APTA could benefit Lanka

Negotiations to end soon:

Sanjeevi Jayasuriya

The Asia Pacific Trade Agreement (APTA) has contributed in promoting trade and regional integration in widening market potential. APTA’s fourth round of tariff negotiations could benefit Sri Lanka which is expected to be concluded shortly, Commerce Department Director-General Gomi Senadheera said.

A seminar on Free Trade Agreements organized by the Spices and Allied Products Producers’ and Traders’ Association of the Ceylon Chamber of Commerce was held yesterday in Colombo.

The negotiations are aimed to widen the preferences to cover at least 40 percent of the number of tariff lines of each member, cover at least 20 percent the value of bilateral trade, provide an average tariff concession of at least 40 percent and special concessions to Least Developing Countries and Sri Lanka.

The Asia Pacific Trade Agreement will be extended into new areas of integration to include trade facilitation, trade in services, investment and non-tariff measures. This is one of the most important agreements, Senadheera said. The agreement covers the member states of China, Korea, India, Bangladesh, Laos and Sri Lanka. However, Sri Lanka’s utilization rate is less than 50 percent and measures are necessary to increase the utilization.

It is the oldest preferential trade agreement between developing countries in the Asia Pacific region. The products exported to APTA countries include coir products, natural rubber, tea, apparel, rubber products, fish products, activated carbon, floor tiles, porcelainware and jewellery.

“The Comprehensive Economic Partnership Agreement (CEPA) will take the existing economic relations between India and Sri Lanka to a higher level with more quality.

However, the last meeting on CEPA was held in July 2008 and needs further progress,” he said. The CEPA will include trade in goods, customs, services, standards, technical regulations, consultations and dispute settlement, economic cooperation, investment and air services.