Can unilateral protectionism save Lebanon’s declining agricultural sector?

No major tangible information has emerged as to the economical effects of the recent unilateral decision by Agriculture Minister Akram Shehayeb banning the import of vegetables and fruits coming from Syria until next February, while the positions towards the protectionary measures are still somewhat divergent. Farmers in general, and particularly in the northern region of Akkar, are still suffering the weight of the unregulated inflow of foreign goods, notably potato and dairy products. In this respect, the head of the Syndicate of Vegetable Farmers in the North and Akkar, Khudr Meda, described Shehayeb’s decision as in the right direction since it will break the stagnation in local markets following the closure of most Arab and GCC export venues. In the Beqaa, Ibrahim Tarshishi, president of the Beqaa Farmers Union, praised the minister’s measure, a position which was coupled according As Safir daily newspaper with a sense of hidden satisfaction in the whole Beqaa area. Some farmers have already reported slight improvement in the prices of vegetables, mainly, tomato, cucumber and leafy veggies. But according to the same newspaper, this consent can also be temporary and linked to the continuous closure of the Syrian-Jordanian border crossing. On the other hand, the Syndicate of Agricultural Farmers in Lebanon said that the minister’s act is incomplete and does not resolve the problem of marketing, noting that local markets remain wide-open to commodities from across the globe. Similarly, the Minister of Finance Ali Hassan Khalil urged Shehayeb to reconsider his decision.

For his part, the Agriculture Minister has not backed down, and in fact, seemed more determined, during a press conference he held yesterday. Shehayeb accused the Customs Directorate of negligence and bribery, disclosing that “foreign goods can enter the illegal borders at a price of USD 200.” He stressed that new measure have to do with regulating the import export activities between Lebanon and neighboring Syria, with focus on stopping what he termed as organized smuggling. The above decision, Shehayeb explained, and the previous decision to control the import of dairy products, protect domestic production from the contemptable competition of agricultural imports, noting that this year’s production meets the needs of the domestic market with a surplus to the Gulf countries. However, he expounded that exports declined due to the land border blockage, which again urgently calls for measure to control the flow of smuggled goods.  (Al Diyar, Al Hayat, Al Mustaqbal, An Nahar, As Safir, Al Akhbar, June 11, 12, 13, 14, 15, 2016)