SL-Thai FTA study to conclude by August

• Sugar imports mulled, Govt. considers Thai “one product one village” concept, investment opportunities discussed

 A preliminary study looking into the feasibility of a Free Trade Agreement (FTA) between Sri Lanka and Thailand is projected to conclude by August, according to a statement released by the Industry and Commerce Ministry yesterday, which looks at increasing trade between the two countries including sugar imports.   

 During his visit to Thailand to take part in the Asia Pacific Ministerial Talks, Minister of Industry and Commerce Rishad Bathiudeen met his counterpart Thai Minister of Commerce Apiradi Tantraporn.

 He also  met Thai Consumer goods exporters to Sri Lanka, a leading sugar exporting company Mitr Phol and also product manufacturer and a consultant of the Thai Government’s OTOP (one district-one product) project.

The Thai exporters of consumer goods to Sri Lanka, which include sprats, rice, canned fish, green gram, sago seeds, shoes, and vehicle parts, met Minister Bathiudeen last Thursday. Minister Bathiudeen explained that his Ministry plans to open 80 Sathosa outlets, which totals up to 500 outlets by the end of this year and also open 8000 new franchise outlets, selling Sri Lankan products. 

Hence, he called the meeting to identify suppliers of consumer goods, to educate them about the expectations of Sathosa and also to get supplier feedback to improve the importing system of Sathosa. The Minister requested samples and prices of rice and sprats from the exporters. For perishable goods, prices will be called on a weekly basis in the future. The industry encouraged direct purchasing from importers, after identifying trustworthy direct importers, which might be useful to maintain the quality of the imports. Further, it was mentioned that it is impractical to set a control price for imported goods. For sprats, setting up a standard for moisture content at 10% is impractical and needs at least to be 20%. Considering samples to represent large dried fish supplies was also pointed out as impractical by the industry.

Due to the fact that Sri Lankan sugar importers have decided to halt importing sugar from Brazil, as cocaine is smuggled in sugar containers, Minister Bathiudeen met one of the largest sugar exporting companies in Thailand Mitr Phol Sugar Corp Ltd. to see the possibility of importing sugar from Thailand. The company was asked to provide information on sugar prices and the capacity they can supply.

 Minister Bathiudeen was interested in the OTOP project of the Thai government, which includes the concept of promoting ‘one product for one village’. A meeting was held with an OTOP consultant and a fruit juice manufacturer under the OTOP project. The minister showed interest in assistance to bring in experts to Sri Lanka in order to produce dried fruit products. They were asked to provide a report of the two projects; OTOP, Royal Project and the minister expressed interest in visiting an OTOP fair in the future.

 On 13 January 2017, Minister Bathiudeen met Thai Minister of Commerce Apiradi Tantraporn. Both sides exchanged pleasantries and discussed ways for cooperation in order to promote trade between the two countries. On the Sri Lankan minister’s inquiry on the proposed FTA and dates for the 2nd Sub Committee Meeting on Trade Related Matters, the Thai side mentioned that they would be completing the feasibility study on FTA by August this year and the dates for the 2nd Sub Committee Meeting would be decided. 

Minister Bathiudeen requested technical assistance in the areas of gem and jewelry, food processing, agriculture, electronics, automobile components, the Thai minister’s assistance to promote two to three Thai dry fruit manufacturing companies to invest in Sri Lanka, and cooperation in OTOP projects. Recalling the global tea quota in Thailand, the Sri Lankan Minister insisted on promoting imports of Ceylon Tea among Thai importers within the quota framework, since Ceylon tea is highly regarded.

The Thai Commerce Minister mentioned that the Thai Government will continue the support for jewellery designing in future, also adding that she will check with the Ministry of Interior for the possibility of cooperation in OTOP Projects and also provide support to identify companies to invest in dried fruits in Sri Lanka. Regarding the agricultural cooperation between the two countries, she agreed to seek the assistance of TICA to bring agriculture experts to Sri Lanka.

Fifth APTA meeting to be held in SL

The fifth Asia Pacific Trade Agreement (APTA) meeting is to be held in Sri Lanka in 2019, following Sri Lanka’s participation at the latest sessions that concluded last week, the Industry and Commerce Ministry said in a statement yesterday. 

Members endorsed holding of the 5th Session of the Ministerial Council in Sri Lanka in 2019, the statement said. 

Sri Lanka’s total trade with all other member countries of the APTA has expanded significantly, particularly since China’s accession to APTA in 2001. Sri Lanka’s exports to member countries of the APTA, which stood at $ 64.46 million in 2010 has increased to $ 113.53 million as at November 2016.

The Bangkok Agreement, signed in 1975, is the first Asia-Pacific preferential trade agreement of the region and was renamed the ‘Asia Pacific Trade Agreement (APTA)’ in 2006. APTA is the only trade agreement which connects countries that belong to different sub-regions in the Asia-Pacific. China and South Korea belong to East Asia whereas India, Sri Lanka and Bangladesh belong to South Asia.

The Asia-Pacific Trade Agreement (APTA) is a preferential trade arrangement formerly known as the Bangkok Agreement. The Bangkok Agreement, signed in 1975 as an initiative of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), is a preferential trade arrangement among developing countries. 

Till now, signatories to the agreement include China, Bangladesh, India, Lao, Republic of Korea and Sri Lanka. At the First Session of the Ministerial Council of the Bangkok Agreement in Beijing on 2 November 2005, representatives from member countries endorsed the revised text of the Agreement and decided to rename the Agreement as the Asia-Pacific Trade Agreement.