EU discussions vital to save GSP+

by Lalin FERNANDOPULLE

Sri Lanka should engage in having discussions with the European Union (EU) on the GSP+ issue and not take hasty decisions, said Chairman Sri Lanka Apparel Institute, Prof. Lakdas Fernando.

He said there is no need to panic as there is time to engage in talks with the EU on this requirement in getting the extension of the trade concessions. The EU will make the final announcement on granting the zero Duty Concession to Sri Lanka at the end of the current GSP+ period which would end within six to eight months. EU Ambassador in Sri Lanka Bernard Savage reported to have said, a review of Sri Lanka would be made at the end of the current GSP+ period and should not rush to decisions as there is few months more.

"Sri Lanka should continue discussions with EU officials and show its commitment to democratic principles", Prof. Fernando said. He said there has been lobbying at various levels for the renewal of the trade benefit to Sri Lanka but it is not adequate. There need to be a firm commitment to the compliance of the GSP+ requirements. Sri Lanka was able to export around 7,000 items Duty Free to the EU region under the GSP+ concessions that was granted in 2005 for a three-year period. The term of the trade benefit came to an end last year and since then there has been a temporary extension subject to a review. Garment trade is the main beneficiary of the concessions while gem and jewellery, tea and ceramic products are some of the other export items that are traded under the GSP+ scheme.

Exporters claim that they would be badly affected if the trade concession is withdrawn. Around 300,000 employees directly benefit from the apparels industry while another 200,000 are indirectly involved.