International Policy Analysis Syria on the Edge of a new Cooperation Era? Prospects for the EU-Syrian Association Agreement Virginie Delattre April 2010 n Since 2004 the Syrian Arab Republic(SAR) has been negotiating a bilateral Association Agreement with the European Union(EU). Regional tensions in the Middle East, the incapacity of the EU to decide unanimously as well as distrust by some Member States of the Syrian regime‘s intentions have hampered the signature of such a treaty to date. Furthermore, when the EU under the Swedish Presidency called on the SAR to sign the agreement in October 2009, Syria declined the invitation. n Although the EU remains Syria’s main trading partner, the country has tried to develop new partnerships and cooperation with Russia, Turkey and China during its isolation period. Inspired by the Chinese model, Syria seeks a»social market economy« combining economic liberalization with a strong social role of the state. n Both sides would gain from the conclusion of a European Syrian Association Agreement(ESAA). Given the economic challenges faced by Damascus, strengthening the partnership with the EU seems essential. Political cooperation between Syria and the West will only improve, once a closer economic partnership has become effective. n In the long run, the ESAA could create a framework for political dialogue in areas of mutual interest, but Brussels needs be able to speak unanimously if it wishes to deepen its partnership with Syria. In return, Syria will have to distance itself from the»destabilizing« regional powers, if it wishes to deepen its partnership with the EU. For the Syrian authorities, the challenge will be to strike the right balance between the economic benefits of the agreement and the degree of political openness it is ready to grant to the EU.