Third round of Sri Lanka-India ETCA talks on 4-5 January

Wednesday, 4 January 2017 00:00 - - {{hitsCtrl.values.hits}}

The third round of talks between India and Sri Lanka on the proposed Economic and Technical Cooperation Agreement (ETCA) will be held on 4 and 5 January in Colombo.

The negotiations on ETCA have become tougher and tougher over the past year as both sides are now keen on clinching a good deal without unrealistic compromises.

The New Indian Express says India’s stand on trade negotiations with Sri Lanka has toughened since the signing of the India-Sri Lanka Free Trade Agreement (ISLFTA) and its operationalisation in 2000 since Sri Lankans view the ISLFTA as being disadvantageous to the country.

Under the current FTA the trade balance favors India which is Sri Lanka’s major trading partner in South Asia. India has a healthy trade surplus in goods with Sri Lanka due to the existing agreement. In 2015-16 India exported goods worth $ 5.30 billion and its imports from Sri Lanka were worth only $ 0.75 billion.

The first round of negotiations on ETCA took place in Colombo in August, while the second round of talks were held in September. A delegation representing India, including Minister of State for Commerce and Industry Nirmala Sitharaman, participated in the discussions.

While the Sri Lankan Government wanted ETCA to be signed by December 2016, the Indians would like to proceed slower and are looking at May 2017 as the more realistic deadline for the conclusion of talks.