Sri Lanka’s Minister of Industry and Commerce says US GSP available for local exporters from Sunday
Sri Lanka’s Minister of Industry and Commerce Rishad Bathiudeen has said that the re-authorized US generalized scheme of preferences (GSP) will become active for Sri Lankan exporters from Sunday (22).
US President Donald Trump re-authorized US GSP facility for 120 beneficiary countries including Sri Lanka when he signed the US Omnibus Spending Bill on March 23rd.
The re-authorization opens opportunities for around 5000 products to be imported to US without tariff from 120 developing countries.
According to reports, the US has been the leading buyer of Lankan exports over the years and it continued its lead even last year. Statistics have revealed that Sri Lanka’s total exports to US last year was almost notching US$ 3 billion threshold at US$ 2.9 billion, which is a growth of 3.65% from 2016’s US$ 2.8 billion.
Reports further state that 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.
Sri Lanka will now benefit from the renewed US GSP Scheme until December 31, 2020. Since the effective date of the renewal is April 22, 2018, Lankan exports to USA under the GSP Scheme will be eligible for tariff concession after April 22, 2018.
However, the 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 US President’s renewal.
OSL take:
The re-authorized US GSP trade facility for Sri Lanka once effective from this Sunday (22), would boost Sri Lanka’s export market to the US. Sri Lanka already enjoys the EU’s GSP Plus trade concession. The benefits from these two trade concessions from two of the world’s largest markets would undoubtedly result in a boost in Sri Lankan exports to the US and EU. Foreign businesses/investors could use the benefits of these trade concessions enjoyed by Sri Lanka to engage in an export business based in the island nation.
| Article Code : | VBS/AT/19042018/Z_7 |