Remarks by Ambassador Connelly at the American Lebanese Chamber of Commerce Farewell Luncheon in Her Honor
Monday, August 12, 2013
H.E. Muhammad Safadi, Minister of Finance;
H.E. Fady Abboud, Minister of Tourism;
H. E. Nicholas Nahhas, Minister of Economy;
H.E. Vreij Sabounjian, Minister of Industry;
Ambassador Tony Chedid;
Mr. Salim Zeenni, President, American-Lebanese
Chamber of Commerce;
Esteemed Guests, Colleagues, Ladies and Gentlemen;
Thank you, Salim, for that very kind introduction. It's great to be with you and the American-Lebanese Chamber of Commerce, and to see so many good friends. I am especially pleased to have this opportunity to recognize Amcham's efforts to promote trade between Lebanon and the United States.
Lebanon is an exciting and challenging place for an American Ambassador. As I look at the talent, energy, and experience gathered in this room, I see the enormous potential of Lebanon. The presence of big U.S. businesses in Lebanon such as Microsoft, Cisco, FedEx, General Electric, Pfizer, MSD, Coca-Cola, Pepsi Cola, Citibank and many others is solid proof that U.S. companies believe in Lebanon's potential. What makes Lebanon so compelling is the dynamism and drive of its people. Lebanon is a country that shares with us, the United States, many values and aspirations.
During my term here, the Embassy advocated energetically for an environment marked by transparency and fair competition, in which the bids of U.S. firms will prosper. And we saw some success when GE was awarded the contract for the bid that included three turbines at a new power plant in Deir Ammar near Tripoli.
In 2009, prior to my arrival, U.S. exports to Lebanon were valued at $1.7 billion. Last year, U.S. exports exceeded $2.3 billion, an increase of 35%, which strengthens the U.S. position as Lebanon's number one trading partner. Now, I don't mean to give the impression I am taking credit for that increase.
The Lebanese - American Chamber of Commerce deserves enormous credit for this very significant accomplishment. To Salim and all of the Amcham's members here today, I want to thank you for your efforts. I also want to salute the Embassy's commercial staff (Naaman, Maya) whose expertise and hard work in strengthening our trade relationship also merit our appreciation. Thank you both very much.
Unfortunately, Lebanon still has obstacles that are hindering American companies' ability to do business here. You, of course, are all too familiar with these problems.
In some cases, government red tape, corruption, and insufficient protection of Intellectual Property Rights constitute major obstacles to investment and entrepreneurial activity, signaling that Lebanon is not fully open for foreign investments.
In other cases, the cost of production remains unacceptably high, whether due to high electricity costs, for example, or slow Internet speeds.
These factors weaken the ability of Lebanese companies and U.S. companies to compete in this marketplace and create the jobs that your talented young people are yearning to fill.
For you as members of Lebanon's business community, reform, fighting corruption, and removing barriers to investment should be and are, as they are for us, top priorities. I know you have a dialogue with Lebanon's political leadership on these issues but the process of reform is moving glacially. Lebanon and its economy need urgent action, especially in light of the influx of Syrian refugees.
The United States is helping, through USAID and other programs, by providing assistance in a number of ways. Let me tell you about some of what my Lebanese and American colleagues are doing.
Existing programs to promote economic growth are expanding activities to create jobs and to generate incomes all over the country, but particularly in the Bekaa Valley and the north where many Lebanese communities are hosting Syrian refugees. Small grants are helping farmers cultivate products to sell, and we are helping women create and sell soaps and other products at markets. USAID estimates these actions are helping over 1,000 Lebanese families.
USAID is also ramping up microfinance lending to help Lebanese small businesses operate in the difficult economic circumstances they face. Many of these loans are going to women entrepreneurs, and to young people trying to start businesses. Loans in the last six months have helped maintain or create nearly 500 jobs in host communities.
USAID is also providing $11 million to rehabilitate small-scale housing, health clinics, schools, and community areas, as well as helping build the capacity of local municipalities to better cope with the impact on their communities. Other programs are helping communities deal with the tensions that have sometimes arisen between refugees and host communities. I am very proud of the efforts my Lebanese and American colleagues at the embassy are making.
As I come to the close of my assignment here, I leave with great faith in the Lebanese people – their talent, energy, resilience, and innate entrepreneurialism. Somehow, it seems Lebanese are just born knowing how to run a business while the rest of us have to learn.
But I also leave worried that the current political impasse has compromised the institutions of the state, primarily to serve the interests of Hizballah and its Iranian sponsor. And I am afraid this trend will lead Lebanon down a dangerous path. Hizballah has repeatedly demonstrated its contempt for international norms of behavior, which most recently resulted in the EU designation. But Hizballah is also now showing contempt for the Lebanese rules of the game. Its violation of the Baabda Declaration undermines the Lebanese state and risks moving Lebanon from having to contend with spillover effects from Syria to outright involvement in a wider Syrian conflict.
I hope that you – the business community – as well as others in Lebanon who seek to preserve this country's fragile balance of interests will act decisively to protect Lebanon. One first step is to insist on the formation of a respectable, competent government. Another step is to get to work on an acceptable electoral law that allows for elections as soon as is practical. Lebanese democracy needs to be restored to ensure that Lebanese business – the lifeblood of Lebanon – can continue to work its magic and keep this country strong.
I leave you with my best wishes and an enduring U.S. commitment to a sovereign, independent, and stable Lebanon.
