Possible GSP+ postponement averted

Pressure on the Sri Lankan Government to deliver on its promise of ensuring that GSP+ benefits, i f approved, are passed down to workers, has averted a possible delay in the process.

While the European Union (EU) is set to decide next month on Sri Lanka’s request for a resumption of trade concessions under GSP +, there was concern that the EU May decision-making process would be postponed by several months if the government didn’t fulfil certain obligations including the right to organise in BOI factories and also workers being direct benefi- ciaries of the concessions.

Palitha Atukorale, Secretary of Industrial Sri Lanka Council, which is part of a global union, told the Business Times that a delegation including two EU parliamentarians that visited Sri Lanka last week on a fact-finding mission was considering seeking a postponement on Sri Lanka’s application.

“Until April 12th morning the delegation had stated that they will campaign for a postponement of Sri Lanka’s application to the next EU session for consideration, which we understand will be after several months as they felt that the situation was not good enough for consideration at this point,” he said.

However at a subsequent meeting and probably sensing the pulse (and concern) of the delegation, the Labour Minister John Seneviratne and Board of Investment Chairman Upul Jayasuriya had proposed that 50 per cent of the GSP+ benefits would be shared with the workers, and wanted the two EU parliamentarians to propose this to the EU, he said.

“The delegation was pleased with the proposal and the two parliamentarians said they will propose this as a condition if the EU is granting the facility and also they will press for the inclusion of this condition,” Mr. Athukorala said adding that the delegation – if convinced that the government proposal is sincere and would be implemented – may also convince the EU to not put too much pressure on other demands.

The delegation comprised parliamentarians Anne Marie Mineur ( Netherlands) and Lola Sanchez (Spain), two representat ives from Clean Clothes Campaign, one representative from the International Transport Workers Federation and two from the Danish Trade Union Federation. Sri Lanka lost the GSP+ eligibility in 2010. GSP+ will grant the full removal of tariffs on every product category covered by the general scheme.