Apparel exporters positive on regaining EU GSP+
View(s):Apparel exporters were positive about reaping the benefits of EU GSP + concessions next year should everything go according to plan following the UN Human Rights Council (UNHRC) sessions in September. On Tuesday, Prime Minister Ranil Wickremesinghe told the industry that the much-awaited GSP + concessions would be a reality next year.
Sri Lanka Apparel Exporters Association (SLAEA) Chairman Saiffuddin Jafferjee told the Business Times on Friday that if they (present government) can get the fishing ban lifted and the UN Human Rights matter worked out by giving a plan of action “it should be possible” to regain EU GSP plus.
He noted that with the government having established a committee on regaining the GSP + concessions it was evident that they were indeed working towards this end. Mr. Jafferjee explained that when Sri Lanka lost these benefits in 2010, the industry was compelled to look for other opportunities and since then a number of other countries have obtained these concessions.
Pakistan and Bangladesh have joined in while Vietnam is close to obtaining these concessions. India was also likely to gain this advantage. Sri Lanka did not stop marketing into the European Union but did withdraw certain apparel products that had lost competitiveness due to the absence of the concessions. As a result of this the industry believes that next year when these concessions were able to pull through they would be capable of including these products and thereby expanding their scope. During the past few years since the GSP + concessions were withdrawn there were factory closures that led to unemployment, which had a significant impact on the industry.
He noted that in terms of losses the industry would have lost an additional export income of US$500 million for just last year. Apparel exports in 2014 brought earnings to $4.8 billion. Quantum Clothing Country Manager and former SLAEA Chairman Yohan Lawrence said that based on the information made available to the industry it was evident that Sri Lanka could regain GSP + next year.