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Viewing cable 08BEIRUT1281, LEBANON: PARLIAMENT OPEN; NOT CLEAR WHEN IT WILL TAKE UP

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Reference ID Created Released Classification Origin
08BEIRUT1281 2008-09-02 13:33 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beirut
VZCZCXRO3192
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV
DE RUEHLB #1281/01 2461333
ZNR UUUUU ZZH
R 021333Z SEP 08
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 2898
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 BEIRUT 001281 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR NEA/ELA 
STATE PASS USTR 
TREASURY FOR MNUGENT AND SBLEIWEISS 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR ABRAMS/RAMCHAND/YERGER/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PREL PGOV LE
SUBJECT: LEBANON: PARLIAMENT OPEN; NOT CLEAR WHEN IT WILL TAKE UP 
IPR LEGISLATION (ECONOMIC WEEK IN REVIEW, AUGUST 25 - 31, 2008) 
 
CONTENTS 
-------- 
 
-- IPR RELATED LEGISLATION STILL PENDING IN PARLIAMENT 
-- LEBANON TO PURCHASE EGYPTIAN ELECTRICITY TO REDUCE POWER CUTS 
-- CENTRAL ADMINISTRATION OF STATISTICS LAUNCHES CHILDREN AND WOMEN 
SURVEY 
-- EC: LEBANON HAS PROGRESSED IN SIMPLIFYING TRADE 
-- KUWAITI FUND LAUNCHES DEVELOPMENT PROJECTS IN THE SOUTH 
-- EFG HERMES ESTIMATES 3.5 PERCENT GROWTH IN 2008 
-- LEBANON RANKS 60 GLOBALLY IN ENVIRONMENTAL PERFORMANCE INDEX 
-- NUMBER OF TOURISTS TO REACH TWO MILLION A YEAR BY 2020 
 
 
IPR RELATED LEGISLATION 
STILL PENDING IN PARLIAMENT 
-------------------- 
 
1. (SBU) A senior legal trade specialist at the Ministry of Economy 
and Trade (MOET) told us on August 27 that, although parliament has 
reopened, it is not known yet if there will be progress on 
IPR-related draft laws and amendments that were sent to parliament 
in 2007.  These include an amendment to the copyright law, and new 
draft laws on geographical indications, trademark, and industrial 
design.  The draft legislation must be still studied by the relevant 
parliamentary committees.  Priority is being given to passing the 
electoral law during the current parliamentary session, after which 
all other pending legislation will be considered, she said. 
 
2. (SBU) One pending question, said the MOET official, is whether 
Speaker Berri will confirm receipt of these draft laws and 
amendments, which were sent to parliament when it was not 
functioning.  At the time, Speaker Berri did not acknowledge receipt 
because he considered the cabinet that sent them illegitimate.  The 
fact that Berri stated, right after President Sleiman was elected, 
that parliament would now focus on laws related to Paris III, may be 
a positive sign that Berri may accept and take into consideration 
legislation that was sent to parliament when it was closed, she 
said. 
 
LEBANON WILL PURCHASE EGYPTIAN 
ELECTRICITY TO REDUCE POWER CUTS 
-------------------- 
 
3. (SBU) During PM Siniora's visit to Egypt on August 27, Lebanon 
signed an agreement with Egypt for the purchase of surplus 
electricity, implementing one of the measures pledged in the 
ministerial policy statement.  However, the GOL still needs to 
negotiate the price with the Egyptian authorities, and is asking for 
preferential rates as a sign of Egypt's support to Lebanon. So far, 
however, the Egyptians are asking for "exorbitant" rates, according 
to Lebanese Energy Minister Tabourian.  Lebanon will also study a 
Jordanian offer for additional power supply in order to reduce 
severe power rationing all over Lebanon.  In recent months, people 
have taken to the streets in several regions, burning tires and 
blocking roads, to protest severe power outages. 
 
