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The President of the Republic Michel Aoun stressed yesterday the need to set specific taxes that boost the economy, saying he is not justifying the newly imposed taxes and understands the anger of the people. Aoun called for setting an economic plan which clarifies the use of tax revenues and enhances the mode of collection through proper implementation of relevant laws and regulation of the generated proceeds. Corruption, Aoun maintained, consumes half of the state revenues President Aoun, who was speaking during a meeting with a broad delegation of the National Consultative Gathering of Baalbek-Hermel Clans and Families, disclosed that he is collaborating with the government and authorities concerned to develop a comprehensive strategy that promotes a resilient economy and constitutes a plan of action to gradually improves the situation. “It is impossible to eradicate corruption that has been amassed over 27 years in only a few months in the life of the new presidency and government, Aoun stated. He concluded by asserting that despite the extensive internal and external crises which weigh heavily on the performance of public and state institutions, he counts much on the joint efforts of the Lebanese people to fight corruption as he pledged during his inauguration and independence day speeches . (AL Mustaqbal, Al Hayat, Al Diyar March 23, 2017)

 

The industry minister, Dr. Hussein Hajj Hassan, met on Tuesday with the EU Ambassador to Lebanon, Christina Lassen, to discuss the critical economic situation in the country and to demand again for the opening of European markets to Lebanese goods. Hajj Hassan asked the EU to adopt an exceptional treatment that could boost Lebanon’s growth, stimulate its economy, facilitate the opening of new factories, expand production and opportunities of export with the aim to secure more jobs for the Lebanese, firstly, and displaced Syrians, secondly. The minister focused in his discussion on the need to open up the European markets to made-in-Lebanon goods after ensuring their excellence. These include, medicines and drugs, cheeses, dairy products, meat, spices, nuts, coffee, as well as, electronics and IT products. The clothing industry, Hajj Hassan said, is another sector that can be swiftly invested in, is affordable and can create thousands of jobs, especially for women. He appealed for help in raising Lebanon’s exports to EU countries from USD 300 million to between USD 800 million and USD 1 billion. For her part, Lassen supported the minister’s proposal, while attaching it to a political solution in Syria. However, she said the EU is prepared to embark on a long-term collaboration based on the provision of specialized training and rehabilitation programs in tune with European requirements.It is to be noted that Hajj Hassan had declared repeated warnings concerning the huge trade deficit, namely between Lebanon and Europe previously, since Lebanese exports to the EU countries have seen a modest increase (only USD 300 million) (from USD 200 million in 2000 according to industry ministry figures) against a disproportionate upsurge in the opposite direction (EU exports to Lebanon rose from USD 2 billion to USD 8.5 billion in the past 14 years) (c.f:  http://bit.ly/2gyd6Fd)  (Al Diyar, March 23, 2017)

 

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Hajj Hassan calls for addressing imbalances in world trade

Hajj Hassan calls for easier EU procedures for Lebanese exports

Ministers of industry and economy criticize EU norms for packing and packaging

Lebanon struggling with world trade agreements

Lebanese exports fall by 30% because of trouble in exporting to Syria

 

  

 

 

The Lebanese Industrialists Association (LIA) published on Tuesday its first industrial index after two years of preparation in collaboration with the finance ministry and the contribution of the Banque Libano-Francaise and Indevco Group. The LIA president Fadi Gemayel revealed a decline in the size of activity in the industrial sector by USD 1.8 billion during the period 2012 and 2015 and a fall from USD 10.5 billion in 2012 to USD 8.8 billion in 2015. Some 388 out of 2365 establishments with a total of 78 thousand employees have closed down, Gemayel said. In this respect, according to a study prepared by the LIA, the number of industrial companies in 2015 stood at 1977 companies, posting a 4.4% decline during the period from 2011 to 2015, compared to 2365 enterprises in 2011, that is by a loss of 388 enterprises. These institutions are distributed across 13 sectors, as follows: the food industries boasting the lion’s share (373 factories), noting that these factories embrace the largest workforce (around 33%); followed by chemical and plastic industries (some 272 factories), and paper and cardboard industries (224 factories). Accordingly, affected by this downward spiral, were the food, plastic and metal manufacturing plants at a rate of 56%, whereby, the production of plastic factories fell by (4.6%), followed by food processing plants (5.3%) and the metal factories by (6.8%). Maintaining that this database can be used initially by the Lebanese government to formulate a realistic industrial policy, Gemayel called for stepped up decisions to promote the sector based on two basic elements, protection and stimulation, combined with a rescue plan involving industrial exports. (Al Akhbar, Al Diyar, March 22, 2017)

 

