Lanka using only 30 p.c. of GSP+ concessions
Anjana Samarasinghe
Sri Lanka is using only 30 per cent of the GSP+ concessions granted
by the European Union (EU) in 2005.
Speaking at a press conference to announce Sri Lanka’s Footwear and
Leather Goods Fair, Export Development and International Trade Minister
G.L. Peiris said the EU has offered duty free concessions to a large
number of products imported from Sri Lanka under the GSP+ scheme but Sri
Lanka was only using 30 per cent of the concessions.
Most of the local exporters are not aware of these duty free
concessions applicable to over 7,000 products exported to the EU from
Sri Lanka and the utilisation of these concessions is at a low level.
These concessions are valid till 2008 and Sri Lanka is negotiating
with the EU to extend the time period till 2011.
The Minister was optimistic that Sri Lanka could have these
concessions, granted owing to good labour practices, till that year.
The Minister also said that footwear exports have increased by 42.7
per cent during the first half of this year. The total exports earnings
though this sector were US$ 9 million during this period.
Sri Lanka’s major markets are Europe, USA and Japan. The country
supplies footwear to international brands such as Marks & Spencer, Bata
France, H.H Browns and Nike.
Footwear industrialists have emphasised the importance of
manufacturing footwear components in Sri Lanka. Industrialists also said
that there is no pricing policy in the Pettah market for the materials,
which has a negative impact on the industry.
Meanwhile, the Ministry of Industrial Development is trying to
convince Government institutions to purchase from the local private
sector than importing. The Ministry is also working on a ten-year plan
targeting US$ 1.5 billion by 2016 through footwear exports.
The Sri Lanka Foot- wear and Leather Goods Fair will be held from
November 24 to 26 at the BMICH. The fair is organised by the Export
Development Board collaboration with the Ministry of Industrial
Development and the Sri Lanka Footwear Association. |