Sri Lankan apparel exports will not be negatively affected by the expiry of the United States’ Generalized System of Preferences (GSP) program for Sri Lanka and other GSP beneficiary countries.
The expiration of the program will not have any negative impact on Sri Lankan apparel exports to the US, since local apparel exports are not eligible to receive the US GSP concessions, The Joint Apparel Association Forum Former Secretary General Tuley Cooray told Daily News Business.
The U.S. Embassy in Colomboin a statement said, “United States’ Generalized System of Preferences (GSP) program for Sri Lanka and other GSP beneficiary countries will expire on December 31 after which exports will be subjected to non-preferential duties.”
“The United States Congress did not re-authorize GSP before adjourning for the year. The immediate effect of GSP expiration is GSP eligible imports to the United States from Sri Lanka and other GSP beneficiary countries and territories will be subject to non-preferential duties beginning January 1, 2018,” the Embassy said
According to Cooray, other products, exported by Sri Lanka under the US GSP scheme will experience some sort of negative impact if the scheme is not extended to Sri Lanka again. “This is not a new or unusual scenario; people make contradictory views when there is a delay in granting the concession.” In the meantime, National Policies and Economic Affairs Deputy Affairs Dr Harsha de Silva said that the expiration of US GSP concessions cannot be expected to make a significant impact to Sri Lanka’s exports to the US, especially given the country’s concentrated export basket.
Sri Lanka’s apparel exports to EU have increased by only 2% from January to September 2016 in comparison to the same period in 2015. As a result of Prime Minister Ranil Wickremesinghe’s efforts, after receiving EU GSP Plus, Sri Lanka’s apparel exports to EU from January to September this year compared the same period last year at US $ 1.5 billion, has increased by a huge 11.3% to US $ 1.67 billion.
Even though US market is not connected to EU GSP, Sri Lanka’sapparel exports to US too has increased this year by 12% to $ 1.8 billion during the periodJanuary to September.
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