Exclusive - Lebanon’s Ailing Economy Shredded Further by Smuggling from Syria

Vehicles are seen at Masnaa border crossing between Lebanon and Syria, Lebanon November 1, 2018. (Reuters)
Vehicles are seen at Masnaa border crossing between Lebanon and Syria, Lebanon November 1, 2018. (Reuters)
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Exclusive - Lebanon’s Ailing Economy Shredded Further by Smuggling from Syria

Vehicles are seen at Masnaa border crossing between Lebanon and Syria, Lebanon November 1, 2018. (Reuters)
Vehicles are seen at Masnaa border crossing between Lebanon and Syria, Lebanon November 1, 2018. (Reuters)

A great part of the economic quagmire drowning Lebanon can be traced back to the spillover of smuggled goods across border with Syria. Data showed that nearly $600 million slip past the Lebanese treasury due to trafficking.

Goods brought in illegally, sold at much cheaper prices, have created jaw-dropping profit margins of which the market suffered its fallout. But with Lebanon and Syria sharing a 375 km land border, taking border control to full-throttle may be too difficult to materialize with Lebanon’s current resources.

Curbing this phenomenon is being discussed along with austerity and reform measures needed to salvage Lebanon’s economy from total collapse.

Asharq Al-Awsat toured the border regions and met with locals to discuss the smuggling operations and official efforts to curb them

While transit at border customs gates appears quite normal, residents of mountainous highlands mock official statements, asserting that smuggling between Lebanon and Syria has never stopped, no matter what security measures are enforced.

“Mules know the way, and do not need official documents to cross customs. They are often used to bringing supplies across borders,” a Lebanese local, speaking on condition of anonymity, told Asharq Al-Awsat.

He explained that smuggled goods are loaded on the mules, which are left to wander in the barren terrain separating the two countries. The smugglers monitor the animals, which are either noticed and seized by security forces – marking the failure of the illegal operation – or they successfully wander into the neighboring country and seized by the smugglers.

Mules and small luggage are trifles compared to the ambitions of more powerful professional smugglers.

Convoys of trucks, led by their leader in a vehicle with tinted windows, regularly shuttle goods across legal and illegal border crossings into the Lebanese market. The operations are boosted by the absence of state control over vast parts of the border and the deployment of de facto forces in these regions.

“Business is booming,” a smuggling ring coordinator, who operates from Lebanon’s Hermel, told Asharq Al-Awsat.

Speaking on condition of anonymity, he admitted to making a few thousand dollars daily in brokerage fees for helping smugglers make their journey safely. They are being supported by a network of corrupt security officials and partisan forces that control border regions.

“The model of smuggling that exists today can be traced back to the 70s, 80s and during the period of Syrian tutelage,” a retired military official told Asharq Al-Awsat.

At the Masnaa border crossing, goods are smuggled after pro-Syrian regime intelligence officers are bribed. The bribes are often paid in Syrian pounds.

He added that smuggling from Lebanon into Syria is not illegal, as much as it is harmful to the economy. He also spoke of the smuggling of oil derivatives from Lebanon to its neighbor given a sharp shortage crippling Syria.

A farmer in the town of Ferzol in the Bekaa told Asharq Al-Awsat that smuggled goods from Syria, such as fruits, vegetables, poultry, meat and cigarettes, are severely harming competition in Lebanon as they are often sold at much lower prices than local produce.

As for government efforts to rein in smugglers, Lebanon’s Supreme Defense Council decided in April to tighten border control, whether by closing illegal portals or cracking down on culprits by customs center staffers.

Many security experts have, however, deemed shuttering borders implausible given geopolitical realities and the ongoing war in neighboring Syria.



What to Know about the Ceasefire Deal between Israel and Lebanon's Hezbollah

People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
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What to Know about the Ceasefire Deal between Israel and Lebanon's Hezbollah

