Mr.

Why Should Lebanon accede to the WTO:

WTO membership will provide Lebanon:

* Control over unfair treatment of Lebanese products and services in the markets of WTO countries.

* Control over unjustifiable export restrictions in other countries on exports destined to Lebanon.

* Secure, stable, open and non-discriminatory access for Lebanese exports (goods and services) in the markets of 140 - soon to be - 170 WTO Member countries.

WTO membership will lead to:

* The establishment of an environment conducive to the development of an efficient and competitive Lebanese manufacturing and service sector.

* Increase in investment capital, transfer of technology and know-how, and expansion of distribution chains of Lebanese producers.

* * Improvements in the overall economic performance of Lebanon: increase in exports and investments imply increase in economic activity, production, and employment.

* Increase in fiscal revenue as result of increase in economic activity, production, service-related activities, trade flow, and employment; thus, ability to reduce public debt.

* New opportunities and fair treatment for Lebanese service suppliers (e.g. banking, insurance, construction companies, engineers, medical doctors, and lawyers) in the markets of other WTO countries.

* Wider access for Consumers (including the Government of Lebanon as a consumer, the general public, industrial and agricultural producers, and tourists) to a wide variety of high quality products and services at lower prices.

* Freedom and non-discriminatory transit and reasonable and fair fees for transit of Lebanese products and carriers through the territories of other WTO member countries.

* Modernization of the legal, regulatory, and institutional framework in Lebanon in order to be more responsive to private sector needs.

* More stable international trade relations and confidence in trading with WTO members.

* Access to the WTO Dispute Settlement Body that will provide fair resolution and mechanism to any trade disputes that may arise between Lebanon and its trading partners.

* Good governance through the introduction of the rule of law (predictability, transparency, stability, accountability, little discretion, prompt arbitral and judicial appeal)

The cost of no WTO membership includes the following:

* While Lebanon is out of the WTO system, the industries of WTO member countries (e.g. Egypt, Jordan, and UAE) are finding their niches in international markets and grabbing market share. It will be extremely difficult for Lebanese producers to compete at a later stage with well-established channels by competitors from other countries.

* While Lebanon is waiting too long to implement WTO agreements through national legislation and establish a friendly, stable, and predictable trade and investment environment, other countries which have implemented the WTO agreements are attracting investment that may have been otherwise directed to Lebanon; this is leading to increase in the competitiveness of products and services delivered by these countries over Lebanese products and services.

* Other countries are gaining more experience in trading under WTO rules that will allow them to safeguard more effectively their producers and trading rights.

* Other countries have the opportunity to participate in shaping future WTO rules in such a way to safeguard their trade interests. In theory, the WTO decision making process is based on consensus. Each country regardless of size could have a significant impact on any future WTO rules. By delaying its accession, Lebanon is jeopardizing its ability to find the right place for itself in the international economy through active participation in multilateral negotiations rounds.

Last but not least, WTO accession does not require the elimination of protective measures. The level of protection is negotiated. In acceding to the WTO, Lebanon negotiates ceiling for its customs duties. Such ceiling (binding) may be above, equal, or below existing customs duties. After becoming a WTO Member, Lebanon may not increase its customs duties above the negotiated ceiling except in special cases such as safeguarding an industry being seriously injured by imports or for balance of payment reasons. Last, WTO will allow Lebanon to impose anti-dumping and countervailing duties to safeguard its domestic industry in case of unfair trade practices (dumped imports and subsidized imports)

The Government of Lebanon (GOL) decided to embrace full integration into the world economy and the multilateral trading system through applying for accession to the WTO. In February 1999, Lebanon submitted its request for accession to the WTO. The WTO General Council met in April 1999 and accepted Lebanon's request. As a result, Lebanon became a WTO observer and a working party was established to examine Lebanon's foreign trade regime and oversee accession proceedings. Madam Laurence Dubois-Destrizais, Head of the French Mission to the WTO, was appointed as the Chairperson of the Working Party.

The World Trade Organization (WTO) is an intergovernmental organization aimed at reducing tariff and non-tariff barriers to international trade in goods, facilitating trade in services and protecting intellectual property rights, and harmonizing trade rules. The WTO (the successor of the GATT-General Agreement on Tariffs and Trade established in 1947) was established on January 1, 1995. Currently, the WTO consists of 140 member nations including 11 Arab countries (Bahrain, Djibouti, Egypt, Jordan, Kuwait, Mauritania, Morocco, Oman, Qatar, Tunisia, and United Arab Emirates). In addition, 31 countries are in the process of acceding to the WTO including Algeria, Lebanon, Saudi Arabia, Sudan, and Yemen. Other Arab countries have not applied for WTO membership. Twenty-four of the top twenty five main trading partners of Lebanon are - or will soon be - members of the WTO. All Mediterranean countries, except Libya and Yugoslavia, are either WTO Members or negotiating accession (Albania, Algeria, Bosnia & Herzegovina, and Croatia).

Likely Impact of WTO Membership on Lebanon:

Summary of Rights, Opportunities, and Potential Benefits

WTO Members account for more than 90% of world trade in goods and services. Most countries with which Lebanon trade are - or