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Sri Lanka Apparel Industry Calls For New Trade Talks To Start

2010/7/26 9:32:00 29

Sri Lanka

tailoring

He recently called on his government to trade negotiations with Russia, China, Japan and Brazil, and hoped that India would expand the existing trade concessions to Sri Lanka to reduce Sri Lanka's dependence on the European Union and the United States.

The representative office of Sri Lanka clothing industry, Joint Apparel Association Forum (JAAF), Rohan Masakorala, said: "at present, more than 90% of the exported garments are exported to the United States and the European Union, but there are also other good markets such as Japan and Australia, and our competitors have already been granted preferential treatment to these countries."

"As our competitors have already negotiated trade agreements, we have suggested that the government negotiate trade agreements with appropriate countries in our 5 year industrial policy report," he said.

Sri Lanka

The current export market of garments is concentrated in the United States and the European Union is regarded as a risk.

In addition to the recent loss of tariff free preferential treatment for EU garment manufacturers, exports to the European and American markets have also been affected by the economic downturn of the two major markets.

Masakorala said, "the new market can not immediately replace the United States and the European Union.

But in the long run, the new market will generate new opportunities for economic growth and reduce the risk of excessive concentration of the market.

Ready-made clothing is the largest export item in Sri Lanka, but only India and

European Union

Preferential treatment for Sri Lanka's clothing products to enter the two markets is given.

According to the India Sri Lanka trade agreement, India offers 3 million Sri Lanka duty-free import concessions annually, and does not restrict import ports, and does not need to use India cloth restrictions.

Another 5 million pieces of Sri Lanka garments made of cloth made in India can be imported into the India market at zero tariff rate or enjoy a preferential tax rate of less than 75% of the common duty rate (margin of preference).

The EU has since August 15th (2010) revoked the export of garments from the EU to the EU market with a preferential tariff rate. Sri Lanka will no longer apply the generalized preferential tariff regime (GSP+) scheme to EU garments, but it can be applied to the EU GSP general concession scheme.

The Sri Lankan garment industry says it has not benefited from the GSP in the United States, but the proposals are still under review.