No reason for Lanka to be denied GSP+ concessions - Prof. G.L. Peiris

By Lalin Fernandopulle

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There is no reason why Sri Lanka should not be given the GSP+ concessions as the apparel sector has complied with the best labour practices, said International Trade and Export Development Minister Prof. G.L. Peiris.

He was addressing the 73rd Annual General Meeting of the Import Section of the Ceylon Chamber of Commerce at the Galadari Hotel on Tuesday.

“The European Union (EU) should consider the situation in the country before setting universal standards to be eligible for the concessions. The progress of a country should be considered in the context of the country, he said.

Despite waging a war with one of the most ruthless terrorist outfits in the world the Government has ensured the welfare of the people and has implemented development projects. Amidst adverse challenges economic growth has been resilient.

“Garment factories are not sweatshops, places for child labour, exploitation and discrimination.

The welfare of the workers is ensured while providing an environment to develop their skills. The country’s apparel industry is acclaimed internationally for its adherence to the highest ethical and environmental standards.

The apparel parks of MAS Holdings and Brandix are recognised as the best green parks which have been set up according to environmental standards by Marks and Spencer, the world’s leading apparel retailer.CEO of Marks and Spencer Stuart Rose on his recent visit to the country praised the efforts of both leading apparel exporters in designing a green concept for apparel manufacture.

“The GSP+ concessions which grants duty free access to over 7,000 export items is undoubtedly important to the country. The apparel industry which is the main beneficiary of the trade concessions is the largest employer in the country with a direct workforce of over 300,000 people predominantly from the rural sector.

“Criticism should be justifiable. The government liberated the East and is now on the path to gain victory in the North. Normal life has returned to the East which had been battered by the two-decade war and today there is an economic renaissance in the province.

The framework for the Comprehensive Economic Partnership Agreement (CEPA) will be signed with the visit of the Indian Prime Minister Manmohan Singh for the SAARC Summit this month.

Sri Lankan officials held negotiations with the Indian team on Wednesday in Colombo to finalise the agreement.

The agreement is getting into shape and there has been good understanding by both countries.The agreement will not open the floodgates for professional services from India. There is a fear among the business community that India will swamp Sri Lanka’s service sector.

Sri Lanka’s exports have made the best use of the Free Trade Agreements (FTAs) with India and Pakistan. Betel leaf exports have gained immensely under Pakistan’s Free Trade Agreement.

Prof. Peiris while commending the steps taken by the Import Section to hold pre and post budget discussions said that it would be more useful if there is interaction with policy makers prior to formulating budget proposals.