Lebanon’s Agriculture Sector Falls Victim to Smuggling, High Export Tariffs

A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
TT

Lebanon’s Agriculture Sector Falls Victim to Smuggling, High Export Tariffs

A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi

Prime Minister Saad Hariri has said that Lebanon’s agriculture sector should be organized to compete in outside markets amid complaints by farmers that they have fallen victim to smuggling and high export tariffs.

Hariri spoke during a workshop titled “Transforming Lebanon’s Agriculture: Challenges and Opportunities” that was held at the Grand Serail in Beirut on Friday.

“The sectors linked to agricultural policies should be developed,” said Hariri. “We need a unified agenda for a roadmap on developing the sector.”

“Agriculture accounts for only four percent of GDP,” he told the conference, saying the sector’s success brings back farmers to their villages.

Agriculture comes in third place after the services and industry sectors in Lebanon. But its budget forms only eight percent of the state budget.

Around 200,000 families work in agriculture, which means 20 to 30 percent of the labor force.

However, the chief of the Bekaa Farmers Association, Ibrahim Tarshishi, told Asharq Al-Awsat that smuggling has severely affected the sector.

“Whenever a farmer has a good crop season, he sees his same produce at lesser cost,” said Tarshishi. The sector faces other severe constraints such as increasing water scarcity and loss of arable land.

In addition, there isn’t enough subsidies. The Investment Development Authority of Lebanon (IDAL) gives farmers 100 Lebanese pounds for every kilogram of exported apples, and 65 pounds for every kilogram of potato.

“The subsidies were at first acceptable, but they no longer meet the current challenges,” said Tarshishi.

Subsidies to farmers are meaningless when there are high export costs, he told the newspaper. There are tariffs of around 4,000 dollars for each truck that passes through al-Boukamal crossing on the Syrian-Iraqi border.

As for the Nasib border crossing between Jordan and Syria, there is a cost of 1,000 dollars for each lorry, he added.



Gold Drops Nearly 2% on Profit-booking, Trump's Treasury Secretary Pick

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Drops Nearly 2% on Profit-booking, Trump's Treasury Secretary Pick

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold dropped nearly 2% on Monday, weighed down by profit-taking after a five-session rally, with further pressure from the announcement of fund manager Scott Bessent as the next US Treasury secretary.
Spot gold was down 1.8% at $2,664.53 per ounce, as of 0619 GMT, after declining more than 2% earlier in the session. Bullion had hit its highest since Nov. 6 earlier in the day.
US gold futures shed 1.7% to $2,666.40.
Gold's five-session rally has paused due to some profit-taking and Donald Trump's pick of Bessent as the next US Treasury secretary, hinting at tempered use of tariffs and easing US-China trade uncertainty, said IG market strategist Yeap Jun Rong.
President-elect Trump has floated the idea of a 60% tariff on Chinese goods and at least a 10% levy on all other imports.
Gold is considered a safe investment during times of economic and political uncertainty.
Investors are also awaiting minutes of the Federal Reserve's November meeting, GDP data (first revision), and core PCE figures, all due this week.
Traders currently see a 56% chance of another 25-basis-point rate cut in December, compared to 62% last week, according to the CME Fedwatch tool.
Recent less dovish signals from US policymakers suggest any unexpected rise in inflation could strengthen expectations of a rate hold in December, Rong said.
Higher interest rates tend to make gold less appealing, as they yield no interest.
Some Fed policymakers last week expressed concerns that inflation progress may have stalled, advocating for caution, while others emphasized the need for continued rate cuts.
On the geopolitical front, Hezbollah fired heavy rockets at Israel on Sunday, following an Israeli airstrike that killed at least 29 in Beirut. There were reports of damage near Tel Aviv.
Spot silver fell 2.2% to $30.63 per ounce, platinum was down 1.2% to $952.00 and palladium slipped 1% to $998.88.