Apparel industry wants speedy trade concessions with EU
The apparel industry has urged the Government to speed up obtaining trade concessions from the European Union (EU) in addition to upscaling its agreements with the United States (US) to preferential trade ties for the garments sector.
The Joint Apparel Association Federation (JAAF) met on Wednesday and submitted a series of proposals to the government requesting it to hasten the process of Generalised System of Preference (GSP) as it was important to the industry, JAAF General Secretary Tuly Cooray told the Business Times. EU GSP plus was removed in August 2010 to Sri Lanka.
In addition, the industry has asked the government to upgrade Sri Lanka’s trade ties in terms of the apparel sector with the US to a preferential trade agreement. Sri Lanka currently has a Trade and Investment Framework Agreement (TIFA) with the US since 2002.
This was in the wake of the recent ongoing negotiations between 12 Pacific nations that were likely to open up their markets on a duty free basis to countries like Vietnam that is a key apparel exporter.
The Trans Pacific Agreement is being negotiated between 12 countries namely Brunei, Chile, New Zealand, Singapore, the US, Australia, Peru, Vietnam, Malaysia, Mexico, Canada and Japan.
Further, the apparel industry has also asked to revisit some of the policies relating to the Board of Investment (BOI) companies where incentives should be granted for the creation of additional capacities because, Mr. Cooray said it is believed that once the GSP concessions were in place they would be able to generate a minimum of US$500 million.
In this respect, the industry has also asked for the establishment of its factories in areas where the poverty head count ratio was more than the national average of 6.7 per cent of GDP; thereby increasing capacity on the distribution of wealth, a milestone under the Sirisena administration.
Moreover, the industry has also requested the government to make available information on the possibility of the directions of the Chinese FTA with Sri Lanka in addition to arrangement with Japan for a bilateral and preferential trade agreement.