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Lebanon entered into the Partnership Agreement with the European Union in March 2003. On November 11, 2016, the Partnership Priorities and the Mutual Package between Lebanon and the European Union were approved, aiming to enhance mutual interests and improve economic cooperation.
According to the latest trade figures in a report prepared by the General Directorate of the Ministry of Economy, trade exchange between Lebanon and the European Union in 2024 saw a slight decline compared to 2023. This comes amid security tensions on Lebanon’s southern border and economic repercussions from the Israeli war on Lebanon. Despite negative impacts on some sectors, others managed to achieve significant progress, reflecting a relative resilience in trade relations between the two sides despite ongoing challenges.
The report notes that Lebanese exports to the EU declined by approximately 14%, dropping from €600 million in 2023 to €517 million in 2024, excluding pharmaceutical exports to the Netherlands. Nevertheless, this level of exports remains acceptable, as it is nearly equivalent to the export levels recorded in 2021, which was one of the highest in the past two decades.
Regarding Lebanese imports from the EU, the Ministry of Economy and Trade report indicates an 8% decline, from approximately €5.4 billion at the end of 2023 to about €4.9 billion at the end of 2024.
Key Exported Products from Lebanon to the EU in 2024
The report highlights that animal and vegetable oils and fats saw exceptional growth of over 100%, increasing from €11 million in 2023 to approximately €24 million in 2024. This growth benefited from Lebanon’s full annual quota for exporting virgin olive oil.
Exports of fruits and nuts, including citrus peels, grew by 66% to reach €4.5 million.
Lebanese honey exports reached a record high, surpassing €100,000, after Lebanon was included in the list of countries allowed to export honey to the EU.
Lebanese textiles and fabrics also experienced significant exports to the EU, with an 80% increase, amounting to an additional €100,000 compared to 2023.
Soap derivatives increased by 56% to €400,000.
Lebanese Products with Declining Exports to the EU
• Pearls and gemstones: Declined by 41% to €19 million.
• Iron and steel: Sharply decreased by 50% to €4 million.
• Plastics and derivatives: Dropped by 23% to €12 million.
Key Imported Products from the EU to Lebanon in 2024
The report highlights the major products that saw an increase in imports from the EU in 2024 compared to 2023:
• Sugar: Imports surged by 370%, reaching €65 million.
• Pharmaceuticals: Increased by 21.9% to €278 million.
• Grains: Grew by 27%, rising from €66 million to €85 million.
Declining Imports from the EU to Lebanon
• Fuel and mineral oils: Dropped by 20% to €1.5 million.
• Vehicles: Decreased by 14%, recording €116 million.
The Ministry of Economy’s report emphasizes that despite Lebanon’s geopolitical and economic challenges in 2024, trade relations with the EU have remained relatively stable. This trade cooperation remains a crucial pillar for supporting Lebanon’s economy, necessitating the reinforcement of partnerships and the full utilization of existing trade agreements. Therefore, the report highlights the need to implement incentive policies that support Lebanese exports and improve the trade balance between the two sides.
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