Sri Lanka-India comprehensive economic partnership agreement meeting successful

The first technical level meeting between India and Sri Lanka to discuss on Comprehensive Economic Partnership Agreement (CEPA) to expand the scope of the current Indo-Sri Lanka Free Trade Agreement (ISLFTA), was launched in Colombo, last week.

Having entered into our first bi-lateral Free Trade Agreement with India, which covers only the trade in goods, now both countries intend to proceed towards a Comprehensive Economic Partnership Agreement to include two additional components, i.e. investment and services.

The negotiations on CEPA will be an important milestone in the excellent relations between Sri Lanka and India in strengthening bilateral linkages, and promote greater trade and investment flows between the two countries.

As a prelude to CEPA negotiations the Trade Negotiation Committee at the Commerce Secretariat level held in February 2005, it was decided to set up and three working groups namely; Trade in Goods, Trade in Services and Investment and Economic Co-operation.

The working group on trade in goods was held at the Taj Samudra Hotel, Colombo on May 6, 2005 and was co-chaired by DG of Commerce K.J. Weerasinghe and Joint Secretary, Dept of Commerce-India M.V.P.C. Sasatry.

The working group on trade in goods agreed to review the respective negative lists having taken into account the asymmetry between the two economies and also to review the rules of origin criteria to enhance mutual benefits.

Both sides agreed to provide CEPA provisions for National Standard Bodies of the two countries to enter into Mutual Recognition Agreements in respect of products that are of mutual export interests. The group continued discussions of having a Bilateral Custom Cooperation Agreement, Trade Facilitations and Mechanism and some specific issues related to certificate of origin. Special emphasis was placed on ISLFTA implementation issues for which both sides agree to draw prompt attention.