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Viewing cable 09BEIRUT1355, RENEWED GOL COMMITMENT TO WTO ACCESSION IN 2010 (ECONOMIC

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Reference ID Created Released Classification Origin
09BEIRUT1355 2009-12-29 06:45 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beirut
VZCZCXRO6881
RR RUEHBC RUEHDE RUEHDH RUEHKUK RUEHROV
DE RUEHLB #1355/01 3630645
ZNR UUUUU ZZH
R 290645Z DEC 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 6257
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 BEIRUT 001355 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EWWT SENV PGOV LE
SUBJECT: RENEWED GOL COMMITMENT TO WTO ACCESSION IN 2010 (ECONOMIC 
WEEK IN REVIEW, DECEMBER 14-27, 2009) 
 
CONTENTS 
-------- 
 
-- GOL AND USTR RENEW COMMITMENT TO WTO ACCESSION 
-- LEBANON COMMITTED TO DEALING WITH CLIMATE CHANGE 
-- MOODY'S AND STANDARD & POOR'S UPGRADE LEBANON OUTLOOK 
-- UNCTAD: GROWING MARITIME ACTIVITY BUCKING GLOBAL TREND 
 
GOL AND USTR RENEW 
COMMITMENT TO WTO ACCESSION 
--------------------------- 
 
1. (SBU) Assistant U.S. Trade Representative Christopher Wilson 
briefed GOL officials and parliamentarians on the status of 
Lebanon's WTO negotiations during a one-day visit to Beirut December 
17.  Wilson said the USG sees a real opportunity for Lebanon, with a 
new cabinet in place, to move toward WTO accession by the end of 
2010.  Wilson indicated USTR would like to see more ambitious market 
access offers, an improvement in terms of trade and services, and 
completion of some pending legislation, including intellectual 
property-related draft laws and amendments.  Minister of Economy and 
Trade Mohammad Safadi stressed Lebanon's commitment to WTO 
accession.  Safadi said there was no political resistance to pending 
WTO-legislation but noted the GOL was still facing resistance to 
accession from the agricultural and industrial sectors. 
 
2. (SBU) During a lunch hosted by the American Lebanese Chamber of 
Commerce (AmCham), Wilson also raised the importance of 
strengthening the legal basis for intellectual property protection 
and enforcement of legislation in order to attract investment.  He 
noted that the USG will continue its technical support to Lebanon 
for WTO accession and said USTR is committed to working with Lebanon 
to meet the GOL goal of acceding by the end of the year.  AmCham 
president Salim Zeenni said AmCham is planning a trip to New York 
and Washington in February and would follow-up on these issues with 
USTR. 
 
LEBANON COMMITTED TO 
DEALING WITH CLIMATE CHANGE 
--------------------------- 
 
3. (U) Prime Minister Saad Hariri expressed Lebanon's commitment to 
dealing with climate change and noted that Lebanon aims to be able 
to cover 12% of its energy needs with renewable energy sources by 
2020.  Hariri, who was speaking during the UN Climate Change 
Conference (COP15) in Copenhagen, headed a delegation including the 
ministers of health, energy and water, finance, and environment. 
The impact of climate change on Lebanon is enormous, he said, with 
direct effects on sea level and water supply, agriculture, and the 
survival of cedar trees, the country's national emblem.  As reported 
by the local press, Hariri noted that Lebanon would work to decrease 
gas emissions but did not specify exact measures to be taken, 
although he called on developed countries to provide the assistance 
to developing countries. 
 
MOODY'S AND STANDARD & POOR'S 
UPGRADE LEBANON OUTLOOK 
-------------------- 
 
4. (U) Moody's Investors Service upgraded the outlook on Lebanon's 
B2 government bond issuer rating to positive from stable.  The 
upgrade was attributed to improvement in external liquidity, 
strengthened ability of the banking system to finance fiscal 
deficits, and the formation of a cabinet in November.  Moody's also 
upgraded to positive from stable Lebanon's B2 country ceiling for 
foreign currency bank deposits and B1 country ceiling for foreign 
currency bonds.  Despite the upgrade, Moody's noted its concerns 
about potential vulnerabilities in the country's economic and 
political situation, as well as the sluggishness of economic reform. 
 
 
5. (U) Meanwhile, Standard & Poor's (S&P) also raised its ratings on 
Lebanon's long and short-term sovereign credit to B/B from B-/C, 
with a positive outlook.  S&P attributed the upgrade to many of the 
same circumstances cited by Moody's, most notably the "new 
cross-party consensus" that allowed PM Hariri to form a national 
unity government in November. 
 
UNCTAD: GROWING MARITIME 
ACTIVITY BUCKING GLOBAL TREND 
----------------------------- 
 
6. (U) Lebanon ranked 34 out of 162 countries worldwide and 6 out of 
18 MENA countries in the UN Conference on Trade and Development's 
(UNCTAD) Liner Shipping Connectivity Index (LSCI).  This constituted 
an improvement of 8 places worldwide compared to last year, while 
Lebanon's regional ranking remained unchanged.  UNCTAD noted that 
 
BEIRUT 00001355  002 OF 002 
 
 
Lebanon's transport connectivity system was relatively well 
developed and improvement in its ranking stood in contrast to the 
global trend of slower maritime activity due to the financial 
crisis. 
 
7. (SBU) UNCTAD also noted that from 2004-2008, Lebanon witnessed 
the third highest average annual growth rate worldwide in terms of 
LSCI.  The LSCI measures levels of integration into global liner 
shipping networks, access to world markets, and ease of conducting 
maritime trade.  Lebanon's main port is the Beirut Port, but recent 
GOL efforts have focused on expanding the northern Tripoli Port, a 
project financed by a $50 million soft loan from the European 
Investment Bank (EIB).  The former Chairman of the Tripoli Port 
previously told us this project would enable the port to compete 
with the Syrian ports of Lattaquieh and Tartous. 
 
SISON