The EU is removing import duties on a wide range of products imported from Sri Lanka. Effective since 19 May, the initiative will see the full removal of duties on 66% of tariff lines, including textiles and fisheries products.
Made in response to reforms made by the Sri Lankan administration, the EU’s action is tied to what it characterises as rigorous monitoring of Sri Lanka’s commitment to sustainable development, human rights and good governance.
Sri Lanka has committed itself to effectively implementing 27 international conventions on issues including labour conditions and environmental protection, the European Commission noted.
The removal of import duties has been agreed as part of the EU’s Generalised Scheme of Preferences (GSP+), which supports developing countries by fostering their economic development through increased trade with Europe.
An application for GSP+ was made by the Sri Lankan Government in July 2016. The country had previously benefitted from the scheme, but preferential treatment to Sri Lankan imports was stopped by the EU in 2010 over concerns about human rights violations.
The EU is Sri Lanka’s biggest export market. In 2016, total bilateral trade amounted to almost €4 billion, with EU imports from Sri Lanka totalling €2.6 billion (primarily textiles, rubber products and machinery).
EU Trade Commissioner Cecilia Malmström said that granting GSP+ status to Sri Lanka is intended to provide an opportunity for further economic development, including creating more and better jobs for all Sri Lankans.
Sri Lanka joins eight other GSP+ beneficiaries: Armenia, Bolivia, Cape Verde, the Kyrgyz Republic, Mongolia, Pakistan, Paraguay and the Philippines.
