Trade and Productivity Commission soon

The Development Strategies and International Trade Ministry and the Finance Ministry together will set up a Trade and Productivity Commission (TPC) within next three months to continue with the trade liberalisation process on a structured basis, while supporting local firms to get adjusted to increasing competition arising from foreign firms. 
The Cabinet of Ministers recently approved the necessary Cabinet proposal to set-up a TPC in principal. 

Speaking to Mirror Business on the sidelines of the inauguration of the First German Pavilion at Build SL 2019 exhibition at BMICH last Friday, Minister of Development Strategies and International Trade, Malik Samarawickrama said he will discuss the nominees for the Commission with the Minister of Finance in the days. Once the both ministers reach an agreement on the nominees, a joint Cabinet paper is expected to be presented to the Cabinet for approval in coming weeks. Samarawickrama noted that the TPC will come into effect within next three months. 

A key objective of the TPC is to formulate and implement the trade liberalisation assistance packages for the various sectors in order for them to adjust during the phasing out period of para tariffs.  “With the trade liberalisation, in particular with the gradual removal of para-tariff, we have to look at how the domestic industries would be affected and how we can assist them to enhance their productivity by re-skilling workers and assisting them to acquire new equipment. “There won’t be cash handouts as such; however, we will support them to re-orient their industries,” Samarawickrama stressed. With the establishment of TPC, the government’s trade liberalisation process is expected to become more structured and transparent in contrast to current ad-hoc tariff liberalisation which also lacks transparency. “A group of experts will dispassionately look at the data and will also hear dispassionately verbal submissions made by the industry. Then will make recommendations as oppose to the current system which largely revolves around the companies that enjoyed protection by lobbying certain ministers,” The Advisor to Ministry of Development Strategies and International Trade, Anushka Wijesinha told a recent forum organised by Institute of Policy Studies (IPS).

The recommendations of the Commission as well as the submissions made by the industry are expected to be made public in order to bring transparency to the process. Wijesinha emphasised that the local industries as well as employees will be able to directly submit their concerns to the Commission on the adverse impact of trade liberalisation to their industries. “If an industry does feel that they can’t adjust and they need continued protection, they can make the case,” he said. 

In the budget 2019, the Finance Ministry announced its plan to phase out para-tariffs on imports over 5 years, while products in certain sectors would be phased in a period of three years. The government has already allocated Rs. 250 million in the budget 2019 to commence the implementation of the Trade Adjustment Programme, including setting up of the Trade and Productivity Commission. (NF)