SL WANTS FTA SORTED OUT BEFORE CEPA
Amid attempts to revive the Indo - Lanka Comprehensive Economic Partnership Agreement (CEPA), the Department of Commerce said yesterday it was only appropriate to start negotiations after rectifying shortcomings in the Free Trade Agreement (FTA) between the two countries.The Indian authorities asked the Sri Lankan government last month to arrange dates for the resumption of talks between the two sides on the CEPA.
However, Commerce Director General P.D. Fernando told Daily Mirror the FTA had placed Sri Lanka in a disadvantageous position due to several shortcomings.
“We have to first address these shortcomings within the existing trade arrangement and then start a dialogue on another trade deal with India,” Mr. Fernando said. He said Sri Lankan
exporters faced huge difficul-
We have to first address these shortcomings within the existing trade arrangement and then start a dialogue on another trade deal with India
ties due to non-tariff barriers in India.
“Regulations differ with regard to trade from state to state in India. We have to sort out these problems,” he said. The FTA was signed on December 28, 1998 with the overall objective of promoting trade and economic relations between the two countries and promotes foreign direct investments. It came into force from March 1, 2000. It focuses on the Ministries of Commerce and Industry. According to the Indian High Commission, India has implemented zero duty on 4,150 tariff lines for exports from Sri Lanka. Sri Lanka has implemented Zero duty on 1,208 tariff lines for Indian exports to Sri Lanka. The list of such items is available here.