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.



UN Resolution 1701 at the Heart of the Israel-Hezbollah Ceasefire

An empty United Nations Interim Force in Lebanon (UNIFIL) observation tower on the Israel-Lebanon border, near the southern Lebanese city of Al-Khiam, as seen from northern Israel, 26 November 2024, amid cross-border hostilities between Hezbollah and Israel. (EPA)
An empty United Nations Interim Force in Lebanon (UNIFIL) observation tower on the Israel-Lebanon border, near the southern Lebanese city of Al-Khiam, as seen from northern Israel, 26 November 2024, amid cross-border hostilities between Hezbollah and Israel. (EPA)
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UN Resolution 1701 at the Heart of the Israel-Hezbollah Ceasefire

An empty United Nations Interim Force in Lebanon (UNIFIL) observation tower on the Israel-Lebanon border, near the southern Lebanese city of Al-Khiam, as seen from northern Israel, 26 November 2024, amid cross-border hostilities between Hezbollah and Israel. (EPA)
An empty United Nations Interim Force in Lebanon (UNIFIL) observation tower on the Israel-Lebanon border, near the southern Lebanese city of Al-Khiam, as seen from northern Israel, 26 November 2024, amid cross-border hostilities between Hezbollah and Israel. (EPA)

In 2006, after a bruising monthlong war between Israel and Lebanon’s Hezbollah armed group, the United Nations Security Council unanimously voted for a resolution to end the conflict and pave the way for lasting security along the border.

But while relative calm stood for nearly two decades, Resolution 1701’s terms were never fully enforced.

Now, figuring out how to finally enforce it is key to a US-brokered deal that brought a ceasefire Wednesday.

In late September, after nearly a year of low-level clashes, the conflict between Israel and Hezbollah spiraled into all-out war and an Israeli ground invasion. As Israeli jets pound deep inside Lebanon and Hezbollah fires rockets deeper into northern Israel, UN and diplomatic officials again turned to the 2006 resolution in a bid to end the conflict.

Years of deeply divided politics and regionwide geopolitical hostilities have halted substantial progress on its implementation, yet the international community believes Resolution 1701 is still the brightest prospect for long-term stability between Israel and Lebanon.

Almost two decades after the last war between Israel and Hezbollah, the United States led shuttle diplomacy efforts between Lebanon and Israel to agree on a ceasefire proposal that renewed commitment to the resolution, this time with an implementation plan to try to reinvigorate the document.

What is UNSC Resolution 1701? In 2000, Israel withdrew its forces from most of southern Lebanon along a UN-demarcated “Blue Line” that separated the two countries and the Israeli-occupied Golan Heights in Syria. UN Interim Force in Lebanon (UNIFIL) peacekeepers increased their presence along the line of withdrawal.

Resolution 1701 was supposed to complete Israel’s withdrawal from southern Lebanon and ensure Hezbollah would move north of the Litani River, keeping the area exclusively under the Lebanese military and UN peacekeepers.

Up to 15,000 UN peacekeepers would help to maintain calm, return displaced Lebanese and secure the area alongside the Lebanese military.

The goal was long-term security, with land borders eventually demarcated to resolve territorial disputes.

The resolution also reaffirmed previous ones that call for the disarmament of all armed groups in Lebanon — Hezbollah among them.

“It was made for a certain situation and context,” Elias Hanna, a retired Lebanese army general, told The Associated Press. “But as time goes on, the essence of the resolution begins to hollow.”

Has Resolution 1701 been implemented? For years, Lebanon and Israel blamed each other for countless violations along the tense frontier. Israel said Hezbollah’s elite Radwan Force and growing arsenal remained, and accused the group of using a local environmental organization to spy on troops.

Lebanon complained about Israeli military jets and naval ships entering Lebanese territory even when there was no active conflict.

“You had a role of the UNIFIL that slowly eroded like any other peacekeeping with time that has no clear mandate,” said Joseph Bahout, the director of the Issam Fares Institute for Public Policy at the American University of Beirut. “They don’t have permission to inspect the area without coordinating with the Lebanese army.”

UNIFIL for years has urged Israel to withdraw from some territory north of the frontier, but to no avail. In the ongoing war, the peacekeeping mission has accused Israel, as well as Hezbollah, of obstructing and harming its forces and infrastructure.

Hezbollah’s power, meanwhile, has grown, both in its arsenal and as a political influence in the Lebanese state.

The Iran-backed group was essential in keeping Syrian President Bashar Assad in power when armed opposition groups tried to topple him, and it supports Iran-backed groups in Iraq and Yemen. It has an estimated 150,000 rockets and missiles, including precision-guided missiles pointed at Israel, and has introduced drones into its arsenal.

Hanna says Hezbollah “is something never seen before as a non-state actor” with political and military influence.

How do mediators hope to implement 1701 almost two decades later? Israel's security Cabinet approved the ceasefire agreement late Tuesday, according to Prime Minister Benjamin Netanyahu's office. The ceasefire began at 4 am local time Wednesday.

Efforts led by the US and France for the ceasefire between Israel and Hezbollah underscored that they still view the resolution as key. For almost a year, Washington has promoted various versions of a deal that would gradually lead to its full implementation.

International mediators hope that by boosting financial support for the Lebanese army — which was not a party in the Israel-Hezbollah war — Lebanon can deploy some 6,000 additional troops south of the Litani River to help enforce the resolution. Under the deal, an international monitoring committee headed by the United States would oversee implementation to ensure that Hezbollah and Israel’s withdrawals take place.

It is not entirely clear how the committee would work or how potential violations would be reported and dealt with.

The circumstances now are far more complicated than in 2006. Some are still skeptical of the resolution's viability given that the political realities and balance of power both regionally and within Lebanon have dramatically changed since then.

“You’re tying 1701 with a hundred things,” Bahout said. “A resolution is the reflection of a balance of power and political context.”

Now with the ceasefire in place, the hope is that Israel and Lebanon can begin negotiations to demarcate their land border and settle disputes over several points along the Blue Line for long-term security after decades of conflict and tension.