ETCA talks: early gains: Freed up exports to India

Next ETCA meeting in India in October after finalising Trade Policy :

India-Sri Lanka agree to remove quota on exports of goods :

National Trade Policy to be presented to Parliament in Mid September:

By Rukshana Rizwie

The relaxing of quotas on Sri Lankan exports to the vast neighbouring Indian market are among early achievements in the on-going negotiations on the Economic and Technology Co-operation Agreement (ETCA) between Sri Lanka and India, the Sunday Observer learns. During the preliminary meeting with the Indian counterpart delegation last week, a broad outline of the Agreement was mutually decided upon including the removal of the 8 million pieces annual quota on exports of textiles from Sri Lanka, the Sunday Observer reliably learns. Pepper exports are also to be freed up.

The four-member Indian delegation which was led by Bhupinder Singh Bhalla, Joint Secretary of the Ministry of Commerce held talks for two days on the technicalities of the agreement. A source who was present at the negotiations told the Sunday Observer that a broad outline of the Agreements and the areas which would be considered within this framework was decided upon.

“There will be detailed clauses in the Agreement on services, investment, economic and technology cooperation, trade facilitations and customs.

Other general provisions include a mechanism for trade linkage, dispute resolution among others,” he said.

“Under the goods chapter, it was agreed that the restriction on exports of textiles from Sri Lanka which currently has a quota of 8 million pieces would be removed. We are currently importing 400 million worth in yarn, fabrics and other materials when our export is only at 36 million.”

He also added that the quota on pepper would be removed. It was agreed that pepper would be put to the free list since declaring it in the negative list entails a quota which was restrictive. India-Sri Lanka bilateral trade stood at $4.6 billion as of last year, of which Indian exports were valued at about $4 billion according to the Indian High Commission in Colombo.

With reference to the National Trade Policy, he said it has been drafted and would go through a series of stakeholder consultations before it is finalized. He expects it to be finalized by the mid September, ahead of the second meeting with India over ETC.

“The second meeting will be held in India in October. By then the Trade Policy will also be finalized and ready.”

Minister of Development Strategies and International Trade Malik Samarawickrama said that the Trade Policy would be presented to Parliament by the end of this month if it was finalized. Sri Lanka is expected to ink the ETCA agreement with India before the end of this year.