By: Staff Writer
April 14, Colombo (LNW): A team from the European Union is set to visit Sri Lanka in late April to assess the country’s compliance with the Generalized Scheme of Preferences Plus (GSP+) trade concession. This evaluation will involve discussions between the EU team and Sri Lankan government representatives, as well as local officials, regarding the terms and conditions tied to the GSP+ facility.
Leader of the Opposition, Sajith Premadasa, highlighted the significance of the GSP+ concession for Sri Lanka’s apparel industry, which exports approximately 28% of its products to the EU. He pointed out that the continuation of this preferential trade arrangement is crucial for the industry’s growth and sustainability.
In a meeting with trade union representatives, Premadasa emphasized the opposition’s full support for the retention of GSP+ and expressed the urgency for the government to meet the conditions required to maintain this facility.
The GSP+ scheme is an important trade arrangement designed to support vulnerable developing countries by offering trade incentives in exchange for adherence to specific international conventions.
These conventions cover a range of critical areas, including human rights, labor rights, environmental protection, and good governance. Sri Lanka, like other GSP+ beneficiary countries, is required to ratify and implement 27 international agreements in these areas.
The challenge Sri Lanka faces in securing a further extension of the GSP+ concession lies in its ongoing compliance with these stringent conventions.
The EU actively monitors the implementation of these agreements, and non-compliance can jeopardize the continuation of the trade benefits. Sri Lanka’s ability to meet these obligations has come under scrutiny, particularly in areas such as human rights and labor rights, which remain contentious issues. The GSP+ scheme’s future for Sri Lanka depends on the country’s consistent progress in aligning with these international standards.
The potential loss of GSP+ benefits would have significant economic implications for Sri Lanka, particularly for the apparel sector, which relies heavily on the EU market. Without GSP+, Sri Lankan products would face higher tariffs, making them less competitive compared to those from other GSP+ countries. This could lead to reduced export revenues and threaten the livelihoods of thousands of workers in the apparel industry.
Furthermore, the GSP+ concession plays a broader role in encouraging sustainable development and good governance in Sri Lanka. It incentivizes the government to improve conditions in critical areas such as environmental protection and labor rights, areas where progress has been slow. Losing GSP+ would not only impact trade but also reduce external pressure to make reforms that could benefit the country’s long-term development.
In conclusion, while the EU’s monitoring process presents challenges, it also offers Sri Lanka an opportunity to strengthen its commitment to sustainable development and governance. The upcoming discussions and the government’s efforts to meet GSP+ conditions will be pivotal in determining the future of this crucial trade relationship.
