Apparel industry to draw up 5-year plan
The employees of a leather firm turning out leather slippers at the Footwear and Leather Fair 2016 at BMICH.Pic by Athula Devapriya
The apparel industry is currently in the process of drawing up its third five year plan that is being discussed among key stakeholders. With preparations underway to draft the next five year plan the industry is carrying out discussions on a number of issues particularly the trade concessions with the European Union (EU), a new US backed trade partnership with 12 countries, and the bilatral trade agreement with the Chinese authorities. The industry is awaiting the regaining of the EU trade concessions of GSP plus that will be forthcoming most likely by the end of the year, officials said.
It was pointed out that once the fish ban on Sri Lanka is lifted the country would soon thereafter submit their application to obtain the trade concessions from the EU. The US backed trade agreement with 12 other countries titled the Trans Pacific Partnership agreement is currently being discussed among members of the industry. The apparel industry is trying to understand the implication of the said agreement as it involves a partnership of 12 countries which command 45 per cent of the world GDP that has custom territories.
Countries like Vietnam have already engaged in negotiations to gain concessions from the TPP which is likely to be granted in about two years, industry officials said. In the wake of these developments it was pertinent that Sri Lanka looks at its implications on the apparel sector based on issues relating to purchasing of yarn and fabric from countries within the grouping. In the meantime, the government has made moves to revive their negotiations pertaining to the trade agreement with China. In this respect the sector is looking at the issues pertaining to selling garments into China. At present the agreement is being looked at by the Department of Commerce, it was noted.