New Lebanese-Syrian Business Council to revive trade ties

Lebanon and Syria appear to be entering a new phase in their bilateral relationship, one shaped less by political dominance and security calculations and increasingly by economic pragmatism and institutional cooperation. Following the recent visit of Lebanese Prime Minister (PM) Nawaf Salam to Damascus, both governments have begun laying the groundwork for a broader framework of economic coordination aimed at revitalizing trade, investment, transport, and private-sector partnerships after years of strained and uneven relations.

At the center of this effort is the planned establishment of the Lebanese-Syrian Higher Business Council, a new institutional platform intended to organize and stimulate economic ties between the two neighboring countries. The initiative reflects a broader attempt by Beirut and Damascus to redefine their relationship on the basis of mutual interests, economic necessity, and sovereign cooperation after decades marked by political tension, conflict, and controversy surrounding Syria’s role in Lebanon.

A new institutional framework

Lebanese Economy and Trade Minister Amer Bisat confirmed that preparations for the council have already begun and that its first meeting is expected to take place in Damascus at the end of June 2026. According to Bisat, the body will consist primarily of representatives from the private sector, while Lebanon’s Economy Ministry will supervise and support its activities, help shape its agenda, and provide institutional guidance.

The proposed council aims to create a permanent channel for dialogue between business communities in both countries. Unlike traditional state-to-state agreements, the council is expected to rely heavily on private-sector participation, allowing investors, industrialists, exporters, and chambers of commerce to directly contribute to shaping economic priorities.

Officials on both sides have framed the initiative as part of a broader effort to modernize bilateral relations. Bisat stressed that Lebanon and Syria are linked by geography, history, and economic interdependence, making cooperation a strategic necessity rather than a political luxury. He noted that institutional economic relations between the two countries require either significant modernization or, in some areas, a complete reconstruction from scratch.

Syrian officials have likewise welcomed the initiative. During meetings in Damascus between Bisat and Syrian Economy and Industry Minister Mohammad Nidal al-Shaar, both sides discussed mechanisms to simplify trade procedures, unify regulations, reduce transaction costs, and facilitate investment partnerships. The talks also focused on transport, energy coordination, and industrial cooperation as key pillars for future integration.

Moving beyond the legacy of the 1991 agreement

The creation of the new council also carries deep political symbolism because it coincides with the effective dismantling of the old Lebanese-Syrian Higher Council established under the 1991 Treaty of Brotherhood, Cooperation and Coordination.

That agreement, signed during the period of overwhelming Syrian influence in Lebanon, institutionalized a relationship widely criticized by many Lebanese as unequal and politically coercive. The treaty became associated with the era of Syrian tutelage over Lebanon, which lasted until the withdrawal of Syrian troops in 2005 following mounting domestic and international pressure.

In October 2025, Syria announced the suspension of the old Higher Council, while Lebanese officials indicated that the agreement itself has effectively become obsolete, even if formal legal steps for its cancellation are still pending.

Conversely, the establishment of a new business-oriented council represents an attempt to move beyond the controversial framework of the past. Any new economic arrangement must be built on a critical reassessment of previous agreements and on principles that respect the sovereignty and independence of both states. Indeed, genuine economic cooperation cannot succeed if it reproduces the political imbalances that characterized earlier decades. Instead, new institutions must rest on transparency, mutual respect, and clearly defined economic interests.

Economic priorities and challenges

The proposed council is expected to address a wide range of urgent economic issues affecting both countries. One of the most pressing concerns is the regulation of cross-border trade and transit routes. Syria remains Lebanon’s primary land gateway to Jordan and the Gulf states, making overland transit vital for Lebanese exports.

Another major issue involves customs coordination and the reduction of bureaucratic obstacles that have long complicated trade between the two neighbors. Business leaders hope that the council will help streamline procedures at border crossings and improve logistical efficiency; especially as recent disputes arose along the border.

Energy cooperation is also expected to feature prominently on the agenda. Lebanon has repeatedly explored the possibility of importing electricity and natural gas through Syrian territory to alleviate its chronic energy shortages.

At the same time, both countries continue to face major security and economic challenges tied to smuggling networks operating across illegal border crossings. The illicit movement of weapons, goods, narcotics, and money has imposed enormous costs on the Lebanese economy over the years and remains one of the most sensitive issues in bilateral relations.

The Syrian refugee crisis also continues to cast a heavy shadow over relations. Lebanon hosts one of the largest refugee populations per capita in the world, placing immense strain on its infrastructure, labor market, public finances, and social services. Any sustainable economic cooperation between Beirut and Damascus will inevitably intersect with the broader debate surrounding refugee returns and reconstruction efforts inside Syria.

The role of the private sector

The inclusion of the private sector may become one of the most important distinguishing features of the new council. The latter represents an institutional platform designed to bring together business leaders and economic bodies from two countries in order to facilitate cooperation away from heavy governmental bureaucracy.

The involvement of the private sector is particularly significant given the scale of reconstruction and redevelopment opportunities expected in Syria over the coming years. Lebanese businesses, especially in banking, logistics, construction, transport, and services, could potentially benefit from renewed economic engagement if political and financial conditions stabilize.

Whether this new framework succeeds will depend largely on its ability to break from the burdens of the past and establish a relationship grounded in sovereignty, transparency, and mutual benefit. If managed carefully, the council could help transform Lebanese-Syrian ties from a historically contentious political relationship into a more balanced and institutionalized economic partnership capable of serving the long-term interests of both nations.