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Hampered by domestic political pressures and a lack of international
confidence, Syria’s economy is expected to grow by only 1.5% during
2006-07. With progress so slow, the government has targeted the
textile and apparel industry—which accounts for 30% of Syria’s
industrial employment—as a vehicle for growth and enterprise.
Through the General Organisation for Textile Industry (Goti), the
administrative centre of the public textiles sector, the government has
invested heavily in new production facilities in recent years, while
maintaining a protectionist approach to imported goods. There is a
ban on imports of raw cotton, cotton yarns and fabrics made mostly
or wholly from cotton—except in special cases. Imports of carpets are
restricted by a 75% tariff.
Government investment has fostered some progress. Between 1990 and
2004 cotton yarn output rose from 39,000 tons to 107,610 tons. Also,
ready-made garment production increased from 35.1 mn pieces in
2000 to 54.7 mn three years later. However, government intervention
has dissuaded overseas investors from entering the marketplace, and,
by placing heavy taxes on Syria’s vast private textile sector, the state
has slowed technological development. It is estimated that 4,000 of
Syria’s 15,000 looms are still powered by shuttles. Furthermore, the
government’s protectionist policy has left little incentive for potential
internationalisation. Exports of Syrian carpets, yarns and threads, and
home textiles to EU25 countries all declined significantly between
2003 and 2004. However, in November 2005 the government agreed
to allow garments to be imported from anywhere in the world, albeit
with a 47.5% tariff. Although this move could expose the Syrian textile
industry to competition from China and elsewhere, it might also
encourage foreign investment. With a domestic cotton supply, a strong
textile tradition and low labour costs, Syria is well placed to enhance
its textile and apparel industry under a freer trade system.

Hampered by domestic political pressures and a lack of international
confidence, Syria’s economy is expected to grow by only 1.5% during
2006-07. With progress so slow, the government has targeted the
textile and apparel industry—which accounts for 30% of Syria’s
industrial employment—as a vehicle for growth and enterprise.
Through the General Organisation for Textile Industry (Goti), the
administrative centre of the public textiles sector, the government has
invested heavily in new production facilities in recent years, while
maintaining a protectionist approach to imported goods. There is a
ban on imports of raw cotton, cotton yarns and fabrics made mostly
or wholly from cotton—except in special cases. Imports of carpets are
restricted by a 75% tariff.
Government investment has fostered some progress. Between 1990 and
2004 cotton yarn output rose from 39,000 tons to 107,610 tons. Also,
ready-made garment production increased from 35.1 mn pieces in
2000 to 54.7 mn three years later. However, government intervention
has dissuaded overseas investors from entering the marketplace, and,
by placing heavy taxes on Syria’s vast private textile sector, the state
has slowed technological development. It is estimated that 4,000 of
Syria’s 15,000 looms are still powered by shuttles. Furthermore, the
government’s protectionist policy has left little incentive for potential
internationalisation. Exports of Syrian carpets, yarns and threads, and
home textiles to EU25 countries all declined significantly between
2003 and 2004. However, in November 2005 the government agreed
to allow garments to be imported from anywhere in the world, albeit
with a 47.5% tariff. Although this move could expose the Syrian textile
industry to competition from China and elsewhere, it might also
encourage foreign investment. With a domestic cotton supply, a strong
textile tradition and low labour costs, Syria is well placed to enhance
its textile and apparel industry under a freer trade system.