Trade Cooperation Between Jordan and Syria: From Crisis to Opportunity

Trade between Jordan and Syria has changed a lot over the years. In the past, it was one of the strongest areas of economic cooperation. However, the political and economic crisis in Syria caused a sharp decline in trade, with both countries experiencing a drop in exports and imports. Despite these challenges, recent developments in Syria offer new opportunities to revive trade.

Studies by the Jordan Strategy Forum (JSF) show that before 2011, trade between the two countries was strong, reaching over $500 million annually. After the Syrian crisis began in 2011, trade volumes dropped dramatically, falling to $182 million by 2023. Jordan’s exports to Syria fell from 5.4 per cent of its total exports in 2007 to less than 1 per cent in 2023. Similarly, imports from Syria dropped from 2.7 per cent to 0.2 per cent. The number of traded goods also shrank, from around 75 product categories to fewer than 45 in 2023. Key sectors affected include food products (like dairy and vegetables), carpets, and cement. Jordan’s imports from Syria, including oil products, iron, and food, were also hit hard as Syrian industries struggled to export according JSF.

These challenges make Jordan even more important to Syria as a strategic partner. After more than a decade of crisis, Syria’s economy has collapsed, with its GDP shrinking by 85 per cent, from $67.5 billion in 2011 to $9 billion in 2021. The Syrian currency has lost over 90 per cent of its value, causing extreme inflation. As Syria begins its reconstruction efforts, Jordan can play a key role in supporting this process.

Both countries still have unique strengths in different sectors. Jordan is strong in producing fertilisers, chemicals, cement, iron, food products, and packaging materials. Syria, on the other hand, excels in food production, leather, and textiles. Because of their close proximity, transportation and logistics could become a major focus for cooperation. Jordan’s advanced transport infrastructure can help move goods into Syria quickly, supporting reconstruction efforts.

There are many opportunities to improve economic ties between the two countries. Jordan could export more fertilizers, medicines, and engineering tools to Syria. Syria could provide Jordan with quality food and leather products. By reopening communication between businesses in both countries, new trade opportunities can be created, improving their economies.

Technology also offers a way to deepen cooperation. Jordanian and Syrian tech companies can work together to meet Syria’s needs in areas like online shopping, digital payments, and smart applications. Jordan can help train Syrian workers in modern technology and provide resources to speed up Syria’s digital transformation. This partnership would not just focus on trade but also include sharing knowledge and expertise, helping Syria recover faster.

By working together in these areas, Jordan and Syria can build a stable and strong economic future. This cooperation will go beyond just exchanging goods; it will also create new industries, drive economic growth, and ensure sustainable development. If both countries can rebuild trust between their private sectors and collaborate on innovative solutions, they can unlock wider opportunities for mutual benefit and shared prosperity.

Raad Mahmoud Al-Tal is head of Economics Department – University of Jordan