Saudi Arabia and Syria signed in Damascus Tuesday an accord to set up a free trade area between the two countries, reported the Saudi Press Agency (SPA).
The deal, signed by Saudi foreign minister, Saud Al-Faisal, and his Syrian counterpart, Faruq Shara, envisions the agreement coming into force on January 1, 2003, SPA said.
Syria has already signed free trade accords with several Arab countries, most recently with Iraq in late January.
A joint statement said that the accord will provide reciprocal exemption from customs duties and all other taxable goods produced in Syria and Saudi Arabia.
Syrian economy and foreign trade minister, Mohammed al-Imadi, told journalists that the accord would also result in an increase in joint investments, cultural and tourism exchanges and "open up the possibility of a common market."
For his part, Rateb Shallah, president of the Syrian union of chambers of commerce, said the deal would cut tariffs immediately by half, dropping them to zero in 2003, SPA added.
A meeting of the Saudi-Syrian commission, co-chaired by Shara and Prince Saud, discussed agreements to facilitate road transport, and cooperation in agriculture, tourism, oil and banking.
The committee discussed many topics of common interest listed on the agenda, said the agency.
Both sides signed a draft agreement on organizing the land transport of passengers and goods between the two countries, said the agency, adding that they agreed to hold the committee's tenth session in Riyadh next year.
Syria exports food and textiles to Saudi Arabia and imports petroleum and petrochemical products.
The government newspaper Syria Times last week said the joint commission would also discuss joint industrial projects worth 800 million dollars to be set up in Syria, AFP said.
Those projects, drawn up by the Syrian state run General Establishment of Chemical Industries, include a 90 million-dollar glass factory, a 300 million-dollar phosphate fertilizer plant and a chemical urea plant worth 400 million dollars.
Damascus and Riyadh maintain good relations.
Syrian President Bashar Assad last week discussed in Riyadh with King Fahd ways to advance the Middle East peace process and bilateral cooperation -- Albawaba.com
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