Bilateral Free Trade Agreements In Sri Lanka

[vii] Kelegama, p. (2014), “Challenges remain for China-Sri Lanka FTA,” East Asia Forum, available at: www.eastasiaforum.org/2014/03/28/challenges-remain-for-china-sri-lanka-fta/ The absence of a trade-related body under the agreement is an obstacle to better use of free trade agreements. When there are problems with a program, for example. B with documentation – there is no official authority that registers complaints and responds quickly. A rapid response is essential because of the high cost of delays and, if the free trade agreement denies the cost advantage, distributors will not be encouraged to continue exporting/importing. Sri Lanka has preferential and free trade agreements with India, Pakistan, Iran, Egypt, Singapore and Israel. It is in the process of extending its agreement with India to a much broader agreement. The lack of knowledge and awareness among traders about the concessions offered by free trade agreements has been a major obstacle for Sri Lanka, which has gained the greatest possible advantage from existing free trade agreements. Although the majority of exporters/importers have been aware of free trade agreements, many SMEs are not aware of the existence of specific information on proposed tariff concessions and preference acquisition procedures (roo, tariff quotas, etc.). It does not make much sense to get concessions under a trade agreement if the country is unable to deliver the goods requested – it can be a constraint in the case of a small country like Sri Lanka. This is evident from Sri Lanka`s strawberry exports to India.

Janaka has more than 12 years of trade policy experience and leads the international economic policy unit. He has written, individually and collectively, numerous detailed reports and analytical documents for the Sri Lankan government, international and regional institutions. It also focuses on regional and multilateral trade agreements and their effects on the country. He received his Ph.D. from Monash University. He is currently a member of the Talking Economics team. (Interview with Janaka – janaka@ips.lk) This list includes sensitive products that are exempt from tariff concessions under the agreement. The negative list should be drawn up in consultation with local stakeholders, taking into account revenues, as well as the impact on local industry and livelihoods that may be affected by trade liberalization. However, it is important to keep negative lists as high as possible to ensure that a significant portion of tariff lines and products are covered by the agreement. The criteria of origin used to determine the country of origin under a free trade agreement are different in free trade agreements in South Asia.

SAFTA and ISFTA require a four-digit rate classification change. [i] This rule was difficult to comply with given the significant processing of the product; For example, Sri Lankan tea exporters discovered that they could not comply with this rule, even though they mixed Sri Lankan tea and Indian tea.