[size=30]Report: Two reasons stand in the way of Syrian exports to Iraq
[ltr]2023.04.07 - 11:18[/ltr]
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[ltr]2023.04.07 - 11:18[/ltr]
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Baghdad - Nas
Syrian freight wagons containing everything from food to clothes destined for Iraq are piled up at the border crossing, despite a deal to settle a long-running dispute more than two months ago.
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Iraqi and Syrian officials began talks to fully reopen the crossing in 2021, and finally reached an agreement on January 5th of this year to allow Syrian freight vehicles to enter Iraq through the Al-Qaim border crossing. The full opening of the crossing was supposed to follow within days, but nothing has changed.
The delay in implementing the agreement should not come as a surprise, as while handshakes were made and agreements were signed between senior state officials, influential forces – both foreign and local, including non-state actors, worked in the shadows to prevent the opening of crossings for trucks to serve their interests. own, as well as the fear of increasing drug trafficking.
And the official Syrian newspaper "Tishreen" revealed in February 2022 that the Iraqi Prime Minister at the time, Mustafa Al-Kazemi, had ordered to allow Syrian trucks carrying shipments to enter the country, but this order was not implemented either.
Iraq closed its only border crossing with Syria to Syrian freight trucks at the outbreak of the COVID-19 pandemic, as authorities cited security and health concerns, and the Syrian government responded with similar measures on Iraqi trucks.
But when the Syrian government lifted restrictions on Iraqi trucks in 2021, the Iraqi authorities did not reciprocate. Since then, Syrian officials have tried to persuade the Iraqi government to allow Syrian trucks into the country.
And the Iraqi authorities allow trucks coming from other neighboring countries, namely Jordan and Iran, to enter without restrictions, which indicates that the ban is no longer related to concerns related to Covid-19.
As a result of the embargo, truck owners transporting goods from Syria to Iraq are required to unload cargo from their trucks for reloading onto Iraqi trucks at border crossings.
Mohammed Riyad al-Sirafi, head of the Syrian International Freight Federation, played down the challenges on the Feb. 1 date, while blaming the delay on a special mechanism with Baghdad to help issue multiple-entry visas to Syrian truck drivers. However, that mechanism never saw the light of day.
Meanwhile, Muhammed Kishore paints a different and perhaps more accurate picture. Muhammed serves as the head of a different, but similarly named organization, the Syrian Federation of International Freight Forwarders, as he said two weeks before al-Sirafi's comments, "The agreement has not been implemented thanks to the objections of influential Iraqi non-state actors." ".
It seems that these bodies want the price of Syrian goods to remain inflated due to the lack of supplies. If Syrian products flood the market again, the products from Iran and Iraq will face intense competition, which will lead to lower prices.
Reducing shipping costs to Iraq is expected to double Syria's total exports and provide a much-needed impetus to the Syrian economy. Currently, the cost of shipping a truckload from Syria to Iraq ranges between $6,000 and $7,000. By comparison, a similar shipment entering from Türkiye costs about $2,200.
The difference in costs goes to the companies responsible for transferring the goods to Iraqi trucks before crossing the border at Al-Qaim, and it is clear that those companies have a lot to lose if restrictions are eased.
But they are not the only ones who oppose lifting the ban on Syrian shipments entering Iraqi territory. There are concerns that easing restrictions will lead to an increase in the volume of drugs smuggled from Syria. An Iraqi government official said we shared those concerns with the United States and the Gulf states, especially Saudi Arabia.
Syria is the world's largest producer of Captagon amphetamine, and drug imports are much more than Syria's legal exports, as it is estimated that the value of the drug sector reached $5.7 billion in 2021, and could reach $10 billion annually.
The main market for Captagon is Saudi Arabia, followed by other Middle Eastern countries, and any easing of restrictions on trucks leaving Syria is likely to increase the flow of the drug into and through Iraq.
An Iraqi government source also indicated that some state-backed factions in Iraq, under the umbrella of the Popular Mobilization Units, were also against lifting the ban, albeit for completely different motives.
The normalization of relations between the Arab countries and the Syrian regime in the aftermath of the devastating earthquake that struck Syria and Turkey may help pave the way for finally implementing the border agreement, but the real change, and in the long term, related to the liberalization of trade between Syria and its neighbors, will be based on the potential economic benefits that can come from re-establishing Syrian President Bashar al-Assad to the Arab embrace.
Source: alarab.uk + Nass News
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