Worry over China-Lanka tariff plan
With the Sri Lanka –China Trade agreement close to be finalised, local manufacturers are vehemently protesting against certain agreements reached on tariff lines and trade, more favourable to China.
An agreement was reached under Sri Lanka’s Tariff Liberalisation Programme (TLP) to cover 90 per cent of both tariff lines and trade value with 10 per cent negative list and reach liberalisation of 90 per cent within a 20 year-period.
The negative impact of this agreement on the local manufacturing sector has been brought to the notice of the Ministry of Industry and Commerce by industry heads at the sectorial committee meeting held at the ministry in Colombo recently.
The Department of Commerce is now preparing a comprehensive sector-wise analysis to identify affected industries, their exports, employment, turnover and volume of production including proposals made by industry heads at sectorial committee meetings. If liberalisation of 90 per cent of both tariff lines and the cess is removed all industries will be forced to close down affecting industry-based revenue generation and jobs, industry heads have warned.
At the meeting Ranjith Hettiarachchi, CEO – Samson Sportswear (Pvt) Ltd and Chairman of Advisory Committee of Footwear to the Ministry of Industry and Commerce, expressed concern on the decision taken by the Cabinet Committee on Economic Management (CCEM)
He pointed out footwear does not carry any duty (zero duty) and Chinese shoes will flood the market and inundate the local industry in no time. In addition dumping of excess and stock lot shoes from China below the cost will transform the local footwear industry into a sick one, he added. Making a set of proposals to remedy the situation, he urged the ministry to introduce a labelling system with minimum retail price, importers details, country of origin to curtail illegal imports.