Sri Lanka trade adjustment package for domestic industry coming with FTAs
Jul 20, 2017 06:39 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT – The Sri Lankan government will introduce a trade adjustment package to help local industries deal with potentially disruptive effects of free trade deals it plans to enter into with countries like China and India, a senior minister said.
“We are in the advanced stages of negotiating a free trade agreement with China and expanding our FTA with India with the ETCA (Economic and Technology Cooperation Agreement), which can increase Sri Lanka’s competitiveness in exports and increase our supply capacity,” said Malik Samarawickrama, Minister for Development Strategies and International Trade.
“The ETCA is also addressing outstanding non-tariff barriers in the Indian market and many institutional and procedural barriers and delays in India ports, particularly through MRAs (Mutual Recognition Agreements),” he told a business forum held by the European Chamber of Commerce of Sri Lanka (ECCSL) and the European Union Delegation to Sri Lanka and the Maldives.
Access to the Chinese and Indian markets will give Sri Lanka access to a market of over twp billion people and an emerging middle class larger than the whole of the EU, so it will be a good incentive for EU companies to set up plants in Sri Lanka, he said.
“The government is also aware of possible trade disruption during the transition and is considering a trade adjustment package to upgrade technology and modernise local industry so they can be more competitive in local and regional markets,” Samarawickrama said.
The government is also developing a roadmap to eliminate unnecessary regulatory and procedural obstacles with World Bank help.
(COLOMBO, July 20, 2017)