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| Monday, 21 June 2004 |
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EU expansion to have mixed opportunities for Lankan businessmen by Shirajiv Sirimane The expansion of the European Union (EU) would have mixed opportunities for the Sri Lanka business community, said, Deputy Director Sonali Wijeratne. She was addressing a business evening meeting organised by the National Chamber of Commerce of Sri Lanka along with the Mission of European Commission to Sri Lanka and the Department of Commerce last week, in Colombo. New member countries, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic, and Slovenia joined the European Union last May. She said that the EU operates under a single currency, tax rate and has free trade. This would be a major attraction for European investors who would like to start business. She said that with no trade barriers among the EU countries investors would be able to reduce many other overheads. "In addition the single currency would be another plus point". However many European countries prefer to shift their business from Europe and this is where Asian countries could gain. Since Sri Lanka has a Free Trade Agreement (FTA) with India and the attractive incentives offered by Sri Lanka make Colombo a major attraction for investors. India is a market in demand. She said that one of the main advantages the Sri Lanka exporters would have is opening of new markets. Some of the former Russian states, which had many red tape problems, have now opened and this is an area where Sri Lankans can do business". She said that local investors could also find partners from these countries since most of them were confined to their nations before joining the EU. She said that this partnership would also reduce many red tape problems and would create a more friendly economic climate. Depending on further progress in complying with the membership criteria, the Union's objective is to see Bulgaria and Romania join the European Union in 2007. With regard to Turkey, the Copenhagen European Council confirmed that it would re-examine Turkey's progress towards meeting the accession criteria at its meeting in December 2004, on the basis of a report and a recommendation from the Commission. If the European Council then decides that Turkey meets the political criteria, the European Union will open accession negotiations with this country without delay. Building on the historic decisions of the 2002 European Council in Copenhagen, the Union continues to work towards the completion of the ongoing enlargement process which is at once continuous, inclusive and irreversible. The EU has a long history of successful enlargements. In 1957 six founding members signed the Treaty of Rome: Belgium, France, Germany, Italy, Luxembourg and the Netherlands. Four enlargements have followed: 1973 Denmark, Ireland and the United Kingdom, The enlargement facing the EU today is without precedent in terms of scope and diversity: the number of candidates, the area and population and the wealth of different histories and cultures. The benefits of enlargement are political and economic. * The extension of the zone of peace, stability and prosperity in Europe will enhance the security of all its people. * The addition of more than 100 million people, in rapidly growing economies, to the EU's market of 370 million will boost economic growth and create jobs in both old and new member states. * There will be a better quality of life for citizens throughout Europe as the new members adopt EU policies for protection of the environment and the fight against crime, drugs and illegal immigration. * Enlargement will strengthen the Union's role in world affairs - in foreign and security policy, trade policy and the other fields of global governance. Benefits are already visible: * In Central and Eastern Europe, stable democracies have emerged. * The economic reforms in these countries have led to high rates of economic growth (twice the recent EU average) and better employment prospects. * This process has been helped and encouraged by the prospect of EU membership, and by the EU's financial assistance. * The Union currently enjoys a trade surplus of approximately 18 billion with the 13 candidate countries and this generates employment and growth in the member States. Non-member countries will also benefit from an enlarged Union. A single set of trade rules and a single set of administrative procedures will apply across the Single Market of the enlarged Union. This will simplify dealings for all firms within Europe and improve conditions for investment and trade, bring benefits not only to the EU but also to our trading partners across the world. Enlargement of the European Union will help to bring stability and prosperity. It offers major economic benefits, to the existing Union and to the acceding countries. However, it is more than just another increase in the number of EU Member States. Beyond the economic and political benefits, this enlargement will mean the integration of European countries that share common values and objectives, but which were artificially separated from each other for most of the last century. It will contribute to the reunification of our continent. |
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