A great deal of work remains to be done by Sri Lanka to retain and expand its export market in the European Union (EU), which currently absorbs more than 24 percent of the country’s total exports, Daily Mirror learns.
Sri Lanka is presently under assessment by EU authorities for the extension of the GSP+ (Generalized Scheme of Preferences Plus) trade facility under the revised criteria to take effect after 2027. As part of the process, Sri Lanka’s overall performance in implementing 27 international conventions that it has already ratified is being evaluated.
Sri Lanka regained the GSP+ facility in 2017 after it had been suspended in 2010, following the country’s agreement to ratify and implement these conventions. However, the government will now have to meet a tougher set of conditions in reapplying for the facility under the new framework being introduced by the European Union.
The GSP+ is a special incentive arrangement for sustainable development and good governance that supports vulnerable developing countries which have ratified 27 international conventions on human rights, labour rights, environmental protection, climate change, and good governance.
In addition to these existing conventions, countries seeking eligibility are now required to ratify and implement several more, including the Paris Agreement on Climate Change, the UN Convention on the Rights of Persons with Disabilities, ILO Convention No. 144 (on tripartite consultations), ILO Convention No. 81 (on labour inspections), the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict, and the United Nations Convention against Transnational Organized Crime.
Sri Lanka is not expected to face major challenges in implementing most of these conventions. However, the government is required to demonstrate tangible progress in the overall process. In particular, the government is now under pressure to introduce a new counterterrorism law that meets international standards, in place of the current Prevention of Terrorism Act (PTA).
The previous government drafted an Anti-Terrorism Bill in this regard, but the European Union expressed dissatisfaction with it. The current government did not proceed with enacting that bill; instead, it decided to review and draft a new one. A committee appointed for this purpose has already prepared a report with recommendations to be incorporated into the proposed law. However, the government is yet to finalize and gazette the new bill despite earlier promises to do so before the latest UNHRC session.
Repealing the existing PTA and replacing it with a new law acceptable to the European Union remains a key task for the government in reapplying for the GSP+ facility under the revised criteria.
The GSP+ trade facility is something the government cannot afford to lose, particularly in the wake of U.S. tariffs. According to official statistics, Sri Lanka’s total merchandise exports to the EU stood at 3.7 billion euros, with more than 80 percent of exports to EU countries benefiting from GSP+ tariff concessions. Sri Lanka currently enjoys a trade surplus of 1.5 billion euros with the EU.
The government’s rapport with the EU is not hostile. The latest UNHRC resolution, adopted with the backing of the EU, was notably toned down this time, offering some breathing space for the government. Moreover, Sri Lanka did not oppose the resolution, which was adopted without a vote. Against this backdrop, the government is expected to work amicably with the EU to secure the GSP+ facility for the next term.
