VZCZCXRO1120
RR RUEHAG RUEHBC RUEHDE RUEHKUK RUEHROV
DE RUEHDM #0194 0600638
ZNY CCCCC ZZH
R 010638Z MAR 07
FM AMEMBASSY DAMASCUS
TO RUEHC/SECSTATE WASHDC 3038
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 4937
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

C O N F I D E N T I A L DAMASCUS 000194 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/19/2017 
TAGS: ECON EFTA ETRD PREL SY
SUBJECT: SYRIA CONTINUES WTO ACCESSION EFFORTS 
 
REF: A. DAMASCUS 0017 
     ¶B. 05 DAMASCUS 5327 
 
Classified By: CDA Michael Corbin, for reasons 1.4 b/d 
 
¶1. (U) Summary.  The SARG is agitating to advance its 2001 
application to join the WTO.  So far, the SARG's new effort 
on behalf of its stalled WTO application seems to have much 
more to do with its effort to break out of its political 
isolation than it does with any new commitment to economic 
liberalization.  End Summary. 
 
¶2. (U) Since the summer of 2006, the SARG has held workshops, 
some supported by UNDP, as well as conferences, to raise the 
profile of the SARG's desire to join the WTO.  In late 2006, 
the SARG established a body it called "The Administration for 
the World Trade Organization and Trade Reform.  In early 
2007, Syria joined a WTO lobbying group of some 40 countries 
which includes Brazil, South Africa, Turkey, China, India and 
Pakistan.  The SARG's basic argument, on behalf of its WTO 
application, was captured in a February 5 editorial in 
"al-Ba,ath", a regime mouthpiece, by journalist Ghassan 
al-Saleh, who wrote that Syria is being &immorally8 blocked 
by the U.S. from WTO membership. 
 
¶3. (C) Still, local UNDP contacts tell us it is far too early 
to discuss a formal initiating memo for Syria which would 
launch the WTO process.  The SARG must first build capacity, 
conduct a comprehensive review of its trade policies, and 
formulate a plan for liberalizing them, they say.  One UNDP 
contact involved in the negotiation training commented to us 
that most of the people the SARG sent for UNDP-sponsored 
training don,t speak English and are not at the appropriate 
policy level to represent the SARG during the actual 
negotiation process. 
 
¶4. (C) A local economic and political analyst (and Ba,ath 
Party reformer), Ayman Abdel Nour, commented to us in early 
February that for the SARG, the negotiations themselves are 
the desired goal.  Even if negotiations were to start, WTO 
accession is unlikely any time in the near future because of 
the lack of SARG preparedness for negotiations, but the SARG 
could point to the on-going negotiations as evidence of 
Syria,s re-emergence on the global stage, he said.  As with 
the recent Free Trade Agreement signed with Turkey, and the 
on-going EU association agreement discussions, the benefits 
are entirely political, he added.  Nour also said that the 
new WTO Directorate sounds impressive, but is staffed only by 
one official and a secretary.  The goal for this office is 
capacity-building and preparation for &corporatization8 of 
public sector entities; &privatization8 would never sell 
here, he said. 
 
¶5. (C) Comment.  Although Syria may arguably be interested in 
using its renewed effort at WTO accession to highlight 
further its efforts at economic reform, it is more likely an 
attempt to create additional evidence that Syria is 
succeeding in breaking out of its international isolation. 
While WTO accession is a long way off, the SARG,s latest 
moves allow President Asad to claim progress on both the 
economic and political fronts.  However, WTO requirements 
regarding financial market transparency, allowance of foreign 
ownership of companies, and repatriation of profits must all 
be addressed if the SARG's effort to advance its application 
is to be taken seriously. 
CORBIN