Exemption From Caesar Act not relieving economy in Syria’s AANES areas

MANBIJ, Syria (North Press) – There has been no improvement in prices of basic foodstuffs, nor in the economic movement months after the US Department of the Treasury’s general license to exempt northeast Syria from economic sanctions was issued, according to Ali.

The 45-year-old Ali al-Ibrahim a trader of food supplies in the city of Manbij in northern Syria, says that the prices of the materials remained the same as before and they sell according to the price they buy after adding taxes and the transportation costs to the goods.

On May 12, the US Department of the Treasury issued a general license authorizing activities in northeast and northwest Syria in 12 economic sectors.

The sectors included agriculture, information and telecommunication, power grid infrastructure, construction, finance, clean energy, transportation and warehousing, water and waste management, health services, education, manufacturing, and trade.

However, oil-related transactions were excluded.

In June 2019, the US administration imposed sanctions that targeted Syrian President Bashar al-Assad and his inner circle to choke off revenue for his government in a bid to force it back to the UN and put an end to the country’s decade-long war. 

All Syrian areas suffer from economic crisis due to the economic sanctions. However, although areas of northeastern Syria were excluded, the prices and purchasing power have not change.

Al-Ibrahim sees that the exclusion of the AANES-held areas “should have taken a positive touch with the entry of investors to revitalize the region economically.”

At the same time, the imposed siege on the AANES areas, including closing crossings and constant Turkish threats “affect implementing the exclusion gravely,” al-Ibrahim added.

On May 23, the Turkish President Recep Tayyip Erdogan announced plans to carry out a major military cross-border incursion into northern Syria.

Erdogan specified his targets in the two northern Syrian cities of Manbij and Tel Rifaat.

So that, the state of insecurity and instability curb foreign investors from entering the area. If they come, “this will have a positive impact on prices, provide job opportunities and refresh economic movement,” he added.

The areas of northeastern Syria depend on three sources to receive goods, through government-held areas, opposition-held areas, and crossings connecting the AANES-held areas with Kurdistan region of Iraq (KRI).

Due to that, 53-year-old Ali al-Saeed, a tailor from Manbij, when buying goods from Damascus, though made in Aleppo, the goods pass to Turkey’s Mersin then to Manbij.

So that, al-Saeed has to pay more due to transportation costs, as 50% is added to the goods’ price, and it reaches the consumer at doubled prices, while only 5% is added if they enter directly from Aleppo to Manbij.

The consumer, whose wage is paid in the devaluating Syrian pound, is the most affected as he pays the price of goods in the US dollar.

As a result of Caesar Act, the value of the Syrian pound has deteriorated hundred times, and is still deteriorating continuously.

This, according to observers, makes the exclusion decision a “pressure card” by the US that intended to achieve other goals.

Whenever the US Department of the Treasury issued the general license, the AANES announced it would issue an investment law.

At that time, Salman Barudo, co-chair of Economy and Agriculture Board of the AANES, said that the law will offer confidence to investors and encourage them to invest in the region.

However, after five months, no law has been issued yet, so North Press contacted General Council of the AANES to find out what stage the law had reached, and the answer was that they “did not issue or study such a law.”

The Caesar Act and the deterioration of the Syrian pound has exacerbated suffering of Manbij residents, including 45-year-old Hamid al-Mousa, a father of seven, he finds it difficult to secure his family’s livelihood, especially since he works in selling leafy greens in the city’s markets.

The man’s income does not exceed 20.000 SYP, which hardly covers the basic needs of his family.

In addition, what makes the man suffer more is that the foodstuffs are sold according to the US dollar exchange rate.

Therefore, al-Mousa recently began to buy limited amounts of foodstuffs, including oil, sugar and tea in installments.

Reporting by Ahmad Abdullah