Syrian-Turkish economic cooperation agreement to boost trade and investment

Syrian-Turkish relations have taken a distinctly pragmatic turn, with economic engagement emerging as the primary vehicle through which both nations seek to establish frameworks of mutual interest, ranging from the activation of cross-border trade corridors to broader infrastructure and rebuilding ambitions.

The Istanbul Agreement and Institutional Framework

Istanbul hosted the first session of the Turkey-Syria Joint Economic and Trade Committee (JETCO), which concluded with the signing of a comprehensive economic cooperation agreement. The meeting built on the founding protocol signed in August 2025. The session marked a turning point in bilateral economic relations, establishing a foundation of mutual commercial trust. The two sides also signed a separate cooperation agreement covering product safety, inspection, technical regulations, standardization, conformity, and metrology.

Objectives and Pillars of the Agreement

The agreement rests on three principal pillars:

• Trade Activation: Facilitating the flow of goods and services across borders and streamlining customs procedures.
• Investment Promotion: Building public-private partnerships (PPPs) and encouraging joint investment projects.
• Sectoral Development: Strengthening technical cooperation in strategic areas of shared interest, particularly energy, construction, and logistics.

Both parties confirmed their commitment to raising the bilateral trade volume, which reached $3.7 billion in 2025, initially to $5 billion and ultimately toward a $10 billion target.

Economic and Trade Context

Available data points to growing momentum in bilateral trade. Turkish exports to Syria rose by nearly 60 percent between 2024 and 2025, while exports in the first two months of 2026 exceeded $666.7 million. Key traded goods include food products, agricultural inputs, machinery, and transport-related items. Furthermore, Turkish contractors are expanding their presence in rebuilding projects. At a broader level, regional partners have outlined commitments of up to $14 billion toward infrastructure development in Syria, with a particular emphasis on the energy and transportation sectors.

Strategic Economic Drivers

The engagement is driven by a shared vision of regional economic integration. Stabilizing the Syrian market is viewed as a vital step toward creating a robust regional trade network. Beyond immediate bilateral trade, there is a strategic focus on reactivating historical transit routes, transforming the Syrian corridor into a primary gateway for exports toward the Gulf and Jordanian markets. This shift frames the bilateral relationship as a long-term logistical and investment opportunity.

Operational Landscape and Market Entry

With the evolving economic dynamic, several structural factors are shaping the trajectory of bilateral cooperation:

• Regulatory and Financial Shifts: The formal repeal of the Caesar Act in December 2025 has significantly altered the investment climate. Economic analysts note that this shift reduces the compliance and insurance costs that had previously deterred multinational companies, making market entry more viable and opening doors for medium-to-large scale projects in renewable energy and light infrastructure.
• Cross-Border Logistics: Ongoing efforts are required to standardize border operations and upgrade logistical infrastructure to handle the anticipated surge in trade volumes.
• Banking Operations: While international restrictions have eased, fully integrating cross-border banking mechanisms remains essential to facilitate seamless financial transactions for contractors and investors operating in the Syrian market.

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