Memorandum of Understanding
On Technical Assistance
Between the Republic of Lebanon and the Swiss Confederation
In the context of the conclusion of the Free Trade Agreement between the EFTA States and Lebanon, Switzerland and Lebanon (hereafter the two Parties) have agreed on a bilateral technical assistance programme. This programme is to be implemented during a period of 3 years following the signature of the EFTA – Lebanon Free Trade Agreement. It consists of the following components:
Investment Promotion
1. The Parties recognize the importance of foreign direct investment as a non-debt creating source of finance, as a mechanism for the creation of sustainable jobs and as an instrument for technology and know-how transfer. The existing agreement on the promotion and mutual protection of investments signed on March 3rd, 2000 provides the necessary legal framework meant to promote investments in the two countries.
2. In order to stimulate the flow of investments towards developing countries, Switzerland has established the „Swiss Organisation for Facilitating Investments“ (SOFI). The goals of SOFI are to better inform potential investors on the investment climate and opportunities in the emerging markets, to help them to find suitable partners, to bring support in the negotiation of joint-ventures or technology transfer contracts, and to assist in mobilising financial resources. A memorandum of understanding on collaboration has been signed between SOFI and the Investment Development Authority of Lebanon (IDAL) on October 14th, 2003.
3. Switzerland has drawn the attention of the Lebanese authorities to the fact that it is a large contributor to important multilateral programmes aiming at improving the general business environment and infrastructure financing, in particular the Public Private Infrastructure Advisory Facility and the Global Corporate Governance Forum. The Parties have agreed to disseminate information on these facilities in order to promote their more active utilization by Lebanese partners.
Trade-related capacity building
4. Switzerland is committed to continue contributing to Lebanon’s integration into the multilateral trading system through the Trade Policy Advice Programme being implemented by IDEAS Centre, Geneva. This programme aims at facilitating Lebanon’s accession to the World Trade Organization (WTO). An amount of a maximum CHF 450’000.- will be allocated to this end.
5. The Free Trade Agreement between Lebanon and the EFTA States is further opening markets for Lebanon. In order to fully take advantage of these opportunities, Lebanese enterprises need to increase their competitiveness and to adapt to quality and environmental standards prevailing in the export markets. In this context, Switzerland is ready to consider financing an export promotion programme for agriculture and processed agriculture products, complemented with a contribution to the improvement of quality management in this sector. This programme should target Swiss and other OECD markets and will be coordinated by the International Trade Centre (Geneva) or another specialized agency. It will take into account the strategies, policies and operations being developed and implemented under the MEDA Programme of the European Union in Lebanon. For this programme, Switzerland will mobilise a maximum amount of CHF 4’300’000.-.
6. Switzerland undertakes to support Lebanon in defining and in assisting in the implementation of a strategy for the protection of Lebanese geographical indications. For this purpose, Switzerland will mobilize a maximum amount of CHF 250’000.-.
7. Switzerland is ready to include Lebanon in its cooperation programme with the International Standard Organisation in Geneva, in order to facilitate access of Lebanese specialised institutions in this field to the resources and expertise of this organisation, and to foster awareness and implementation of ISO standards.
8. The Parties undertake to stimulate e-business opportunities by promoting the TRADO platform, which aims at business-to-business matchmakings for enterprises in the information and communication technologies sector.
Other area of cooperation
9. Switzerland is ready to continue its support to the Sustainable Business Associates (SBA) – Delta Programme aiming in particular at improving the environmental awareness of entrepreneurs and business associations, and at introducing eco-management systems in small and medium-size enterprises.
Both parties agree that progress and results of technical assistance activities under this memorandum will be regularly reviewed and discussed in order to evaluate the performance and assess future development with a view to possible extension.
February 2004