EU Ambassador to Sri Lanka proposes the signing of an EU-Lanka free trade agreement
Ambassador to the European Union (EU) in Sri Lanka has reportedly stated that the Sri Lankan government should consider signing a free trade agreement (FTA) in order to keep preferential market access after the Generalized System of Preferences (GSP) Plus benefits ends.
“I don’t think there’s any interest in leaving the GSP Plus advantages for the moment,” EU Ambassador to Sri Lanka Tung-Lai Margue has said at a business forum organized by the European Chamber of Commerce in Sri Lanka.
“You should keep reaping the best benefits of GSP Plus as long as it’s lasting, but that doesn’t mean you shouldn’t be prepared or the government shouldn’t be prepared at one stage to look at the matter from an FTA point of view,” he has been quoted as saying.
Sri Lanka is expected to enjoy GSP Plus till 2023.
Margue has noted that there could be difficulties in implementing an FTA in Sri Lanka.
He has reportedly said the government has to support exporters, especially small and medium enterprises, by getting rid of technical obstacles and gaining market access.
According to Margue, while there is uncertainty in the British market due to Brexit, the EU will continue to grow.
“Something like 30 percent of Sri Lankan exports to the EU goes to the UK and that’s important, but it also means there’s a lot of an opportunity to diversify to other European countries,” he has said.
OSL take:
The proposal by the EU ambassador to Sri Lanka on reaching an FTA between Sri Lanka and the EU indicates the trade potential Sri Lanka enjoys with global markets. Sri Lanka already enjoys the EU GSP Plus trade concessions, which has helped boost local exports to the EU. However, the latest proposal by the EU ambassador indicates the possibility of further enhancing trade between Sri Lanka and the EU. Also, the trade ties between Sri Lanka and the EU is also encouraging to businesses/investors in the EU as well as Sri Lanka to explore mutually beneficial business ventures in either the EU or Sri Lanka or even both.
| Article Code : | VBS/AT/11022019/Z_1 |