Sri Lanka Thai FTA challenged as unconstitutional, illegal

The recently concluded Sri Lanka Thailand Free Trade Agreement (SLTFTA) has been challenged in the Supreme Court as unconstitutional, illegal and null and void.

The fundamental rights petition (FR No. 64/2024) filed by Kapila Renuka Perera, President of the Professional’s National Front and President of the Information Technology Professionals Sri Lanka, seeks a leave to proceed ruling from the court and an order suspending the said agreement.

The agreement was signed in Colombo in the presence of visiting Thai Prime Minister Srettha Thavisin during the independence celebrations in Colombo. The petition has cited the Attorney General, cabinet ministers and officials as respondents.

The petitioner said that he was unaware that nine rounds of negotiations have been held on the said proposed agreement and several activists had lobbied against the government attempt to secretly enter into an international trade agreement.

From the inception, the preliminary steps with regard to the said agreement had not been taken in a transparent and lawful manner.

“Notwithstanding the continuous concealment of the SLTFTA, the government of Sri Lanka adamantly proceeded to sign the said agreement on February 3, 2024. Nalin Fernando has placed his signature to the document in his capacity as Minister of Trade, Commerce and Food Security whereas the Deputy Prime Minister and Minister of Commerce in Thailand signed the same on behalf of the government of Thailand. Notwithstanding the cabinet decision of January 24, 2024, SLTFTA was not signed by the President on February 3,” the petition said.

According to the provisions of the agreement, the Foreign Business Act of Thailand has been listed (as) the horizontal commitment which require strict compliance by foreigners (Sri Lankans) initiating business activities in Thailand under the SLTFTA whereas there is no similar restriction on the people of Thailand to do business in Sri Lanka. Furthermore the domestic exclusive economic zone and continental shelf is accessible to the people of Thailand while access to similar areas in Thailand is restricted for Sri Lankans by operation of the domestic law in Thailand.

The petition states that, according to the said agreement, the government of Sri Lanka would reduce its revenue derived from customs benefiting the people of Thailand and thus the people of Sri Lanka shall have to compensate for loss of revenue by payment of other taxes imposed on them.

The said agreement empowers a commission to consider and adopt any modifications of the rules of origin. However in terms of the Constitution, none of such modifications could be validly implemented without the sanction of parliament.

The agreement creates inequality between the people of Thailand and the people of Sri Lanka by placing the people of Thailand at a more advantageous position compared to those in Sri Lanka, the petition said.