10% US Tariff: Private sector praises Govt. for decisive, prompt action

 Ceylon Chamber welcomes reduction in US labour-related tariff

 JAAF credits President, Govt. for decisive action, effective public-private collaboration

 EASL urges Govt. to pursue US trade pact

The Ceylon Chamber of Commerce yesterday said it welcomed the positive development in the reduction of the labour-related tariff imposed on Sri Lankan exports to the United States, from 12.5% to 10%.

The Chamber  said this was possible following sustained engagement between Sri Lankan authorities and their counterparts in the US.

It said: This outcome is an encouraging step forward for Sri Lanka’s export sector and reflects the value of constructive dialogue, evidence-based advocacy, and proactive engagement with international trading partners. The reduction will provide some relief to exporters, navigating a highly competitive and uncertain global marketplace, while supporting Sri Lanka’s broader efforts to maintain and expand market access.

In our previous statement on the matter in early June, the Chamber had expressed concern regarding the potential impact of the proposed labour-related tariff measures on Sri Lanka’s trade competitiveness and urged urgent engagement with relevant stakeholders. The Chamber therefore commends the progress achieved by the negotiation team and appreciates the engagement with the private sector, which enabled industry perspectives and concerns to be effectively conveyed during discussions.

While welcoming this encouraging outcome, the Chamber emphasises the importance of continuing constructive dialogue with the United States to secure a longer-term framework that minimizes uncertainty for exporters and promotes stable trade relations. The Chamber looks forward to continuing its collaboration with the Government and other stakeholders to support these efforts and further enhance Sri Lanka’s export competitiveness.

Effective public-private collaboration

Joint Apparel Association Forum (JAAF) yesterday credited the Government’s swift intervention with securing a lower United States tariff for Sri Lankan exports, saying the outcome demonstrated what close collaboration between the public and private sectors can achieve in protecting the country’s export competitiveness.

JAAF said: The announcement by USTR of the finality of the Section 301 investigations into countries’ ability to impose and effectively enforce a prohibition on the importation of goods produced with forced labour sees 18 countries placed on a 10% tariff, with the balance of 42 countries facing a 12.5% tariff.

Initial indications were that Sri Lanka would fall into the 12.5% category, a position that would have placed the country at a real disadvantage against a number of key competitor nations.

Following Sri Lanka’s submissions to the USTR earlier this month, JAAF is pleased to see that Sri Lanka is now among the countries placed on the 10% tariff rate, on par with competitors including Bangladesh, Pakistan, India, and Cambodia.

Parity of tariffs is something JAAF has consistently and actively lobbied for, and we are extremely appreciative of the efforts of His Excellency President Anura Kumara Dissanayake and the Government of Sri Lanka in ensuring that strong representations were made to the US authorities to secure this outcome. Special mention must be made of Sri Lanka’s Ambassador to the United States Mahinda Samarasinghe, and K. A. Vimalenthirajah, who, together with the teams at the Department of Commerce and our Embassy in Washington, worked tirelessly on this initiative over recent months.

Sri Lanka’s apparel industry competes in a crowded field, and even a 2.5 percentage point difference in tariff treatment can be the difference between winning and losing an order to a rival sourcing destination. Securing parity with Bangladesh, Pakistan, India, and Cambodia protects the competitiveness of an industry that remains the country’s largest export earner and a major source of employment, particularly for women, across the country.

JAAF recognises that this result did not happen by chance. It reflects sustained, coordinated engagement between industry and Government at every level, from the submissions made to USTR to the direct representations carried out in Washington. We view this as a strong example of what can be achieved when the private sector and government work in close partnership on issues that directly affect Sri Lanka’s export competitiveness.

We remain committed to continuing this collaboration, both to safeguard the gains secured on Thursday and to ensure Sri Lanka’s apparel and textile industry is well positioned to compete on a level playing field internationally.

EASL urges Govt. to pursue US trade pact after tariff reprieve

The Exporters Association of Sri Lanka (EASL) yesterday urged the Government to pursue a comprehensive bilateral trade arrangement with the United States, saying the country’s lower 10% tariff under Washington’s latest trade measures should be used to strengthen long-term market access and provide greater certainty for exporters.

Welcoming the decision by the United States Trade Representative (USTR) to apply a 10% tariff on Sri Lankan imports under the new Section 301 measures, the Association said the outcome preserved the competitiveness of Sri Lankan exports in their largest overseas market while highlighting the need for a more stable bilateral trading framework.

EASL said Sri Lanka should proactively negotiate a comprehensive trade arrangement with the United States to improve market access, strengthen economic cooperation and reduce uncertainty arising from evolving US trade policy.

The Association noted that the United States remains Sri Lanka’s single largest export destination and that the latest decision places the country on par with key competitors, including Bangladesh, India, Pakistan, Indonesia, Malaysia and Cambodia.

It said maintaining tariff parity is critical in export sectors such as apparel, where even a 2.5 percentage point tariff differential can influence sourcing decisions by international buyers.

EASL also expressed appreciation to President Anura Kumara Dissanayake, the Government and officials involved in securing the lower tariff rate through sustained engagement with US authorities.

It said the outcome had helped safeguard the interests of Sri Lankan exporters and the thousands of livelihoods supported by the country’s export sector.

The Association pledged to continue working with the Government, US authorities and industry stakeholders to strengthen Sri Lanka’s export competitiveness, expand market opportunities and promote a stable and predictable trading environment for exporters.