US pushes for 'Trump economic zone' as Lebanon, Israel begin direct talks

US President Donald Trump is pushing for a joint Lebanese-Israeli economic zone in south Lebanon, a proposal framed as "cooperation" but seen by many in Beirut as an attempt to reshape the border under US and Israeli terms, as the two enemy states held rare direct talks.

American outlet Axios reported details of Wednesday’s meeting, where civilian representatives from Lebanon and Israel publicly engaged for the first time since 1983.

Lebanon appointed former ambassador to Washington Simon Karam to head its delegation, while Israel sent Uri Reznik, a senior official at its National Security Council.

The meeting took place on the sidelines of the monthly ceasefire monitoring committee, known as the "mechanism", set up after last year's US-brokered ceasefire between Israel and Hezbollah.

Lebanon's move to send a civilian figure comes amid heavy US and Israeli pressure to disarm Hezbollah, despite Israel continuing strikes on Lebanese territory in violation of the 27 November ceasefire.

On Thursday, Israel bombed four southern villages after issuing evacuation warnings, and last month it assassinated Hezbollah's chief of staff, Haytham Tabatabai, in a strike on Beirut's southern suburbs.

Although significantly weakened, Hezbollah has rejected all disarmament demands. The group remained silent on Wednesday's talks, which some analysts say could signal quiet manoeuvring rather than approval.

Hezbollah's leader, Naim Qassem, is due to speak on Friday. US special envoy Morgan Ortagus, present at the meeting, is also expected in Beirut the same day.

'Economic cooperation'

Lebanese President Joseph Aoun has repeatedly said Lebanon is ready for discussions aimed at halting Israel’s ongoing attacks.

Reports on Wednesday suggested that Lebanon's decision to send Karam placed Israel in an uncomfortable position.

According to Axios, US ambassador to Beirut Michel Issa pushed Beirut to attend despite Israeli strikes, while Ortagus persuaded Israel to show up despite its claims of Lebanon's "insufficient" progress on disarming Hezbollah.

Both sides agreed on civilian representation on Tuesday evening, shortly after Pope Leo XIV concluded his three-day visit to Lebanon.

A US official told Axios that Washington hoped the talks would ease tensions.

According to Al-Akhbar, the day began with a three-hour meeting between military officers in the mechanism, after which Ortagus met separately with Karam and Reznik to "familiarise themselves with one another".

The main discussion focused on economic cooperation, including small joint projects and reconstruction in south Lebanon - an area heavily damaged by Israel's bombing campaign and still partially occupied by Israeli troops on five strategic hills.

A US official told Axios that Trump’s long-term vision is a "Trump economic zone" along the border, free of Hezbollah's weapons. Lebanese officials fear such a zone could entrench Israeli influence inside Lebanese territory under an economic guise.

Another meeting including Karam and Reznik is planned for 19 December, with all parties asked to bring proposals meant to "build confidence".

Who is Simon Karam?

Born in south Lebanon's Jezzine in 1950, Karam is a graduate of St Joseph University and has held legal, administrative and diplomatic posts. He served briefly as Lebanon’s ambassador to the US in 1992 before resigning the following year.

A vocal critic of Hezbollah's armed wing and of Syria's former tutelage over Lebanon, Karam was a member of the Qornet Shehwen political gathering and active in the Western and Gulf-backed March 14 camp that opposed Damascus and Iran.

Karam has strongly opposed Hezbollah's decision to open a front with Israel in October 2023 in support of Gaza. His nomination reportedly came from President Aoun and was agreed to by Parliament Speaker Nabih Berri and Prime Minister Nawaf Salam.

Hezbollah supporters questioned his appointment, and a small motorbike protest took place in Beirut's southern suburbs on Wednesday night.