Govt to negotiate extension of GSP+

The GSP Plus arrangements are absolutely vital for the economy of Sri Lanka and they can be described as a lifeline of our economy, Export Development and International Trade Minister Prof. G.L. Peiris said.

“The Government of Sri Lanka will shortly negotiate for the extension of this GSP Plus concessions for a further three years from 2008 to 2011. That is a very considerable benefit that we would be entitled to if we comply with certain criteria,” Minister Peiris said.

He explained that the true value of the GSP Plus arrangements is that we enjoy very considerable concessions and privileges with regard to tariffs and duties imposed by the European Union.

Whereas other countries exporting goods to the European Union are required to pay tariffs, Sri Lanka enjoys exemption in certain circumstances from these tariffs. That is of particular value in relation to the apparel sector in Sri Lanka.

The GSP+ scheme is a unilateral, preferential trade scheme from the EU that allows Sri Lanka to export around 7,200 items into the EU, duty free. Sri Lanka is the only country in South Asia to get this benefit.

Qualifying countries must also ratify and implement a number of international conventions on political, human and labour rights and environmental standards to qualify for the GSP+.

“We earn US Dollars three billion or 3,000 million from the export of our apparel products out of Sri Lanka. The main buyer is still the United States of America, but we export into the European Union apparel products worth approximately US Dollars 1.2 billion,” he added. The industry employs nearly 300,000 persons.

“If we do anything to deprive the people of our country of these very substantial benefits, if these innocent girls working in these factories are to be thrown out on the roads because GSP Plus is not available, it is not the Government that is going to be hurt.

A Government is a Government. A Government is not going to fall because GSP Plus is withheld, but the persons who will suffer very grievously in consequence of such action will be the less privileged sections of the Sri Lankan community, particularly in the rural hinterland of Sri Lanka,” the Minister pointed out.

“So, I think we need to be perennially conscious of that reality and whatever we do, whatever political actions or initiatives we embark upon, we need to remember that GSP Plus is a matter that goes to the very root of Sri Lanka’s economic and social wellbeing.”

He said the garment factories that are functioning up and down the country, particularly in the rural areas provides employment for thousands of girls.

Those girls who come to the garment factories are given breakfast; there are co-operative societies which sell soap, tins of salmon, toothpaste at subsidized prices; they are given medical facilities; they are given training, all these things are possible because of the GSP Plus arrangements.

“If these girls who are now basing their entire livelihood, supporting their families, building their futures with entirely new vistas of opportunity opening up in respect of their lives and their careers are to continue in their employment, it is absolutely necessary that the GSP Plus arrangements should continue.”

The GSP+, unlike the general GSP, is awarded for countries that maintain good human rights and labour standards. Parliament recently passed some important bills including the Covenant on Civil and Political rights. Prof. Peiris said discussions were also on with governments in the EU individually.

Among the other countries enjoying GSP+ are the five Andean countries of Bolivia, Columbia, Ecuador, Peru and Venezuela, the six Central America countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama and Moldova, Georgia, Mongolia and Sri Lanka.