Obtaining GSP+ facility:

France to extend support - French Ambassador

by Lalin Fernandopulle

France is closely following the developments with regard to the restoration of the GSP plus scheme to Sri Lanka and would extend its fullest support to re-instate the scheme, Ambassador to France and the Maldives Jean-Marin Schuh told the Sri Lanka-France Business Council AGM last week.

He said France has pledged its support for the restoration of the GSP Plus scheme which is primarily an issue of the European Union. We will back the restoration of the facility to help Sri Lanka boost exports to the EU.

The GSP plus concession was withdrawn from Sri Lanka in 2010 due to the former government not complying with the EU regulations on good governance, human rights and labour laws. Discussions between EU officials and the new government on restoring the trade concession commenced this year. The government is optimistic that the trade benefit will be restored next year.

The EU is a major market for Sri Lankan apparel which accounted for over 40 percent of the total trade to the region. The withdrawal of the scheme hit many small-scale apparel exporters who eventually had to shut down operations due to the steep fall in revenue. France is upgrading relations with Sri Lanka following the election of the new government in August.

President Maithripala Sirisena is due to visit France in November this year for the climate conference and, thereafter, the French State Minister of Development will visit Sri Lanka next year, the French Ambassador said. He said Sri Lanka has the right climate now to attract French investors. The campaign 'Creative France' was launched to woo investors to France.

Trade between Sri Lanka and France has been growing. Trade between the two countries was around US$ 425 million in 2014 with a balance of trade of US$ 100 million in favour of Sri Lanka. Sri Lanka's exports to France accounted for around 2.33 percent of total exports last year which was around US$ 11, 297.95 million.

Sri Lanka's main exports to France comprise apparel, rubber articles, fish and crustaceans, coffee, tea and spices, machinery and mechanical appliances, paper yarn and woven fabric of paper yarn, edible fruits and nuts, plastics, toys, games and sports requisites and imports comprise machinery, mechanical appliances, articles of iron steel, aircraft, spacecraft, electrical machinery and equipment, pharmaceutical products, optical, photographic, medical or surgical instruments, essential oils, beverages, spirits and vinegar.

"We expect around 90,000 French travellers to visit Sri Lanka and more Sri Lankans to visit France this year. With regard to visa processing, the French Embassy will provide a 48-hour delivery of visas to Sri Lankans," the Ambassador said.

The number of visitors from France last year was 78,000, a 22 percent growth from 68,000 recorded in the previous year. France expects around 40,000 delegates for the climate conference at the end of the year.

President, Sri Lanka-France Business Council, Dilipan Tyagarajah said that there is noteworthy growth in trade between Sri Lanka and France and added that the Council will facilitate more trade and investments between the two countries.

Many French companies operate in Sri Lanka and a large number of Sri Lankan reside in France. Some of the main French investors include Lafarge Cement (Pvt ) Ltd (cement production), Mapa Lanka (Pvt) Ltd and Mapa Lalan (Pvt ) Ltd (glove export), Biogrow Lanka (coir substrates), Intissel Lanka (Pvt) Ltd and Chargeurs Group (interlining of garments), Noyon Lanka (Pvt) Ltd - Noyon La Dentelle Calais (lace fabric).