The European Union (EU) Ambassador to Sri Lanka Denis Chaibi has stressed on the urgent need for Sri Lanka to expedite its efforts in enhancing global integration, as the country could significantly lag behind its regional peers, if it were to lose access to the GSP Plus scheme.
According to the Daily Mirror, Chaibi had pointed out that integrating Sri Lanka into key markets at present is GSP Plus and neglecting to seize this opportunity could place the country at a significant disadvantage.
Chaibi told a breakfast meeting organised by the Ceylon Motor Traders Association in Colombo that South Asia is one of the least integrated regions in the world, in terms of trade and Sri Lanka not having enough free trade agreements (FTAs) under its belt does not help its position.
He pointed out that once Sri Lanka is out of GSP Plus, the island nation would face limited market access, due to the absence of comprehensive trade arrangements.
With the European Commission recently proposing a four-year extension to the current GSP Plus scheme until December 31, 2027, Sri Lanka will not lose its preferential access to the EU in the interim.
The proposed extension is due to the ongoing negotiations between the co-legislators of the EU, regarding the new GSP Plus arrangement.
The extension of the tariff facility will grant Sri Lanka continued access to the EU markets under the current set up, until 2027.
The EU was expected to adopt a new cycle of the EU GSP regulation for 2024-2033, which was slated to come into effect from January 1, 2024, for the next 10 years.
Source; Daily Mirror