FTAs should benefit both sides says National Chamber president | Sunday Observer

FTAs should benefit both sides says National Chamber president

28 May, 2017

Free Trade Agreements (FTAs) should boost the confidence of exporters and mutually benefit the countries that are party to it, the National Chamber of Exporters (NCE) President Ramal Jasinghe said.

He said exporters should be treated fairly so that the agreement will be in the true spirit of mutual benefit.

“The FTA with India provides Sri Lankan exporters a blanket access to the Indian market. However, the Non Tariff Barriers (NTB) such as interstate regulations, taxation, quarantine requirement, unofficial tack ticks to delay Customs clearance and unfair practices at the port of entry are counter productive to free trade agreements,” Jasinghe said.

Sri Lanka entered into an FTA with India in 2000. However, NTBs imposed on Sri Lankan exports have been a hindrance to make the best use of the FTA.

Jasinghe said the slew of NTBs beyond the shores of Sri Lanka in the form of duties and charges, procedures, delays in customs clearance and barriers set at borders are counterproductive to the Indo-Lanka FTA.The Indo-Sri Lanka Free Trade Agreement (ISFTA) provides duty free access to a wide range of products traded between the two countries. India is Sri Lanka’s third largest trading partner in the world, while Sri Lanka is the third largest trading partner for India in the SAARC.

“We are also concerned about the number of items under the Negative List of India. If the NTBs are removed, trade between the two countries would increase,” Jasinghe said.

Products that fall under the Negative List are not eligible to receive 100 percent tariff concessions. Garments, tea, pepper, desiccated coconut, vanaspati and textile receive specific concessions.The NCE is concerned about the free movement of professionals and anti dumping where Indian goods would flood the Sri Lankan market duty free under the Economic and Technology Cooperation Agreement (ETCA) .

“The ETCA should not be rushed into. People should be confident about it and the interest of the local entrepreneurs should be safeguarded,” Jasinghe said.

The proposed pact with India has come under heavy criticism with regard to the free movement of professionals from India to Sri Lanka.

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