The U.S. Department of Commerce recently published Lebanon’s Country Commercial Guide (CCG), which sheds light on the country’s major economic and commerce statistics, its trade relationships with the United States, and several other relevant topics. More specifically, each CCG is usually prepared by the U.S. Embassy in the concerned country with the assistance of several U.S. government agencies. Said report provides a glimpse on the country’s political and economic environment, business environment, investment climate, trade regulations and standards, and the local industries and/or sectors that have the biggest potential and which may be of interest for the United States, in addition to a few guidelines for selling U.S. products and services in the related market. Locally, the CCG unveiled that Lebanon has been facing a myriad of crises recently namely the large economic contraction, the sizeable depreciation of the local currency, the default on Eurobond repayment, the Beirut Port explosion and the Covid-19 pandemic. The report commented that despite its small size, Lebanon has historically provided unique opportunities for U.S. firms, commenting that U.S. products enjoy a positive receptivity, yet recent developments which drove many Lebanese below the poverty line, have dented the demand for such products. However, and always in the same vein, the CCG stated that if Lebanon were to implement the requested reforms, conditions would improve and opportunities would increase for U.S. companies.

In figures, the CCG cited the Lebanese Customs Authority’s statistics, which show that Lebanon’s imports from the United States reached $936 million (8.2%) out of a total imports figure of $11.3 billion in 2021. The CCG further relied on data published by the Lebanese Customs Authority to uncover that the United States was Lebanon’s largest trading supplier of imported goods to Lebanon in 2021, followed by Greece, Turkey, China and Italy. In details, the CCG outlined key U.S. exports to Lebanon namely, mineral fuel and oil ($258 million), chemical industrial products ($235 million), vehicles ($150 million), vegetable products & prepared foodstuffs ($61 million), and beverages & tobacco ($25 million). According to the report, the International Monetary Fund forecasted Lebanon’s GDP to contract by 9.5% in 2021, having shed 20% in 2020 and 6.7% in 2019.

The CCG revealed that the U.S. government has not inked with the Lebanese authorities any Bilateral Investment Treaty (BIT) or any arrangement to avoid double taxation, yet has penned a Trade and Investment Framework Agreement (TIFA) with the country in the year 2006. In the same vein, the CCG stated that Lebanon has signed an association agreement with the European Union in 2002, with the agreement coming to force in 2006. Lebanon has also been an observer at the World Trade Organization (WTO) since 1999.

From another standpoint, the CCG cited Lebanon’s highly educated labor force, limited restrictions on investors and legal underpinnings of a free market as key characteristics of the Lebanese economy. On the other hand, the CCG pinpointed a set of challenges faced by the Lebanese economy, namely the high corruption levels, de-facto capital controls, outdated legal system and poor public services.