Policymakers set sights on TPP prize

Monday, 16 November 2015 00:03 - - {{hitsCtrl.values.hits}}

25% export to US key reason for joining: Sonali
China absence unlikely to be permanent: Harsha

Even as the country grapples with underperforming Free Trade Agreements and a struggle to regain GSP plus concessions, policymakers like Harsha de Silva have set their sights on the controversial but potentially lucrative Trans-Pacific Partnership (TPP).

Recalling the warm reception President Maithripala Sirisena and Sri Lankan delegates received at UN meetings in the US earlier this year, the minister contends that the country could now have the clout to push for stronger involvement in agreements like the TPP.

A notable absentee from the TPP as it stands is China, a significant player in the Sri Lankan economy. Addressing concerns that without the East Asian giant, involvement in the TPP would be fruitless de Silva said, “I don’t think China will be out of the TPP forever, this is just the first stage of the trade agreement.”

The TPP as its stand includes 12 countries. Director General of the Department of Commerce Sonali Wijeratne remarked that Sri Lanka did not conduct significant trade with the vast majority of the partnership’s members. However, with the US receiving 25% of the island’s exports, striving for involvement in the partnership is a worthwhile endeavour.

“A huge amount of reform will be necessary to be eligible for the TPP, but that might be for the betterment of Sri Lanka. With a clear objective and enough political will this is doable,” she said.

While the TPP has come under fire for a perceived lack of transparency and its threat to local regulatory measures, sections of the business community have hailed the agreement as bringing forth a new wave of trade liberalisation.