Thursday, 22 July 2004  
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SAARC and ASEAN to work together

The Council of Ministers meeting in Islamabad, Pakistan has requested the SAARC Committee on Economic Cooperation to find out how SAARC and ASEAN could jointly work to enhance their marketshare in the highly competitive European market with the phasing out of quotas under Multi Fibre Agreement, which expires at the closure of this year.

The SAARC Ministers want the Committee on Economic Cooperation Study to take up the issue at their November meeting and make its recommendations at the SAARC summit in January 2005. Foreign Minister Lakshman Kadirgamar briefing the member country ministers said that Sri Lanka was ready to establish the SAARC Cultural Centre at Giragama, Kandy and the necessary funds have been allocated to get the project off the ground soon.

Minister Kadirgamar in his statement to the Council touched on the new momentum that has been infused into SAARC and the need to seize the opportunity to improve relations within the group to focus more on economic matters and the needs of the people.

Minister Kadirgamar who led the Sri Lanka delegation to the SAARC Ministerial Council had earlier made representations to the EU, the United Sates, the UK, Germany and other apparel markets for tariff concessions and market access to our garment exporters who are likely to face unfair competition in the EU market.

Under the proposed 'Super Cumulation Scheme' of the EU, the SAARC and ASEAN will now be considered as a single group for Regional tariff benefits.

The Sri Lankan apparel exporters will therefore be able to source fabric from both SAARC and ASEAN countries thus expanding fabric souring to 16 countries. This will provide greater flexibility to the apparel industry to be more competitive in accessing the EC market, in particular, after 1st January 2005.

The SAARC Ministerial Council which welcomed the presentation made by Sri Lanka on this question decided that the SAARC Committee on Economic Cooperation at its meeting in November 2004 in Islamabad should study the issue and make recommendations to the SAARC Summit in January 2005. A consensus on this issue would enable SAARC/ASEAN joint action for the first time on a vital export industry matter.

The SAARC Ministers also accepted the dates for the forthcoming Summit in January 2005 to be held in Dhaka, Bangladesh.

The Council held discussions on issues ranging from economic matters to cultural cooperation. The main focus of the Council was on poverty alleviation, still a major challenge faced by the region. The Ministers agreed that programmes approved need to be cohesively integrated and expeditiously implemented.

Minister Kadirgamar further briefed his SARC colleagues on action taken by Sri Lanka to facilitate business and other travel by having a visa on arrival scheme and the newly created dedicated counters for 'SAARC nationals' at the BIA set-up with the assistance of the Ministry of Ports and Aviation.

The Minister also expressed Sri Lanka's support to the SAARC Business Leaders Conclave to be held in March 2005 which has been proposed by the SAARC Chambers of Commerce and Industry currently chaired by Sri Lanka. SAARC should encourage Government and private sector collaboration, and high-level participation from Sri Lanka, in the 'Business Conclave', is assured, the Minister added.

Sri Lanka joined India and Pakistan to call for a new dynamism to SAARC by focusing on economic and business matters. Among the initiatives supported by the Sri Lanka were the Indian proposals for US$ 100 million fund to finance poverty alleviation projects, a forum for SAARC Parliamentarians, and an Infrastructure Fund for enhancing connectivity in and among SAARC countries. The Council decided to establish National Committees to work on specific projects on poverty.

Foreign Minister Kadirgamar also held bilateral consultations with his counterparts from India, Pakistan, Bangladesh, Maldives, Nepal and Bhutan. The Sri Lanka delegation to the Council led by Minister Kadirgamar included the Foreign Secretary, the Sri Lanka High Commissioner, Islamabad, the Director General SAARC, the Director General Commerce and the officials of the SAARC Desk, Foreign Ministry.

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