Putting the cart before the horse.. – Syrian Steps

Damascus – Ceriastipes:

Economist Dr. Ammar Youssef confirmed that exports are the most important indicator of economic recovery.. All countries demonstrate their economic development through production and exports..

But exports require a strong infrastructure so that the export mechanism is encouraging, stimulating and free from any obstacles. It is most important that we have a broad and diverse local production that can be exported and compete. When we say that our products are sold in 110 countries, we must “reach” the numbers and volumes, as he said.

Pointing out that most of Syria’s exports rely on imported raw materials, 100% of the materials are produced locally.

This brings up the flow of raw materials from abroad, especially given the existence of financing platforms created by the central bank, which is a reason “admitted by both industrialists and businessmen” that it hinders the development of local production and makes it uncompetitive, and other pressures related to taxes and tariffs, which limit production with fees and costs, make the problem even worse, in addition to “corruption.”

So we can say that Syrian products have been in deficit on the export market for many years because they have lost their price competitiveness due to high costs, and there is a complete market,” Dr. Yusuf said, “We lost this due to rising costs, and Iraq is just a clear example of how Turkish goods have occupied it at the expense of Syrian products.”

I am not saying here that there are no exports, of course there are exports, but are they at a level that can be relied upon to improve the trade balance and ensure a large inflow of foreign exchange?

He added: As long as Syrian products cost more than those of other competing countries, exports will not do well and will be far from occupying their ideal position as one of the levers of recovery and growth for the country.

Dr. Ammar Youssef: He talked about other factors that make exports very difficult, which is the high prices of all energy carriers, especially electricity, which increases the burden and costs for Syrian factories, making their products uncompetitive, as evidenced by the fact that industrialists themselves admit that Syrian products are more expensive than those of neighboring countries. They return to what industrialists say, whether in the field of clothing, detergents, etc.

Here, it is pertinent to ask what the government’s vision is for exports and how it will try to boost export numbers in a losing trade balance despite all the austerity and rationalisation moves.

Dr. Ammar Youssef said: Today we are waiting for the holding of an export exhibition, which is undoubtedly an important event, but have we arranged our affairs so that this exhibition will be the starting point for expanding the export circle? We have identified which Syrian exclusive products cannot compete with or we no longer have such products. Here we must emphasize the issue of exclusive products that are attributed only to Syria. Considering the situation caused by the war and the failed policies that led to Syria losing its exclusive products, it will take no small effort to restore these products.

We must then ask whether the facilities that exporters will receive during the upcoming export fair are sufficient to indicate that we are about to start a broad and sustainable export process, or is the fair’s goal to allow exports through the advantages it confers? Surely this is not sufficient or strategic?

In his speech, the economic expert stressed that export is a complete process, with a solid production process and economic team behind it, who know every link of production and export at the same time, and cannot miss any detail or any link. He stressed that completing this process is the guarantee for Syria to transform into a manufacturer and exporter.

Therefore, when we are able to ensure easy movement of raw materials, provide energy carriers, ensure infrastructure security, free industrialists, businessmen and exporters from the many inconveniences caused by tax and customs policies, and improve the arrangements for economic decision-making that stimulate production and development of exports, then the export sector will become a tributary of the country’s economy and development.

Finally, Dr. Ammar Youssef made a useful summary: If we want to revive the export sector, we must ensure production at a cost and quality that will allow us to compete on the export market.

“Let us know that conferences and exhibitions are a reflection but not enough to solve our economic crisis… because they are ‘putting the cart before the horse’.”