Apparel sector calls on government to bring FTAs to finish line

• JAAF says SL should look at firming up proposed FTAs, especially with China
• Stresses importance of FTAs for apparel sector growth, as EU’s GSP Plus scheme expires next year 

Sri Lanka’s well-established apparel sector has the potential to flourish further, provided that it has improved access to markets, which require well-negotiated preferential 
trade agreements.
 A senior apparel sector representative this week stressed the need for the government to “nail” the free trade agreements (FTA) that have been in negotiation for a while.
“We have to make some arrangements. The trade and preferential agreements that we have been working on must see the finish line soon.

“It is important that we are able to have certain relevance and become relevant to our customers,” Joint Apparel Association Forum Sri Lanka (JAAFSL) Chairman and MAS Deputy Chairman Sharad  Amalean said.
 Amalean made these comments while addressing an online forum hosted by CMA on the future challenges faced by Sri Lanka to drive exports.
Just as Africa’s FTA with the USA and Europe, and Bangladesh with EU, Amalean said that Sri Lanka too should look at firming up the proposed FTAs, especially with China.
JAAF has repeatedly stressed on the importance of the FTA for the growth of the apparel sector, especially as the EU’s GSP Plus scheme expires on 31 December 2023.
The JAAF leadership asserted that it is imperative to acknowledge the benefits Sri Lanka reaped from the GSP Plus which allowed the local export sector to have improved access to the EU market.
He also pointed out that necessary measures must be taken to extend the GSP Plus.
Sri Lanka has inked FTAs with India, Pakistan, and Singapore, and is currently negotiating an FTA with the People’s Republic of China.
The FTAs with India and Pakistan cover only trade in goods, whereas the FTA with Singapore covers investment, goods, services, trade facilitation, government procurement, telecommunications, e-commerce, and dispute settlement.
Sri Lanka is a member of the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA).
Some Sri Lankan exports to the United States qualify for duty free privileges under the U.S. Generalized System of Preferences (GSP) programme, which offer preferential duty-free treatment for up to 5,000 products. Under this agreement  apparel products are excluded from designated beneficiary countries.