Once 80%: Iraq-Syria trade grinds to near halt

Shafaq News/ Trade between Iraq and Syria has dropped to just 5% of pre-war levels—down from 80%—due to prolonged conflict and a recent border closure, a member of the Syria-Iraq Business Council said on Saturday.

Ibrahim Shalash told Shafaq News that the shutdown of the al-Qaim–al-Bukamal crossing has severely disrupted commerce, causing losses for Iraqi traders who once held exclusive distribution rights for Syrian goods.

Before 2011, Iraq imported a wide range of Syrian products—including food, clothing, plastics, and pharmaceuticals—largely due to geographic proximity and lower costs. Syrian exports now, however, account for a fraction of Iraq’s market, with traders shifting toward suppliers in Turkiye, Iran, and the Gulf.

“On the Syrian side, manufacturers have reported surpluses and are seeking new markets despite higher transport costs,” Shalash said, noting that Syria’s reliance on Iraqi imports was limited, primarily to dates and date paste, as Iraq imports about 90% of its consumer needs from various countries.

Efforts to restore trade have been hampered by administrative and financial obstacles. Shalash said Baghdad has yet to resume registering Syrian companies or open formal banking channels, forcing traders to use informal money transfer networks.

Although Syrian authorities have completed technical preparations to reopen their side of the crossing, the Iraqi government has not moved to resume operations. On April 12, Syrian border official Mazen Aloush said the al-Bukamal crossing was ready to reopen, pending action from Baghdad.

The crossing was closed in December 2024 following the withdrawal of Syrian forces from the al-Bukamal side and the loss of government control in the area. Since then, only Iraqi nationals returning from Syria have been permitted to cross.

According to the Syria-Iraq Business Council, the crossing handled $1 billion in trade in 2024 before the shutdown.

The Syrian Ministry of Economy said in January it was working to expand exports, improve logistics, and reopen trade routes with friendly countries, including Iraq. Interim Economy Minister Basel Abdul Hanan said Damascus aimed to integrate industries, boost investment, and ease customs procedures as part of efforts to “rebuild ties” with Baghdad.