Crucial trade talks with India, China

Focus on Non-Tariff Barriers:

Non-Tariff Barriers (NTBs) and other obstacles that Sri Lanka’s exporters claim, are blocking them in using the existing Indo-Lanka Free Trade Agreement (FTA) will be taken up at the start of new trade talks with India next week. The officials of the Agency for International Trade will carry out the negotiations.

Over the past several years, since the FTA came into effect in 2000, exporters to India have gone through many issues owing to non-cooperation by the State governments as well as occasional hostile treatment due to lack of awareness of the trade agreement.

“We have a list of implementation and operational issues faced by the exporters. We want to address those issues at the beginning of the talks,” K. J. Weerasinghe, a member of the negotiation team said.

There have been various practical problems along the implementation process of the FTA such as procedural issues, quality certificate issues, lab and testing requirements. “This is a priority area of discussions. We will sort out these issues before having talks on the ETCA framework,” Weerasinghe said.

Minister of Development Strategies and International Trade Malik Samarawickrama said the negotiation team is aware of such problems and discussed on the issue extensively. “The Central government is aware of our concerns and is willing to give us some concessions,” he said.

Meanwhile, the Sri Lankan apparel exporters are expecting the liberalization of textile and apparel sector following the negotiations with China and India over the next couple of weeks. Minister Samarwickrama said Government will discuss about the removal of quotas for apparel, tea and pepper under the existing Indo-Lanka Free Trade Agreement. “We will discuss about the free access to the Indian and Chinese markets for exports such as tea and apparel at the beginning of the talks.”

Secretary General of JAAF, Tuly Cooray told the Business Observer, the apparel exporters are expecting apparels and textiles mainly classified under chapter 61, chapter 62 and chapter 63 included in the preferential agreement with China. “This facility has been given to ASEAN.“We have a feeling that we might get free market access as well, following negotiations,” he said.

Cooray said they also expected India to liberalize apparel exports to that country. “Our argument is that we import raw materials - yarn, fabric and garments itself – to the value of US dollars 300 to 400 million from India. But we export only about US dollars 60-70 million worth apparels to them.”

“We want India to remove quotas for apparel, tea and pepper and establish free trade environment where both countries would equally benefit,” he said.With India, Sri Lanka is seeking the removal of a quota of 8 million pieces of apparel under the existing free trade deal.