Lebanon is the only country in the world that follows the system of exclusive agencies, in violation of Article 36 of the Association Agreement with the European Union, which requires such agencies.
Private media sources told Sky News Arabia that the number of exclusive agencies registered in Lebanon is 3330, of which only 316 are valid, and the rest are illegal and do not renew their contracts and do not pay fees for them, while these agencies are still working and importing goods from abroad and preventing others from import.
Before announcing its cancellation, economic circles were preoccupied with a discussion about the importance of this step, amid a clear divergence of opinions.
Abu Munther, one of the merchants in favor of abolishing these agencies in Beirut, told Sky News Arabia that “exclusive agencies are confined to Lebanon in the hands of a small group who dominate the country’s economy in a sectarian and sectarian manner.”
He continued, “It must be decided on the basis of the state stimulating the economy and creating an atmosphere of fair competition and not quotas, as it is not possible for the prices of some commodities to be more expensive than the country of origin and the neighboring country by a large difference, such as medicine, for example.”
As for the opinions rejecting the cancellation of exclusive agencies, they say: “If the agency is canceled for a sector such as cars, we will lose the after-sales service, and we will face a shortage of spare parts, because the legal responsibility is lifted from the supplier company and the agent, and in this case, the process of canceling the agencies is a valuable gift For manufacturers, because they will not be governed by after-sales service or additional costs, and the consumer will pay the price.”
populist decision
The head of the Franchise Licensing Association in Lebanon, Yahya Kasaa, stressed that “there is no room for Lebanon to lack professionalism, seriousness and responsibility, and in light of the spread of populism and decisions that deceive the consumer, which he considers an achievement and it is completely different.”
He added to “Sky News Arabia”: “Abolition of agencies does not prevent monopoly, and it would contribute to the expansion of the black market in Lebanon, and it is one of the wrong decisions that may change the true face of Lebanon.”
Kassaa commented: “It is not permissible for economic decisions to be subject to moods that lead to the destruction of the foundations on which the Lebanese economy is built, and the most prominent example today is the demonization that exclusive agencies are exposed to instead of studying their effects seriously and responsibly so as not to fall into the unknown.”
He stressed that “exclusive agencies in Lebanon work only in luxury goods and are outside the scope of food and basic foodstuffs, and saying that canceling them to protect people with low incomes is false and false,” and he added, citing an example: “The pharmaceutical sector has agencies, but the Ministry of Public Health is the one that carries out pricing.”
He continued, “The abolition of exclusive agencies would lead to the transfer of the business of these institutions from the legal economy to the illegal one, and the expansion of counterfeiting, smuggling and counterfeiting.”
And he added: “Decisions related to economic affairs, including exclusive agencies, require a high level of professionalism, seriousness and responsibility, as they affect the entire economic cycle, from import, storage and distribution to quality and quality when purchased by the consumer.”