Re-negotiating trade with UK is vital following Brexit crisis
One-third of Sri Lanka’s exports last year went to the European Union valued at US$3 billion and this included $1billion to the United Kingdom (UK). “I am pleased to say that exports to the UK 2015 increased by 17 per cent. Eighty per cent of exports to the UK were apparel, foot ware and Ceylon tea,” said Rishad Bathiudeen, Minister of Industries and Commerce delivering the keynote address at the Trade-in-Services Seminar at the Bandaranaike Centre for International Studies at the BMICH Colombo. The seminar was organised by the Department of Commerce to facilitate an in-depth understanding of trade with line ministry officials on the legal framework of GATS and other issues.
The Minister said that historic developments are taking place in the global trade. He was referring to the recent referendum of the United Kingdom membership of the European Union known as the Brexit, saying that in the present background “we have to look at trade with UK and the EU (separately) as both the UK and the EU are valuable trading partners to Sri Lanka”. The Brexit separation will take place in two years, he said. The Minister said that statistics show that there is a significant growth in recent years in export services especially among developing countries. He said trade-in-services has been moving significantly in the communications and the telecommunication sector which has the potential in developing economic growth in developing countries.
Hamid Mamdouh, Director – Trade in Services Division of the World Trade Organisation Geneva, said this sector was an important part of the economy more than agriculture, mining and manufacture put together. “It is about 60 per cent of the GDP in Sri Lanka and that includes the whole gamut of services like banking, insurance, transportation, distribution, wholesale, professional services, lawyers, accountants, engineers, physicians, education, healthcare, etc. The services sector was fast growing and attracts foreign investment. Others who spoke at the seminar were Ms. Evgeniia Zhuravleva, Legal /Economic Analyst, Trade in Services Division, WTO and Ms Sonali Wijeratne, Director General of Commerce at the Department of Commerce – Sri Lanka.