EU: Ministers Confirm Trade Agreement With Sri Lanka

Effective March 1 2001, the European Union has made all textile imports from Sri Lanka quota-free under an agreement initialed in December.

Sri Lanka ranks twentieth among suppliers of textiles and clothing products to the EU. In 1999, imports from Sri Lanka were worth 707m Euros and exports to Sri Lanka 92m Euros.

Sri Lanka has agreed to tie all its tariffs for textiles and clothing in the World Trade Organisation (WTO) at rates of 0% for raw materials, 5% for fibres and yarns, 10% for fabrics and 17.5% for clothing products. Sri Lanka officials also decided to bring down a number of tariff peaks from the current level of 25 per cent down to just 10 per cent. In return the EU will suspend current quotas on imports of trousers, cotton blouses, cotton shirts and anoraks from Sri Lanka.

Certain products will be subjected to a double-checking system of import and export licensing in a bid to prevent third parties taking advantage of the agreement. EU officials also revealed that they had put in place a checking system for goods under current quota import restrictions with Bosnia and Herzegovina, in addition to the initial agreement out in place in November.

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