The Syrian Transitional Government (STG) has implemented a unified customs tariff system across all land, sea, and airport customs offices, sparking widespread debate. The move, announced Saturday, has been praised by some as a step toward bolstering local industries and unifying economic systems, while critics warn of its immediate and severe economic impacts, particularly in northern Syria.
Aims of the Tariff Increase
According to Mazen Alloush, Director of the General Authority for Land and Sea Ports, the new tariff aims to support domestic production, attract investment, and enhance the economy. Alloush stated the tariffs include reduced fees on raw materials essential for industry and agriculture, emphasizing long-term economic growth and job creation.
“This is a pivotal step to support local products and reduce dependence on imports,” Alloush said. The tariffs also include incentives to attract investment, aiming to rebuild war-torn industries and agriculture while stabilizing the national economy after years of devastation under the Assad regime.
Impact on Markets in Northern Syria
In northern Syria, however, the immediate impact of the new tariffs has been stark. Traders and shopkeepers in cities like Azaz, Sarmada, and Idlib have reported sharp price increases for basic goods, leading to market chaos. The cost of importing key commodities, including food and energy, has surged by 300% to 600%.
For example, customs fees for rice rose from $10 to $50 per ton, and fees for gasoline increased from $30 to $210 per 1,000 liters. Traders reported being unable to manage the sudden spike in costs, leading many to shut their businesses temporarily.
“Traders are unable to plan or adjust quickly,” said Abu Subhi, a food trader in Sarmada. “This decision should have been implemented gradually.”
Camp residents in northern Syria, already grappling with harsh economic conditions, have felt the burden acutely. “The price hikes mean families must cut back on basic supplies,” said Abu Hisham, a camp leader in Azaz, where displaced families rely on humanitarian aid.
Diverging Opinions Across Syria
While traders and residents in the north express frustration, officials say the unification of tariffs has been welcomed in other parts of Syria. An STG representative told Levant 24 (L24):
“The new fees are more than 100% lower than those in regime-controlled areas, and they take into account the local industrial and agricultural landscape. Merchants in northern Syria are complaining about the low fees they were used to, while the rest of Syria is benefiting from this unification.”
The official noted that previous discrepancies between the customs systems in areas such as Bab al-Hawa and Bab al-Salama created unequal conditions for traders, prompting the need for reform.
Balancing Economic Stability & Growth
The STG has defended the tariffs as necessary to address a critical budget shortfall caused by the collapse of Syria’s oil revenues and limited agricultural income. Economic researcher Radwan Al-Debs argues the reforms will help protect domestic industries from foreign competition and prevent industrial workshops from closing.
“Customs are vital for supporting the treasury,” Al-Debs said. “This is part of building an independent economy.”
However, others, like economic analyst Hayyan Hababa, caution that raising tariffs on essential goods disproportionately affects the most vulnerable. “The government should have excluded basic goods and introduced tariffs gradually,” Hababa said, adding that the northern economy, reliant on imports, is particularly vulnerable.
Proposals for Adjustment
The STG has acknowledged the challenges and hinted at potential adjustments, including reduced tariffs on essential materials like fuel and flour, as well as the introduction of oversight committees to monitor market prices and prevent exploitation.
Economic researcher Firas Shabou emphasized the need for caution: “High customs prices risk worsening an already fragile economic environment. A gradual approach would allow markets to adjust while safeguarding the most vulnerable populations.”
Looking Ahead
The STG views the tariff reform as the first step in a broader economic strategy to rebuild Syria’s industrial and agricultural base while unifying the country’s fractured economic systems. However, the policy’s success will depend on the government’s ability to manage market disruptions and address the immediate hardships faced by northern Syrians.
As the country grapples with post-war reconstruction, the STG’s decisions highlight the delicate balance between implementing policies aimed towards long-term economic stability and mitigating the immediate impact on its people. For now, Syria’s markets remain in flux, with traders, consumers, and officials watching closely to see if the reforms can deliver on their promises.
