As the GSP Plus tariff concessions by the European Union end today, the Government reiterated that its stance on the issue has not changed.
External Affairs Ministry Secretary Romesh Jayasinghe told The Sunday Times that the 15 demands put forward by the EU could not be accepted by a sovereign nation even if it meant losing the tax concessions.
“Our earlier position has not changed and the EU has been repeatedly advised on the matter,” Mr. Jayasinghe said.
The EU’s Colombo Mission Chief Bernard Savage said Sri Lankan exports entering any European Union port would be charged the full Customs duty, starting from today even if the orders were placed before the suspension came into effect.
He said that although the tax concessions ceased today, Brussels was still optimistic that the Government would shift from its hardline position and return for discussions in this regard.
Senior industrialists warned that without the concessions a duty of some 9.6 percent would be levied on local products forcing buyers to pay a higher price for Sri Lankan
products than those from other countries.
“This is where the problem starts, simply because the buyers will go for cheaper products thereby ignoring Sri Lankan goods and the worst to be hit will be the local garment industry,” one industrialist said.
A Sukumaran, President of the Joint Apparels Association Federation (JAAF) said that the country would some $500 million in foreign exchange earnings each year as a result of the suspension of the facility.
Meanwhile a senior trade unionist yesterday warned that certain unscrupulous employers would use this issue to trim down on benefits of their workers, even before losses were incurred.
Free Trade Zone and General Services Union President Anton Marcus said complaints were pouring in each day from workers claiming that their employers were pruning down on various benefits and other perks.
“The unions are closely monitoring the situation and the Government has also been alerted,” Mr. Marcus who represents the largest trade union in the apparel sector said.
Among the 15 conditions put down by the EU, if the tax concessions are to be renewed, are the unconditional release of LTTE detainees and the implementation of the 17th amendment. |
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