The
European
Union (EU)
hopes to
initiate
high
level
dialogue
with the
Sri
Lankan
government
after
the
General
Elections
next
month on
working
towards
retaining
the GSP
plus
trade
concessions.
The
European
Union
Ambassador
in Sri
Lanka,
Bernard
Savage
said
that the
objective
of the
EU is to
have
dialogue
with the
Sri
Lankan
government
and move
towards
revising
the
recommendations
of the
European
Commission
which
led to
the
suspension
of GSP
plus to
Sri
Lanka.
“Hopefully
once the
elections
are
finished
we can
get to a
stage
where we
can have
an
amicable
dialogue
with the
relevant
authorities
so that
we can
thrash
out what
can be
done for
the EU
committee
to
revise
its
earlier
recommendations,
in a
positive
manner,”
the
Ambassador
told the
Daily
Mirror
Online.
The
suspension
takes
effect
in
August
this
year and
the
Ambassador
said he
hoped
the
dialogue
between
the EU
and Sri
Lanka
would
bear
fruit
and that
Sri
Lanka
would
have the
concessions
renewed
before
the
suspension
took
effect.
“Our
objective
is to
see that
the
suspension
will not
take
affect
and to
see what
can be
done to
correct
the
situation
before
it comes
into
effect,”
he said.
Savage
said the
commission
voiced a
number
of
concerns
with
regard
to
certain
conventions,
which
constitute
the
eligibility
criteria
for GSP+
concessions
to be
granted.
“The
suspension
will be
temporary
until
those
concerns
are
satisfactorily
addressed,”
he said.
He added
the
European
Council
decision
to
suspend
the GSP+
was
unanimous
and
based on
the
recommendation
of the
European
Commission
based in
Sri
Lanka.
“The
matter
was
discussed
on a
political
level
before
the
Council
took a
decision
and it
is
always
unanimous,”
Savage
said.
EU is
Sri
Lanka's
no.1
export
partner.
Sri
Lanka
exports
€1.7
billion
EUR
worth of
products
and
services
to the
EU which
represents
29
percent
of Sri
Lanka's
total
exports.
EU is
Sri
Lanka's
no.2
import
partner
(India
is
no.1).
Sri
Lanka
imports
€1.17
billion
Euro
worth of
products
and
services
from the
EU – 13%
of its
total
imports.After
introduction
of the
GSP+
concession
in 2005,
there
had been
an
upsurge
in Sri
Lanka's
exports
to the
EU. Sri
Lanka is
the only
country
in Asia
and one
of only
15
countries
in the
world
that
enjoys
this
unilateral
trade
concession
with the
EU.
Under
this
facility,
Sri
Lanka
can
export
more
than
7200
products
categories
duty-free
to the
EU.
The main
benefits
of the
GSP+
scheme
is that
it
encourages
more
value-addition
in Sri
Lanka
and
therefore
encourages
backward
integration,
which
will
result
in the
setting-up
of new
industries,
thus
creating
substantial
employment
in the
country.
The
granting
of
duty-free
access
to so
many
products
is also
intended
to
encourage
Sri
Lankan
industry
to
diversify
its
product
exports
to the EU and
reduce
the
vulnerability
of
companies
and the
country
that
otherwise
would
depend
on few
sectors
of its
economy
for its
foreign
earnings.
Although
exporters
will
face
higher
tariffs
in six
months,
when the
withdrawal
formally
takes
effect,
the
levels
will
still be
below
those
paid by
wealthy
countries
sending
goods to
the EU.
|
Contact Information:: Send
mail to