7 February 2017 12:12 am Views - 2922
The proposed ETCA seems to have hit yet another hurdle with both governments playing hard ball, essentially to make the proposed agreement acceptable to the special interest groups in their respective countries.
Trade deals, in general, have often faced these kind of opposition that you are alluding to. But, it is also important to understand that the governments on the two sides are expected to address genuine
Well, I am not going far with my answer to that question. But, in my view, the former President was anyway not keen and he was against any trade agreement with India. Despite a plenty of negotiation rounds were held between two countries, the SL Government did not sign the agreement at the last moment.
It is right that ETCA is CEPA by a different name and is an attempt to deflect the opposition to CEPA that the earlier government had raked up. The two agreements are basically identical.
The two governments could first reach a common ground for addressing each other’s domestic sensitivities. Domestic constituencies in Sri Lanka have to be spoken to by their government, based on the understanding it has reached with the Indian government. Further, I don’t think the Indian Government should make any attempt to assuage the apprehensions of special interest groups in Sri Lanka.
India would certainly want its relationship with Sri Lanka put on a firmer footing, and that too in as short a time frame as possible. Then the CEPA and now the ETCA have been on the anvil for a fairly long time. It has resulted to a sense of anxiety in both India and Sri Lanka until the ETCA gets finalised.
Yes, of course, I firmly believe that there needs to be thorough reviews and studies of the FTA which was signed in 1999 so that India would be able to understand the issues that Sri Lanka is raising. Moreover, I am in the view that India also needs to explore the ways in which Sri Lankan products could penetrate into Indian markets more than it has happened thus far.
I am not aware of any recent official studies on either the ETCA or FTA.
I would say that a smaller country could benefit if it imports raw materials or semi-processed material from the larger country. The larger country is then provided the opportunities to export the finished products. In the early years of the FTA implementation, vegetable oil manufacturers relocated themselves in Sri Lanka and were exporting the final products to India. When they found that their operations were no longer profitable, they stopped producing in Sri Lanka.
For India, ETCA would be politically significant for it could count on Sri Lanka as a reliable partner, especially in light of the dynamics in South Asia.
The economic partnership through which the two countries seek to provide a much needed boost to their economies, would, in due course bring greater prosperity to their peoples. A growing India, which is now the fastest growing economy in the world, has plenty of room for Sri Lankan products now.
India is not spelling out the regulations that it wants to bring in through the ETCA. However, what would be interesting to see how issues relating to temporary movement of people, which is an integral component of trade in services, is handled by India. We know Sri Lanka is opposed to Indian nationals going and working in Sri Lanka.
India is certainly worried about the increasing Chinese footprint in Sri Lanka. Now that China has emerged as the main votary of globalisation. India is viewing its partner’s intent with some degree of circumspection.
India could only extend its hand of friendship which it has been doing for decades. Sri Lanka’s relationship with India and China are independent of one another and India understands this well enough.
Basically, India’s relations with Sri Lanka have improved manifold since the present government took office. The confidence-building that has taken place in recent years is really the reason why the discussions on ETCA are taking place.