In an interesting review on March 21, L’Orient Le Jour daily shed light on a book by young writer Bilal Salameh entitled ‘Bukra Bi Filloo’ (tomorrow they will disappear) featuring old shops (dakakeen) in Lebanon. Salameh started his journey in search of folklore shops, where he photographed and documented the stories of 9 of those ‘dakakeen’ located in the capital. Later on, he headed to Byblos, Balat, Laklouk and Chouf on foot for inadequate funds to complete the book which seeks to expose and portray the life cycle of each unique ‘dukkan’, as he mentioned. Salameh told L’Orient Le Jour that all the 9 ‘dakakeen’ in Beirut which he photographed and spoke to their owners boast a common trait. Each of these shops has outlived the civil war, Salameh expounded, has been renovated and is still managed by the same owner. Yet, the shelves inside them are empty and engulfed with dust, Salameh lamented, as few street goers appear at their doors. Most shopkeepers are nostalgic to the old busy days, Salameh said, pointing to their doggedness in inviting friends or customers to come share a coffee with them. An invitation, Salameh explained, that was considered a luxury in the old days when these ‘dakakeen’ were the only places that sell products and shop owners too busy to take a break. 

(L’Orient Le Jour, March 23, 2017)

 

The minister of economy and trade, Raed Khury, launched last Friday the strategy of his ministry for 2017 to support small and medium enterprises (SMEs) in Lebanon. The launch took place during a press conference attended by heads of some economy sectors and owners of SMEs. The said plan reportedly seeks to achieve the following: stimulate communication and coordination between all partners involved with the development of the entrepreneurship sector in the country; strengthen constructive and sustainable cooperation between the private and public sectors and enhance and support the legal, administrative, funding and services-related infrastructure to the end of improving and protecting the SME environment. On the occasion, Khury emphasized the vital role of SMEs in national economy, as they represent more than 95% of companies in Lebanon. Moreover, Khury added, these enterprises promote innovation, creativity and technology transfer, as well as, contribute to the creation of jobs, downscaling emigration and realizing an inter-regional economic development. Starting from this point, Khury expounded, the ministry has set a plan of action with a set of initiatives and activities which are: 1) organize roundtable workshops in all regions in collaboration with diverse concerned groups to tackle problems, obstacles, challenges, solutions and aspirations and resulting in recommendations that help in boosting the sector; 2) stimulate and step-up the work of so-called Lebanese Observatory for Small and Medium Enterprises in the development of a relevant database; 3) set-up and expand the android application and the website of SMEs linked to the ministry of economy, and 4) launch in May of the first edition of the National Forum for Small and Medium Enterprises. (Al Diyar, An Nahar, March 18, 2017)

 

The US Agency for International Development (USAID) launched a project to support small and micro enterprises and improve the role of the Association for Microfinance Institutions in Lebanon (MFIs). In a statement released yesterday, the USAID emphasized that the five-year USD 20 million worth of Livelihoods Inclusive Finance Expansion (LIFE) program is expected to provide better economic opportunities to entrepreneurs and beneficiaries from finance services in poverty stricken areas in the country. The said project, the statement added, aims to improve livelihoods, consolidate the capacity of the microfinance sector and increase the prospects of inclusive finance for the advantage of the marginalized people, particularly unemployed or low-income women, youth, and people with special needs in the deprived rural areas. And in its support of livelihoods, the statement mentioned, the program assists entrepreneurs and owners of small enterprises to build their capacities and benefit from financial products and services to scale-up their businesses and set the grounds for sustainable livelihoods through provision of grants and essential training. Microfinance will strengthen the capacity of MFIs to increase their range of products and expand their reach to borrowers in order to include microenterprises, with focus on higher-risk and conflict affected areas, including low-income households with women breadwinners that do not have access to banking services, the statement added. Moreover, the program secures custom made training on entrepreneurship, in addition to technical know-how, mentoring, business development skills and a set of new lending products targeting current and potential clientele, USAID statement concluded. (Al Mustaqbal, March 17, 2017)

 

In contradiction with official pledges to protect domestic agriculture, the minister of economy and trade, Raed Khury, and the minister of agriculture, Ghazi Z3ayter, are expected to approve the suspension of the trade exchange executive program with Egypt in response to the latter’s request. In a preemptive step, Antoine Howayek, the head of the Lebanese Farmers’ Association called on farmers to mobilize in preparation for what he termed the ‘peasants revolution’, announcing the downfall of agriculture in the country. To be noted, the Trade Exchange Agreement between Lebanon and Egypt was inked back in 1998 within the framework of the Arab Trade Facilitation Agreement (TFA). The latter bans the access of more than 20 made-in-Egypt agricultural items into Lebanon, and identifies those that can be exported, and the timing of exports. Howayek noted that revoking the trade exchange pact will facilitate the entry of various Egyptian agricultural products into the country without limitations whatsoever, which means the revival of the TFA that allows an unrestricted freedom of trade exchange. The Farmers’ president downplayed the placatory statements by the ministry of economy which promised to impose quantity related restrictions to protect production. Howayek drew attention that the TFA does not include an agricultural trade calendar that would protect Lebanese production . In a contradictory move, Z3ayter issued a directive banning the entry into Lebanon of imported Egyptian potatoes as of 15/3/2017 pending studies by his ministry to determine the allowed quantities to be imported, a decision lauded by Akkar potato growers, while thanking both Prime Minister Saad al Hariri and Z3ayter for supporting farmers. (An Nahar, Al Diyar, Al Akhbar, March 15, 16, 17, 2017)

