Lebanon's fragile economy is crippled by Israel's latest attacks.
Lebanon was still struggling to recover from damages inflicted during a protracted civil war from 1975 to 1990 when the latest fighting broke out.
With a population of some 4.6 million, Lebanon's economy is based on services (67%), manufacturing (21%) and agriculture (12%).
Lebanon's key exports are jewellery, inorganic chemicals, miscellaneous consumer goods, fruit and tobacco to the following major destinations: Switzerland (10%), United Arab Emirates (9.5%), Turkey (9.3%), Saudi Arabia (7.1%), France (5.1%) and the U.S. (5.1%).
Lebanon imports petroleum products, automobiles, medicinal products, clothing, meat and livestock mainly from Italy (12.2%), France (11.2%), Germany (8.9%), China (6.3%), U.S. (6%), Syria (5.1%) and the U.K. (5%).
In general Lebanon's trade on the world stage has been stagnant due to the country's high national debt of some US$40 billion. However, Lebanese tourism and related construction of hotels and villas were booming prior to the Israeli attacks. This is due in part to Lebanon's popularity with wealthy Arabs on holidays who perceive that they are less welcome in the U.S. or other alternative vacation spots.
The current warfare between Hezbollah and Israel on Lebanese soil is choking off Lebanon's businesses from the rest of the world. Beirut's main airport was closed after being pummelled by Israeli bombing raids. A naval blockade of Lebanese ports is also in effect. Even email and fax communication is down in many areas.
Foreign tourists are fleeing Lebanon just as fast as their embassies can evacuate them. Seafront resorts that were previously jammed to capacity now have an oversupply of available rooms.
No matter how small, Lebanon's trade around the globe is feeling the shock waves.
For example, the trade between Canada and Lebanon had been a modest yet thriving relationship prior to the latest fighting. Lebanese immigrants have created a strong business community in Montreal and other Canadian cities, importing some $10 million worth of preserved foods, hummus, olive oils, grains and beverages from Lebanon in 2005.
But with Lebanese ports blocked and airports destroyed by Israel's bombing campaign, Canadian importers that specialize in Middle Eastern foods are frantically waiting for shipments from Beirut needed to keep their shelves freshly stocked. Much more desperate are the Lebanese businesses without invaluable medicines, clothing and food from their global trade partners.
And The Winner Is...
No one. Not the Israelis, not the Palestinians, and not the overmatched terrorist organization Hezbollah in southern Lebanon. And least of all Lebanon as a country.
Prior to the Israeli attacks, Lebanon was in grave danger of a financial meltdown given its public debt burden which was one and a half times larger than the country's gross domestic product.
Nothing short of a miracle will stop that painful economic suffering now.
Our Middle East correspondent said it best in his on-the-scene report. Now let me echo those thoughts from the International Trade perspective.
Welcome to Lebanon. Welcome to trade hell.
Sources: Canadian Trade Commissioner Service, Globe and Mail
