Import duties on Sri Lankan products entering the EU could be removed, but only if the country implements reforms on human rights, the environment, the rule of law and governance.
Under proposals made by the European Commission, duties would be removed on 66% of tariff lines, covering a wide array of products including textiles and fisheries.
The removal of customs duties would, however, be conditional on Sri Lanka’s ongoing commitment to ratify and effectively implement 27 international conventions on a range of issues including labour conditions and environmental protection.
Accounting for nearly a third of Sri Lanka’s global exports, the EU is Sri Lanka’s largest export market with total bilateral trade amounting to €4.7 billion in 2015.
Goods exported from Sri Lanka to the EU were worth €2.6 billion, with the most significant being textiles, rubber products and machinery.
The Commission’s proposal would see the EU initiate a special version of the EU Generalised Scheme of Preferences. Known as GSP+, the arrangement is designed to support developing countries by fostering their economic development through increased trade with Europe and providing incentives to take tangible steps towards sustainable development.
Eight countries currently benefit from GSP+ agreements: Armenia, Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, Paraguay and the Philippines.
Announcing the latest initiative, Trade Commissioner Cecilia Malmström said that GSP+ preferences could make a significant contribution to Sri Lanka’s economic development by increasing exports to the EU market.
Following the Commission’s proposal, the European Parliament and the Council have a maximum of four months to raise objections before the measures take effect.
