NCE seminar creates awareness on proposed Sri Lanka-China FTA

Tuesday, 22 July 2014 00:27 - - {{hitsCtrl.values.hits}}

The NCE organised and conducted a high profile and a very successful seminar on 15 July, creating a platform for over 160 participants, including CEOs, directors and top-level Executives of export and import companies to educate them on the proposed Free Trade Agreement between China and Sri Lanka and exchange of views with public officials whilst enlightening both sides on the multifaceted issues involved.

Trade between Sri Lanka and China has increased in recent years, reaching $ 3.6 billion in 2013 from $ 1.1 billion in 2006. China has also become a major development partner of Sri Lanka especially in the field of infrastructure projects. In this background the proposed FTA between Sri Lanka and China offers an ideal platform for Sri Lankan business; especially export oriented enterprises to exploit the Chinese market for optimum benefit. The keynote address delivered by Dr. Saman Kelegama, the Director of Institute of Policy Studies (IPS), provided an overview of the various free trade agreements that China, the second largest economy in the world, had already entered into with many countries. He highlighted that since China is Sri Lanka’s second largest trading partner after India, the proposed FTA will facilitate Sri Lanka’s exports to enter the fastest growing economy in the world, on the one hand while also creating the opportunity for Sri Lanka to get into international production networks and supply chains, using China as an entry point. Commenting further, he expressed that FTAs are negotiated between two countries to enhance bilateral trade, providing special and differential treatment (SPDs), and underscored that an FTA itself is not an ‘end state’ but an internationally accepted, prudent framework that would enable, encourage, entice, and support bilateral trade. Therefore the exporters and importers need to proactively engage and work towards achieving a ‘win-win’ situation, where the beneficiaries of such trade would be the exporters as well as the consumers of both countries that are involved. Wang Yingqi, the Economic and Commercial Counsellor of the Chinese Embassy in Sri Lanka, in his special address on the ‘China-Sri Lanka FTA: Opportunities and Challenges’ highlighted how the FTA could support the trade between both countries and stated that the Chinese Government is keen to understand and accommodate the specific needs of Sri Lanka. He invited the exporters to engage proactively paying attention to the specific consumer needs in the Chinese market. He assured his keen desire to engage with the National Chamber of Exporters and through them with the exporter community in identifying important aspects that needs to be addressed in the negotiations. P.D. Fernando, former Director General of the Department of Commerce, and CEO of the National Institute of Export made a presentation on ‘Sri Lanka’s Experiences related to Free Trade Agreements’. He assessed the subject with a critical perspective related to the shortcomings in the past FTAs, with a view to avoiding the pitfalls related to the FTA with China. He also suggested conducting ‘China-Sri Lanka Stakeholder Forums’ and the setting up of a ‘Joint Operational Cell,’ to deal with inevitable operational issues and teething problems, following the signing of the agreement. The highlight of the event was the panel discussion and the open forum for participants, with the participation of R.D.S. Kumararatne, Director General of the Department of Commerce, Janaki Kuruppu, Chairperson of the Sri Lanka Tea Board, Sarada De Silva, Vice President of NCE and Chairman of the Spice Council of Sri Lanka, Rohan Perera, Director of the Gems and Jewellery Authority, Tuli Cooray, Secretary General of the Joint Apparel Association Forum, P.D. Fernando CEO of the National Institute of Export and Champika Hewage, Officer In Charge of the National Plant Quarantine Service, Port Unit, representing the Director General of Quarantine. The panel discussion was moderated by Rohantha Athukorala, Hub Director – Commonwealth Environment Investment Platform, who was able to facilitate a lively discussion amongst the panellists, while eliciting responses to the many questions raised during the discussions, and initial surveys.

Representatives from the Export Development Board (EDB), Sri Lanka Ports Authority (SLPA), Central Bank, Board of Investment (BOI), Sri Lanka Customs, Sri Lanka Standard Institution (SLSI), and the Department of Quarantine also attended the event as special invitees. The NCE, being the voice of exporters, recognises that the FTA between China and Sri Lanka is a very important bilateral trade agreement which would enable Sri Lanka, and particularly Sri Lankan exporters to expand trade between the two countries for mutual benefit, with especially the opportunity to diversify, develop, and expand the export of Sri Lankan products and services to the huge Chinese market, and enter the global supply chains using China as an entry point.

As such, the chamber will collate the outcome of this important seminar, including various ideas and proposals that emanated from the participants, and will engage proactively with the relevant state authorities, to facilitate the negotiations of the FTA. Meantime, the NCE will also actively engage with the Chinese Embassy and the counterpart chambers in China in order to create a greater understanding between the parties and facilitate building a stronger relationship between the business communities of both countries. The NCE plans to conduct a follow up seminar after the formal signing of the FTA between the Governments of Sri Lanka and China, to disseminate information related to analysis and interpretation of the various aspects in the agreement, with a view to facilitate stakeholders, to make best use of the opportunities that will arise under the FTA.