Sri Lanka regains US GSP amidst concerns on workers’ rights
Sri Lankan exporters have regained preferential duty-free entry into US market with the recent restoration of US Generalised System of Preferences (GSP) facility amidst persisting worker rights issues, trade unionists say.
Free Trade Zone and General Service’s employees Union, Joint Secretary, (FTZ&GSEU) Anton Marcus told the Business Times that Sri Lanka is yet to comply with the core labour standards obligations stipulated by US although the government has given an assurance to do so.
He noted that the country had been awarded the continued benefit of US GSP despite labour laws not being conducive for freedom of association and collective bargaining. Mr. Marcus said complaints had been made about the right to freedom of association and collective bargaining that were absent in the current free trade zone areas.
According to the International Trade Unions Confederation’s (ITUC) latest report to the WTO, “Sri Lanka has ratified all eight core ILO labour conventions, but has fallen far short of implementing these conventions and continues to restrict trade union rights”, Mr. Marcus said.
Under this set up the government should look more closely at the rights and welfare of the workers or risk losing the US tax concessions, he said emphasising that the restoration of US GSP was for 122 designated beneficiary countries and territories, including Sri Lanka.
He noted that the US GSP programme has been renewed by US Congress as a normal practice and it applies for all 122 countries and the Congress has the authority to suspend it at any time after specific reviewing the worker rights issues of beneficiary countries.
Sri Lanka should take prompt action to fulfil the assurance given to US authorities to adhere to eight core ILO labour conventions otherwise the country may lose this facility at any time, he added.
The US Congressional authorisation for the GSP programme in Sri Lanka expired on 31 July 2013 and the re -authorisation came into effect from July 29 2015.
The US has closed the GSP Worker Rights review of Sri Lanka without any change to Sri Lanka’s GSP trade benefits, a Commerce Department official quoted United States Trade Representative Ambassador Ron Kirk as saying.
The closure of the GSP country practice review of Sri Lanka was based on the Sri Lankan government’s efforts over the past few years to address the worker rights issues outlined in the GSP petition filed by the American Federation of Labour and Congress of Industrial Organisations (AFL-CIO), he revealed.
Sri Lanka and the US will continue to work very closely through the newly formed Labour Affairs Committee under the Trade and Investment Framework Agreement between the two countries, he added.
US GSP plus is based on tax relief which are given during the transactions between the United States and other countries.
The US GSP programme will continue until 31 December 2017, granting duty free access for nearly 5,000 products from 122 designated beneficiary countries and territories, including Sri Lanka.
The main export items of Sri Lanka to the United States under this programme are pneumatic rubber tyres, plastic-based packing materials, rubber gloves, activated carbon, coir products, certain porcelain, chinaware, rubber floor coverings, etc.
He noted that the country has lost US$5 billion of much needed foreign exchange earnings from exports due to the loss of US and EU GSP + facilities.