China is a promising market for Sri Lanka’s select, premium products such as gems –and an important round of bilateral talks on Lanka-China FTA is scheduled for next month.
Updating the Lankan business community on the country’s latest global trade developments, Minister of Industry and Commerce Rishad Bathiudeen revealed the government’s intention to review Trans Pacific Partnership further, before any action.
“When reviewing the garment sector, we need to be able to carefully address the Trans-Pacific Partnership (TPP) Agreement,” said Minister Bathiudeen on 29 April in Colombo.
Minister Bathiudeen was addressing the “Meet the Minister” session organised by the National Chamber of Commerce of Sri Lanka on 29 April joined by National Chamber of Commerce President Thilak Godamanna, National Chamber of Commerce Secretary General/CEO Bandula Dissanayake and Members of NCC as well as the Minister's top officials.
“Being a founding member of GATT and WTO, Sri Lanka is committed to pursue an outward-oriented trade regime following the principles of the WTO, with a view to enhancing overseas market access for our export products and achieving greater integration into the world economy.
The Indo-Sri Lanka Free Trade Agreement and the Pakistan-Sri Lanka Free Trade Agreement allow more than 4,000 product lines to be exported to these two markets at zero duty.
Sri Lanka actively involves in Joint Economic Commissions and bilateral forums with a number of countries in order to enhance our trade and commercial relations,” said Minister Bathiudeen and added: “When reviewing the garment sector, we need to be able to carefully address the Trans-Pacific Partnership (TPP) Agreement under which tax free garment export opportunities have been given to countries such as Vietnam. This has enabled them to engage in competitive markets and supply the American, Chinese and Japanese markets at low rates. This may also affect exports from Sri Lanka in the future. TPP must therefore be reviewed further. In this context, arrangements are under way to hold the third round of negotiations for China-Sri Lanka FTA in June this year.”
Minister Bathiudeen refrained from giving any further details on China FTA talks on 29 April. Trade between Sri Lanka and China crossed the $4 billion last year for the first time in the bilateral trade history, surging by 17% from 2014’s $3.58 billion 93% of 2015’s total trade consisted of imports from China-mainly iron & steel, fabrics & fibres, cotton, and Urea fertiliser.
Responding to questions by business reps from the gem and jewellery sector at the session, Minister Bathiudeen said: “We are working on further product diversification to China. There is no doubt that China will be a promising market for select, premium products such as Lankan gem and jewellery items.”
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