Syria-Iran Bartering System to Get Underway

A system for the commercial bartering of goods between Syria and Iran will start at the beginning of December, according to the Syrian Trade Corporation.

"The first bartered products will be olive oil and lentils from Syria in exchange for sunflower oil from Iran,” said Jamal al-Din Shuaib, assistant to the Minister of Internal Trade and Consumer Protection in the Syrian government, reported the Syrian Al-Watan newspaper

A goods bartering system is based on the exchange of products and services between two or more countries in order to overcome difficulties produced by war or economic instability.

According to the minister, the Syrian Trade Corporation will export 2,000 tons of olive oil and 1,000 tons of lentils to Iran in exchange for quantities of sunflower oil equivalent to the price of these goods. He said he was confident this initial exchange will lead to the exchange of other goods, with a possibility that Syria would import items including canned food, sugar, and rice from Iran in the coming months.

In addition to the exchange system, the two countries previously agreed on a tax-exemption deal and other agreements to facilitate trade.

These deals have come to light at a time when both the Iranian and Syrian currencies are experiencing a sharp decline due to continued foreign sanctions against them.

In late 2018, the Syrian regime signed a long-term economic cooperation agreement with Iran in a number of economic areas. This includes a long-term cooperation project for several economic sectors, most notably in banking, finance, construction, and reconstruction.