23 October 2023 12:01 am Views - 232
President Ranil Wickremesinghe with Chinese President Xi Jinping in Beijing recently
Sri Lanka and China will finally ink the long-awaited Free Trade Agreement (FTA) that has been in the talks for nearly 10 years, paving the way for improved trade between the two nations.
In a joint statement issued by the government of Sri Lanka and China on Friday (20), following President Ranil Wickremesinghe’s 4-day official visit to Beijing, the two nations expressed satisfaction over the progress made in bilateral cooperation in economy and trade, and agreed to conclude a comprehensive free trade agreement as quickly as possible to strengthen two-way trade and economic cooperation.
“The two sides will carry out practical cooperation in finance on the basis of market principles, autonomy and rule of law to further enhance financial services and economic and trade development,” the statement highlighted.
Negotiations for a Free Trade Agreement (FTA) between the two countries commenced in 2013 during a visit by the then President Mahinda Rajapaksa to China, leading to an initial agreement to pursue a preferential trade arrangement. Although a feasibility study was conducted in 2014, the finalisation of the agreement did not materialise.
In the freshly issued joint statement, China affirmed it will continue to support competitive Sri Lankan industries to establish ties with relevant Chinese associations of importers and exporters.
China said it will provide facilitation and support for Sri Lankan exporters to participate in Chinese exhibitions including the China International Import Expo, the China Import and Export Fair, the China-South Asia Exposition, the China International Supply Chain Expo, and encourage Chinese and Sri Lankan enterprises to deepen cooperation on the basis of mutual benefit and bolster Sri Lankan exports to China.
Further, both the nations agreed to sign the Protocol of Phytosanitary Requirements for Export of Ceylon Cinnamon from Sri Lanka to China between the General Administration of Customs of China and the Ministry of Plantation Industries of Sri Lanka, and the Protocol on Inspection, Quarantine and Veterinary Sanitary Requirements for Wild Fishing Aquatic Products to be exported from Sri Lanka to China.
Sri Lanka currently has two FTA deals with India and Pakistan. The country is also expected to enter into a FTA deal with Thailand during the first quarter of next year.
Sri Lanka has also applied for the membership of Regional Comprehensive Economic Partnership (RCEP), which is a free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations.