US GSP continuity welcomed
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The country’s private sector yesterday welcomed the US Congress’ decision to continue with Generalised Preferential System (GSP) scheme until end 2013, with Sri Lanka being a key beneficiary.
The US decision overall benefits all eligible countries numbering 131.
“The continuity of US GSP is a welcome move. It will benefit mostly the non-apparel exports of Sri Lanka to the US. More importantly the US Congress decision effectively rebuts previous allegation that its GSP suspension had a correlation to the stopping of EU’s GSP++ scheme as far as Sri Lanka is concerned.
The two are separate and have nothing to do with each other,” private sector analysts explained.
The Ministry of Industry and Commerce-linked Department of Commerce on Tuesday said the US GSP programme, which came to a temporary halt at the end of 2010 due to some domestic concerns, has now been extended till the end of 2013.
The Department said that the US President was expected to sign the Reauthorisation Bill into law shortly.
The Department of Commerce noted that the GSP programme would be officially reinstated 15 days after the US President signs the bill. Once signed into law, the programme will resume zero-duty tariff concessions to all GSP-entitled products on retrospective basis with effect from 1 January 2011.
Under the GSP programme, the US extends duty free market access for a wide range of products imported from 131 eligible developing countries, including Sri Lanka. The value of GSP-entitled exports by Sri Lanka to the US market continues to remain below US$ 200 million per year, while apparel products, the principal export item to the US market, fall outside the GSP benefits.
Pneumatic rubber tyres, plastic-based packing materials, rubber gloves, activated carbon, coir products, certain porcelain/china ware, rubber floor coverings, etc. are among the main Sri Lankan exports which benefit under the US GSP programme.
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Once the GSP was withdrawn the Products that were very populer among the US citizens became more expensive. As a result the some big US companies selling Sri Lankan goods were suffering, as their sales dropped. US Government therefore had to withdraw their ban and allow the GSP, in order to keep those companies profitable during an economy where most Companies are closing down.
The EU Governments led by fools, who could not see the economic future, except the Political advantage from Tamil Diaspora are now suffering. Sri Lanka will not need their GSP now.