US to restore GSP

by Lalin FERNANDOPULLE

The US GSP trade concession will be restored on the completion of budget debates and discussions by the US Congress, said US Ambassador to Sri Lanka and the Maldives, Patricia Butenis. He was addressing the 19th Annual General Meeting of the American Chamber of Commerce (AmCham) on Thursday.

Patricia Butenis

She said the restoration of the trade concession to beneficiary countries will be taken up by the Congress soon enabling exporters to gain a competitive edge in the US market.

The United States is expected to restore the US GSP trade concession to beneficiary countries within the next few months, according to US official sources in Colombo.

The trade benefit to Sri Lanka was suspended in December 2010 due to technical reasons. Sri Lankan exporters incurred a substantial loss due to the suspension of the trade concessions which enabled them to export over 3,000 items excluding garments duty free to the US.

Sri Lankan exports have been off the shelves for nearly a year since the suspension of the special concession which made products uncompetitive.

Trade between Sri Lanka and United States has been uneven due to the trade deficit which exceeds $ 1.5 b.

“We would like trade to be more balanced by increasing US exports.President Barrack Obama launched the national export initiative to double US exports in the next five years and Sri Lanka is on the special list of countries”, the Ambassador said.

The US imported goods worth over $ 1.7 b from Sri Lanka last year while exporting items to the value of $ 180 m.

Following the Trade and Investment Framework Agreement (TIFA) talks last year the US Embassy in partnership with AmCham and the Export Development Board have been encouraging Sri Lankan companies to buy US goods and services.

“US exports to Sri Lanka have increased by over 40 percent this year and there is progress”, Butenis said.

AmCham founded in 1992 and with a current membership of nearly 345 leading Sri Lankan and American companies promotes trade, business and investment between Sri Lanka and the United States.

AmCham President, Vijaya Ratnayake said bilateral trade for the first six months this year was promising with an increase in overall trade.

Exports to the US increased by 45.2 percent to $ 125.3 m in the first half of this year while imports from US grew by 19.9 percent to $ 992.1 m compared to the corresponding period last year.

Exports to the US during the first six months last year were $ 86.3 m while imports were $ 827.5 m.

The ninth TIFA talks are scheduled to be held in Washington in November.Issues related to bilateral trade will be discussed at the talks.

AmCham will hold a golf tournament in Colombo this year to promote tourism in the country. Around 200 participants are expected for the event.