Sri Lankan authorities must make a request from the Indian government for the removal of quotas imposed on textile and apparel sectors, said outgoing President Joint Apparel Association Forum (JAAF) Noel Priyathilake.
Speaking at the 13th JAAF annual general meeting he said, “This is to create a sectoral balance in trade between the two countries whereby Sri Lanka will have a high potential to cater to the emerging middle income population in India. However, if the removal of apparel quota is not done the local apparel industry would not see a significant benefit through the proposed ETCA.”
The much discussed bilateral trade negotiations, which were a priority item in their agenda as well, has been now undertaken with China, India and Singapore. However he said that Singapore is not an important trading destination to them as at date, they have not offered significant market access to Sri Lanka.
“Preferential and differential treatment expected out of several upcoming bi lateral arrangements would improve Sri Lanka’s market penetrating capacity at least into two markets and the initiatives for trade dialogues with our partners that was canvassed by us during the last year has been translated into action and the results could be seen in 2017.”
The country is now targeting more towards regional economic partnerships or regional economic integration.
“The Asian focus of these negotiations would be culminated in a strong manner depending on the way that the new United States Administration is focusing on fairer bilateral trade in place of regional partnerships.
Perhaps, this approach may change the trade development agenda and Asia will become important even within our trade and Big Asia may be writing the trade rules for the world if they foster strong regional or Asian economic partnerships.”
Majority of our agenda items in the domestic policy framework also has gained acceptance by the government. “The introduction of the new Exchange Control Management system will offer us opportunities for a more liberal environment enabling us to be a regional or global player while identifying our value addition in the global supply chain.” Gaining momentum in customs reforms, in that rules are to be introduced, and enforced, creating a culture of accountability. Electronic documentation for import export trade will be the centre of facilitation for international trade. While the revenue authorities are also expected to transact with us electronically.
“The de-stuffing of Less than Container Load (LCL cargo) monopoly by the Sri Lanka Ports Authority is to be done away with and we are required to actively participate in the ‘Unique Craft Marketing Centre’ that has been proposed,” he said.
Commenting on another aspect he said that Sri Lanka may need to use advanced technology to meet its labour shortage issue in urban areas and also to expand capacities in areas where labour is available. “The government has offered a number of opportunities in this regard and it is up to us to actively participate in developing capacities in the lagging regions where we have made a commitment to create 20,000 jobs. Our members who are catering to the domestic market should get ready to be exporters as well rather than concentrating on the domestic market”.
“The much awaited GSP+ facility is now being positively considered by the EU they and only few issues are said to be pending as per the information available in the public domain. I am sure that by the first quarter of 2017, we will have that preferential treatment,” he added.
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