UK retailers urge EU caution over Sri Lanka
UK retailers are calling on the European Commission not to penalize
Sri Lankan workers or British shoppers in a human rights row.
The British Retail Consortium has warned that a threat to remove
special tax-free arrangements for cheap, good-quality clothes imported
from Sri Lanka could hit flourishing businesses and jobs in the country
and put up customer prices, reported the UK website, retail-week.com.
Sri Lanka has until Thursday to deliver to Brussels its response to
charges of human rights abuses during the country's civil war earlier
this year.
The website said that Alastair Gray of the British Retail Consortium
had said that whatever the human rights concerns, any response has to be
balanced.
Otherwise, if the preferential access deal is withdrawn by the
Commission, business in Sri Lanka could close.
"Sri Lanka has many very good textile factories, but profit margins
are small, and if they lose their current import arrangements, there are
textiles manufacturers in Bangladesh, Vietnam, and Thailand who will be
ready to compete hard.
The report added that an estimated 250,000 workers employed in
textile factories could lose their jobs with manufacturers forced to
move or increase wholesale rates, leading to price increase of possibly
10% on popular Sri Lankan-made clothes in UK shops including Next and
Marks & Spencer. Courtesy: PRIU website
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