Korea, Indonesia in trade talks with Sri Lanka
Sri Lanka’s apparel industry is negotiating with Korea and Indonesia to buy fabric to secure a complete duty waiver exporting to the European Union (EU) under the GSP + concessions.
Fabrics from Korea and Indonesia are said to be of a higher quality and purchasing from these countries would help Sri Lanka obtain a complete waiver of the duty concessions under the GSP + trade with the EU, Sri Lanka Apparel Exporters Association President Felix Fernando told the Business Times.
Sri Lanka commenced negotiations to purchase fabric from Korea about three months back and with Indonesia about six months ago, he said.
Most manufacturers continue to purchase from China since it is cheaper but since they have no trade relation for duty concessions with the EU, Sri Lanka is unable to obtain the full facility of the GSP +, it was pointed out.
“We have gone far in the discussions and now we will submit the papers to the EU,” to ensure that the EU allows Sri Lankan exporters to obtain the full waiver on duty under the GSP + deal, Mr. Fernando explained. Sri Lankan exports from January to June 2018 totalled $2,395 million, an increase of 5 per cent compared to the same period in 2017. Exports to the US were at $1,047 and the EU at $1,027 million which is a 3.77 per cent and 7.76 per cent increase over the previous year.