ARAB-EUROPEAN RELATIONS - Oct. 26 - EU-Mashrek Conference In Damascus.

A 3-day EU-Mashrek business conference in Damascus ends with Syrian Prime Minister Mohammed Naji Otri and EU Ambassador to Syria Frank Hesske saying they expect Syria and the EU to sign a trade association agreement before end-2003. (The EU has similar agreements, as part of its Euro-Mediterranean partnership, with Morocco, Egypt, Israel, the Palestinian Authority, Jordan, Lebanon and Algeria. But talks with Syria have dragged since 1998. Syria already takes 32% of its imports from the EU, where it also sends 60% of its exports. At the 3-day EU-Mashrek conference growing gulf was felt between the EU and the US over relations with Syria. The EU-Mashrek Partenariat, 75% EU-funded, brought together 180 European participants and 226 from Syria, Jordan and Lebanon, to encourage links between small and medium-sized companies. Earlier in October the US House of Representatives passed the Syria Accountability Act, which would give President Bush the option of imposing economic sanctions unless Damascus complies with demands over its alleged WMD programmes, its support for militant Palestinian groups and its troop presence in Lebanon. The Bush administration recently indicated it would not block the legislation, which would, if backed by the Senate, empower the president to stop US companies from trading or investing in Syria. Syria's trade with the US is low and ConocoPhillips is the only significant US investor in the country). Hesske says any association agreement would form part of a long-term EU strategy of developing fruitful relations with the countries of the southern Mediterranean, rather than a response to the proposed US legislation. However, he adds: "We believe there is a direct link between a market economy and a fully developed democracy, and we are including issues of human rights in the association agreement. We are less inclined to think that putting pressure on partners (through sanctions) will bring the anticipated results". (But EU officials say a new Syrian urgency has driven negotiations this month in Brussels. Syria is rushing to deflect US pressure. Coser ties with Europe will help Damascus feel more secure. Syrian businessmen at the conference stressed they wanted to expand links with Europe, especially in importing technology).