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By Nuzla Rizkiya
Yohan Lawrence
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The Joint Apparel Association Forum (JAAF) yesterday reiterated the need for targeted policy initiatives that would help Sri Lanka leverage the opportunities created by the geopolitical shifts in the global apparel trade.
Highlighting the stagnant values of apparel export incomes over the last decade, the JAAF emphasised the need for more strategic planning to improve the country’s competitiveness in the global market.
JAAF Secretary General Yohan Lawrence highlighted that Sri Lanka’s outdated policy approaches have hindered the country’s ability to capture and maintain lucrative market shares amidst the changing trade patterns.
Sri Lanka faces significant disadvantages compared to its competitors, many of whom benefit from the preferential trade agreements.
He shared that the JAAF is currently lobbying with the American Apparel and Footwear Association to obtain the Generalised System of Preferences (GSP) benefits for the Sri Lankan apparel products in the American markets.
“This kind of targeted approach is what we believe is the right approach because it does not risk any existing agreements. The raw materials can be initially sourced and the types of products that will tick the criteria can be identified,” said Lawrence, while pointing out that Sri Lanka should not overly rely on free trade agreements (FTAs) alone, as they do not necessarily yield the required results. With regard to FTAs, he asserted the need to look at the markets and assess what the countries really want.
“FTAs will work only if both countries benefit,” said Lawrence.
Further, he pointed out that post COVID, there was a major shift in apparel supply, in terms of reliance on China. However, Sri Lanka has not been able to take any benefit out of this shift.
As per the latest available data, from January through November 2024, Sri Lanka’s apparel exports expanded 5.27 percent year-on-year (YoY) to US $ 4.3 billion compared to the same period in 2023. Exports to the United States and UK grew 6.25 percent YoY and 9.37 percent YoY, while exports to the EU edged up 0.04 percent YoY.
The shipments to other markets also posted a 9.43 percent YoY increase.