Apparel industry highlights need to retain and extend concessions with trading partners

•  Urges authorities to work towards securing GSP+ post-December 2023
•  Call to push for better and realistic trade agreements with EU, US and the UK

 Though the local apparel sector continues to stand tall as the top performing industry in the country, Sri Lanka should strive to retain and extend its trade concessions with its key trading partners to maintain the momentum of the industry going forward, the Joint Apparel Association Forum (JAAF) said.

 “There is opportunity in crisis…Sri Lanka must work towards securing GSP+ post-December 2023 and must push for better trade agreements with the EU, the US, and the UK that suit Sri Lanka’s realities, while looking for opportunities in countries like China and India, working on a framework to ensure compliance with global trade legislation,” said JAAF Secretary General Yohan Lawrence.  Addressing a forum hosted by the Shippers’ Academy recently, the JAAF leadership asserted that trade agreements are essential to sustaining the performance of Sri Lanka’s apparel exports. 

 Sri Lanka is to benefit from UK’s new Developing Countries Trading Scheme (DCTS) and the apparel industry has consistently highlighted the importance of retaining GSP+ with the EU post-December 2023.   

“The current schemes unfortunately only have a utilisation of around 50 per cent for apparel due to the restrictions on the ‘Rules of Origin’ on fabric which mean that only fabric from a SAARC country are permitted for cumulation purposes,” he said.  Lawrence also highlighted the performance of the apparel sector during the two years of COVID-19 and pointed out the enormous contribution made by the industry to Sri Lanka’s economy in its hour of crisis.  “The entirely privately-owned and operated industry has been resilient in the face of adversity and has emerged successful yet again while ensuring worker welfare and sustenance,” he said.  According to calculations made by the JAAF, total apparel exports in July 2022 (US$ 522.14 million) experienced a 22.4 per cent increase in comparison to July 2021 apparel exports (US$ 425.75 million).   The cumulative performance of the apparel industry from January to July 2022 has also demonstrated a positive outlook. Total exports during the seven-month period increased by 20.44 per cent compared to the corresponding period of 2021.   Overall exports to the US, EU, UK, and other countries increased by 27.12 per cent, 14.55 per cent, 18.12 per cent, and 16.64 per cent, respectively.