Proper expertise needed for complex Sri Lankan trade negotiations
When looking at regional trade agreements one must look at the offensive and defensive mechanism that affects Sri Lanka’s interest and must be mindful when selecting countries involved in free trade agreements, said Ms. Sonali Wijeratne, Director General of Commerce at a workshop held at the JAIC Hilton Residences Colombo on the topic “Free Trade Agreements Negotiations” recently.
She said those involved in free trade agreements should have a better understanding of foreign negotiators, the calibre and intellect skills and expertise they bring into the negotiating table .
While saying that this is not a reference to free trade agreements signed recently by the state, she expressed the view that Sri Lanka, as a precautionary measure, needs to be more cautious when dealing with free trade agreements.
“We must look fundamentally where Sri Lanka was going with free trade agreements and how these agreements are negotiated.” She said the staff from the Department of Commerce provides technical expertise for all those involved in “such trade negotiations”.
The political economy too plays a significant role while negotiating free trade agreements with countries. However when it comes to such matters it is beyond the mandate of the Department of Commerce but squarely falls within the ambit of the ministry concerned to take decisions. She said the art of trade negotiations has become extremely sophisticated where a number of trade negotiations in the world have dragged on for years until desired results are achieved by countries involved in such agreements.
Referring to trade agreements, she said there is a proliferation of regional trade agreements in international trade talks.
Multilateral trade talks such as the Doha Trade Round had not picked up as many would have expected.
She said trade related assistance to Sri Lanka was important as it was aimed at promoting competitiveness among Small and Medium Enterprises (SME) in the country, adding: “The Department of Commerce had already discussed the matter with the EU delegation on an earlier occasion.”
Ms. Chandanie Wijewardana, Secretary, Ministry of Development Strategies and International Trade, said trade and investment is given the highest priority under the government’s economic policy agenda. She said FDI is important for the SME sector to expand and grow and also to bring in investment to the country.
Meanwhile the EU -Sri Lanka Trade-Related Assistance project is a 4-year EU-funded project worth EUR 8 million contributing to inclusive trade -led growth and regional integration. It supports SME export competitiveness and value addition in sectors with high potential for economic growth and development where women are heavily involved in trade. Over 80 per cent of the businesses in Sri Lanka are SMEs.
Prof. Robert A. Rogowsky of the Middlebury Institute of International Studies also spoke at the seminar.