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STRATFOR.com
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THE INTERNET SOURCE FOR GLOBAL INTELLIGENCE
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U.S. and European Interests Could Clash Over Syria
May 2, 2002
Summary
The European Union is expanding bilateral relations with Syria. Closer ties, especially in the realm of trade, will give European firms a competitive advantage in the long run over U.S. companies hoping to do business in the region, and they could become a source of friction between the United State and Europe.
Image Credit: Stratfor.com.
Analysis
As part of a joint development program, the European Commission will lend Syria 30 million euros (about $27 million) to help develop and reform the its health sector. Also, the European Investment Bank will loan Damascus another 100 million euros (about $90 million) to reform regional hospitals, according to the online news site The Syria Report May 2.
The deal is intended to help Syria's efforts to reform its economy. It is also aimed at expanding the European Union's economic cooperation with Syria and advancing efforts to lock down the entire Mediterranean market. Closer trade ties with Syria, however, will give a competitive advantage to European firms expanding into the Levant and may become a source of friction between Europe and the United States in the coming decade.
The United States and Europe are finding it more difficult to agree on strategic issues, especially concerning the Middle East. Though Washington has diplomatic ties with Syria, future relations are not assured. As it has done with Iran or Libya, the United States may try to isolate Damascus in the future and will look to Europe to support the endeavor. But Europe is now laying the foundation for broad economic cooperation with Syria and isn't likely to back any U.S. effort to isolate the Levant state.
(The Rest of the Story)
(c) 2001 Stratfor, Inc.
Dan
U.S. and European Interests Could Clash Over Syria . . .