BEIRUT: Industrial exports dropped by 15.7 percent in the first nine months of 2016 compared to the same period last year, a statement from the Industry Ministry said. “Industrial exports dropped to $1.897 billion in the first nine months of 2016 compared to $2.249 billion during the same period last year and compared to $2.388 billion for the first nine of months of 2014,” according to the statement.
Moreover, the industrial exports’ monthly average in the first nine months of 2016 reached $210.8 million compared to $249.9 million for the same period in 2015 and $265.3 million in 2014. The statement said that industrial exports in September 2016 reached $184.3 million compared to $242.5 million during the same month last year, equivalent to a decrease of 24 percent. “Also, industrial exports dropped by 31.5 percent in September 2016 compared to the same month in 2014,” it said.
Industrialist and former Tourism Minister Fadi Abboud attributed this drop to the high cost of production in Lebanon compared to neighboring countries which results in unfair competition. Abboud said that one of the reasons behind this drop as well is the closure of the borders between Lebanon and the rest of the Arab world due to the war in Syria. “The closure of land borders prompt some industrialists to ship their goods via sea which is much more expensive,” he said.
Abboud added that it costs around $800 to load a 40-foot container on a ship at Port of Beirut before even shipping it, which makes Lebanon among the most expensive countries in the world when it comes to shipping costs. According to Abboud, among the reasons behind the drop in industrial exports are the “unfair” trade agreements signed with European countries. “We should have been smarter when we signed free trade agreements with European countries because they only import specific products from Lebanon,” he said.
