Denis Chaibi, the European Union (EU) Ambassador to Sri Lanka, has emphasized the critical importance of expediting efforts towards global integration for Sri Lanka. The country’s future prospects could be at risk of falling behind regional counterparts if it loses access to the GSP Plus scheme, Chaibi warned.
In a recent address at a breakfast meeting organized by the Ceylon Motor Traders Association in Colombo, Chaibi highlighted the immediate need for Sri Lanka to capitalize on the present opportunity provided by the GSP Plus. He underscored that the scheme currently serves as a key channel for integrating Sri Lanka into crucial markets, and failing to seize this chance could lead to a significant disadvantage for the nation.
Chaibi emphasized that trade integration in South Asia remains relatively low, making it imperative for Sri Lanka to actively pursue comprehensive free trade agreements (FTAs) to bolster its position. He warned that once Sri Lanka loses GSP Plus status, the country would face restricted market access, exacerbating the absence of comprehensive trade arrangements.
Notably, recent developments indicate a positive outlook for Sri Lanka’s access to the EU markets. The European Commission has proposed a four-year extension to the existing GSP Plus scheme, extending it until December 31, 2027. This extension is attributed to ongoing negotiations between EU co-legislators regarding the new GSP Plus arrangement.
This extension is poised to secure Sri Lanka’s continued preferential access to EU markets under the existing framework until 2027, granting the country valuable time to strategize and enhance its trade integration efforts.
In a broader context, the EU had been expected to adopt a new cycle of the EU GSP regulation for the years 2024 to 2033. The new regulation was scheduled to take effect from January 1, 2024, covering the next decade and signaling an opportunity for Sri Lanka to solidify its trade relationships and economic positioning on a global scale.
