EDB Chief calls on exporters to capitalise on GSP+

EDB Chairman Prabhash Subasinghe

• Suggests using benefits as a game changer to pivot to related business sectors in post-COVID era

By Charumini de Silva

Export Development Board (EDB) Chief Prabhash Subasinghe last week called on the export community to capitalise on their high quality products and ethical practices to reap the maximum of the European Union (EU) Generalised Scheme of Preferences Plus (GSP+) and use it as a game changer to pivot to related business sectors in the post-COVID era.

“Our exporters should capitalise on the high quality and strong ethical practices as a key strength for Sri Lanka. We must also not forget our sustainability practices that most of our exporters live by,” Subasinghe said at a webinar titled ‘GSP+ for Enhanced Market Access’, organised by the International Trade Centre (ITC) in collaboration with the Department of Commerce.

Outlining that consumers in the EU are more attuned to ethical and sustainable practices, he suggested there is huge potential for Sri Lankan exporters to capitalise on these concepts in a post-pandemic era.

He pointed out that exporters can pivot to related business areas based on opportunity and build the enterprises at its infancy stage using GSP+ as a leverage and then continue to grow the businesses.

“Sri Lankan exporters and EU importers have a natural hedge thanks to the GSP+. Over 6,000 product lines are eligible from Sri Lanka for the EU GSP+ concession, creating a cost advantage to the European importers,” Subasinghe added.

Regaining of the EU GSP+ in 2017 has direct bearing on country’s exports. Sri Lanka’s exports to EU increased from $3.1 billion in 2016 to $3.5 billion last year. Around 30% of Sri Lanka’s total exports are to the EU, and the key export product sectors include: apparel (60%), tyres and tubes (6%), tea (3%), industrial and surgical gloves of rubber (2%), and seafood (2%). The main export products, such as apparel, rubber tyres and tubes, tea, industrial and surgical gloves of rubber, seafood, spices and coconut kernel products are eligible for duty-free entry to EU under GSP+.

“The EU is our single largest trading market. Sri Lankan exporters must use the GSP+ to its fullest advantage and build from thereon in the next few years. The EDB will stand ready to extend its fullest cooperation,” he stressed.

The EDB Chief also insisted the export community to explore Eastern European markets, instead of focusing only on traditional Western European markets adding that there are 27 countries in the EU.

“Around 90% of our current exports to Europe are concentrated in Western parts, which include Germany (19%), Italy (15%), Belgium (11%), Netherlands (10%), and France (6%). While we continue our export promotions to the traditional markets in the EU, we also require stronger market access and presence in Eastern part economies, such as Poland, the Czech Republic, Hungary, Slovakia, and so on,” he said.

In addition, Subasinghe said that increasing investments from EU for export manufacturing – particularly for high tech apparel, personal protective equipment (PPE), electronic and electrical, rubber tyres, automobile parts, boat-building, value-added agriculture and pharmaceuticals – is key.

The EDB has organised export promotions to new EU markets, introduced new SMEs in the agri sector, provided financial assistance for internal promotional initiatives undertaken by the exporters to access, and promoted their products in the EU under GSP+ to enhance exports from Sri Lanka.

He commended the support extended to the export community by the foreign trade missions of Sri Lanka, particularly in conducting virtual business-to-business (B2B) meetings and webinars during the COVID-19 pandemic.