India, Lanka to draw roadmap for comprehensive economic ties
Financial Express (New Delhi)
India, Lanka to draw roadmap for comprehensive economic ties
AMITI SEN
Thursday, February 10, 2005
NEW DELHI, FEB 9: A comprehensive economic partnership agreement (CEPA) between India and Sri Lanka covering goods, services and investment is all set to become a reality.
Top government officials from both countries are meeting in New Delhi on February 10-11 to chalk out the roadmap for the agreement.
The meeting, which will be co-chaired by commerce secretary SN Menon and Sri Lanka’s permanent trade secretary Wirithamulla, will broadly lay down the scope and contents of the agreement and specify the time-frame for the completion of its different phases.
Encouraged by the success of the Indo-Lanka free trade agreement (FTA) which was launched in March 2000, the two sides decided to go in for a comprehensive bilateral agreement including investment and services apart from broadening the basket of goods covered under FTA.
The joint study group (JSG) set up to investigate the feasibility of the agreement submitted its report in April 2003.
Speaking to FE, commerce ministry officials said that while the time frame for implementing the agreement would be decided in the meeting, attempts would be made to have it in place within the shortest possible time.
CEPA would have four components. It would seek to widen FTA to accommodate more goods and improve market access through trade facilitation and removal of non-tariff barriers. The agreement would facilitate trade flows through adoption of additional flexibility regarding the rules of origin (ROO) criteria.
An agreement on trade in services would be an important part of CEPA. It would cover all service sectors and modes of supply under the General Agreement on Trade in Services (GATS) framework.
JSG recommended that the two countries should explore ways to minimise barriers to movement of business people and professionals and facilitate mutual recognition agreements (MRAs) on professional qualifications.
Among the measures to promote investment, CEPA would seek to remove administrative and regulatory constraints. JSG has recommended that the investment board of Sri Lanka should set up a special cell to encourage Indian investment in Sri Lanka. In India, it has been recommended that Sri Lankan investors seeking to make FDI and portfolio investment should be treated on par with other international investors.
Finally, CEPA will include measures for enhanced economic co-operation in transportation, infrastructure, education, tourism and information & communications technology.
