US GSP talks fruitful

Sanjeevi JAYASURIYA

The discussions by the US trade delegation held with the Sri Lankan authorities on the GSP concession was productive and fruitful.

"We had very cordial and productive meetings during our visit to Sri Lanka with the Government, union leaders, company representatives and other interested parties," Assistant United States Trade Representative Michael Delaney said.

"We are encouraged by our meetings with these groups. We will continue our collaborative process of dialogue and we look forward to working together on the issue of labour rights in Sri Lanka", he said. The United States Generalized System of Preferences (GSP) program is wholly independent of any other country's review.

The GSP review is solely focused on labour rights. In addition, GSP trade benefits continue during the ongoing review process. There is no time line for review and would work in the coming months to identify possible approaches. The US team of Government officials had a two day visit to Sri Lanka and engaged in a dialogue with the Government.

The United States team included representatives from the United States Representatives Office and the Labour and State Department. The US delegation also met with labour unions, employees associations and other interested parties. Adherence to international standards is mandatory under the United States GSP program. The United States GSP program is designed to promote economic growth in the developing world. It provides duty free treatment for over 3,400 products from 131 designated beneficiary countries and territories including Sri Lanka.

Sri Lanka benefited from GSP treatment on approximately $ 116 million of goods in 2009. The products covered under this program include machinery, electric goods, chemical products, agricultural products and jewellery. However, most textile and apparel goods are not eligible for GSP preferential benefits under the program.