Sanctions and a hobbled economy pull the rug out from under Iran’s traditional carpet weavers | Canada News Media
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Sanctions and a hobbled economy pull the rug out from under Iran’s traditional carpet weavers

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KASHAN, Iran (AP) — The historic Kashan bazaar in central Iran once sat on a major caravan route, its silk carpets known the world over. But for the weavers trying to sell their rugs under its ancient arches, their world has only unraveled since the collapse of Iran’s nuclear deal with world powers and wider tensions with the West.

Rug exports, which exceeded $2 billion two decades ago, have plummeted to less than $50 million in the last year in the Persian calendar that ended in March, according to government customs figures. With fewer tourists coming and difficulties rising in making international transactions, Iranian rugs are going unsold as some weavers work for as little as $4 a day.

“Americans were some of our best customers,” said Ali Faez, the owner of one dusty carpet shop at the bazaar. “Rugs are a luxury product and they were eager to buy it and they used to make very good purchases. Unfortunately this has been cut — and the connection between the two countries for visitors to come and go has gone away.”

Kashan’s rug-weaving industry has been inscribed in UNESCO’s list of the world’s “intangible cultural heritage.” Many of the weavers are women, with the skills needed for the Farsi weaving style passed down from generation to generation, using materials like vine leaves and the skins of pomegranate fruit and walnuts to make the dyes for their threads. A single rug can take months to make.

For decades, Western tourists and others would pass through Iran, picking up rugs as gifts and to take back home. After the 1979 Islamic Revolution, the U.S. increased sanctions on Iran’s theocratic government over the American Embassy siege, Tehran’s links to militant attacks and other issues.

But in 2000, the outgoing administration of former President Bill Clinton lifted a ban on the import of Iranian caviar, rugs and pistachios.

“Iran lives in a dangerous neighborhood,” then-Secretary of State Madeleine Albright said at the time. “We welcome efforts to make it less dangerous.”

By 2010, with concerns rising over Iran’s nuclear program, the U.S. again banned Iranian-made Persian rugs. But in 2015, Iran struck a nuclear deal with world powers which greatly reduced and drastically lowered the purity of Tehran’s stockpile of enriched uranium. The rug trade was allowed once again.

Three years later, in 2018, then-President Donald Trump unilaterally withdrew the U.S. from the nuclear deal. Since then, Iran began enriching uranium at near-weapons-grade levels and has been blamed for a series of attacks at sea and on land, including an unprecedented drone-and-missile attack targeting Israel last month.

For the carpet weavers, that’s meant their wares were once again banned under U.S. law.

“It started when Trump signed that paper,” Faez told The Associated Press, referring to the renewed sanctions. “He ruined everything.”

Abdullah Bahrami, the head of a national syndicate for handwoven rug producers, also blamed the collapse of the industry on the Trump sanctions. He put the value of exports to the U.S. as high as $80 million annually prior to the sanctions.

“The whole world used to know Iran by its rugs,” Bahrami told the state-run IRNA news agency in March.

Making things worse is what carpet sellers see as a drop in tourists to Kashan as well. High-value American and European tourism in Iran has largely stopped, the daily Shargh newspaper warned last year. Ezzatollah Zarghami, Iran’s minister of tourism, insisted in April that 6 million tourists visited the country over the last 12 months, though that likely includes religious pilgrims as well as Afghans and Iraqis with less spending money.

But even those tourists that do show up face the challenge of Iran’s financial system, where no major international credit card works.

“I had a Chinese customer the other week. He was struggling to somehow make the payment because he loved the rug and didn’t want to let go of it,” Faez said. “We have to pay a lot of commission to those who can transfer money and have bank accounts abroad. Sometimes they cancel their orders because they don’t have enough cash with them.”

The collapse of the rial currency has left many Iranians also unable to purchase the handwoven rugs. Wages in the industry are low, leading to a growing number of Afghan migrants working in workshops around Kashan as well.

Designer Javad Amorzesh, one of just a few of Kashan’s old-school artists, said his orders have fallen from 10 a year to just two. He has fired staff and now works alone in a cramped space.

“Inflation rose every hour. People were hit repeatedly by inflation,” he said. “I used to have four to five assistants in a big workshop.”

Offering a bitter laugh alone in his workshop, he added, “We’ve been left isolated.”

Mehdi Fattahi, The Associated Press

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Minimum wage to hire higher-paid temporary foreign workers set to increase

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OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

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PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

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