Syrian products are an alternative to the Europeans in Lebanon in light of the economic crisis

Syrian products are attracting many traders and ordinary people in Lebanon alike due to the low prices compared to those imported from Europe.

I found a large segment of the Lebanese people in these less expensive products, an appropriate alternative, especially in light of the financial and economic crisis their country suffers, which cast a shadow on the purchasing power of citizens.

"I have replaced many of my purchases with Syrian products because I cannot buy products imported from Europe anymore," Ahlam, a sales representative for a computer store in Beirut, told Xinhua news agency.

"How can I afford to buy European-origin products with halving my salary and prices increasing by more than 40 percent in some cases," she asked.

In light of the crisis in Lebanon, the pace of importing European products declined due to the scarcity of foreign currency and the high prices of those products denominated in euros or dollars, amid the decline in the value of the national currency (lira).

The crisis led many companies and institutions to close or to reduce the salaries of their employees and reduce working hours or layoffs a large number of workers.

"My salary, which I earn in Lebanese pounds, has decreased significantly since the price of the dollar has risen in the Lebanese market," said Amjad, who works in a bakery in Beirut.

Amjad explained that he buys Syrian-made products at a markedly cheaper price than domestic or European products.

Today, consumers are focusing on low-priced products regardless of their source, according to Nabil Fahd, president of the Major Store Owners Association.

Fahd told "Xinhua" that "there is a great advantage for Syrian products because of their low prices compared to others."

He explained that value-added tax is not added to these products if you enter the country in an unofficial manner, but what is lawfully entered into the country is charged with this tax.

Syrian products are mostly found in small grocery stores and the demand for them is increasing in recent times due to the shrinking purchasing power of people, according to Fahd.

Fahd said that the low price of the Syrian pound against the dollar made the Syrian products enjoy attractive among Lebanese merchants, with the Lebanese pound in turn declining against the dollar and the lack of foreign currency in the country.

The Syrian products in Lebanon vary between food items, fabrics and clothes.

The Syrian merchant Ahmed Arafat said that he sells Syrian products in bulk to the owners of Lebanese warehouses, who are driving around in a semi-transport vehicle loaded with fabrics, cotton, underwear, and household items.

Arafat told Xinhua that there is a great demand in the Lebanese market for these items in addition to plastic products, food industries, cleaning materials and washing powders.

He explained that the goods he sells enter Lebanon legally and legal fees are paid on them.

However, there are Syrian products that enter Lebanon illegally, according to the Syrian merchant.

Arafat expressed his belief that the smuggling that is taking place is not really aimed at evading fees as much as it aims to buy time.

He pointed out that the procedures for entering trucks through border crossings take time not less than delaying the arrival of goods and increasing the cost of transportation.

The depreciation of the Lebanese pound is not the only reason behind the high prices of imported products, according to the representative of the Trade Sector at the Economic and Social Council, Adnan Rimal.

Remal told Xinhua that the lack of liquidity in foreign currency is an additional reason for the high prices of imported products.

He pointed out that the shortage in the American currency in the financial market led the banks to impose restrictions on dollar withdrawals and foreign transfers by individuals and companies.

He added that this pushed the importers to withdraw their deposits from banks according to certified bank checks as a confirmation of solvency as they are disbursed in exchange companies for a commission of up to 30% of the value of the check.

"Importers need this process to be able to get cash to use to import their products and to maintain their business operations," he said.

"Importers can also open a line of credit with cash in cash and transfer it to foreign countries to pay for their imports, but they cannot use their deposit accounts that were available in the banks before the crisis," he added.

According to Remal, "Importers must increase their prices to offset the loss in their deposits."

Remal believes that people's focus on Syrian products is justified, pointing out that some of these products enter the country illegally, making them less expensive than others.

Lebanese grocery stores buy Syrian products because they can pay checks against them to suppliers who can deposit these checks in their bank accounts in Lebanon.

In many cases, Syrian suppliers accept a price for their goods in Lebanese pounds.

Zuhair Baru, head of the Consumer Protection Association, urged the Ministry of Economy to control prices that have gone out of control.

"We have seen a 40% increase in prices in the past ten days compared to September 2019," said Pro.

He added that the supermarkets raised their prices on the goods that were in their warehouses and not only on the imported products in the absence of appropriate control mechanisms by the government.

The economic and financial crisis in Lebanon manifested itself in its most severe way after the outbreak of popular protests in the country on October 17 last year.

The new Lebanese government, headed by Hassan Diab, which has called itself "a government facing challenges", is pledging a rescue plan for Lebanon that extends up to three years.

The Diab government won the confidence of Parliament on February 11.

The Diab Rescue Government’s plan includes a package of comprehensive reforms that address fiscal consolidation and public administration, combating corruption and waste, and working to reduce public debt, along with measures that stimulate the transition from a rentier economy to a productive economy.

The Diab government has left the Saad Hariri government, which resigned last October 29 in the wake of ongoing protests that broke out in Lebanon on October 17, calling for an independent government of specialists capable of handling the political and economic situation in the country.