Sri Lanka-China FTA would result in higher gains for Sri Lankan exports says local research team
A recent study on the proposed Sri Lanka – China free trade agreement (FTA) has reportedly stated that the FTA would result in higher gains for Sri Lankan exports compared to products imported from China which are already entering Sri Lanka duty free.
The local media has reported that the study carried out by the Economics Research Team of Verité Research has also noted that the analysis is limited to the impact of tariffs.
“This analysis focuses mainly on the provisions that govern trade in goods,” Verité has been quoted as saying.
“The existence of para-tariffs, non-tariff barriers and supply side constraints are factors that can undermine the gains that could accrue through tariff elimination under an FTA.”
Sri Lanka and China decided to enter into an FTA in August 2013 to further expand bilateral as well as trade relations between the two countries.
Technical negotiations, which officially commenced in September 2014, are still underway with five rounds of negotiations having been concluded, reports state.
The negotiations are expected to conclude sometime in 2018, reports further note.
OSL take:
The study by Verite Research is a positive note for the proposed Sri Lanka-China FTA. Sri Lanka already has FTAs with many other countries, which are key global markets. The island nation also enjoys trade concessions from the EU and the US. All these are beneficial for Sri Lanka’s export market. It would therefore provide an ideal opportunity for foreign businesses/investors to enter into Sri Lanka’s exports business by setting up partnerships/joint ventures with local companies.
| Article Code : | VBS/AT/24052018/Z_3 |