Thursday May 09, 2024
Thursday May 09, 2024
Monday, 20 August 2018 00:00 - - {{hitsCtrl.values.hits}}
The International Trade and Development Strategies Ministry has released an outline for implementing the long-awaited Trade Adjustment Programme (TAP) for stakeholder feedback that details how domestic enterprises would be supported through regulatory and policy reforms as well as specific schemes of grant support.
The document, which has been posted on the ministry website, is open to private sector and other responses till Thursday. TAP aims to provide comprehensive assistance for firms and workers and institutional mechanisms to ensure transparent, credible and timely delivery of trade adjustment assistance.
It is focused on data-driven decisions, making use of analytical tools to assess vulnerable industry sectors, a skills retraining and labour market flexibility program alongside tariff liberalisation, mechanisms for industry sectors to reveal their productivity constraints and have them resolved, and clear communication to stakeholders of the why, what and how of TAP, the document said.
The draft said a Trade and Productivity Commission (TPC) would be established to be the independent body that analyses TAP, that examines quantitative and qualitative evidence, investigates and responds to industry requests on tariff phase out, monitors the recommendations from the Industry Competitiveness Councils (ICCs) that are established to solve productivity constraints of affected sectors and make recommendations to the Ministry of Finance for action.
The TPC will consist of independent Commissioners (possibly appointed by the Constitutional Council) and accountable to Parliament, supported by a Secretariat of qualified professionals who are competent in trade and industry economics (initially can be seconded from the Department of Commerce and Central Bank).
“A new unit at the Ministry of Finance will be the ultimate arbiter of TAP and would be headed by the Secretary to the Treasury who will take final decisions regarding TAP matters, following the recommendation of the TPC. For example, taking the final decision to slow the tariff phase out for a particular sector, following the investigation and recommendation by TPC,” it said.
In both of the above submissions received by industry sectors, the recommendations by the TPC and the decisions by the Ministry of Finance and their justification will be published online and available for anyone to see to ensure transparency and credibility. TPC hearings on particular sectors’ submissions and representations can be open to the public to ensure further transparency and mark a departure from the typical industry lobbying process.
TAP proposes to establish Industry Competitiveness Councils (ICCs) as and when required to reveal and resolve productivity constraints faced by firms in an industry or sector. This will help build confidence among the industry that although the trade liberalisation will impact them and take them out of their comfort zone, the Government is able to help them navigate this process and find solutions to their problems, it said.
Recommendations given below were also included:
Implement a minimum level of labour market flexibility reforms in order to allow workers in affected sectors to move into new sectors and adjust better to new market conditions.
Establish a network of TAP-approved skills retraining centers and job placement hubs across the country (from within the established government TVET institutions and agencies) which will be primarily tasked with helping impacted workers obtain the new skills they need to move to another sector or find new job openings. As part of TAP, the Sri Lankan Government will cover part of the costs of skills retraining for TL-affected workers.
Launch an accelerated program of investment promotion in emerging sectors (for example, the National Export Strategy sectors) in order to boost new opportunities for job creation and absorb displaced workers from sectors previously enjoying high protection and now facing a decline due to trade liberalisation.
Identify some key indicators to keep track on an ongoing basis (e.g. every quarter or biannually) to identify early signs of socioeconomic stress due to trade liberalisation, either in specific demographic groups or in geographic locations. The National Planning Department is to be mandated to produce a quarterly or bi-annual report on these indicators (and can be tabled for the Cabinet of Ministers) and flag any concerns.
