weighted score 5.4 · nine dimensions
Country Risk Profile
Lebanon
Sourcing risk, regulatory exposure and audit intelligence for Lebanon-origin supply chains.
Forced & child labour
4
Kafala system for migrant domestic workers documented as enabling exploitation. Syrian refugee labour largely informal without legal protections. Economic collapse increasing child labour risk.
Worker rights & FOA
5
Trade unions exist but limited in scope. Kafala system excludes domestic workers from labour law protections. Freedom of association nominally protected but enforcement weak.
OHS & audit transparency
5
OHS standards exist but enforcement capacity severely degraded by economic crisis. Audit access generally possible but reliability compromised by governance dysfunction.
Food & product safety
4
Food safety standards historically reasonable but regulatory enforcement collapsing. Pharmaceutical sector maintains higher standards. Power outages compromise cold chain integrity.
Environmental & regulatory
4
Environmental regulation effectively non-functional. Waste management crisis ongoing since 2015. No meaningful environmental enforcement capacity.
Governance & anti-corruption
8
TI CPI approximately 24 — among the lowest in MENA region. Extreme corruption pervasive across all levels of government. Extended periods without functioning government.
Tariff & preferential access
7
No EU FTA — MFN tariffs apply. No significant preferential trade arrangements with EU. Hezbollah-related sanctions create indirect compliance burden.
Non-tariff barriers
6
Banking system dysfunction creates de facto trade barriers. Letter of credit and trade finance mechanisms effectively unavailable. Port infrastructure degraded.
Supply chain traceability
6
Traceability systems poorly developed. Informal economy large. Syrian refugee labour in supply chains difficult to trace. Multi-tier visibility limited.
Labour & Social Risk
Labour & Social Risk
- Syrian refugee labour
- Lebanon hosts approximately 1.5 million Syrian refugees — around 25% of the population. Many work in informal sectors including agriculture, construction, and manufacturing, often without legal work permits or labour protections.
- Migrant domestic workers
- The kafala (sponsorship) system governs migrant domestic workers, primarily from Ethiopia, Philippines, and Bangladesh. The system has been widely documented as enabling exploitation and abuse by Human Rights Watch and the ILO.
- ILO conventions
- Lebanon has ratified ILO C029 (Forced Labour) and C138 (Minimum Age) but enforcement capacity is severely degraded by the economic crisis and governance collapse.
- Child labour risk
- Economic collapse has increased child labour risk, particularly among Syrian refugee populations. Children work in agriculture, street vending, and small manufacturing workshops.
EU Regulatory Exposure
EU Regulatory Exposure
- Trade status
- No EU FTA. MFN tariffs apply. Lebanon is part of the European Neighbourhood Policy and the Union for the Mediterranean but no comprehensive preferential trade arrangement is in force.
- Hezbollah sanctions
- The EU has designated Hezbollah's military wing as a terrorist organisation since 2013. The US designates Hezbollah in its entirety. Hezbollah's political and economic influence in Lebanon creates indirect sanctions exposure for sourcing operations.
- EUDR exposure
- Limited direct EUDR exposure — Lebanon is not a significant producer of EUDR-regulated commodities. Indirect risk through re-export of processed goods containing regulated inputs.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Kafala system and Syrian refugee labour conditions present moderate risk of investigation for goods involving these labour segments.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- Port of Beirut / Tripoli → Mediterranean → EU ports
- Key transit chokepoints
- Suez Canal (for goods transiting from/to Asia via Lebanon)
- Main EU destination ports
- Marseille, Genoa, Piraeus, Barcelona
- Port status
- Port of Beirut severely damaged in August 2020 explosion. Partial reconstruction ongoing. Capacity significantly reduced. Tripoli port handles overflow but infrastructure is limited.
- Typical transit time
- 3-5 days to Southern Europe (Mediterranean)