Lankan entrepreneurs express concern over Chinese tactics
China will assert its strong trade power in Sri Lanka by using the proposed Free Trade Agreement (FTA) to invade the local business arena sending local entrepreneurs into the wilderness, several local exporters, businessmen and industrialists warned. They expressed their concern on ‘Chinese tactics’ in trading at a meeting convened by the Ceylon Chamber of Commerce in Colombo on Friday to discuss the China –Sri Lanka FTA adding that Chinese businessmen using tie ups with Sri Lankan partners to set up industrial ventures exploring loop holes in the legal frame work. Several Chinese travel agencies have already started businesses in the country and some of the spouses of Chinese workers are used to canvass tourists at the Katunayaka international airport offering tourism packages including hotels, transport and other facilities, President, Sri Lanka-China Business Council Navindra Abeysekera said.
He was adding to observations made by Altaf Iqbal, Managing Director Regal Gems who highlighted the Chinese invasion in the tourism and gem industry in the island. He said that policy makers should be cautious when offering concessions to the Chinese as they take aggressive actions after getting a minute chance to enter the local market. Citing an example he said that a Chinese merchant entering the country to buy gems will try to enter the field of gem mining with a tie up with some local businessman. At least 13 Chinese building construction firms were bidding for local tenders in collaboration with local companies and some sort of barriers should be imposed by policy makers to stop this practice, a representative of the construction industry pointed out. The need to strengthen the legal frame work before entering into an FTA was emphasised by many exporters, businessmen and industrialists attended the meeting.
Director Commerce Ananda Dharmapriya disclosed that China Sri Lanka FTA negotiations will conclude by February next year and Sri Lankan companies should make their representations in writing to the Department of Commerce as this agreement is being devised for their benefit and not for officials. He revealed that only 41 companies responded to the department’s request to submit the lists of products that should be considered for tariff concessions under the FTA. This was very discouraging he said adding that so far 451 items in the apparel, gems and jewellery, agriculture and fisheries, etc have been identified for tariff concessions. “We are negotiating the negative list with the Chinese side at present and it is very tough,” he added. Deputy Director of Commerce Shirani Ariyaratne made a presentation on the proposed product specific rules under the China- Sri Lanka FTA.