Industrialists and farmers received a big setback after some ministers refused to discuss and approve a $21 million plan to finance the maritime export of locally produced goods.
Agriculture Minister Akram Chehayeb, who stormed out of the Cabinet session, told reporters that some ministers shelved the issue of the package under the pretext that Thursday’s meeting only aimed to discuss appointments of top military personnel. “Some people have chosen a post over the interest of the Lebanese,” he said.
Internal Security Forces chief Maj. Gen. Ibrahim Basbous’ term was set to expire Thursday, and ministers were trying to either agree on a successor or extend his term.
“It’s unacceptable to disrupt the country for one position in light of these difficult circumstances, especially that the region around us is being torched,” Chehayeb said.
Lebanese exporters were hit hard in April when the Nusra Front and other Islamist groups took over the Nasib border crossing between Syria and Jordan. It was the last major crossing to Jordan controlled by the Syrian government.
Jordanian authorities closed the border from their side, and trucks are no longer able to cross in or out. The crossing was a gateway for Lebanese exporters to reach Gulf countries.
Addressing truckers who blocked a major highway linking Beirut to east Lebanon Thursday morning to protest the same issue, Chehayeb said: “Now you know who is obstructing the project to help you.”
The minister said that at the beginning of the session he asked the Cabinet whether a plan he proposed, in which cash and logistical assistance would be given to truck owners exporting to the Gulf by sea, would be discussed, and was disappointed when his suggestion was ignored.
Chehayeb explained that his proposal would give every truck owner $1,500 per trip to help them take the marine route instead of the traditionally used roads, as well as provide help for their return to Lebanon.
The project would cost $21 million over seven months, he said, explaining that the peak of agricultural production in Lebanon is coming soon, making it urgent for the government to devise a policy.
“We currently have 27 trucks of exports per day, and soon we will have 80,” Chehayeb said.
“If there is no export, there is no agriculture,” he added.
Antoine Howayek, president of the Lebanese Farmers Association, claimed that the minister’s $21-million subsidy proposal was not sufficient to finance the shipment of trucks by sea to the Gulf countries.
“The solution proposed by the minister is not logical because the government will need to pay $1,500 to support the export of each truck by sea and we usually export no less than 3,000 trucks per month,” he said. “The total cost of such an operation would stand at $54 million per year,” he added.
Howayek added that the minister did not give farmers a chance to explain their plan to ship their cargo by sea.
“The minister held a meeting with industry and transport ministers and he did not invite us to discuss our proposed solution,” Howayek said.
Howayek proposed that the government purchases four ferries for $10 million in a bid to export Lebanese agricultural produce for free to Arab countries.
“This way the government would help export Lebanese agro products while charging fees on merchants who are willing to import products from Arab countries by sea using these ferries,” he said. “This solution would help the government raise the money paid for the price of ferries, while subsidizing Lebanese exports and avoiding the deterioration of the sector,” he added.
Howayek added that the government could recuperatepart of the money it spent on the ferries if it resells these boats once all the crossing points between Syria and Jordan are reopened.
Howayek’s proposal was supported by Ramez Osseiran, head of Farmers’ Association in South Lebanon, who said the ministry should adopt a serious approach toward the idea.
But Osseiran cast doubt on the government’s seriousness in properly managing such a proposal.
“Politicians will seek to designate companies close to them so they can strike suspicious deals,” he said.
Osseiran said that the government needed to find a quick solution to avoid the further deterioration of this sector.
“We are at risk of losing our export markets because our cost of transport and production in general, including the price of energy, is too high when compared to other countries in the region,” he said.
“Most governments in Arab countries subsidize their agriculture sectors,” he added.
His comments were echoed by Howayek, who said that Lebanon has already lost some of its export markets. “Arab countries have started replacing Lebanon with other countries for their agro food needs,” he said.
He said that Lebanon used to export 15,000 tons of oranges, for instance, but this season the produce will either be sold in the Lebanese market or dumped.
“Potatos, for instance, are sold for LL300 per kilo in Beirut, while its cost stands at LL500 per kilo,” he said.
Howayek warned of an impending economic disaster if the issue is not quickly solved. “The agriculture sector is linked to all other sectors, and if this issue is not properly solved then the whole economy will be badly impacted,” he said.
