8 August 2022 08:16 am Views - 251
By Shabiya Ali Ahlam
Strengthening trade relations with the world is essential for countries to fulfil their economic aspirations, however, efforts will have to be made by individual countries to strengthen ties as within the South Asian region and trade integration will not happen, said President Ranil Wickremesinghe. “There will have to be bilateral agreements with whoever we want. There is too much politics involved for there to be a regional trade agreement in South Asia,” the President told a fully-packed audience at the ‘Reform Now’ conference hosted by Colombo-based economic thinktank Advocata Institute.
“So we can keep that aside. We can have integration in dancing, we can have integration in cooking. but certainly, we are not going to have integration as far as the economy is concerned,” Wickremesinghe quipped.
Analysis from the World Bank (WB) shows that intra-regional trade accounts for about only 5 percent of South Asia’s total trade. The value is significantly lower when compared with the ASEAN region where intra-regional trade accounts for 25 percent of the total trade.
Similarly, trade among South Asian countries currently totals only US$ 23 billion, which according to the WB is far below an estimated value of at least US$ 67 billion.
The Asian Development Bank (ADB), in many of its publications, pointed out that the resistance in South Asian regional cooperation is due to the region’s long history of political conflict and a somewhat unyielding protectionist stance.
While achieving trade integration with the region has proved difficult in the past, President Wickremesinghe said Sri Lanka should look at other countries to find trading partners.
Countries that are from the Association of Southeast Asian Nations (ASEAN), the Regional Comprehensive Economic Partnership (RCEP), the West, and Africa.
“We have to look at ASEAN and RCEP. That’s a growing market. It’s a big market and the income levels are much higher. So let’s look at it,” he said.
Wickremesinghe expressed keenness in Sri Lanka strengthening economic ties with, Africa, especially East Africa.
He went on to assert that the island nation must maintain its economic relationship with Europe and the UK, which is looking for a role as ‘Global Britain.’