no suitable rapprochement between the Arabs and Turkey!
نزار

2011-1-26

The rapprochement between Turkey and the Arab countries will contribute to improving the economic situation of the Arab countries and that of Turkey as well. Cooperation between them will be profitable for all of them, and it will result in successful business, tourism, economy and successful investments. Therefore, we hope that they share those benefits which will improve their situations and provide everything that will serve the people, especially in the Arab world.
محمد حسني

2011-1-26

Turkey is significantly advanced and it is adjacent to the Arab countries. Having strong relations with Turkey is in their interest. They need to strengthen their relations with it, especially on the economic level, as it will contribute to the stability of the region. Strong economic relations are among the most important reasons that develop relations and cooperation among the countries in all fields.
منشد صالح

2011-1-25

The Arab-Turkish rapprochement may be good and it may be bad. It can be good if it is beneficial to both parties, through the exchange of products and merchandise, as well as boosting tourism and the free market and the cooperation of investment companies. On the other hand, it may be harmful to the Arab countries, which, in turn, will depend on imports only, and will stop domestic production. This is what will hurt the people of the countries and the economic situation, because people will find no work, as the countries will depend on foreign products without seeking to make domestic products, which may be better than imported products, especially when these countries may possess good companies and better management, and they can fund these projects. The Arab countries can benefit from their people through the pursuit of domestic production, rather than consumption and dependence on others. This, in my opinion, is better for the Arab states than depending on others.
جهاد ياسري

2011-1-25

The rapprochement between Turkey and Arab countries is a joint work in the interest of both parties in economic terms, such as trade, tourism and the free market, as well as cooperation among investment and real estate companies. This rapprochement between Turkey and the Arab countries can open many prospects for progress and development; this is in the interest of Turkey, and it benefits the Arab countries that are in need of effective contributions and continuing work with other countries. Cooperation should be with countries that have a good economy and a significant investment, and that own companies that have well-known names and high quality products with preference for the commercial markets. There should be trade in all goods, such as clothes, food, medicines and a lot of other good products.
النوماني

2011-1-25

As an Arab citizen who lives in the neighboring country of Turkey, I believe that Arab-Turkish rapprochement is of great importance for the economic integration in the region. This dream may come true through Turkey’s openness to the Arab countries, because of the strong and good relations among them. The good-neighbor relations are a key factor in this respect, and they have a positive influence, because it encouraged Turkey significantly to support the crucial issues of the Arab States, including economic and security policies, without any intervention in the internal affairs of these countries. The Turkish openness to the Arab states was based on an economic win-win policy. Consequently, the Turkish-Arab rapprochement has succeeded politically and economically, and it was in the interest of both parties together. Consequently, this led to the stability of the market, especially in Iraq, which was suffering from the Iranian imported products, which are known for being very poor in quality and unsuitable for human consumption. As for the Turkish products, they are of high quality and they meet international standards, indicating a state that is in conformity with international standards. This made the neighboring Arab countries some of the largest consumer markets for these products, which led to the economic recovery in the Arab countries and Turkey. And the fact that these products are commensurate with the purchasing power of the Arab citizen, because of Turkey's proximity and ease of transport between it and the importing countries, has decreased the costs of transporting goods.
احمد النعيمي

2011-1-24

Arab-Turkish relations have been characterized by great strength and power throughout history, because of the relations that link the Arab countries and Turkey at all levels and aspects, for the significant convergence of views, opinions and even ideas. These relations, particularly in recent years, have clearly gotten closer, particularly in the economic area. I think that the development of relations in the economic sphere would be in the interest of all parties, where Turkey is clearly working on the exploitation of these relationships in order to enter the Arab market, which is characterized by high economic potential that can move the Turkish market.
يوسف الانصاري

2011-1-24

Introducing Turkish companies into the field of construction projects, witnessed by most Arab countries, including Iraq, and signing big contracts, will help revitalize the Turkish economy. In return, the Arab countries will also benefit from this cooperation, which will increase the activity of the Arab markets through exports to the Turkish markets. This openness will also benefit the rest of the region's countries in the economic field.
جوهر الشعباني

2011-1-18

Iraq, especially after the changes that have occurred and after the difficult phase it has been through and which Iraq is trying to overcome, along with the remnants of the ousted regime and terrorism, is embarking on a new phase of advancement, development, reconstruction and investment. Iraq needs to have good relations with all its neighboring countries, and to be open to them for them to contribute to the reconstruction of Iraq and to invest in it in order to achieve this advancement in all fields. I do not believe that Iraq will be able to attract this international development into the country without diplomatic and political relations. I here suggest that forming committees of politicians and decision-makers in the country be done quickly, to begin serious negotiations to put an end to all the hanging issues with all the countries which have troubles with Iraq. This will direct attention to the best ways for both countries, and it will outline a new path to establishing international brotherly relations that are tough and based on common cooperation and benefits for all parties, without interfering with the sovereignty of any country or in its internal affairs.
جلال العويسي

2011-1-18

Yes, certainly, good relations are in the best interest of the country and will be a reason behind its development and the reinforcement of its commercial, economic and cooperative relations with other countries.
صفاء سلمان

2011-1-18

Iraq must seek, through its government and politicians, to restore relations with all the neighboring countries, especially given that the ousted regime left a heavy legacy and a black past behind it, including big problems with all the neighboring countries; all these problems are still hanging. The highest-ranking officials and levels of hierarchy must make a move and sit with the other parties to solve these problems, in order to put an end to these disagreements and to turn a new page of good mutual relations based on respect and cooperation without interference in the internal affairs of any of the parties.
جواد سعدون

2011-1-18

Iraq has problems with Syria, Iran, Kuwait, Turkey and almost all of its neighboring countries. That is why it has become necessary now, with the change of the regime in Iraq, to work on solving these problems and getting rid of the effects of the past, to establish good relations with the neighboring countries.
مشير

2011-1-17

Iraq is in an urgent need for Arab support in various fields.
سلطان كريم

2011-1-17

The work to restore Iraq to the Arab environment is one of the most important things that we must take care of. We should work on that in order for Iraq to take its leading role in this area.
خليل جواد

2011-1-16

I believe that the development happening in the economic relations among countries is one of the most important features that have a positive impact in helping these countries improve their economic situation through trade exchange.