Sri Lanka will stand to benefit from a reformed EU GSP scheme from this month, the Ministry of Industry and Commerce said in a statement today.
The Ministry said that Sri Lanka has clinched the EU GSP trade benefit for 10 years with effect from 1st January 2014.
The Minister of Industry and Commerce Rishad Bathiudeen said that Sri Lanka is listed in the “Low and Lower Middle Income GSP beneficiaries” category in the new scheme.
The EU is the largest economy and the largest trading block in the world, acting as the top trading partner for no less than 80 countries.
EU is Sri Lanka’s largest global trading partner and holds clear promise for Sri Lankan exports. According to the Department of Commerce of Sri Lanka, there is an increasing trend in trade and the balance of trade between the EU and Sri Lanka has been in favour of Sri Lanka.
Sri Lanka’s major export items to the EU are apparel, diamonds, tea and rubber products. The EU is also one of the most diversified investors in Sri Lanka, with leading European companies operating in almost all sectors of economy-specially, FMCG, higher education, apparel, infrastructure, manufacturing, agro, technology and even in strategic development projects.
In June 2012, the EU redesigned its GSP scheme and as a result, the beneficiary countries were reduced from 177 to 90. Of the former 177 GSP beneficiaries, 90 countries will continue to benefit from GSP, with Sri Lanka among them.
Source: Colombo Gazette (Sri Lanka)
