Belarus to boost trade with Sri Lanka

The first trade talks between Sri Lanka and Belarus opened in Colombo last week amidst pledges from both sides to forge sustainable trade links while making inroads into the new Asian and Eurasian Union markets.

"Belarus is Sri Lanka's first gateway to the EU market. Our Free Trade Agreements with Pakistan and India have opened gateways to a South Asian market of 1.2 billion people. Equally important is Sri Lanka's forthcoming FTA with China, Industry and Commerce Minister Rishard Bathiudeen told the opening session of the Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation (JEC).

"We invite you to partner with Sri Lanka and take advantage of the new Asian opportunity," he said.

The Belarus delegation led by Deputy Minister of Foreign Affairs, Valentin B. Rybakov also included Delhi-based Belarus Ambassador for Sri Lanka, Vitaly Prima, Ms Maya Rusetkaya from the Belarus Ministry of Foreign Affairs and representatives from Minsk Tractor Works (agro machinery maker), RUE Belmedpreparaty (a pharma sector pioneer and manufacturer of generics), Promagroleasing (a leasing and finance corporation, with market penetration in South Africa and South America), Minsk Automobile Plant (MAZ - manufacturer of vehicles including trucks and industrial vehicles), Caravan (tea and coffee retailer - Aroma and Shokomiska brands), Minsk Department of the Belarusian Chamber of Commerce and Industry (Chamber with a membership of over 780 medium and large scale businesses of Minsk region), Belarusian National Technical University and Vitebsk State Medical University.

"Sri Lanka and Belarus enjoy warm and cordial relations based on mutual respect and shared values and today's event would bring ongoing cooperation to a new level," said Minister Bathiudeen.

"Belarus is due to become a member of the Eurasian Economic Union (EEU) on January 1, 2015. From January, the EEU will create a single economic market of 171 million people. Therefore, Belarus will be Sri Lanka's first gateway to the promising new single market," he said.

"Sri Lanka is a middle income, emerging market economy. The Government's objective is to make Sri Lanka a global hub. Of Sri Lanka's 231 exports destinations in 2013, Belarus ranked the 77th destination compared to rank 81 in 2011," the Minister said.

"Less than one percent of our total exports go to Belarus. It is a virgin market with much potential. Total trade between the countries stood at US $ 14.24 million in 2013," he said.

"In 2012, Sri Lanka was at the 69th rank among the countries which export to Belarus. Sri Lanka's exports to Belarus include tea with a share of about 94%. Sri Lanka has more than 3,520 products for export and we invite you to select from our expanding basket of products," Bathiudeen said.

"The agreements on avoidance of double taxation and prevention of fiscal evasion between Belarus and Sri Lanka signed by President Mahinda Rajapaksa and President of Belarus Alexander Lukashenko, in August 2013, will help to improve bilateral trade," he said.

"We invite investors from Belarus to partner with Sri Lanka and invest in more than 50 ready-made investment projects offered by our government. Investing in Sri Lanka for re-export is a promising option for investors from Belarus," the Minister said.

"Preferential tariffs are granted for agreed products under several bilateral and multilateral agreements such as South Asian Preferential Trade Agreement, the South Asia Free Trade Agreement, the Asia-Pacific Trade Agreement, the India-Sri Lanka Free Trade Agreement and Pakistan-Sri Lanka Free Trade Agreement and also under the Global System of Trade Preferences," he said.

"Our Free Trade Agreements with Pakistan and India have opened gateways to a South Asian market of over 1.2 billion people. Equally important is Sri Lanka's forthcoming FTA with China. This is in the background of our rising bilateral trade with China," Minister Bathiudeen said.

"China has also become one of the major development partners of Sri Lanka supporting us in many infrastructure projects. We invite you to partner with Sri Lanka and take advantage of the new Asian opportunity - accessing two fast-growing markets from Sri Lanka," he said.

"The two promising markets are South Asia and China. I also believe that our rich heritage, bio-diversity, beautiful beaches, scenic beauty, and above all, the warm hospitality of our people will offer a new tourism discovery to Belarus tourists," the Minister said.

Deputy Minister of Foreign Affairs of the Republic of Belarus, Valentin B. Rybakov said, "We always attach great significance to JEC sessions. Bilateral trade between Belarus and Sri Lanka is negligible. The potential for trade is huge. Belarus views Sri Lanka as an emerging trade partner in the South Asian region."

"We are interested in long-term cooperation in various areas. It is vital to diversify our trade and economic relations with the rest of the world. South Asia, is an important region as it is becoming the global economic driver, especially with a common market of billions of people," he said.

"Belarus is also part of the new Eurasian Economic Union (EEU). The EEU is an important economic structure. One of your key issues is food security. We can help you in this by supplying potash fertiliser," the Deputy Minister said.

"We are interested in supporting other agricultural sectors since Belarus is one of the countries that ensures total food security to its people.

We can also help in industrial matters. We have launched a tractor assembly facility in Sri Lanka," he said.

"We will continue our cooperation in education. There are a sizeable number of Lankan students in Belarus. We like to have more Lanka students. The strategic areas of economic development in Belarus are based on two key economic principles, improving business environment and investment."

"We will be happy to see more Lankan companies as our partners. The agreements reached at this two-day session will help us to formulate a return visit by our Head of State," Deputy Minister Rybakov said.