Sri Lanka offers to cut trade deficit, increase imports
Sri Lankan authorities have expressed willingness to reduce its trade deficit with the US and lower the tariffs on imports with expectations to conduct negotiations and discussions with the state officials by around next week.
Sri Lanka has established a committee comprising the private sector and bureaucrats with key representatives from the apparel sector along with representatives from the rubber sector and state sector bureaucrats, and government officials.
There have been positive signals from the US during conversations between the Sri Lankan authorities and the US Representative for Asia who had assured a willingness to negotiate and discuss the trade tariffs, JAAF Deputy Chairman Felix Fernando told The Sunday Times Business.
He also said that Sri Lankan authorities had expressed their willingness to “take steps to reduce the deficit and tariffs”.
In this respect, Sri Lanka has explained that they are ready to import animal feed and assured they will help to thereby reduce tariffs and increase imports from the US.
Mr. Fernando said the government is currently working round the clock on this latest development and has requested an appointment to engage with US authorities and are planning to fly out by next week in this regard.
In the meantime, some buyers have already told apparel manufacturers in Colombo not to ship goods after April 9 raising increased concerns within the industry.
This is likely to be a situation where conditions for the apparel industry in Sri Lanka might be worse than when the country lost GSP+ benefits from the European Union back in 2010, Mr. Fernando explained.
The contradictory signals sent out by the US President Donald Trump and US Advisor Peter Navarro to Vietnam’s offer for zero tariff is indicative that they might be in for more than simply the tariffs, local observers point out.
“In my view it’s not just about tariffs, but they are restructuring their economy which is a bold move,” one official noted. With Sri Lanka’s trade deficit with the US standing at just over $2 billion observers also noted that during discussions with a number of other countries it was found that every country, even states like Vietnam and Bangladesh are “on pins and so are we.”
Meanwhile, authorities conducted a special networking forum on Monday with foreign mission heads in a bid to explore new market opportunities, discuss challenges and barriers faced and present proposals to enhance export competitiveness.
Views were shared on the newly introduced US tariff regulations creating a space for exporters to voice their concerns and offer suggestions for improvement.
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