EU reassures Sri Lanka of continuing GSP Plus trade concessions till 2023
The European Union (EU) has reportedly reassured Sri Lanka that it will continue the Generalised Scheme of Preferences Plus (GSP Plus) trade concessions currently enjoyed by the country until 2023.
The local media has reported that the EU has noted that there will be no changes in the rigorous monitoring of Sri Lanka’s progress in implementing the conventions.
Thorsten Bargfrede, Deputy and Head of Political, Trade and Communications of the EU Mission to Sri Lanka and the Maldives, has made this observation when he had called on Sri Lanka’s Industrial Exports, Investment Promotion, Tourism and Aviation Minister Prasanna Ranatunga last week.
EU representatives have reportedly pointed out that although the EU has decided to grant the tax relief until 2023, there will be no change in the monitoring process.
GSP Plus trade concession is granted on the condition of Sri Lanka’s commitment to ratify and effectively implement 27 international conventions on human rights, labour conditions, protection of the environment and good governance and the removal of customs duties for Sri Lanka will be accompanied by rigorous monitoring of the country’s progress in implementing these conventions.
According to local media reports, as of 2018 as much as 58% of all Sri Lankan exports benefit from some form of preferential access due to GSP Plus and the EU remains Sri Lanka’s largest export market.
Bargfrede has further noted that investors from EU countries are willing to invest in Sri Lanka.
OSL take:
The continuance of EU’s GSP Plus trade concessions to Sri Lanka will have a direct impact on the overall growth of the country’s exports sector, especially the apparel sector. Sri Lanka’s exports sector is on a growth path given the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the island. Foreign businesses could therefore confidently explore business opportunities in Sri Lanka’s exports sector.
| Article Code : | VBS/AT/20200122/Z_5 |