Trade between Sri Lanka and Chile to grow by 10% in 2013

Friday, 1 November 2013 03:44 - - {{hitsCtrl.values.hits}}

In a brief interview with the Daily FT, Ambassador of Chile to Sri Lanka Cristian Barros shared his thoughts on trade between Chile and Sri Lanka. Below are excerpts:Q: Could you give us a quick update on trade between Chile and Sri Lanka? A: If you take the picture today, we have unbalanced trade between the two countries. Exportation from Sri Lanka to Chile was valued at some US$ 30 million while exports from Chile to Sri Lanka are at US$ 4.4 million in 2012. Three years ago we had a good balance, exporting more or less the same amount to the other country. We are not worried about the particular unbalance that we have with Sri Lanka. The dynamic of trade is so fluid today that we will probably gain the same amount that we had two-three years ago in the near future. We expect Sri Lanka to export more to Chile. Q: Key exports from Sri Lanka to Chile are tea, apparel and rubber. What are the other sectors we can develop to further trade? A: You have a whole range of tropical fruits and some minerals and fish we do not have. I ate the most wonderful crabs here. It is necessary to see the requirement of the population and if the population’s power to buy is growing you can target more and more product sectors. Q: How do you see trade improvement? A: From our side, we expect a trade increase of at least 30% this year. From the Sri Lankan side, I suppose 10% easily. Q: What do you think of Sri Lanka? A: You have all the conditions we have. We are similar in the quantity of land we have, population-wise, similar in education and you have a structure for small farms as we do as well. There are lots of similarities that are important to be taken in to consideration when you are trying to see what’s good for you and what’s bad for you. You need a good relationship between the people and the world. Q: Any key challenges in trading with Sri Lanka? A: For us, the main idea is to go to a preferential trade agreement with Sri Lanka in the near future. That will be the starting point. However, we are very happy with the relationship with Sri Lanka, not only in terms of economic but also politically. Q: What is the key learning Sri Lanka can get from Chile? A: No country can follow in the way of another country. We decided years ago to develop the country and we stayed on that path. Today we are receiving the benefits and opportunities of this process. However, when we started our growth path some 30 years ago, the population in general was against the process. Only after many years of application of the free trade policy did the population started to capture the benefits as the cost at the beginning was high. After a time you realise that it is the right decision. We do not have the recipe for how to do it better. What we can do is show our experience and hope that some of the takeaways can be used as a tool to develop this country.