Ceylon Chamber welcomes GSP Plus prospects as boost for exports

The Ceylon Chamber of Commerce said it was encouraged by the prospects of regaining the GSP Plus trade preferences and hopeful that the final vote at the EU Council of Ministers would be favourable.

«The granting of GSP Plus to Sri Lanka once again will have a significant positive impact on the country’s exports to the European Union. It comes at a good time for the country as overall exports have been flagging and has affected the country’s external payments position,» the chamber said in a statement yesterday. 

The Ceylon Chamber of Commerce commended the Ministry of Foreign Affairs and the Department of Commerce, which were instrumental in this victory. The process that led up to this vote was no doubt arduous, but has reiterated the importance of international diplomatic engagement for Sri Lanka, it noted.

The CCC stated that the regaining of GSP Plus at this time was welcome also because EU economies were showing signs of economic recovery, which would hopefully improve demand condition in key European markets. Apparels, fresh and processed food products, seafood, toys, ceramics and porcelain are some of the sectors that will benefit from the additional tariff concession under GSP Plus. 

Given that most orders have already been finalised for the year 2017, the real boost is likely to be seen from 2018, it pointed out. Nevertheless, several chamber member companies noted that they were already in contact with EU buyers who were keen to place new orders as soon as GSP Plus was reinstated.

The Ceylon Chamber of Commerce is calling on the Government to launch a targeted and accelerated program to support sectors capable of expanding their exports to the EU. This can range from funds for technology upgrading and innovation; targeted support for market development; addressing labour shortages; and fast-tracking approvals and certifications. 

The Government’s trade and export agencies, together with the exporter community, can collectively embark on a focused competitiveness program, using the GSP Plus period as ‘breathing space’ rather than a ‘comfort zone’. Since the country approaches ‘Upper Middle Income’ status and will thereafter not be eligible for GSP Plus, building export competitiveness beyond the GSP Plus concession is crucial, it asserted.