SLCC urges EU to extend GSP +

by Lalin FERNANDOPULLE

Sri Lanka Ceramics Council (SLCC) urged the European Union (EU) to extend the Generalised System of Preferences (GSP+) concession to Sri Lanka considering the industry's potential and its labour force.

President, SLCC, D. Warnakulasooriya said the withdrawal of the trade concession to exporters will result in adverse consequences to the ceramics industry which employs over 50,000 people who are predominantly from low income families.

"Sri Lanka will not be able to achieve the United Nations Millennium Development Goals (MDGs) if trade concessions which help enhance export revenue and create employment are withdrawn", he said.

Poverty eradication, gender equality, respect for fundamental rights, equitable distribution of resources have been envisaged in the MDGs.

Ceramic exports to the EU region account for nearly 50 percent of the annual exports earning which is around US$ 42 million. Export earning to the EU during the first six months of this year was Rs. 745 million.

Past President, SLCC, Sunil Wijesingha said the ceramics industry will lose its markets because emerging countries such as Bangladesh which is a Less Developed Country (LDC) has Duty Free market access to the EU region.

"The EU should consider extending the GSP+ concession to Sri Lanka which competes with countries that export low quality and cheap products to the EU region. Sri Lankan manufacturers have complied with all EU labour regulations and quality standards" Wijesingha said.

Bangladesh and many other emerging markets in the region have gained from Sri Lanka's high labour and energy costs which has hindered the growth of ceramics exports.

The SLCC has made representations to various EU trade partners and chambers lobbying for the renewal of the trade benefits to the country. Wijesingha said the Council cannot make a direct appeal to the EU on the matter as the government has taken a stance on the GSP issue.

"Despite the negative opinion about the termination of the GSP+ concession the SLCC is quite optimistic that the EU would extend the benefit to Sri Lanka considering the plight of workers and the development of the country", he said.

The SLCC comprise manufacturers of porcelain tableware, ornamental and utilityware, wall and floor tile manufacturers, glass, roofing tile and brick and tile manufacturers.

Sri Lanka's main export markets are USA, UK, Italy, UAE, Netherlands, Germany, France, Japan, Greece and Belgium.