Upcoming FTA with China to boost non-traditional exports

Tuesday, 16 September 2014 00:01 - - {{hitsCtrl.values.hits}}

By Shabiya Ali Ahlam A top industrial expert expressed confidence that the upcoming FTA with China will help boost non-traditional export. Sri Lanka-China Business Council President Navindra Abeysekera suggested that potential exports are areas such as plastic and related materials, glass, jewellery, pharmaceuticals, rubber and related products, dairy, soap products, and the segment of prepared cereals, flour and value-added starch products. “We are confident the agreement will not restrict itself to trade alone, but instead will be a Marine Time Silk Road Framework Agreement. However, to make maximum use of the same as exporters we need to change our mindset and need to focus on the new and emerging Chinese consumers, their requirements and behavioural patterns, instead focusing on the traditional export sectors,” said Abeysekera at the recent Sri Lanka-China Business Council AGM. He added that the free trade the agreement will also cover sectors such as finance, investment, shipping and aviation, ports, airports, culture, and science and technology. “It is imperative that we broaden our horizons and be more strategic and focused. Required is for our companies to visit that country and identify requirements that can be produced in Sri Lanka with same or even better quality,” he asserted. It was highlighted that China’s import of plastics and related articles amounted $ 72 billion in 2013, a 4% increase over 2012. In rubber and related products it imports were of approximately $ 20 billion. In the jewellery sector, which China recently expressed keen interest in partnering with Sri Lanka for supply, it imported $ 18 billion showing an increase of 39% over the previous year, indicating changes in the consumer patterns and growing levels of disposable income. The nation also imports $ 15 billion worth of pharmaceuticals and from 2012 the increase was a staggering 16%. Abeysekara suggested that local companies need to look at the export opportunities of pharmaceuticals to China whilst making use of the benefits and tax concessions given by the Sri Lankan Government to the sector. China’s’ dairy imports has increased by 61% in 2013 to $ 5.2 billion, another potential area for local dairy producers, he pointed out. Observed is also a change in the purchasing in the soap and washing preparation segment where imports grew by 8% to $ 3.7 billion in 2013. Another area of high import opportunity in China is that of prepared cereals, flour and value added starch products. That segment has shown an increase of 32% growth over the previous year. Total value of imports to China by end 2013 stood at $ 1,949 billion, an increase of 7% compared to the imports of $ 1,817 billion in 2012. From China’s total imports, close to 42% is from Developed Asian Countries, namely South Korea, Japan, Hong Kong, Taiwan, Malaysia and Singapore. Ceylon Chamber hosts newly appointed Head of Mission to Sichuan Province

Discuss measures to boost trade and investment from China

The Ceylon Chamber of Commerce organised a meeting between the Designate – Head of Mission to Sichuan Province of China Bala Kaandeepan and the local businesses, who are currently doing business with China or planning to do so in the near future, recently. Kaandeepan, addressing the business representatives present at the occasion said that the Chinese market is an important one for Sri Lanka. He also said, the country should look positively at the proposed FTA expected to be signed between the two countries. Kandeepan was met by the representatives of a number of local firms and both parties exchanged valuable information pertaining to doing business with China. Representatives from Aitken Spence Travels, AG Masters Limited, Amaran Group Limited, Best Centre, Civaro Lanka Limited, David Peiris Motor Company, MAC Holdings, McLaren’s Holdings, Multichemi Exports Limited, Natures Beauty Creations, Prima Ceylon, SML Frontier Automotive Limited, Sunshine tea and Taj Samudra Hotel, were among the participants. Kandeepan was welcomed by Lilakshi De Mel, Senior Assistant Secretary General of the Ceylon Chamber. Speaking during the occasion, De Mel advised the local business community to utilise the services offered by overseas trade missions of Sri Lanka. Diplomats designated to various countries visit the Ceylon Chamber of Commerce as a customary practice to meet and discuss with the local business community engaged in doing business with the respective country and also to meet the representatives of the Business Councils, who deals with respective countries.