Exporters yet to utilise benefits of trade pacts

by Surekha GALAGODA

“Though Sri Lanka has entered into several trade pacts exporters are yet to fully utilise their benefits”, said Director General of Commerce Gomi Senadheera. At the seminar on free trade agreements organised by the Spices & Allied Products Producers’ and Traders’ Association (SAPPTA).

“The fourth round of the Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement, is currently on and once it is finalised there will be deeper tariff cuts where all exporters from Sri Lanka will benefit”, said Senadheera. He said that the agreement will extend to new areas such as trade facilitation while membership will be expanded on a priority basis to Cambodia, Mongolia, Nepal and New Guinea.

He said that smaller exporters who wish to export to Korea and India can utilise the facilities of APTA, but at present the utilisation rate is very small.

He said that utilisation rates are not very high either because exporters are not obtaining certificates of origin from the department of commerce or because importers are not presenting them to get duty concessions.

He said that with the conflict coming to an end exporters are seeking many avenues to expand their businesses and therefore was confident that the utilisation of the tariff lines under APTA will increase in the future. He said that this is the only agreement linking China and India which opens up a large market for Sri Lankan exporters as well.

Senadheera said that with China becoming a member in 2001 a large market has opened for Sri Lankans to export products such as tea, apparel, rubber products, activated carbon and porcelainware.

Speaking of the South Asia Preferential Trade Agreement he said that goods exported within member countries have dropped from $ 3.8 m in 2007 to $1.77 m last year which shows that exporters are not taking the benefits due to lack of knowledge or information.

Senadheera said that under the Indo Lanka Free Trade Agreement trade has doubled while high level trade negotiations are on, but annextures and framework for the inclusion of services have not been finalized as yet. He said the Pakistan Sri Lanka Trade Agreement which was implemented in 2005 has increased trade. The number of products exported to Pakistan under the agreement is significant but not sufficient.