Sri Lanka and Thailand to commence discussions on formulating an FTA from this month
The government of Sri Lanka is to commence discussions with Thailand on setting broad parameters to reach a free trade agreement (FTA) from this month.
Accordingly, Trade Negotiator and Advisor at Sri Lanka’s Ministry of International Trade, K J Weerasinghe has been quoted as saying in the media that the ‘scoping’ meeting to set out the agenda and the areas covering the free trade deal is to take place on May 16th.
Sri Lanka has expanded protectionism over the last decade or so, which kept the country’s production and exports below potential while growth was driven by government debt, which are now becoming increasingly difficult to service, reports state.
Sri Lanka recently signed a FTA with Singapore as well. The country possesses many FTAs with key global markets like India and Pakistan as well as being recipient to trade concessions from the EU and the US.
The move by the Sri Lankan government to reach a FTA with Thailand would add to the list of trade treaties held by the island nation. The FTA would further expand the growing trade ties Sri Lanka has with many foreign countries. The benefits of these treaties could be used by foreign businesses/investors who have set up base in Sri Lanka. On the other hand, local businesses could explore business opportunities in Thailand given the move towards the FTA.
|Article Code :||VBS/AT/10052018/Z_3|