Ceylon Chamber calls for targeted programme to make most of GSP Plus

Sri Lanka’s premier trade chamber, the Ceylon Chamber of Commerce (CCC), yesterday called on the government to launch a targeted and accelerated programme to support the sectors capable of expanding their exports to the European Union (EU) in the wake of the country’s prospects for regaining the GSP Plus trade concession remain high. 
“This can range from funds for technology upgrading and innovation, targeted support for market development, addressing labour shortages and fast-tracking approvals and certifications. 
The government’s trade and export agencies, together with the exporter community, can collectively embark on a focused competitiveness programme, using the GSP Plus period as ‘breathing space’ rather than a ‘comfort zone’,” the CCC said in a statement. 
The trade chamber also stressed that since the country approaches the upper-middle-income status and will thereafter not be eligible for GSP Plus, building export competitiveness beyond the GSP Plus concession is crucial.
However, the CCC said it is encouraged by the prospects of regaining the GSP Plus trade preferences and is hopeful that the final vote at the EU Council of Ministers on May 15 would be favourable to 
Sri Lanka.
“The granting of GSP Plus to Sri Lanka once again will have a significant positive impact on the country’s exports to the European Union. It comes at a good time for the country as overall exports have been flagging and has affected the country’s external payments position,” the CCC said.
The trade chamber commended the Foreign Affairs Ministry and Commerce Department, which were instrumental in this victory. 
“The process that led up to this vote was no doubt arduous but has reiterated the importance of international diplomatic engagement for Sri Lanka,” the CCC noted.

Regaining GSP Plus at this time is welcome also because the EU economies are showing signs of economic recovery, which would hopefully improve the demand condition in the key European markets. 
Apparels, fresh and processed food products, seafood, toys, ceramics and porcelain are some of the sectors that will benefit from the additional tariff concession under GSP Plus. 
Given that, most orders have already been finalized for the year 2017, the real boost is likely to be seen from 2018. Nevertheless, several chamber member companies have noted that they are already in contact with the EU buyers who are keen to place new orders as soon as GSP Plus is reinstated.