Thank you.
H.E. Muhammad Safadi, Minister of Finance;
H.E. Fady Abboud, Minister of Tourism;
H. E. Nicholas Nahhas, Minister of Economy;
H.E. Vreij Sabounjian, Minister of Industry;
Ambassador Tony Chedid;
Mr. Salim Zeenni, President, American-Lebanese
Chamber of Commerce;
Esteemed Guests, Colleagues, Ladies and Gentlemen;
Thank you, Salim, for that very kind introduction. It's great to be with you and the American-Lebanese Chamber of Commerce, and to see so many good friends. I am especially pleased to have this opportunity to recognize Amcham's efforts to promote trade between Lebanon and the United States.
Lebanon is an exciting and challenging place for an American Ambassador. As I look at the talent, energy, and experience gathered in this room, I see the enormous potential of Lebanon. The presence of big U.S. businesses in Lebanon such as Microsoft, Cisco, FedEx, General Electric, Pfizer, MSD, Coca-Cola, Pepsi Cola, Citibank and many others is solid proof that U.S. companies believe in Lebanon's potential. What makes Lebanon so compelling is the dynamism and drive of its people. Lebanon is a country that shares with us, the United States, many values and aspirations.
During my term here, the Embassy advocated energetically for an environment marked by transparency and fair competition, in which the bids of U.S. firms will prosper. And we saw some success when GE was awarded the contract for the bid that included three turbines at a new power plant in Deir Ammar near Tripoli.
In 2009, prior to my arrival, U.S. exports to Lebanon were valued at $1.7 billion. Last year, U.S. exports exceeded $2.3 billion, an increase of 35%, which strengthens the U.S. position as Lebanon's number one trading partner. Now, I don't mean to give the impression I am taking credit for that increase.
The Lebanese - American Chamber of Commerce deserves enormous credit for this very significant accomplishment. To Salim and all of the Amcham's members here today, I want to thank you for your efforts. I also want to salute the Embassy's commercial staff (Naaman, Maya) whose expertise and hard work in strengthening our trade relationship also merit our appreciation. Thank you both very much.
Unfortunately, Lebanon still has obstacles that are hindering American companies' ability to do business here. You, of course, are all too familiar with these problems.
In some cases, government red tape, corruption, and insufficient protection of Intellectual Property Rights constitute major obstacles to investment and entrepreneurial activity, signaling that Lebanon is not fully open for foreign investments.
In other cases, the cost of production remains unacceptably high, whether due to high electricity costs, for example, or slow Internet speeds.
These factors weaken the ability of Lebanese companies and U.S. companies to compete in this marketplace and create the jobs that your talented young people are yearning to fill.
For you as members of Lebanon's business community, reform, fighting corruption, and removing barriers to investment should be and are, as they are for us, top priorities. I know you have a dialogue with Lebanon's political leadership on these issues but the process of reform is moving glacially. Lebanon and its economy need urgent action, especially in light of the influx of Syrian refugees.
The United States is helping, through USAID and other programs, by providing assistance in a number of ways. Let me tell you about some of what my Lebanese and American colleagues are doing.
Existing programs to promote economic growth are expanding activities to create jobs and to generate incomes all over the country, but particularly in the Bekaa Valley and the north where many Lebanese communities are hosting Syrian refugees. Small grants are helping farmers cultivate products to sell, and we are helping women create and sell soaps and other products at markets. USAID estimates these actions are helping over 1,000 Lebanese families.
USAID is also ramping up microfinance lending to help Lebanese small businesses operate in the difficult economic circumstances they face. Many of these loans are going to women entrepreneurs, and to young people trying to start businesses. Loans in the last six months have helped maintain or create nearly 500 jobs in host communities.
USAID is also providing $11 million to rehabilitate small-scale housing, health clinics, schools, and community areas, as well as helping build the capacity of local municipalities to better cope with the impact on their communities. Other programs are helping communities deal with the tensions that have sometimes arisen between refugees and host communities. I am very proud of the efforts my Lebanese and American colleagues at the embassy are making.
As I come to the close of my assignment here, I leave with great faith in the Lebanese people – their talent, energy, resilience, and innate entrepreneurialism. Somehow, it seems Lebanese are just born knowing how to run a business while the rest of us have to learn.
But I also leave worried that the current political impasse has compromised the institutions of the state, primarily to serve the interests of Hizballah and its Iranian sponsor. And I am afraid this trend will lead Lebanon down a dangerous path. Hizballah has repeatedly demonstrated its contempt for international norms of behavior, which most recently resulted in the EU designation. But Hizballah is also now showing contempt for the Lebanese rules of the game. Its violation of the Baabda Declaration undermines the Lebanese state and risks moving Lebanon from having to contend with spillover effects from Syria to outright involvement in a wider Syrian conflict.
I hope that you – the business community – as well as others in Lebanon who seek to preserve this country's fragile balance of interests will act decisively to protect Lebanon. One first step is to insist on the formation of a respectable, competent government. Another step is to get to work on an acceptable electoral law that allows for elections as soon as is practical. Lebanese democracy needs to be restored to ensure that Lebanese business – the lifeblood of Lebanon – can continue to work its magic and keep this country strong.
I leave you with my best wishes and an enduring U.S. commitment to a sovereign, independent, and stable Lebanon.
Thank you.
posted by DELTA BLOG at 1:43 PM
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