CENTRAL ADMINISTRATION OF STATISTICS 
LAUNCHES CHILDREN AND WOMEN SURVEY 
-------------------- 
 
4. (U) On August 28, the Central Administration of Statistics (CAS), 
in collaboration with UNICEF and under the patronage of PM Siniora, 
launched the 2008 Multiple Indicator Cluster Survey (MICS3) that 
will gather statistics on children and mothers in Lebanon.  CAS 
Director General Dr. Maral Totalian indicated that the results of 
the survey would provide the basis for sound economic, social, and 
health policies.  Collection of data on the ground is expected to 
begin in October 2008. 
 
EC: LEBANON HAS PROGRESSED 
IN SIMPLIFYING TRADE 
-------------------- 
 
5. (U) According to the European Commission (EC)'s latest progress 
report on Lebanon's implementation of its Action Plan for the 
European Neighborhood Policy, Lebanon has made progress in 
simplifying trade.  The report noted that dismantling of tariffs on 
European industrial and certain agricultural products has already 
taken place, while import procedures have been simplified, and 
 
BEIRUT 00001281  002 OF 002 
 
 
restrictions on import and export activities of foreigners were 
removed.  An upgraded consumer protection law was adopted, and draft 
regulations dealing with liability for defective products and 
general product safety comply with relevant EU legislation.  The 
report mentioned that the EC is assisting Lebanon in improving the 
business climate with a new business code and bankruptcy law.  The 
report also cited, key obstacles remaining for foreign investment, 
including difficulty in enforcing contracts, the absence of 
commercial courts, and lack of an independent judiciary. 
 
KUWAITI FUND LAUNCHES DEVELOPMENT 
PROJECTS IN THE SOUTH 
-------------------- 
 
6. (U) Daily An-Nahar newspaper reported on August 25 the launch of 
the Kuwaiti Fund for Arab Economic Development's projects in the 
province of Nabatieh in the south, covering 25 villages.  The 
projects, valued at around $185 million, are part of the Fund's 
grant for reconstruction in the aftermath of the 206 July War, 
mostly focusing on water and waste ater, as well as roads. 
 
EFG HERMES ESTIMATES 3. 
PERCENT GROWTH IN 2008 
-------------------- 
 
7. (U) In its most recent report on MENA economies, leading 
investment bank EFG Hermes indicated that Lebanon seems to be 
reaping short-term gains from the current political stability. 
However, it kept its 2008 growth forecast at 3.5 percent, as 
economic growth has displayed volatility in recent years, and 4.5 
percent growth for 2009.  In nominal terms, the report expected a 
GDP of $27.6 billion in 2008 and $30.7 billion in 2009.  While 
inflation reached a historical high of 9.3 percent in 2007, it was 
expected to decrease slightly to around eight percent in 2008.  EFG 
Hermes estimated the 2008 trade deficit at 39 percent of GDP in 
2008, while it expected the balance of payments to reach around $2 
billion by year-end. 
 
LEBANON GETS LOW MARKS GLOBALLY IN 
ENVIRONMENTAL PERFORMANCE INDEX 
-------------------- 
 
8. (U) According to the Environmental Performance Index, Lebanon 
ranked 90 out of 149 countries worldwide, and 9 out of 12 MENA 
countries, in terms of environmental performance.  The index -- 
issued by Columbia and Yale Universities, in collaboration with the 
Joint Research Center of the European Commission, and the World 
Economic Forum -- ranks countries on 25 indicators grouped into six 
categories: environmental health, air pollution, water resources, 
biodiversity and habitat, productive natural resources, and climate 
change. 
 
NUMBER OF TOURISTS TO REACH 
TWO MILLION A YEAR BY 2020 
-------------------- 
 
9. (U) The World Tourism Organization (WTO) noted in its latest 
report "Tourism 2020 Vision" that incoming tourists to Lebanon 
averaged around one million visitors each year the past four years, 
a shaky period for Lebanon's tourism sector.  The WTO expects the 
number of tourists to reach almost two million a year by 2020.  The 
report noted rising tourist spending, with the average outlay for a 
tourist traveling in Lebanon reaching $4,300. 
 
SISON