People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir

A ceasefire deal that went into effect on Wednesday could end more than a year of cross-border fighting between Israel and Lebanon's Hezbollah militant group, raising hopes and renewing difficult questions in a region gripped by conflict.
The US- and France-brokered deal, approved by Israel late Tuesday, calls for an initial two-month halt to fighting and requires Hezbollah to end its armed presence in southern Lebanon, while Israeli troops are to return to their side of the border. It offers both sides an off-ramp from hostilities that have driven more than 1.2 million Lebanese and 50,000 Israelis from their homes.
An intense bombing campaign by Israel has left more than 3,700 people dead, many of them civilians, Lebanese officials say. Over 130 people have been killed on the Israeli side.
But while it could significantly calm the tensions that have inflamed the region, the deal does little directly to resolve the much deadlier war that has raged in Gaza since the Hamas attack on southern Israel in October 2023 that killed 1,200 people.
Hezbollah, which began firing scores of rockets into Israel the following day in support of Hamas, previously said it would keep fighting until there was a stop to the fighting in Gaza. With the new cease-fire, it has backed away from that pledge, in effect leaving Hamas isolated and fighting a war alone.
Here’s what to know about the tentative ceasefire agreement and its potential implications:
The terms of the deal
The agreement reportedly calls for a 60-day halt in fighting that would see Israeli troops retreat to their side of the border while requiring Hezbollah to end its armed presence in a broad swath of southern Lebanon. President Joe Biden said Tuesday that the deal is set to take effect at 4 a.m. local time on Wednesday (9 p.m. EST Tuesday).
Under the deal, thousands of Lebanese troops and U.N. peacekeepers are to deploy to the region south of the Litani River. An international panel led by the US would monitor compliance by all sides. Biden said the deal “was designed to be a permanent cessation of hostilities.”
Israel has demanded the right to act should Hezbollah violate its obligations, but Lebanese officials rejected writing that into the proposal. Israeli Prime Minister Benjamin Netanyahu said Tuesday that the military would strike Hezbollah if the UN peacekeeping force, known as UNIFIL, does not enforce the deal.
Lingering uncertainty
Hezbollah indicated it would give the ceasefire pact a chance, but one of the group's leaders said the group's support for the deal hinged on clarity that Israel would not renew its attacks.
“After reviewing the agreement signed by the enemy government, we will see if there is a match between what we stated and what was agreed upon by the Lebanese officials,” Mahmoud Qamati, deputy chair of Hezbollah’s political council, told the Qatari satellite news network Al Jazeera.
“We want an end to the aggression, of course, but not at the expense of the sovereignty of the state” of Lebanon, he said.
The European Union’s top diplomat, Josep Borrell, said Tuesday that Israel’s security concerns had been addressed in the deal.
Where the fighting has left both sides After months of cross-border bombings, Israel can claim major victories, including the killing of Hezbollah’s top leader, Hassan Nasrallah, most of his senior commanders and the destruction of extensive militant infrastructure.
A complex attack in September involving the explosion of hundreds of walkie-talkies and pagers used by Hezbollah was widely attributed to Israel, signaling a remarkable penetration of the militant group.
The damage inflicted on Hezbollah has hit not only in its ranks, but the reputation it built by fighting Israel to a stalemate in the 2006 war. Still, its fighters managed to put up heavy resistance on the ground, slowing Israel’s advance while continuing to fire scores of rockets, missiles and drones across the border each day.
The ceasefire offers relief to both sides, giving Israel’s overstretched army a break and allowing Hezbollah leaders to tout the group’s effectiveness in holding their ground despite Israel’s massive advantage in weaponry. But the group is likely to face a reckoning, with many Lebanese accusing it of tying their country’s fate to Gaza’s at the service of key ally Iran, inflicting great damage on a Lebanese economy that was already in grave condition.
No answers for Gaza Until now, Hezbollah has insisted that it would only halt its attacks on Israel when it agreed to stop fighting in Gaza. Some in the region are likely to view a deal between the Lebanon-based group and Israel as a capitulation.
In Gaza, where officials say the war has killed more than 44,000 Palestinians, Israel’s attacks have inflicted a heavy toll on Hamas, including the killing of the group’s top leaders. But Hamas fighters continue to hold scores of Israeli hostages, giving the militant group a bargaining chip if indirect ceasefire negotiations resume.
Hamas is likely to continue to demand a lasting truce and a full Israeli withdrawal from Gaza in any such deal, while Netanyahu on Tuesday reiterated his pledge to continue the war until Hamas is destroyed and all hostages are freed.
Palestinian Authority President Mahmoud Abbas, whose forces were ousted from Gaza by Hamas in 2007 and who hopes to one day rule over the territory again as part of an independent Palestinian state, offered a pointed reminder Tuesday of the intractability of the war, demanding urgent international intervention.
“The only way to halt the dangerous escalation we are witnessing in the region, and maintain regional and international stability, security and peace, is to resolve the question of Palestine,” he said in a speech to the UN read by his ambassador.