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| Sunday, 24 November 2002 |
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Lanka gets closer to FTA with USA by SUREKHA GALAGODA A round of talks leading to the finalisation of the Trade and Investment Framework Agreement (TIFA) was held in Sri Lanka last week while another round of talks are scheduled for the first quarter of next year in USA. The TIFA strengthens bilateral relations as well as cooperation on investment between the two countries. Representatives from Sri Lanka and USA will meet every three months until we succeed in finalising the TIFA which will eventually lead to a Free Trade Agreement with USA, Minister of Commerce and Consumer Affairs Ravi Karunanayake told the Sunday Observer. Ambassador Jon M. Huntsman Jr, Deputy Trade Representative for the US, who was in Sri Lanka last week, said plans are afoot for the next meeting, scheduled for the first quarter of next year, between representatives from Sri Lanka and USA. They are expected to follow up on issues such as finding ways to cooperate at the World Trade Organisation (WTO), market access and agriculture. Mr Huntsman was on an official visit to Sri Lanka to inaugurate the Trade and Investment Forum where he had extensive talks with Minister Karunanayake. He also had discussions with President Chandrika Bandaranaike Kumaratunge and Prime Minister Ranil Wickremesinghe. The ambitious plans of the Sri Lankan government could make the country one of the most open, dynamic and competitive economies in Asia and the US is eager to see Sri Lanka meet its potential as it will be beneficial for businesses as well as the people of both countries, Huntsman said. He said: "I was moved by Sri Lanka's determination to achieve peace and prosperity for its people. The first step is treating the years of conflict as the past, but peace alone will not enable this nation to reach its true economic potential." The establishment of predictable and transparent rules, a conducive environment as well as less bureaucracy and red tape are necessary to increase investments and usher in economic prosperity. He said the peace process, the beginning of a new era in the post-conflict period, has heightened the confidence of US investors in Sri Lanka, which will result in more investments. The initiation of greater cooperation is the result of higher confidence. Active participation in the Doha Agenda of multilateral trade negotiations and diversification of Sri Lanka's economic base were discussed extensively at the talks with Minister Karunanayake, said Mr Huntsman. He said active participation in the Doha Agenda of multilateral trade negotiations taking place in the WTO is critical for developing countries as a larger global market place has greater chances of prosperity. Diversification of Sri Lanka's economic base is also crucial as growth in private sector investment leads to the creation of jobs and new opportunities for consumers and businesses. "The US has been given the opportunity to demonstrate our commitment to a closer trade and investment relationship with Sri Lanka," noted Huntsman who described the initiation of the TIFA as a "historic event in our bilateral economic relations as it promotes in-depth discussion of bilateral and multilateral trade issues of importance to both countries". The TIFA, signed in July this year, explores ways to strengthen bilateral trade and investment opportunities between Sri Lanka and USA. Some of the other countries USA has signed TIFAs with are Philippines, Indonesia and Thailand, he said. Ways of increasing bilateral trade and furthering of common goals in the WTO were discussed while the approach Sri Lanka could pursue to improve the investment climate was also evaluated by the Deputy Trade Representative. |
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