Agreement to liberalise garment exports to EU countries
[17 Mar 2001]

Sri Lanka and the European Commission signed a landmark agreement yesterday at Brussels for the liberalisation of the textile trade between Sri Lanka and EU countries.

The agreement lifts all textile quotas with Sri Lanka in exchange for tariff reductions by Sri Lanka and the binding of all its tariffs for the textiles and clothing sector at the World Trade Organisation (WTO). The quotas have been lifted under a landmark agreement initiated last December.

“This agreement provides for reciprocal market opening in the sector. It is the first kind with a WTO member, and shows the EU commitment to mutually beneficial liberalisation. We invite other WTO members to seize this opportunity,” European Trade Commissioner Pascal Lamy said.

As part of the agreement, Sri Lanka has notified the WTO bound rates of duty for the entire textiles and clothing sector. These are at the rates of 0% for raw materials, 5% for fibres and yarns, 10% for fabric and 17.6% for clothing products. In addition, Sri Lanka has brought down a number of tariff peaks from 25% to 10%. These reductions will cover a number of products.

Apart from the textiles liberalisation agreements, Sri Lanka also signed a framework agreement with the European Investment Bank (EIB).

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Last Updated Date: September 25, 2003 .

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