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| Sunday, 4 January 2004 |
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Special EU concessions for local exporters by SUREKHA GALAGODA Sri Lankan exporters to the European Union (EU) will get a further boost from next month with the EU granting special concessions to Sri Lanka, based on the protection of labour rights by the country. This was highlighted and initiated by Minister of Commerce and Consumer Affairs Ravi Karunanayake as a result of the high level talks he had with the authorities to promote trade and commerce between the EU and Sri Lanka. The special incentive scheme will become effective from February 1 and includes low tariffs (customs duties) to our exports. Under the new scheme, all products which are charged 9.5 per cent duty at present will be allowed to the EU at zero duty. Several non-traditional export items will also gain access at this rate. All products that are charged more than 9.5 per cent duty at present will see the duty reduced to 8.5 per cent. Thus, shoes which are presently exported by Sri Lanka to the EU at 17 per cent duty will see the duty reduced to 8.5 per cent. This duty reduction will bring in a very competitive edge to our exports. All garment exports on which the import duty to the EU is now 12 per cent will be conferred the special reduction of duty of 20 per cent from the present rate. The reduction of duty will be 2.4 per cent of the present duty. At present, 30 per cent of Sri Lanka's exports go to the EU region. Sri Lanka's relationship with the EU is growing very steadily. During the second half of 2004, a large buyer-seller meeting will be held in Colombo to promote trade between the EU region and Sri Lanka. The event is co-financed by the European Commission (EC) and organised by the European Chamber of Commerce Sri Lanka in collaboration with the EC Delegation office in Sri Lanka. It will be held at the BMICH on June 3 and 4 with focus on promoting ties between small and medium scale enterprises in Sri Lanka and the European Union. Trade promotion organisation from the 15 EU countries have confirmed business delegations from their countries to participate in this event. Over one hundred local companies have listed to participate in the largest one-to-one business matching event to be held in Colombo. The organisers hope the event will help about 100 European firms to meet 150 select local firms in the infrastructure, agro and foods, information technology, electronics, machinery and light engineering, education services and the leisure sector to promote joint ventures and partnerships. The event aims to develop and strengthen bilateral business links between Sri Lanka and the EU. Sri Lanka is also trying to pursue a Free Trade Agreement with the EU. On the request of the EU, a consultant from the Netherlands conducted a comprehensive survey in Sri Lanka on the implementation of appropriate labour norms and rights without infringing the conventions of the International Labour Organisation. |
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