EU-Lanka trade snubs politics!

Thursday, 8 May 2014 00:04 -     - {{hitsCtrl.values.hits}}

  • Sri Lanka’s exports to EU up 16% to $ 896 m in 1Q on top of 18% growth in 2013 to $ 3.2 b; two-way trade at $ 4.9 b
  • First-ever trade dialogue kicks off in Colombo
  • Measures to enhance export prospects of products and services in six sectors under discussion
By Shabiya Ali Ahlam Political ties may be strained between the EU and Sri Lanka over human rights issues, but the private sector appears unfazed as two-way commerce is on the up, laying an ideal platform for the first-ever trade dialogue  which kicked off in Colombo yesterday. The unique initiative was primarily aimed at providing support for European Chamber of Commerce Sri Lanka (ECCSL) members’ business in the EU region and to maximise market potential in Europe for Sri Lankan products and services. Organised by the ECCSL, the initiative was supported by the European Union (EU) and the Sri Lanka Export Development Board (SLEDB). Chief Guest Industry and Commerce Minister Rishad Bathiudeen revealed that the 28 countries in the EU have emerged as the number one export destination for products of Sri Lanka. In 2013, the total bilateral trade between Sri Lanka and the EU stood at $ 4.9 billion. Sri Lanka’s total exports to the EU market have increased to $ 3.27 billion in 2013 from $ 2.7 billion in 2009. “Even in the first quarter of this year alone, exports to the EU increased by 16.3% to $ 896 million,” the Minister told the inauguration, which was attended by Investment Promotion Deputy Minister Faiszer Mustapha, along with the Delegation of the European Union to Sri Lanka and Maldives Ambassador David Daly, as well as officials of missions from France, Italy, Germany, Belgium and Czech Republic and Lankan exporters to EU. The Minister said among Sri Lanka’s imports from the EU were machinery chemical and plastic products, woven fabric, and base metal. “Sri Lanka continues to enjoy a favourable, balance of trade with the EU. In 2013, 60% of our exports to EU were apparel,” he added. “Sri Lanka continues to enjoy a favourable balance of trade with the EU. In 2013, 60% of our exports to EU were apparel. The relationship built on apparel trade has become a strategic partnership with major buyers in the EU. Today, Sri Lanka has become a value creator to its strategic partners,” he told the audience that consisted of about 30 companies across diverse sectors and representatives of EU member states. The two-day forum will also address areas such as market research for potential business in the EU, upgrading sectors with European technology and innovation, and access to finance for technology enhancement. It also involves breakout sessions on sectors IT/BPO, transport and logistics, gem and jewellery, electronics, rubber and plastic, and agro, food and beverage. Via the two-day forum organisers will share or shed key insights into market research for potential businesses in the EU; upgrading sectors with European technology and innovation; access to finance for technology enhancement; matchmaking and business partnership creation; outbound delegations for exports and inbound delegations/delegates for technology from Europe. Deputy Minister Mustapha advised the enterprises that in order to become global leaders as Sri Lankan businesses, it is imperative to look beyond today. “Look beyond tomorrow and innovate, to not set countries as benchmarks but to be the pearl of the Indian Ocean that sets the benchmark ourselves. I am a firm believer that our key industries such as agro, food and beverage, rubber and plastic, electronics, gems and jewellery, and transport and logistics can reach the same global competence. There is need for the industry to look beyond today,” expressed Mustapha. Attempting to shed light on the collaborative road towards enhanced trade between the EU and Sri Lanka, senior officials of the SLEDB, Department of Commerce, Board of Investment (BOI), and the Delegation of the European Union of Sri Lanka highlighted the support available from these institutions to the ECCSL member businesses. During the discussion it was emphasised that business should be aware of the non-availability of benefits of certain facilities and concessions as Sri Lanka graduates to a middle income economy. Referring to the Generalised System of Preferences Plus (GSP +) which was suspended for the country by the EU in 2010, it was stressed that businesses must be aware of such before exploring and entering markets. Another area highlighted was the opportunities for exporters to utilise raw material originated from Association of South East Asian Nations (ASEAN) member countries, for which the EU has presented comprehensive guidelines on how the materials are to be used for value addition. With Sri Lanka not well known in many regions for its products and services despite its efforts, companies were also urged to actively build and promote the image of the nation, along with their businesses in the EU markets. Furthermore, a session on ‘Member States Mechanism for Enhanced Collaboration in Trade’ addressed topics such as ‘The German Dual Vocational Training System and its Potential for Sri Lanka,’ ‘Tools for Financing Projects in Sri Lanka,’ ‘Role of Export Credit Agency in Promoting Trade,’ ‘A Unique Value Proposition for Sri Lankan Companies’ and ‘The Economic Situation in Czech Republic and how its companies would like to engage more in Sri Lanka via the available EU fund’.

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