Lanka presented compelling case for GSP Plus - Prof. G.L. Peiris

Sri Lanka has presented a very compelling case and has requested the European Union for the continuation of Generalized System of Preferences facilities for another three years, from 2009 to 2012.

Sri Lanka has taken up the issue with France, which will be taking over from July 1 the rotating EU Presidency for the next six months from Slovenia, the present holder.

Minister Professor G.L. Peiris was in the French capital last week and held talks with French authorities regarding this issue. Sri Lanka Minister for Export Development and International Trade had discussion with his French counterpart for the continuation of the arrangement of GSP + which enable Sri Lanka to export about 7,200 items produced in the country, duty free, to markets in European Union.

Export Development and International Trade Minister Professor Peiris, speaking to Asian Tribune said, “In the beginning we had discussion on the GSP+ facility that we have enjoyed for the last three years from 2005 to 2008 and is coming up for review. We discussed with Anne-Marie Idrac, French Minister for International Trade.

He said, “We discussed with her about the continuation of this arrangement of GSP + i.e., Generalized System of Preferences, which enabled us to send about 7,200 items produced in Sri Lanka duty free to markets in European Union. We asked for the continuation of these preferences from 2009 to 2012, and that was one of the main matters that we discussed.

When asked whether he was optimistic, he said, “To decide on this request there is still time. We have to make our written request before October 31 and they will announce their final decision by the December 15.

The Minister also said that “they raised some issues about human rights and we explained that the country is in a state of turbulence due to LTTE terrorist activities and there are some security concerns, but we have been dealing with the situation as best we can. We told them about some of the steps so far we have taken, like 400 indictments which have been sent out by the Attorney General in cases involving the violation of fundamental rights.

And of the election that was held for the election of the East Provincial Council and also told about other matters like Assistance and Protection to Victims and Witnesses of Crime Bill and it is tabled in Parliament.

“So what I said is that they have to understand the on going situations, which is complicated and that it could be quiet unfair to deprive the country on some reason or other, when hundreds and thousands of women who are working in the garment factories, who have become the sole bread winners of their families, the Minister said.

“I pointed out that the garment factories have become the principal instrument for uplifting the economic conditions in the rural areas of Sri Lanka. The total values of export of apparels out of the country was US$ 3.2 billion and out of that about US$ 1.8 billion worth of garments were exported to EU. So it is obviously is a critical industry for Sri Lanka. The health of the industry depends to a large extent on GSP + arrangements. So that was one of the main matters that were discussed at the meeting, he said.

In his conversation with Asian Tribune, Professor Peiris said, “We also met the French Garment Federation and many of the large companies here in Paris, who purchases their products from Sri Lankan companies such as Brandix, MAS Holdings and others. We found very strong support from these French companies that buy their products from Sri Lankan companies.

The Minister added, “Most of the French Companies who buy their requirements from Sri Lankan garment factories are impressed over the quality of the products, delivery on time and most of all of the ethical standards.

Customers in Europe are prepared to pay a little more for garments that are prepared in factories that comply with high ethical and moral standards.

Professor Peiris told the French delegations that “Sri Lankan companies do not have child labour or prison labour and the working conditions are exemplary in our garment factories. Also the compliance with environmental standard concept of green and green garment factories has greatly impressed the European buyers.

He said that two month ago, Stuart Rose, Chief Executive Officer of Marks and Spencer Group came to Sri Lanka, to open two environmental friendly garment factories - one in Thulhiriya and another in Seeduwa. The Minister said Rose was very much impressed and said that those are the two of the best garment factories he has seen.

The Minister expressed optimism by saying that for all those reasons, the French buyers are very pleased with their relationship with Sri Lankan companies and they are also eager as we are to ensure the GPS + arrangements is approved for Sri Lanka.

Asian Tribune asked the Minister whether there was any mention about the 14 Sri Lankan aid workers of Action Faim NGO killed in Muttur on 5th August 2006 ?

Minister said, “Well, they did not raise it directly with me, but we know that Action Faim, the French NGO is directly in touch with French Government and of course Sri Lanka’s position is that we are inquiring and there is a commission of inquiry presided over by Justice Udalagama and this is one of the matters probed by the commission of inquiries and the hearings are public and done with full compliance with the rules and mechanism by which the inquires are being held, that is on going in Sri Lanka.

He said, other than that he also took part in the Organization for Economic Co-Operation and Development (OECD) conference which went on for two days.

The OECD has its headquarters in Paris. When briefing about the two-day conference, the Minister said it has to do with international trade, tariff and that kind of things. “I participated in the discussion and I pointed out that our export volumes are improving and last year we had a growth of 15% across the board,” Professor Peiris explained.

Asian Tribune asked the Sri Lanka’s Minister for Export Development and International Trade, “Are you trying to set up export promotions villages in Sri Lanka ?” He said, “Yes, basically they are already in existence.”

Asian Tribune reminded that we remember during the time when Thaksin Shinawatara was the Prime Minister of Thailand, he introduced the export Tambon system in that country.

“Yes, one village to produce one product for export,” said Professor Peiris.

Asian Tribune asked, we are not going to say that Sri Lanka is following the export Tambon system introduced by former Thai Prime Minister Thaksin Shinawatara, but is it the similar system you are following in Sri Lanka ?

The Minister said: “Yes, it is something of a similar pattern.

Take for example in the North Central Province in the Anuradhapura district they emphasise on fruits and vegetables, whereas in the Subaragamuwa area the focus is naturally on the gems and jewellery. Then we have plantain production in Embilipitiya and in Galle District it has lace production for garments.

So these different products are manufactured in different parts of the country and the idea is to bring the producer to be in direct contact with the companies that are responsible for the export in order to eliminate the middlemen eating into the profit of the producer.