WORLD TRADE
ORGANIZATIONWT/REG101/R/B/2
G/L/545
13 May 2002
(02-2661)
Original: English
COOPERATION AGREEMENT BETWEEN THE EUROPEAN COMMUNITY
 AND  LEBANON
Biennial Report on the Operation of the Agreement
Communication from the European Community
The report below presents the information rece ived from the Permanent Delegation of the
European Commission, dated 19 April 2002.  It is organized in accordance with the standard format
(WT/REG/W/6).
_______________
This report covers the period 1999-2001.  The previous biennial report submitted by the EC
on the operation of the Cooperation Agreement between the EC and Lebanon was circulated as WTO
document  WT/REG101/R/B/1, G/L/369 of 28 April 2000.
I. BACKGROUND INFORMATION ON THE AGREEMENT
1. Membership and dates of signature, ratification and entry into force
The Co-operation Agreement between the European Community and Lebanon was signed on
3 May 1977. No changes have intervened under this heading since the last report.
2. Type of agreement
The Co-operation agreement between the European Community and Lebanon covers three
main areas: trade, social affairs and economic and financial co-operation.
On 8 November 1995, negotiations began on an Euro-Mediterranean association agreement
between Lebanon and the European Union (EU). After several rounds of discussions, by October
2001 negotiations were well underway. Negotiations are expected to conclude in the near future.
The Association Agreement will cover a number of areas, essentially involving political
dialogue, the establishment of a free-trade area over a transitional period, economic and financial co-operation and co-operation in social and cultural affairs.
4. Trade data
Total bilateral trade in 2000 amounted to a little over €3 billion.  Relevant trade statistics for
the period are provided in the annex.WT/REG101/R/B/2
G/L/545
Page 2
II. TRADE PROVISIONS
1. Import restrictions &
2. Export restrictions &3. Rules of origin &
4. Standards &
5. Safeguards &
6. Anti-dumping and countervailing measures
These trade provisions of the Agreement have not been modified during the reporting period.
7. Subsidies and State-aid
The Agreement does not include any provisi ons concerning State aids or subsidies.
8. Sector-specific provisions
The situation remains as described in the last regular report.
III. GENERAL PROVISIONS OF THE AGREEMENT &
IV. OTHER
The situation remains as described in the last regular report.WT/REG101/R/B/2
G/L/545
Page 3Annex
EC-Lebanon Imports/Exports, 2000 and comparison with extra-EU
balance balance
HS Section M Euro % Total M Euro % Total M Euro M Euro % Total M Euro % Total M Euro imports exports
07-Aug-01
Total 206 100.0% 2,845 100.0% 2,639 1,026,798 100.0% 937,836 100.0% -88,961 0.0% 0.3% 13.78
of which:
01 Animals & animal products 7 3.4% 204 7.2% 197 15,386 1.5% 12,064 1.3% -3,321 0.0% 1.7% 28.98
02 Vegetable products 3 1.2% 36 1.3% 34 25,086 2.4% 11,223 1.2% -13,864 0.0% 0.3% 14.43
03 Animal or vegetable fats 0 0.2% 18 0.6% 17 2,360 0.2% 2,687 0.3% 327 0.0% 0.7% 52.22
04 Prepared foodstuffs 10 4.8% 182 6.4% 172 22,170 2.2% 29,937 3.2% 7,767 0.0% 0.6% 18.46
05 Mineral products 16 7.6% 395 13.9% 379 160,181 15.6% 33,372 3.6% -126,808 0.0% 1.2% 25.23
06 Chemical products 35 17.1% 373 13.1% 338 63,673 6.2% 113,378 12.1% 49,705 0.1% 0.3% 10.56
07 Plastics & rubber 2 0.8% 91 3.2% 89 26,308 2.6% 35,240 3.8% 8,932 0.0% 0.3% 54.89
08 Hides & skins 7 3.5% 11 0.4% 4 10,204 1.0% 8,969 1.0% -1,234 0.1% 0.1% 1.49
09 Wood & wood products 2 0.9% 24 0.8% 22 14,618 1.4% 7,007 0.7% -7,611 0.0% 0.3% 13.68
