Overall impact on Sri Lankan exports due to non renewal of US GSP will be small says AmCham
The American Chamber of Commerce (AmCham) has reportedly said that the decision to withdraw the GSP form Sri Lanka is not being country-specific and is one stemming from the US Congress simply not re-authorizing the programme before adjourning for the year 2017.
The United States’ Generalized System of Preferences (GSP) programme was discontinued for 120 countries along with Sri Lanka on December 31, 2017.
The United States is Sri Lanka’s top export market.
In 2016, the US imported USD 2.8 billion worth of Sri Lankan goods. We expect 6.2% of these exports to be impacted by the discontinuation of the GSP programme.
According to reports, while recognizing that these particular goods will be affected by the rescinding of the GSP programme, AmCham is of the view that the overall impact on country’s total exports will be small.
Reports states, “We do recognize some of our members will be affected by the rescinding of the GSP programme; and as such, AmCham pledges its fullest support to it’s members and will work alongside relevant authorities with regards to this as well as to further improve bilateral trade, investments and relations, and to support the country’s economic development by strengthening the business environment and stimulating foreign direct investments.”
The statement by AmCham would put to ease much speculation that existed over Sri Lankan exports to the US once the US GSP programme ended on December 31, 2017. The statement by AmCham indicates that the Sri Lankan export market will not have any adverse impact.
|Article Code :||VBS/AT/20180110/Z_2|