The Daily Star
In the third of a four-part series, Louisa Follis looks at what joining the WTO might mean for Lebanese agriculture
With 195,000 agricultural producers in the country, about 25 percent of the population consists of farmers and their families, directly dependent on the sector. A further 15 percent of people in Lebanon are indirectly dependent on agriculture.
These are figures that Raphael Debbane, agricultural committee president at the Union of Chambers of Commerce, Industry, and Agriculture, takes seriously. He says that the agricultural sector must get ready for membership of the World Trade Organization, or else the results will be "a disaster."
There is good reason for Debbane's concern. Farming in Lebanon is a costly affair, with high land rents, badly managed and expensive utilities, little government subsidization, a lack of modern packing facilities, and relatively costly labor. As such, the 70 percent import tariffs that remain in place for most agricultural products are the saving grace of the country's producers.
Customs tariffs will not be wiped out with WTO membership, but they are likely to be reduced, opening the market up to more foreign produce.
Debbane hosted a Chamber of Commerce meeting this week to discuss WTO membership and its effects on agriculture. About 80 farmers attended the talk given by Farhat Farhat, director of the US Agency for International Development project assisting Lebanon in WTO accession. Debbane described the event as "very lively."
Farhat said that the WTO negotiations, which ultimately guarantee member countries' trade rights, would help Lebanon's agricultural exports. He said that the agricultural sector was currently facing exporting difficulties because of unfair trade measures imposed on Lebanese products by other countries.
The potential for more exports did little to ease farmers' concerns, said Debbane. "The information they received did not stop them worrying," he said. "Farmers are very anxious. They have not modernized their equipment, nor updated their production facilities, and are not fit enough to compete in the world market."
Debbane said that farmers were also concerned because they were afraid that the government would not defend Lebanese agriculture while negotiating entry into the WTO. "The farmers fears' are based on the history of Lebanese governments, which have had a lack of interest in agriculture," said Debbane. "There have been so many promises which were not fulfilled."
Economist Elie Yachoui, a member of the board of the National Council of Scientific Research in Lebanon, said that the WTO agreement can only be good for developing countries if negotiated properly. He agreed that the government needed to pay more attention to the agricultural sector.
"They haven't studied the agricultural file enough," Yachoui said. "We have local production that the government is ignoring and hasn't considered in their decision - such as the flower business," he said, referring to last week's large reduction in customs charges on imported cut flowers.
Even so, Debbane said he was optimistic, "provided that everyone plays his role and the government hears the voice of the private sector in the decision-making process."
"The new government is very aware of the handicaps and difficulties faced by today's farmers," he said. "Hariri himself is seriously trying hard to help the productive sectors become more competitive. He is actively planning so that the farmers will be more prepared to compete."
A new program being considered by the Hariri administration is the subsidization of shipping costs and the financing of new equipment for the grading and packing of fruit and vegetables.
In addition, Debbane said that production costs could be lowered if farmers were given help in planting new, higher-yielding crops, fuel costs were reduced, and water was better managed.
What does not help, said Debbane, are the open borders with Arab countries. "The Arab Free Trade Agreement isn't helping Lebanon whatsoever," he said, "because of the country's high cost of production."
The next step for the agricultural committee at the Union of Chambers of Commerce, Industry, and Agriculture is to work with farmers and the government to assess the industry's needs before WTO negotiations start.
This includes strengthening links with various government institutions, such as the Ministry of Economy and Trade, which is in charge of sugarbeet production, and the Ministry of Water Resources. "Water is something that wouldn't be a problem if it were managed properly," said Debbane.
"We will be organizing meetings between all parties involved in the agricultural sector and the government to maximize our efforts," he said. "Today we lack proper coordination. We need to push all together on the same side."
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