Exclusive agencies in Lebanon. (c2006)

Abstract

Abolishing the protection of exclusive agencies has been a central political and economic issue in Lebanon for the past four years. On February 14, 2002, the cabinet of former Rafic Hariri endorsed the draft law involved in lifting the protection of exclusive agencies. The Lebanese government took this measure after increased pressure from the Euro-med partnership policy and the World Trade Organization accession. The Hariri cabinet had to work on a series of draft laws to enhance free trade and competition in Lebanon in order to carry out the requirements set by these two parties. This move generated a big dispute between most of politicians, exclusive agents, economists, associations, the media and even religious leaders and personalities. Lebanon was divided between supporters and opponents of this draft law. Exclusive agents had what they called legal justification in not ending their protection by referring to reasons such as the importance of quality and after sale service, whereas the supporters of the draft law also had their own justification in putting an end to monopoly and opening the market to competition. The draft law of abolishing the protection of exclusive agencies was ratified by the Lebanese parliament and will be in effect as of January 1, 2008. However, Lebanese president Emile Lahoud refused to sign it. This draft law is still pending.