The road to US duy-free access could be longer than expected for a series of emerging countries. While Pakistan was recently refused that textiles and apparel benefit from preferential treatment, chances of duty-free access for Bangladesh, Sri Lanka or Cambodia are progressively fading.
The Free Trade Agreement (FTA) with Sri Lanka is costing Indian vanaspati-makers a fortune. With the Sri Lankan vanaspati flooding the Indian market, factories are shutting down, rendering hundreds of people jobless.
Singapore is keen on entering into an FTA with Sri Lanka, Minister of Enterprise Development and Investment Promotion Rohitha Bogollagama said on Wednesday.
Indian government has agreed to provide a 70% tax concession for 2,802 goods exported from Sri Lanka to India, says Minister of Trade, Commerce, Consumer Affairs and Marketing Development Jeyaraj Fernandopulle, appraising the Indo-Sri Lanka Free Trade Agreement as a success to Sri Lanka.
With India signing Free Trade Agreements (FTAs) with Sri Lanka (1998) and Thailand (2004), its imports from these two countries have gone up by over 300% and 125%, respectively, between 2002-03 and 2004-05. India’s exports to Sri Lanka rose by about 47% and that to Thailand by 19% during the same period.
By having preferential access to the two major markets in South Asia - India and Pakistan - Sri Lanka can now position itself as the conduit for Indo-Pakistan trade that has diminished due to political problems centred around the Most Favoured Nation treatment.
The United States warned Sri lanka against banking on a quick free trade deal to fix its economic woes and urged the island to restore peace and open its markets.
A free trade agreement between Sri Lanka and the U.S. isn’t a certainty and even if it does happen, it isn’t guaranteed to solve the country’s trade difficulties, the U.S. ambassador to Sri Lanka said Tuesday.
Threatened with virtual closure of domestic Vanaspati industry, manufacturers for the first time will resort to workers-type-demonstration, staging a march to the Parliament, as a protest against import of Vanaspati on zero-tariff from Sri Lanka under Free Trade Agreement (FTA) that rendered the local production uncompetitive.
Pakistan is going to hold secret talks to make some changes in the existing Free Trade Agreement (FTA) with Sri Lanka, which has been operational since June 2005. Pakistan fears that under the FTA, Indian products can enter its market through Sri Lanka, particularly automobile parts.
Duty-free imports of vanaspati from Sri Lanka under the free trade agreement (FTA) is likely to be capped at 2,50,000 tonne. Vegetable oils and vanaspati (hydrogenated vegetable oil) will be kept out of the purview of any FTAs which India is likely to sign with any country in future.
With the start of free trade agreement between Pakistan and Sri Lanka, the annual trade volume between the two countries was likely to double within the first year due to the increase in trade in tea, textiles, betel leaves and other items.
Sri Lanka’s Commerce Department says all recently started trade negotiations will go on hold over the rest of the year, until priority commitments are sorted out.
The Bangladesh commerce ministry is going to consultants to run a study to identify the benefits and possible risks of signing any bilateral trade agreement (FTA) with neighbouring countries.
The purpose of India-Sri Lanka CEPA is to widen and deepen their bilateral FTA.
India’s vanaspati industry, already plagued by excess capacity, has been cast into deeper gloom lately by trade agreements that have opened the way for cheaper imports from neighboring Sri Lanka and Nepal.
Sri Lanka is hopeful that whatever trade asymmetries remain, even after the adoption of the Indo-Sri Lanka free trade agreement (FTA), will be sorted out while finalising the comprehensive economic partnership agreement (CEPA) with India by the end of this year. This is according to a high-ranking Sri Lankan official.
The Pakistan-Sri Lanka Free Trade Agreement (FTA) has come into force from June 12, marking a new stage in regional economic integration.
India will grant more concessions to Sri Lanka in the apparel and clothing sector under the existing bilateral free trade agreement. New Delhi has agreed to remove the present annual cap of 1.5 million pieces of clothing per category in the sector.
With India entering into Free Trade Agreement (FTA) with Sri Lanka and other SAARC countries, a number of vanaspati manufacturers have shifted their production base there to avail concessions, sounding a death-knell for the domestic industry by rendering it non-competitive.