Sri Lankan exporters to receive re-authorized US GSP scheme enabling duty free exports from April 22nd
Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen has said the Sri Lankan exporters will be entitled to the re-authorized US GSP scheme enabling duty free exports with effect from April 22nd.
“This initiative greatly strengthens relations with our biggest trade partner in the world and helps not only our exporters but US importers and US consumers as well,” Bathiudeen has been quoted as saying in the media.
A statement issued by the Industry and Commerce Ministry states that Sri Lanka will now benefit from the renewed US GSP Scheme until December 31, 2020.
US President Donald Trump re-authorized the US GSP facility for 120 beneficiary countries when he signed the US Omnibus Spending Bill on March 23rd.
The move to re-authorize the US GSP facility will create opportunities for around 5,000 products to be imported to the US without tariff from 120 developing countries.
The Ministry has also stated that US importers are eligible to claim customs duties they had to pay during the period of inactive GSP from January 1, 2018 to April 22, 2018 due to the retroactive effect of the US President’s renewal.
It also states that the Sri Lankan exports to the US are now almost at the US$ 3 billion threshold for the first time, up 3.65% from 2016’s US$ 2.8 billion.
The US has been the leading buyer of Sri Lankan exports over the years and it continued its lead even last year.
According to reports, apparel products are Sri Lanka’s biggest export item to US, taking around 70-75% of annual exports. Total US-Sri Lanka trade (both exports and imports) in 2016 was US$ 3.3 billion.
The second largest buyer of Sri Lankan exports last year was UK at US$ 1.03 billion and the third was India at US$ 689 million.
OSL take:
The re-authorization of the US GSP scheme to Sri Lanka will be an added incentive to several key industrial sectors in the country. The benefit enjoyed by Sri Lankan exporters will result in products manufactured in Sri Lanka becoming competitive in the US market. Therefore, foreign investors interested in exporting goods to the US could use the incentives enjoyed by Sri Lanka when exporting goods to the US by setting up their businesses in Sri Lanka or entering in to partnerships with local manufacturers.
| Article Code : | VBS/AT/03042018/Z_4 |