National Chamber of Exporters commends Govt. on GSP+ vote
View(s):This will undoubtedly provide the much needed impetus to Sri Lankan exports to facilitate accelerated economic development, the NCE said in a media release.
The GSP+ would entail the full removal of duties on 66 per cent of tariff lines, covering a wide range of products including Textiles and Garments, Fisheries Products, Rubber Products, and Machinery, the chamber said.
Since the EU consisting of 27 countries is the biggest export market for
Sri Lanka accounting for 1/3 of total global exports of the country, the concessions can make a significant contribution to Sri Lanka’s economic development by increasing exports to the EU market especially by the apparel sector which accounts for 46 per cent of Sri Lanka’s exports. In 2015 EU imports from Sri Lanka amounted to 2.6 billion Euros which highlights the significance of the concessions that will be available.
There are eight GSP+ beneficiaries among developing countries. In this context the chamber noted that Sri Lanka will have a particular advantage over competitor countries such as Pakistan, Bangladesh, and the Philippines for exports especially in the Textiles and Garments sector.
GSP + currently covers 13 beneficiaries: Armenia, Bolivia, Cape Verde, Costa Rica, El Salvador, Georgia, Guatemala, Mongolia, Pakistan, Panama, Paraguay, Peru, and the Philippines. Sri Lanka was a beneficiary country since 2005 to 2010.
The chamber said it was conscious of the fact that Sri Lankan exporters will undoubtedly face certain challenges, in regaining the hitherto lost markets related to the EU. Additionally another challenge will be the withdrawal of the UK from the EU or “Brexit”, since the UK is the main EU country for Sri Lankan Exporters.
With a view to educate exporters on the benefits related to the GSP+ facility, the rules and regulations pertaining to exports to the EU, quality requirements of the products and services, and measures to overcome the challenges when exporting to the EU to derive maximum benefit, the chamber will conduct a Forum during the last week of May 2017. There will be relevant ministers and Ambassadors invited to provide an overview on the issues and benefits related to the GSP+ facility. Additionally officials from the Department of Commerce and the Export Development Board will be invited to make presentations on specific issues related to the facility.