Exploring how to join TPP
Dr. de Silva said that Sri Lanka will explore the possibility of joining the recently finalized Trans Pacific Partnership when he visits Washington D. C. next week.
“I plan to restart some of the discussions that stopped 10 years ago. For instance, what happened to the discussion on a possible free trade agreement with the United States? What about the Trans Pacific Partnership? Why is no one talking about it?” he asked.
Finance Minister Ravi Karunanayake this week claimed that the seeds to joining the TPP were sown when he and Foreign Minister Mangala Samaraweera visited the US capital earlier this year, as discussions had taken place regarding the subject.
Dr. de Silva acknowledged the far flung effects Sri Lanka will face—especially in the number one export in the form of apparel—if not included in a free trade agreement with the US.
“People in the TPP club will purchase in the club, because it is easier,” he said.
The Vietnam government expects the TPP to boost Vietnam exports to the US by 13-20 percent annually till 2017, and expects US investments into the already large apparel sector of the country.
Sri Lanka’s exports to the US in 2014 were valued at US$2.99 billion or 24 percent of the country’s exports. US$1.99 billion of the exports to the US were in the form of apparel.
“We must determine our priorities—what sort of trade agreements we want to make,” Dr. de Silva said, and added that the Chinese FTA process was rushed by the previous government.
The TPP negotiations were finalized earlier this month. One potential obstacle to the process could be a lack of approval for the pact in the US Congress. However, the federal government had been positively disposed towards it earlier this year.
Dr. de Silva is currently on a world tour. He will visit Jakarta, and after arriving back on the island on Sunday morning, and in the same evening leave to visit Mexico, the US and Russia.
“My subject will be economic diplomacy,” he said proudly.