PRESS RELEASES
Remarks by
U.S. Ambassador to Lebanon Jeffrey D. Feltman
WTO Roundtable Discussion
Monday, October 11, 2004
13 October 2004
Presidents of Councils
Diplomatic colleagues
Ladies and gentlemen:
I'm delighted to be with you today to kick off a week of roundtable
discussions focusing on the impact of WTO accession on various Lebanese
industries. I have been in Lebanon now for only two months-which
is enough time to appreciate the rich potential of the country and
its hard-working, resilient and innovative people, but not enough
time to be an expert. Nonetheless, I would like to use this opportunity
today to talk seriously and honestly with you about Lebanon's accession
to the World Trade Organization.
The WTO-created to encourage open trade and thereby stimulate economic
development-offers tremendous possibilities for Lebanon. Integration
into the world economy and the multilateral trading system will
help Lebanon establish an environment conducive to long term economic
growth and stability. As you well know, however, the journey to
membership in the WTO is neither easy nor comfortable. Although
Lebanon has already taken a number of steps to move the accession
process forward, much work remains, not the least of which is implementing
critical legal reforms.
Let me take just a moment to remind you of some of the World Trade
Organization's underlying principles because they provide an excellent
context for understanding what Lebanon needs to do to arrive at
its goal of membership.
The WTO is the primary international institution dealing with the
multilateral rules on trade among nations. It was founded upon certain
fundamental principles aimed at promoting fair competition, transparency,
stability, predictability and non-discrimination. For Lebanon, Arab
countries, and the rest of the world, the WTO offers a rules-based
system within which to liberalize international trade. It is only
through such a system that the legal trading rights of individual
countries, big or small, are protected. Democracy and free trade
are ideals reflected in the multilateral trading system. And, the
principle of non-discrimination, which is the backbone of the WTO
system, guarantees fairness in commercial relations.
The WTO system promotes good governance. Unwise and unfair policies
often cause damage domestically and internationally. The WTO rules
provide a sound discipline for decision-making, introduce the rule
of law, reduce corruption, ensure accountability, and promote transparency.
Thus, membership in the WTO is a signal and commitment to the rule
of law and good governance.
And so what's in it for Lebanon?
Lebanon's accession to the WTO is likely to yield a number of rights,
benefits, and opportunities. Let me give you an idea of some of
these:
WTO membership will give Lebanon control over treatment of Lebanese
products in the markets of WTO Countries. Currently, Lebanese products
may be subject to quotas, unjustifiable licenses and prohibitions,
arbitrary dumping/countervailing duties, technical barriers to trade,
and other unfair trade measures in the markets of WTO countries.
Once Lebanon becomes a WTO Member, other WTO members will not be
able to arbitrarily impose these kinds of measures on Lebanese products.
WTO membership will ensure secure, stable, open and non-discriminatory
access for Lebanese exports (in the form of automatic Most-Favored-Nation
and national treatment) in the markets of 147 -- soon to be -- 170
WTO Member countries. This access offers new markets for Lebanese
products and a likely increase in Lebanese exports.
WTO membership will help establish an environment conducive to
the development of a competitive Lebanese manufacturing and service
sector. WTO membership will lead to lowering the cost of doing business
in Lebanon as a result of the implementation of WTO agreements.
This will contribute to the establishment of efficient and competitive
industrial and agricultural producers and attract investment.
WTO membership will signal to the international community that
Lebanon has a predictable, transparent, stable, and conducive trade
and investment environment. This will enhance the image of Lebanon
internationally as having an attractive investment regime and reduce
investors' perceived commercial risk in investing in Lebanon. The
result: An increase in investment.
WTO membership offers access to the WTO Dispute Settlement Body
that will provide fair resolution and a mechanism for any trade
disputes that may arise between Lebanon and its trading partners.
Moreover, WTO accession will serve as an engine for the modernization
of legal and institutional frameworks. Compliance with WTO agreements,
in the context of WTO accession, can serve as the engine for conducting
policy and legal reforms in Lebanon that are long overdue. Embracing
the latest modern and internationally accepted policies and procedures
related to trade and investment is an important component of this
process.
