Trade Relations Andreas Julin, European Commission, DG Trade - - PowerPoint PPT Presentation

EU-Sri Lanka Trade Relations

Andreas Julin, European Commission, DG Trade

Presentation:

• EU-Sri Lanka Trade
• Sri Lanka and EU GSP
• Promoting Bilateral Trade

• EU-Sri Lanka relations are

governed by their Cooperation Agreement from 1995.

• Trade and investment

important part of the relationship.

• Bilateral trade has remained

strong over the years.

• The EU is Sri Lanka's largest

export market taking almost 26% of Sri Lanka's exports to the world.

• Sri Lanka ranks as the EU's

65th trading partner and 3rd largest in South Asia.

Sri Lanka's Major Export Partners Rank Partner Mio euro Share % World 8.084 100,0% 1 EU 2.094 25,9% 2 United States 1.745 21,6% 3 India 428 5,3% 4 Russia 256 3,3% 5 United Arab Emirates 209 2,6% EU's Major Trading Partners Rank Partner Mio euro Share % World 3.386.505 100,0 1 USA 515.996 15,2 2 China 467.404 13,8 3 Russia 285.505 8,4 4 Switzerland 238.451 7,0 5 Norway 134.142 4,0 .. 65 Sri Lanka 3.833 0,1

• Bilateral trade has

developed positively over the years.

• Sri Lanka has a trade

surplus with the EU of

• ver € 1 billion.
• Between 2009-2014

imports from Sri Lanka had an annual average growth rate of 4.7%

• EU exports to Sri Lanka

grew by 10% on average.

• Composition of trade has

remained relatively stable

• Main imports from Sri

Lanka: clothing, rubber products, coffer/tea and bicycles.

• Main exports to Sri

Lanka: machinery products, transport equipment, textiles and chemicals

Sri Lanka and EU GSP

• Sri Lanka has benefited from the EU's GSP since its

inception in the 1970's.

• In 2004 Sri Lanka received enhanced GSP preferences

under the so called "Labour Regime" for implementing ILO core conventions.

• In 2006 Sri Lanka transitioned into the then existing

GSP+ scheme.

• In 2010 Sri Lanka was removed from GSP+ due to

non-effective implementation of 3 UN human rights conventions.

• At the moment Sri Lanka benefits from normal GSP.

Impact of losing GSP+

• Analysis indicates:
• Total imports continued to grow and even performed better

than during the GSP+ period.

• Total preferential imports saw negative growth after GSP+

removal.

• Total imports of clothing (CH 61-62) also continued to grow

positively and also did better than during the GSP+ period. Preferential imports of clothing dropped.

• Both total and preferential imports of fish (CH 03) and

bicycles (CH 87) decreased after the loss of GSP+.

• Rubber products (CH 40) saw no impact (non-sensitive

product)

• How to isolate from other factors, e.g. depressed economic

situation in the EU.

Promoting Trade and Investment

• EU Export Helpdesk

http://exporthelp.europa.eu/thdapp/index.htm#

• Trade Related Assistance

Export Helpdesk One-Stop-Shop for Info on EU Market

Requirements

• Understanding the EU market
• Sanitary and phytosanitary

requirements

• Environmental requirements
• Technical requirements
• Marketing standards
• Import restrictions
• Tips & tricks on EU requirements

Tariffs

• Binding Tariff Information
• Duty relief and suspensions
• Quotas
• Antidumping
• Tips & tricks on EU tariffs

Preferential arrangements

• Rules of origin
• Generalised Scheme of Preferences

(GSP)

• Free trade agreements
• Autonomous trade regimes
• Customs Unions

Statistics

• EU trade flows inside & outside

Europe

Trade Related Assistance

Programme being developed to promote:

• Development of a comprehensive Export Trade

Strategy;

• Trade Facilitation;
• Compliance with quality standards and Sanitary

and Phyto-Sanitary (SPS) measures; and

• Sector Specific Value chain development and

SMEs' integration into regional and Global value chains.