 

 

The leading organizer of trade events in the Middle East and North Africa, the International Trade Exhibition (IFP) held yesterday a seminar on franchise opportunities and outlooks of export for the food and hospitality industries at the Beirut and Mount Lebanon Chamber of Commerce, Industry and Agriculture. The seminar entitled ‘Agro-Food and Hospitality’ focused on IFP’s upcoming expos, namely, Food Africa (Cairo, from April 22-24), Agrofood (Erbil, from October 23-26) and Hospitality Qatar 2017 (Doha, from November 7-9). In his speech, the head of the Chamber’s Agriculture Committee, Raphael Debbane, commended IFP plan of action aimed to support made-in-Lebanon exports, highlighting bilateral meetings on the sidelines of similar expos and conferences that the group organizes or represents. Debbane also reasserted the importance of the initiative taken by Lebanese enterprises to expand their businesses and increase the marketing of their products without relying on official support. He mentioned that the most successful companies have not received backing from the government to this effect. Similarly, IFP Chair, Albert Aoun, disclosed that the Group, in collaboration with the Chamber of Tripoli and the North and the Tripoli Special Economic Zone, are planning a conference on March 28, on the prospects and challenges in the economic development of the northern capital, particularly in the projected reconstruction of post-war Syria.  (Al Mustaqbal, An Nahar, March 16, 2017)

 

On the occasion of the World Consumer Rights Day (WCRD) celebrated each year on the 15 of March, the minister of economy and trade, Raed Khoury, said the theme of this year is protecting consumers in a trusted digital world. Khoury was speaking during a conference ‘consumer protection via internet’ organized by his ministry at the Grand Serail. The Minister further  underlined the role of the ministry with strategic stakeholders in the public and private sectors to the end of protecting e-commerce customers where they largely face scams. On the occasion, Khoury launched the ministry’s plan of action to this effect which is based on 3 main axes: first, the legislative, through development and endorsement of laws regulating electronic transactions and serving as a legal umbrella; second, the educational, guidance aspect, which builds the consumer’s awareness of his/her rights and duties, and finally, the monitoring axis, aimed to ensure by best the safety of goods and services offered via the internet and maintain their conformity with international specifications. Khoury concluded by disclosing that his ministry is currently liaising with a team of the United Nations Conference on Trade and Development Team (UNCTAD) to enhance the ministry’s monitoring capacities in the domain of e-commerce. For her part, the director general of the ministry of economy, Aliya Abbas, stressed that consumer protection is essentially associated with the safety and health of all the Lebanese people, and as such, increasing the budget to this end becomes an urgency, as it secures the procurement of necessary equipment needed to activate surveillance and train, as well as, increase the size of our human cadres.” (Al Mustaqbal, March 15, 2017)

The Ambassador of China to Beirut Jiang Jiang disclosed on Friday that his country is planning to revive the maritime silk road for the Twenty First Century. Kicking off from China to two destinations, one to Australia and another to Europe through South East Asia, the Road’s aim is to promote economic benefits for all countries situated along the road. Jiang’s statement came in a lecture he gave at the Doctorate Higher Institute at the state-run Lebanese University entitled ‘The Silk Road and the Economic Belt’. The Ambassador stressed the need to boost trade and human communication, as well as financial and banking cooperation among said nations similar to the ancient silk road which stood for economic interest and openness. He pointed out that some parties have proposed the above initiative that received positive feedback from the states along the belt. Jiang also mentioned that a Silk Road Fund and an investment bank have been established for this end. The plan, he said, constitutes a new platform for cooperation among involved states and serves developing nations on many levels as well. From the political side, Jiang noted, the Silk Road creates multiple poles as opposed to the notion of unilateralism in the World Order. It should be noted, . "It should be noted that President Aoun had held in January, a meeting with Chinese Vice Foreign Minister, Zhang Ming, where the dialogue between the two parties focused around common interests between the two countries, especially the "belt and road" initiative put forward by the Chinese President, willing that Lebanon contribute in it, also  the director of the Port of Tripoli, Ahmed Tamer, said, quoting an international maritime transport expert, that the facility is expected to play a pivotal role and to have a central economic de facto reality in the service of this road. (Al Mustaqbal, March 12, 2017)