Last but not least, the necessity of complying with WTO agreements
will serve as a catalyst and a major drive for pushing further administrative
and institutional reform and modernization efforts. WTO accession
sets the pace for streamlining administrative procedures and unnecessary
bureaucratic hurdles that now hamper private sector activities.
I'm pleased to note that the Lebanese Government has already taken
a number of important steps to move its accession process forward.
In May 2001, Lebanon filed the Memorandum on Foreign Trade Regime.
It has responded to the inquiries of WTO members as part of the
fact-finding phase of accession and attended three Working Party
meetings at the WTO in Geneva. Furthermore, Lebanon has responded
to questions from WTO members and submitted offers on goods and
services and other WTO required documents. Finally, Lebanon has
begun effective bilateral negotiations with a number of key WTO
member countries.
These are important first steps, but many challenging and difficult
tasks remain to be completed. For example, Lebanese enforcement
of intellectual property rights has been completely inadequate.
Although some efforts have been made, much more needs to be done
before Lebanon reaches the expected international standards. Likewise,
as I have noted before, Lebanon must also move forward on legal
reform. The Government of Lebanon has begun to bring its trade regime
into compliance with the WTO agreements: Some laws have been enacted,
other drafts have been sent to the Parliament and other are still
in the drafting process. It is important to move purposefully and
vigorously forward to complete this work.
As WTO Director-General Supachai said recently said, "Governments
cannot hope to reap the real benefits of open trade if they fail
to secure macroeconomic stability, supportive infrastructure, properly
functioning domestic markets and sound institutions… these
things go hand in hand. Failure or neglect in one area spells disappointment
in others."
I'll have to admit to you, that the WTO is not perfect--far from
it. But WTO members are constantly looking to improve their play
and all WTO members, no matter how large or small their economies
are, have their say in shaping the future of the multilateral trading
system. One reason for the successful launch of the Doha Development
Agenda was a series of important reforms to WTO decision-making
processes following the Seattle Ministerial in 1999.
This is why the capacity building of developing countries, such
as Lebanon, to participate and conduct their negotiations freely
is so important. If developing countries see themselves as equal
drivers of the process, rather than simply riders, they will be
able to use the WTO mechanisms to their benefit.
And this is where the U.S. Government through USAID and its partner
Booz Allen Hamilton have been proud to contribute by offering technical
assistance to the Government of Lebanon to promote better understanding
of the benefits WTO accession offers to Lebanon. An important component
of that effort has been to strengthen the capacity of government
policy makers, bureaucrats, business leaders, NGOs and professionals.
Building awareness and a knowledge base about the WTO is a critical
task because while people like you here understand the WTO, most
in society do not. And not surprisingly, Lebanon has its share of
anti-WTO protestors-most of whom have very little knowledge of the
WTO and its instruments.
Additionally, USAID technical assistance has focused on the mechanics
of accession and document preparation; legal and legislative reform;
institutional strengthening and trade capacity building; and public/private
sector dialogue. It is important to note that the Government of
Lebanon is very much in the driver's seat in steering these efforts
and in defining its policy objectives. Accession to WTO is a Government
of Lebanon decision. USAID and Booz Allen Hamilton are providing
the technical assistance to strengthen Lebanon's ability to reach
its stated goal.
Today's program to kick off WTO week is part of the USAID-funded
WTO project. Its purpose is to initiate a dialogue among stakeholders
from the public and the private sector on Lebanon's accession to
the WTO, its challenges and opportunities.
The United States has been a strong supporter of Lebanon's economic
reform efforts, and USAID will continue to provide assistance for
Lebanon's WTO accession. The WTO system is what you make of it,
and the main barrier to more equal participation is not in the structure
of the WTO itself, but in the capacity of developing countries to
fully participate and shape the agreements of the organization.
I look forward to fruitful discussions this week as an opportunity
to involve all stakeholders in free and open dialogue. The long-term
result of these discussions, and Lebanon's accession to the World
Trade Organization will, I believe, be increased economic opportunities
for all of Lebanon's people.
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