Free Trade Agreements

  • Overview
  • 1. Greater Arab Free Trade Area Agreement (GAFTA)
  • 2. Euro-Mediterranean Association Agreement (EMP)
  • 3. European Free Trade Association Agreement (EFTA)
  • 4. U.S. Generalized System of Preferences program (GSP)

Overview

Lebanon has several active Free Trade Agreements (FTAs) with its major trading partners; namely the European Union (EU), the EFTA States (Switzerland, Lichtenstein, Norway, Iceland), and the Gulf Cooperation Countries (GCC).

These multilateral free-trade agreements ensure preferential market access through exemption on customs duties for your exports.

1. Greater Arab Free Trade Area Agreement (GAFTA)

The Greater Arab Free Trade Area (GAFTA) agreement was ratified in 1997 and came into force in 1998 among 17 member states from the Arab world. The agreement stipulates the gradual reduction followed by full exemption from customs duties and other fees as well as charges for agriculture and industrial products.

Eligible products:
  • Agriculture products
  • Agri-food products
  • Industrial Products

Benefits of the GAFTA agreement for Lebanese exporters:
  • Duty-free access for eligible products to 17 Arab countries
  • Significant competitive tariff advantages over non-GAFTA countries
  • Encouragement of regional integration and production sharing among member countries

Documentation requirements:
To be eligible for customs duty exemptions, Arab states request a copy of the certificate of origin that proves the origin of the products. This certificate is issued from the Chamber of Commerce in Lebanon and authenticated by the Ministry of Foreign Affairs, the Ministry of Agriculture, and the Ministry of Industry (depending on the type of product). You may check the GAFTA Rules of Origin calculations through the Ministry of Economy and Trade’s website.

2. Euro-Mediterranean Association Agreement (EMP)

Lebanon signed an Association Agreement with the EU in June 2002, which entered into force in April 2006. As a result, Lebanese agriculture and processed products are exempted from all customs duties and any other charges upon entry into to the European Union.

Eligible products:
  • Agriculture products
  • Agri-food products
  • Industrial Products

You may check the website of the Ministry of Economy and Trade to identify all of the products that are exempted from customs duties under the EU Mediterranean Trade Agreement signed by Lebanon.

Benefits of the Euro-Mediterranean Association agreement for Lebanese exporters:
  • Duty-free access for eligible products to 27 EU countries
  • Significant competitive tariff advantages over countries that are not part of this agreement and that don’t have a Free Trade Agreement with the EU
  • Encouragement of trade and investment as well as technology transfer between Lebanon and the EU countries.

Documentation requirements
To be eligible for customs duty exemptions, Lebanese exports need to be accompanied by a certificate of origin which is called EURO.1, which proves goods that are entitled to duty free treatment because they comply with the European or the European Free Trade Association (EFTA) rules of origin. This certificate is available at the Customs Department and at the Chamber of Commerce. The certificate must be typed in English and must include the exporters’ signature and seal. In order to be valid, the Customs Department must also stamp the certificate.

3. European Free Trade Association Agreement (EFTA)

This agreement between the European Free Trade Association (EFTA) and Lebanon grants Lebanese industrial exports (including processed agricultural products, fish, and other marine products) free access upon entry into any of the four EFTA member states (Switzerland, Liechtenstein, Norway, and Iceland).

Eligible products:
  • Agriculture products
  • Agri-food products
  • Industrial Products

Benefits of the EFTA agreement for Lebanese exporters:
  • Duty-free access for eligible products to 4 European countries
  • Significant competitive tariff advantages over countries that do not have a Free Trade Agreement with these 4 countries
  • Encouragement of trade and investment as well as technology transfer between Lebanon and the 4 European countries

Documentation Requirements
The same certificate of origin for the European Union — the EURO.1 — is used to benefit from customs duties under the EFTA agreement.

4. U.S. Generalized System of Preferences program (GSP)

Lebanon is part of the U.S. Generalized System of Preferences (GSP) program which provides preferential duty-free entry to the United States for eligible products from Lebanon. Nearly all Lebanese exports to the United States fall under the GSP program, meaning they can be exported to the United States duty-free.

Eligible products:
  • Agriculture products
  • Agri-food products
  • Industrial Products

Benefits of the US GSP for Lebanese exporters:
  • Duty-free access for eligible products to the US.
  • Significant competitive tariff advantages over countries that do not have a Free Trade Agreement with the US
  • Encouragement of trade and investment as well as technology transfer between Lebanon and the US

Documentation Requirements
To benefit from the customs duty exemption under the GSP program, exporters need to submit a certificate of origin that is issued by the Chamber of Commerce and authenticated by the , the Ministry of Industry, and the Ministry of Agriculture (depending on the type of product).

Tips

  • For the full text of each agreement and information on the status of FTAs in force, concluded, and under negotiation, please visit the Ministry of Economy and Trade’s website.
  • The International Trade Center (ITC) has put a free interactive tool at the disposal of exporters called rules of origin facilitator empowering them to benefit from trade agreements worldwide and enhance their knowledge of available free trade agreements and preferential schemes.