APTA concessions underutilised

The utilisation of Asia Pacific Trade Agreement (APTA) concessions by Sri Lanka is low compared to other member countries.A trade development strategy is needed to explore opportunities, said Deputy Director of Commerce, Dr. Dayaratne Silva.

He was addressing a seminar organised by the Ceylon Chamber of Commerce (CCC) on the outcome of the third round of APTA negotiations and benefits for Sri Lanka.

Dr. Silva said Sri Lanka’s import quantity is high compared to its exports under the agreement. The country’s exports under the agreement are 3.1 per cent compared to total world exports.

The country’s export earnings under the APTA were US$ 564 million in 2006 while the import expenditure was US$ 2,805 million. The export earnings were US$ 625 million in 2005 and imports were US$ 2,290 million.

He said international trade relations, trade related infrastructure development including supply capacity, trade facilitation and promotion are vital components for a trade development strategy.

Sri Lanka uses less than five per cent of the preferential tariff lines granted by China under the APTA. The country’ exports to China are around 28 per cent which is an indication of the agreement being underutilised.

A Director of the Ministry of Commerce, India, Rajan Ratna said Sri Lanka’s Free Trade Agreements with India and Bangladesh should be a platform to enhance trade and investment among APTA countries and make maximum use of the GSP Plus concessions. LF