Upgrading FTA into CEPA
Bandula Nonis
There is much talk on the significance of the CEPA in Business News.
The previous regime signed the FTA with India and it is realistic that
we move to the next stage for exchange of goods and services between the
partners.
The Ministry of Trade has to facilitate the expectations of the the
chambers involved in international trade with regard to the trade
practices already in force. It is true that we have been rushing to the
next stage of the FTA with India with tremendous experience in trade
transactions with our big brother.
CEPA is going for the export of professional services for which we
have a better edge having the highest literacy rate in Asia. It is true
that some exporters had problems with India specially with Vanaspathi,
cutflowers, tea or fisheries etc, yet our neighbours are watching the
progress we make in trade relations with our big brother. It is informed
that our exports have grown 10 times with India, in just four
years according to our private sector statistics.
According to statistics the APTA exports show that the major bulk
from Sri Lanka is going to India. We should commend the vision of the
former regime for floating the FTA with India and making the island the
ground for Indian products. If we take imported pharmaceutical goods
alone equal to British standards our Hospitals would have faced a
shortage of drugs by now.
It is the same case for printing and publication of books. Those who
are sceptical over the extention of the FTA should answar with
statistics rather base their arguments in general.
If the people cannot be guaranteed the food, clothing, shelter and
drugs at affordable prices, pious declarations of this nature will be of
no use. We have been able to maintain social equity and minimum
standards of livelihood for our 20 million citizens, under hostile
atmosphere of conflict and commercial insecurity. With the increasing
defence
expenditure we have to find the cheapest sources in the regional
market for our imports and the competitive advantage for our exports
with minimum export cost. India with a billion population is just 30
miles away from our sea shores and it is unthinkable that we do not deal
with a giant, economically sound.
This is what is observed by the Minister of Export Development that
Sri Lanka’s geographical location in the region and its place in the
subcontinent has to be considered in making decisions on trade.
CEPA is an extension of the FTA. CEPA is opening our professional
services to India. Even by now our middle class children opt to enter
Indian private Educational Institutions for higher education. The
educated professionals here can outsource their services for Indian
Professional Institutions.
They are not going to Europe to find the exchange but outsource their
professional services to India, where in turn they receive double the
value of our currency for their services. We are not going to lose our
professionals but they would be continuing their work here while
outsourcing their services to india under CEPA.
We have proved that we are leading professionals in engineering,
architecture, education, health, hospitality trade and such other
professional services. With our record under western domination for 400
years we are ahead of the Indian brethren in our standards of lifestyle,
quality of output and product standards acceptable to international
level.
Some of our brands have hit international standards. Already some of
our products have mastered in trade branding in India.
The exports agencies have to cater to the needs of the service export
sector. CEPA is one safe destination for our service exports as the
Institute of Policy Studies have indicated in their report.
Once Prof. G. L. Peiris MP addressing a regional Conference on Trade
in Services in South Asia: in Colombo has emphasised that in human
history mankind had been hunting with anxiety to know the unknown. There
has always been an element of risks in the process. Prof. Pieris
indicated that that the FTA with India outlines enormous participation
on service exports.
The CEPA would leave room to transfer the goods to services, the
Minister said. The present day society being more complex the property,
shares, debentures and trade marks do come under Property Law, he
explained. The risk do prevail in the service trading as well.
The Minister explained that foreign professionals have come here and
operate business like the Appollo Hospitals Ltd., Deshal de Mel of the
IPS presented the case for Sri Lanka in service liberalization trading
in the regional hub at the seminar held in Colombo. This proves that we
have all the advantages to be the hub for professional services in the
subcontinent.
We are major partners of the 1989 Accord with India and it has been
proved that we are independent to have our affairs with minimum
interference by India giving the independence to our Courts to determine
our future constitutional action, through proper legal mechanism.
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