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PRESS RELEASES

Address by
Ambassador Feltman
AmCham's Made in American Gala Dinner

Intercontinental Phoenicia Hotel
Wednesday, September 1, 2004

02 September 2004

Thank you. I'd like to first express my sincere appreciation to the American-Lebanese Chamber of Commerce for hosting this wonderful dinner to welcome me and to celebrate the second annual Made in America trade fair. AmCham has been, and continues to be, a wonderful partner in promoting trade between Lebanon and the United States. I'd also like to thank Deputy Assistant Secretary of Commerce Holly Vineyard for coming to Beirut to support this event and for spending time listening to the experiences of U.S. businesses in Lebanon. I also want to applaud the U.S. exhibitors who are committed to strengthening U.S.-Lebanese commercial ties.

I have been in Beirut now for just under two weeks. Despite having heard about the legendary Lebanese hospitality, I have been truly overwhelmed by the warm and enthusiastic reception from all corners of Lebanese society. The relationship between the United States and Lebanon is dynamic and complex and rooted in a long history of friendship between our peoples. The relationship between our two governments is but one facet of that. I believe our links with non-governmental and private sector organizations, like the AmCham, play just as important a role in strengthening the ties between our countries and in promoting American values both in business and in society.

I look forward to spending the next three years developing each facet of that relationship. Lebanon will be faced with choices in the coming months and years that will define its place in the region. These choices belong to the people and not to foreign parties. That explains our insistence on a transparent, free, and fair electoral process in accordance with the Lebanese constitution. A sovereign and independent Lebanon, free of foreign interference, already has the resources necessary to effect lasting economic and social reform. If the populace does not collectively exercise its voice, however, those resources will be wasted. Lebanese Members of Parliament, who will face election next spring, should act in ways that reflect the will of the Lebanese people they represent.

Earlier today, I helped open the second annual Made in America trade fair, which was organized to promote U.S. products and services. Walking around, as I hope each of you takes the opportunity to do, I found representatives of over 160 U.S. companies. American companies overseas, particularly those in Lebanon, are offering much to their host communities and are acting as an example for the rest of the private sector. In addition to setting a high standard of business ethics, they contribute to education and environmental efforts, they encourage cultural preservation and development, and they offer incomparable products and services that are available to assist in the development of both the public and private sectors.

These contributions, especially the products and services, cannot be appropriately utilized, however, if Lebanon is not able to create an investment climate designed to attract, and, more importantly, keep U.S. and other foreign investment present in the country. Although final responsibility for creating such a climate rests with the Lebanese government and the Lebanese people who demand it, the rich presence of these companies reminds us that we all stand to reap the rewards of our own continued support and activism.

Right now, the energies and efforts the Lebanese government and private sector used to regain the confidence of the international business community following the end of the civil war are being threatened by a lack of government-wide consensus on critical issues.

Insufficient protection of intellectual property has already driven some U.S. companies out of Lebanon. It threatens the works of artists, musicians, inventors, and entrepreneurs from Lebanon just as much as those from abroad. I am appreciative of recent efforts against piracy and illegal pharmaceutical registrations. These problems, along with others such as widespread cable piracy continue, however. In the short-term, Lebanon stands to lose duty-free access to the U.S. for almost one-third of its exports under the Generalized System of Preferences if concrete results are not achieved by November. Political disputes are not an excuse-the problem must be eradicated. I stand ready to support the private sector and the government in their efforts to make this happen.

Information technology capabilities in Lebanon have fallen far behind other countries in the region. Sectors that Lebanon has come to rely on for growth, including tourism and services, are themselves reliant upon up-to-date, affordable technology to remain competitive. If Lebanon cannot provide basic services such as high-speed internet, investment and tourism will fade.

Looking to the long-term, technology is one of the most important enablers of economic and political reform. It allows the government to offer better services to the public, it ensures better governance, and it gives the citizens a stronger voice. Additionally, it encourages transparency and helps to reduce the red tape and corruption that characterize many government services and, at best, delay investment. Lebanon desperately needs one, comprehensive strategy to improve its technological infrastructure and services that is supported by all parts of government, by the private sector, and by the international community. I look forward to being an active voice in advocating for and developing such a strategy.

I am pleased by the Government's commitment to joining the World Trade Organization and am proud that the U.S. government is a partner in that effort through a USAID-administered technical assistance program. The aggressive approach the Government is taking to accession indicates a willingness to ensure Lebanon is meeting international norms and obligations in these and other areas. Several hurdles remain before accession can be granted, but I will continue to support their efforts with all the tools at my disposal. Membership in the WTO is critical to the development of a country like Lebanon whose economy is based on trade and commerce.

As you may already know, despite many years working in this region, this is my first time in Lebanon. I have long been impressed by the history, educational traditions, culture, and beautiful landscapes about which I have heard so much. As an Economist, however, it is Lebanon's trading past that most fascinates me. This proud tradition in commerce assures me that the challenges Lebanon is facing can be overcome. The entrepreneurial spirit of this country is legendary and the private sector has proven time and time again that it can be a positive force of change.

The United States remains committed to helping a free and sovereign Lebanon regain its leading role in the region and in the world marketplace. I look forward to working with all of you in the coming years to help Lebanon achieve its potential. I hope to encourage a greater level of U.S. investment in Lebanon and to promote enhanced trade and business relations between our countries. Made in America 2004 is only a beginning. I can't wait to see what follows.


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