10 Wood pulp products 5 2.5% 86 3.0% 81 17,021 1.7% 24,481 2.6% 7,461 0.0% 0.4% 16.44
11 Textiles & textile articles 18 8.7% 180 6.3% 162 69,611 6.8% 40,549 4.3% -29,062 0.0% 0.4% 10.01
12 Footwear, headgear 0 0.2% 23 0.8% 23 10,903 1.1% 6,825 0.7% -4,078 0.0% 0.3% 68.19
13 Articles of stone, plaster, cement, asbestos 1 0.3% 64 2.3% 63 7,846 0.8% 15,121 1.6% 7,275 0.0% 0.4% 92.40
14 Pearls, (semi-)precious stones, metals 32 15.3% 101 3.6% 70 35,656 3.5% 28,969 3.1% -6,687 0.1% 0.3% 3.20
15 Base metals & articles thereof 37 17.9% 155 5.5% 118 57,454 5.6% 52,942 5.6% -4,512 0.1% 0.3% 4.20
16 Machinery & mechanical applicances 19 9.2% 458 16.1% 439 298,805 29.1% 298,008 31.8% -797 0.0% 0.2% 24.03
17 Transportation equipment 5 2.2% 284 10.0% 279 90,679 8.8% 139,903 14.9% 49,224 0.0% 0.2% 61.11
18 Instruments - measuring, musical 2 1.1% 65 2.3% 63 42,480 4.1% 39,533 4.2% -2,947 0.0% 0.2% 27.85
19 Arms & ammunition 0 0.0% 4 0.2% 4 601 0.1% 1,574 0.2% 973 0.0% 0.3%
20 Miscellaneous 2 1.1% 63 2.2% 61 27,149 2.6% 18,409 2.0% -8,739 0.0% 0.3% 28.03
21 Works of art 0 0.1% 4 0.1% 4 2,672 0.3% 4,583 0.5% 1,910 0.0% 0.1% 14.51
Other 4 1.8% 23 0.8% 19 25,935 2.5% 13,062 1.4% -12,872 0.0% 0.2% 6.01
Source : Eurostat COMEXT 30 Jul 01 (Statistical regime 4) TRADE/D/1  Paul VERBURGTimports exportsEU15 trade 2000 with EXTRA-EUR Lebanon / Total
0604 LebanonLebanon
market shares Exp-Imp 
ratio
1011 Extra-EUREU15 trade 2000 with Lebanon
imports exportsWT/REG101/R/B/2
G/L/545
Page 4
EC-Lebanon Imports/Exports, 1997-2000
__________EU15 trade 1997-2000 with Lebanon (million Euro)
imports exports balance total trade
HS Section 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000 1997 1998 1999 2000
011 Extra-EU1507-Aug-01
Total 154 154 209 206 3,095 2,823 2,665 2,845 2,941 2,669 2,456 2,639 3,249 2,978 2,874 3,051
of which:
01 Animals & animal products 12 10 8 7 198 188 180 204 186 178 172 197 210 199 188 211
02 Vegetable products 22233 5 4 2 3 8 3 63 2 4 0 3 6 3 43 7 4 4 4 0 3 9
03 Animal or vegetable fats 10102 2 2 8 1 9 1 82 1 2 8 1 9 1 72 2 2 8 2 0 1 8
04 Prepared foodstuffs 7 8 9 10 181 180 181 182 175 172 172 172 188 188 190 192
05 Mineral products 6 0 6 16 309 203 258 395 303 203 252 379 314 204 264 411
06 Chemical products 18 19 21 35 307 319 349 373 288 300 328 338 325 338 369 408
07 Plastics & rubber 1112 1 1 2 1 0 2 9 6 9 1 1 1 1 1 0 1 9 4 8 9 1 1 2 1 0 3 9 7 9 3
08 Hides & skins 34571 1 1 18 1 1 87441 5 1 5 1 3 1 8
09 Wood & wood products 00022 0 2 4 2 0 2 42 0 2 4 2 0 2 22 0 2 5 2 1 2 6
10 Wood pulp products 59857 8 8 1 8 3 8 67 3 7 3 7 5 8 18 3 9 0 9 1 9 2
11 Textiles & textile articles 18 19 16 18 203 213 170 180 186 194 154 162 221 231 186 198
12 Footwear, headgear 11103 4 3 4 2 4 2 33 3 3 4 2 3 2 33 5 3 5 2 5 2 3
13 Articles of stone, plaster, cement, asbestos 00118 9 7 5 6 6 6 48 9 7 5 6 5 6 39 0 7 5 6 6 6 5
14 Pearls, (semi-)precious stones, metals 34 26 34 32 127 114 130 101 93 88 96 70 161 139 163 133
15 Base metals & articles thereof 23 23 23 37 198 194 135 155 175 171 112 118 220 217 157 192
16 Machinery & mechanical applicances 13 16 20 19 576 619 472 458 563 603 451 439 589 635 492 477
17 Transportation equipment 2 7 48 5 416 234 286 284 414 226 238 279 418 241 334 288
18 Instruments - measuring, musical 34326 7 5 9 6 3 6 56 4 5 5 6 0 6 37 0 6 3 6 6 6 8
19 Arms & ammunition 0000 4444 4344 4444
20 Miscellaneous 11126 6 7 0 6 1 6 36 5 6 9 6 0 6 16 6 7 1 6 2 6 5
21 Works of art 1100 4434 2334 5445
Other 23243 9 2 6 2 0 2 33 7 2 3 1 8 1 94 1 2 9 2 2 2 6
Source : Eurostat COMEXT 30 Jul 01 (Statistical regime 4) TRADE/D/1  Paul VERBURGTLebanon
0604 Lebanon