GSP+ till 2025 | Daily News


 

GSP+ till 2025

‘Lanka’s labour standards best in South Asia’

GSP Plus is expected to continue till at least 2025 based on the country qualifying for GSP concessions through lower GDP per capita figures.

The trade concession Head of the European Delegation to Sri Lanka Denis Chaibi said, “So if there is a positive situation in human rights or at least there is no degradation in human rights there will be GSP Plus till at least 2025.”

“With Europe, you have the competitive advantage of GSP Plus. The GSP Plus concession was to end in 3 years but it is not because of the crisis. The GDP per capita is below the required levels and as such from next year onwards there are at least 3 years of GSP plus.”

“GDP per capita in Europe is 3 times on average than that of China. You have much more profit in Europe.”

Chaibi was speaking to the Delegation of the German Chamber of Commerce on September 2 at the Colombo Hilton Residencies. The event was to kick off a sustainable supply chain initiative that helps Sri Lankan firms with documentation on supply chain compliance headed by the delegation of German Industry and Commerce in Sri Lanka.

The panel discussion focused on improving the utilization of the trade concession. The net trade balance with the European Union is US$ 2.4 billion in favor of Sri Lanka and Chaibi was happy with such a relationship given the high labor standards of the country which he cited as the ‘best in South Asia’.

Non-tariff trade restrictions are expected to be the new trend with the OECD setting out guidelines on supply chains.

Compliance through means of documentation and standard certification is expected to become a hurdle for exporting countries. Sri Lanka is expected to benefit as production practices have a lack of slave or child labor meaning that the country is compliant with the bare minimum standards set out.

Chaibi noted that import restrictions were required by the country due to the Foreign Reserve situation but suggested that in the long-term trade relations should have a certain degree of reciprocity.


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