SL, US in trade pact in five years

Sri Lanka and the US have agreed to a number of trade related benefits and market access to be achieved within five years.

The Joint Action Plan aims at reaching its goals based on the commitment to increase tariff preference arrangements to access the US market; the US to provide additional information on possible mechanisms to obtain preferential market access; plan for a U.S.- Sri Lanka Business Opportunities Conference; support youth entrepreneurs; enhance Sri Lankan capacity to export food items to the US; and further mechanisms to support Sri Lanka's goal to serve as a regional services hub, according to a media release issued by the US Embassy in Colombo.

Further the two parties discussed the removal of obstacles to trade and investment, establishing new modalities of investment in vocational and higher education, and collaborations on strengthening worker rights and promoting ethical and environmentally sustainable manufacturing practices, the release said.

The first year’s action plan is being currently worked out and the implementation plan text would be finalised within the coming weeks, the statement said.

These matters were discussed during the inter- sessional meeting of the U.S.-Sri Lanka Trade and Investment Framework Agreement (TIFA) Council meeting held on Thursday in Colombo.

It was co-chaired by Development Strategies and International Trade Minister Malik Samarawickrama and Assistant U.S. Trade Representative for South & Central Asia Michael J. Delaney.

Minister Samarawickrama indicated Sri Lanka’s interest in the establishment of preferential trade programmes such as Qualifying Industrial Zone (QIZ), especially for the economic improvement of the Northern and Uva Provinces in the country.

US delegation head Delaney echoed previous sentiments that the TIFA would strengthen economic ties for Sri Lanka adding that it would strengthen Sri Lanka’s trade and investment regime and mobilize more of the Sri Lankan population to participate in a trade oriented economy.

TIFA is an agreement between the US and Sri Lanka to engage in trade and market access between the two through a multilateral trading system.