Concessions for Lankan garment exporters under CEPA

COLOMBO: The Export Development and International Trade Ministry yesterday announced substantial concessions for Sri Lankan garment exporters under the Comprehensive Economic Partnership Agreement between Sri Lanka and India.

Under the Indo-Sri Lanka Free Trade Agreement (ISFTA), India had initially allowed import, under a Tariff Rate Quota (TRQ), eight million pieces of apparel products from Sri Lanka, manufactured with Indian made fabrics. In addition, there was a restriction on entry ports.

In April 2007, India removed restriction on entry ports and sourcing of fabrics for three million pieces out of eight million pieces at zero duty.

At the recently concluded negotiations between Sri Lanka and India, the concessions have been expanded as follows:

The three million pieces quota to be increased to six million pieces, on a duty free basis, without restrictions on sourcing of fabrics or entry points.

The remaining two million pieces will receive 75 per cent Margin of Preference (MOP) without restrictions on sourcing of fabrics of entry points. These concessions will come into force with the implementation of the CEPA.