Successive Governments have signed a host of bilateral, and now increasingly multilateral agreements, all aimed at cutting Customs duties and boosting trade activity. These agreements are intended to make it easier for local and foreign companies established in Lebanon to export, by reducing the tariffs of recipient countries, and by easing the bureaucratic complexity of trade regulations.

Lebanon is currently involved in four major international agreements: The Lebanese-Syrian Trade agreement, The Arab Free Trade Zone, The Euro-Mediterranean Partnership & The World Trade Organization (WTO or GATT). Each agreement may have its own idiosyncratic qualities. The Arab Free Trade Zone is an important agreement for Lebanon, exports to the Arab countries represent more than 40% of Lebanon's exports and the Arab countries are considered as the traditional natural partners of Lebanon. The Euro-Mediterranean Partnership and the World Trade Organization agreements will also be beneficial to Lebanon as they will create new export markets.

a- Lebanese-Syrian Agreement :
Lebanon has signed a trade agreement with Syria leading to reducing customs duties by 25% yearly, starting January 1st, 1999 on products made in either country. This agreement is expected to result in a free transfer of goods at the end of the fourth year. Implementing this agreement, Lebanon has, on the start without considering population growth for the coming years, additional 16 million customers to attend to with reduced customs duties in 1999 reaching to no customs in 2003. In addition Lebanese industrialists could export to Syria products that are prohibited to be imported from international markets.

b- Arab Free Trade Zone :
This agreement leads to reducing tariffs on all products by 10% annually for one decade, starting January 1998 and ending December 2007. This agreement is expected to be very advantageous to the Lebanese industrialists, as it will open new horizons for export.

c- Euro-Mediterranean Agreement :
The Euromed agreement envisages the creation of a deeply integrated Euro -Mediterranean market, it denotes reducing customs duties on products for 12 years by different percentages that seem appropriate for each respective year of these twelve years.

d- World Trade Organization (WTO or GATT) :
Lebanon has acquired observer status in anticipation of gaining membership in the World Trade Organization (WTO). This will allow a free trade of goods among the participating countries with an agreed upon customs duties for each country, which will not be canceled on the consequence of this agreement.

Upon the signature of any of the last two agreements, investors could be interested in establishing manufacturing activities in Lebanon to serve the different participating countries. In addition to these, Lebanon will benefit from the technical assistance provided as a grant by the European Community when joining the partnership in order to boost the performance of the Lebanese companies operating in Lebanon.

Adding to the aforementioned agreements, Lebanon has been active recently in signing trade and financial protocols with traditional and new economic partners to promote investments and trade. Consequently, several agreements have been signed with different countries * for Investment Promotion and Double Taxation.

Investment Promotion Agreements :
Lebanon has signed investment promotion agreements with Canada (1999), Greece (1999), Tunisia (1999), Iran (1999), Malaysia (1999), and many others.

Non-Double Taxation Agreements :
-Lebanon has signed non-double taxation agreements with France (1963), Egypt (1996), Romania (1996), Pakistan (1996), Syria (1997), Malta (1999), Russia (1999), Tunisia (1999), Armenia (1999) and Iran (1999). Agreements with several other countries are currently under negotiation. Lebanon also signed agreements with Japan, Pakistan, Norway and Italy regarding non-double taxation on income of marine and air transport companies.

-Lebanon plans to ratify agreements with the United States, Great Britain, Japan and Canada to avoid double taxation of nationals of the above-mentioned countries carrying out business activities in Lebanon.