Govt. steps up efforts to enhance trade pacts with regional countries
The Government is stepping up efforts to enhance trade pacts
with regional countries in an economic revival strategy that seeks to push for
higher exports and investments that can boost GDP growth in the country.
“Strategic and economic ties bolster each other. We cannot
ignore the advantages of the trade agreements. The Government is keen to
wrap-up the deals that are under the vetting process,” Trade Minister Bandula
Gunawardena told the media
He said the Government has planned to enter into a Free
Trade Agreement (FTA) with the Maldives, whilst measures have been taken to
resume talks on an FTA with China and re-negotiate the one signed with
Singapore by the previous regime.
“Last week we had discussions with the Maldivian Ambassador
to ink an FTA between the two countries to enhance our bilateral trade. This
will not only help our merchandise exports, but also the service sectors such
as education, healthcare and tourism,” he added.
Sri Lanka and Maldives are negotiating tariff cuts and
market access for several products. Items under discussion include fruits,
vegetables, seafood, poultry, processed food, textile, leather, footwear,
chemicals, electronic and electrical products. In turn, Sri Lanka may grant access
to higher education, healthcare, tourism industry services.
“Already a lot of Maldivian students visit Sri Lanka to
pursue higher education which helps to generate foreign exchange, and the
number has grown significantly over the years. The Maldivian people also come
for healthcare purposes at private hospitals,” he said.
Noting that 2022 will be an important year for Sri
Lanka-China bilateral relations, as it will mark the 65th anniversary of
diplomatic relations and also celebrate the 70th anniversary of the signing of
the Rubber-Rice Pact, Gunawardena said it would be a great opportunity if they
could finalise the proposed FTA.
“We hope to fast-track the negotiations with China on the
proposed FTA,” he said.
The Trade Minister also pointed out that the Government on a
previous occasion had proposed a preferential trade agreement with a selected
number of products, which included around 100 items, but the Chinese Government
was not keen to proceed with it stating that it is not a win-win proposal.
Gunawardena also said that steps would be taken soon to
address the concerns of the proposed FTA with Singapore to implement it.
With the resumption of global travel post-pandemic, the
Minister hopes one-to-one meetings with heads of state will help fast-track the
completion of these impending trade pacts and new ones.
“These agreements will help to boost trade and investment activities, particularly foreign direct investment (FDIs) to create jobs, increase income for our people and stimulate economic growth,” he stressed.
The Minister also emphasised that Sri Lanka had earned more
trust from its trade partners during the pandemic by ensuring timely delivery
of quality goods and services, despite supply chain disruptions.
“As many countries and companies are looking for alternative
trustworthy trading partners post-pandemic, Sri Lanka is in a sweet spot right
now. If we can get one of these trade ties inked by next year, it would
significantly improve Sri Lanka’s credibility,” Gunawardena said.
The Government has strengthened its overseas missions to
boost exports as global supply chains have begun to realign post-pandemic.
The Gotabaya Rajapaksa Government has pushed for more
self-reliance and reduced dependence on imports. However, this has resulted in
criticism from Sri Lanka’s leading trade partners. The European Union (EU) and
Germany called on the Government to comply with international conventions,
where social standards are respected, to make economies more competitive,
adding that Sri Lanka was in a good position compared to other countries in the
region.
As per the latest data of the Sri Lanka Export Development
Board (EDB) the country’s total exports were $ 11.1 billion in the first nine
months, reflecting an achievement of 70.63% of the $ 15.72 billion target for
the entirety of 2021.
In mid-2021, the EDB upwardly revised the original export
target of $ 15.68 billion to $ 15.72 billion, as post-COVID reopening of the
country augured well for a better export performance in 2021.
During the first nine months of the year, merchandise
exports were up by 19.3% to $ 8.88 billion from the corresponding period of
last year. Merchandise exports recorded during the Q3 increased by 5% to $
3,182.8 million compared to the same period a year earlier, as well as in 2019
where it increased by 6.7%.
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