Study on China-Sri Lanka Free Trade Agreement

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Having an effective platform to discuss stakeholder issues: In the case of the Indo-Sri Lanka FTA, the governments’ efforts to develop it into a Comprehensive Economic Partnership Agreement (CEPA) were not successful due to some concerns expressed by local groups on the agreement. Broadly they were on, (i) the nature of CEPA itself and (ii) the need to address the drawbacks in the FTA first. 68 The critics failed to take into account the special and differential treatment accorded to Sri Lanka and the positive list approach where each country can choose to make an offer based on their comfort levels and developmental interests. Further, CEPA was negotiated with the objective of addressing shortcomings of the FTA which included port restrictions, NTBs, ROO and others. 69 Nevertheless, the experience with the Indo-Lanka CEPA highlights the need for greater private-public dialogue in Sri Lanka, on an on-going and regular basis. Consultations should not be reserved purely to the governments and the commerce and trade departments but rather with stakeholders at large. This can ease exporter-importer concerns, demonstrate that challenges in the agreements can be addressed in a participatory manner, and help create broader public awareness of, and confidence in, the opportunities and benefits of the agreements. 68 Kelegama, S. (2014), “The India-Sri Lanka Free Trade Agreement and the Proposed Comprehensive Economic Partnership Agreement: A Closer Look,” ADBI Working Paper Series, available at: [http://www.adbi.org/files/2014.02.06.wp458.india.sri.lanka.free.trade.agreement.pdf] 69 Ibid Page 18 of 88
2.3 Pakistan-Sri Lanka Free Trade Agreement As Pakistan represents Sri Lanka’s second largest trading partner in the SAARC region, Sri Lanka was eager to sign a free trade agreement with the nation, particularly after the significant market access Sri Lanka received following the FTA signed with India. Accordingly, the Pakistan-Sri Lanka Free Trade Agreement (PSFTA) was signed in 2002 and came into implementation in 2005. The Sri Lankan experience with the PSFTA also suggests that there was a revival of Sri Lanka’s bilateral trade with Pakistan. Sri Lanka’s trade with Pakistan has accelerated during 2005-2010 since the PSFTA entered into force in 2005. However, trade between the two countries has occurred in areas outside the PSFTA as the products that were traded between the two countries have been in the negative lists. Although the exports from Sri Lanka to Pakistan have risen from US$ 56 million in 2003 to US$ 36 million in 2007, the share of exports has remained the same at 0.7 per cent out of Sri Lanka’s total export. 70 Imports from Pakistan to Sri Lanka have accelerated at a faster pace rising from US$ 71 million in 2003 (1 per cent of total imports), to US$ 178 million in 2007 (1.6 per cent of total imports). 71 Imports from Pakistan gave grown significantly since the FTA came into place. The major import item from Pakistan is textiles and fabrics, which accounted for 55 per cent of Sri Lanka’s imports from Pakistan in 2007. 72 Other items include medicaments, potatoes, rice and dried fish. 73 While textile and apparel articles, and medicaments receive MFN duty-free treatment, rice and dried fish fall under the negative list and potatoes are imported under a tariff rate quota (TRQ) with the state retail firm Co-Operative Wholesale Establishment (CWE) being allocated the quota. 74 Tariff Liberalization Programme: Both Sri Lanka and Pakistan have gradually liberalized their tariff schedules since the PSFTA entered into force. Initially Pakistan and Sri Lanka have offered only 206 and 102 tariff lines respectively for immediate zero duty. 75 Yet, Pakistan liberalized the remaining products over a three-year period, which ended in June 2008, effectively giving Sri Lanka duty free market access to more than 4,500 products. 76 Sri Lanka has also liberalized its remaining products, excluding those on the negative list, over a five-year period that ended in November 2010. Negative Lists: 70 Kelegama, S & C. Karunaratne (2013), “Experiences of Sri Lanka in the Sri Lanka-India FTA and the Sri Lanka- Pakistan FTA,” Background Paper on Regional Value Chains, UINCTAD, available at: [http://unctad.org/en/PublicationsLibrary/ecidc2013misc1_bp10.pdf]\ 71 Ibid. 72 IPS (2007), “ International Economic Environment” in State of the Economy, Institute of Policy Studies of Sri Lanka, Colombo, Sri Lanka. 73 Ibid. 74 de Mel, Deshal, undated, “India – Sri Lanka, Pakistan – Sri Lanka Bilateral Free Trade Agreements”, Institute of Policy Studies of Sri Lanka. 75 Abeyratne, S. (2012), “Sri Lanka’s Free Trade Agreements with India and Pakistan: Are They Leading Bilateral Trade Beyond Normalcy?”, The Lahore Journal of Economics, Vol. 17, pp. 315-337, available at: [http://121.52.153.179/JOURNAL/LJE_Vol_17- SE_PDF/13%20Sirimal%20Abeyratne%20ED%20AAC%2001102012.pdf] 76 Ibid. Page 19 of 88
Page 1 and 2: Study on China-Sri
Page 3 and 4: IPS Team of Researchers Janaka Wija
Page 5 and 6: • Tariff-rate Quotas: Although ta
Page 7 and 8: 1. Background to the study While hi
Page 9 and 10: efore the agreement is finalized, w
Page 11 and 12: 2.1 Introduction While Sri Lanka ha
Page 13 and 14: Rules of Origin: The rules of origi
Page 15 and 16: vegetable fats and oils, refined co
Page 17: margin to 889 products from India i
Page 21 and 22: Sri Lanka has been involved in both
Page 23 and 24: Trade facilitation issues: Further,
Page 25 and 26: 3.1 Introduction China has emerged
Page 27 and 28: 3.2 China-ASEAN Free Trade Agreemen
Page 29 and 30: Product specific rules pertaining t
Page 31 and 32: verification networking system on c
Page 33 and 34: Table 3.4: China’s Tariff elimina
Page 35 and 36: Rules of Origin (ROO) are a critica
Page 37 and 38: Parties China , New Zealand Date of
Page 39 and 40: Table 3.9: China’s Tariff elimina
Page 41 and 42: One of the quantitative restriction
Page 43 and 44: 3.5 China-Singapore Free Trade Agre
Page 45 and 46: exportation of any good destined fo
Page 47 and 48: with the following: elimination of
Page 49 and 50: under the Agreement, corresponding
Page 51 and 52: Table 3.17: China’s Tariff Elimin
Page 53 and 54: 3.7 China-Peru Free Trade Agreement
Page 55 and 56: Liberalization of Tariff Lines: Bot
Page 57 and 58: articles. In 2026, the overall aver
Page 59 and 60: 3.8 China-Costa Rica Free Trade Agr
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Page 63 and 64: China maintains a negative list wit
Page 65 and 66: 3.9 China-Switzerland Free Trade Ag
Page 67 and 68: 3.11 Conclusion China’s shift in
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HS section and description Table 3.
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2013. 170 China is now demonstratin
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4.1 Introduction Over the past 55 y
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Using World Bank’s WITS database
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39 4 391231, 391239, 392321, 392620
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4.4 Identification of Potential Exp
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Table 4.7: Summary Analysis of Chin
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Table 4.8: Tariffs for Top 10 Curre
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Table 4.9: Tariffs for Top 10 Indic
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5. Conclusion to the study Section
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