Promoting and Monitoring Synergy Between Trade and Environment in Lebanon’s Agricultural Products Where Methyl Bromide is Used

Promoting and Monitoring Synergy Between Trade and Environment in Lebanon Funded by the UNEP- UNCTAD Capacity Building Task Force on Trade, Development, and Environment Managed by UNDP Executed by the Ministry of Environment

Criteria for Selecting the Sector Socio-economic importance (GDP, Labor) Impact on environment Impact on Natural Resources Trade liberalization impact

Agricultural Sector Socio-economic importance  12% of GDP  9.4% of labor  Balanced development Impact on the environment  Water pollution from agrochemicals  Soil pollution from agrochemicals  Ozone depletion (ODS from methyl bromide) Impact on natural resources  Largest consumer of water resources Impact of trade liberalization on the agriculture sector  Negative impact: prices increase for net importer of agriculture products  Positive impact: little subsidies on export crops

Alternatives to Methyl Bromide Projects Funded by: Multilateral Fund of the Montreal Protocol Managed by:UNDP, UNIDO Executed by:Ministry of Environment : “Methyl Bromide” Objective: Phasing out “Methyl Bromide” in Lebanon by 2007 by proposing environmentally safe alternatives

Trade and Environment Project Sector-Specific Objectives The basic objectives of the project: Perform an EIA of Alternatives Perform a CBA of Alternatives Study the impact of trade liberalization on the environment in the Agricultural sector where Methyl Bromide is used

Stakeholders Public Sector  Ministry of Environment  Ministry of Agriculture  Ministry of Economy and Trade  Lebanese Agriculture Research Institution (LARI)  LIBNOR  Export Plus Program (export subsidy)  Chamber of Commerce Private Sector  Farmers  Exporters International Organizations and NGOs

Lebanon’s Obligations towards Phasing Out of Methyl Bromide Percentage DecreaseYear 14% % % % % %Total

Crops where Methyl Bromide is Used CropsTotal Amount (ODS Tons) Total Area (dunnum) Number of farmers Vegetables Cut-Flowers Tobacco Sub-Total Strawberry Total43826,15416,854

Environmental Impact Assessment Chemical alternatives :  Dazomet,  Cadusafos  1-3 Dichloropropene  Oxamyl Non-Chemical Alternatives:  Soil Solarization  Bio Fumigation  Grafted Plants  Steaming: Negative pressure steaming and sheet steaming

The EIA of Alternatives to Methyl Bromide

Net Revenue Per Unit for MBr and its Alternatives

Cost Benefit Analysis The CBA was done on a one dunnum basis over a period of 20 years. The 10% discount rate reflects an average between government and private bank credit interest rates. CBA was tested under two scenarios:  Scenario1: average product prices ( )  Scenario2: 20% increase product prices

Cost Benefit Analysis Chemical alternatives : Dazomet, Cadusafos 1-3 Dichloropropene Oxamyl Non Chemical Alternatives Soil Solarization Bio Fumigation Grafted Plants Steaming: Negative pressure steaming and sheet steaming Mixed Alternatives Solarization +1-3 Dichloropropene Solarization + Oxamyl

Summary of the Findings of the CBA for the Selected Crops

Impact of Trade Liberalization on the Agricultural Sector Positive impacts:  Potential new export markets (esp. Europe)  Increased marketable volumes  Increased exports  Increased farm income  Potential decrease rural migration

Impact of Trade Liberalization on the Agricultural Sector Negative impacts  Over exploitation of land and resources  Chemical alternatives: Possible soil and underground water contamination Increased cost of cleaning the environment

Obstacles Commercial: Archaic Channels of distribution, exploitation of the middle men. Logistics: Lack of coordination Trade  Lack of knowledge about Demand, Standards  Fierce competition from other countries (high subsidies low cost of production) Financial: Lack of credit facilities, low prices of products Infrastructure: irrigation problems Human: Rural migration

Policies and Plan of Implementation Emphasize competition based on “Quality” differentiation rather than a price based one:  Due to the high cost of production and high subsidies in regional countries the best alternative is to focus on quality differentiation rather than price driven competition. Build on the Euro-Med agreement and the facilities it offers the agriculture products to promote exports to Europe (higher prices are accepted but European standards are required)  Inform stakeholders about European demand in terms of crops, SPS and TBT  Train stakeholders on standards required in terms of produce, packaging and labeling  Establish a network system for exports

Policies and Plan of Implementation Design and implement a cooperation and coordination mechanism between stakeholders to increase efficiency. (public and private) Propose schemes to improve quality and effectiveness of sectors related to packaging and transport Design logistics to test products and grant “Ecolabels” Enhance producers’ awareness on health, safety and environmental issues related to the “Process and Production Methods”

Thank you…