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Impact of losing GSP+ now visible on clothing exports
22 Sep '10
1 min read
It's hardly a month since the removal of the GSP plus facility extended by the European Union, but in the period, Sri Lanka has lost confirmed export orders worth over US $250,000.
The trade concession facility which entitled the country to export over 2,000 products to EU without any duties, ended on August 15. Subsequent to withdrawal of the facility, the exporters now are required to pay duty at the rate of 9.6 percent on all their exports to EU.
Further to that, after withdrawal of the facility, many of the industries including garments, ceramics, etc. are now nearing closure with no export orders coming in, and this has stirred up the issue of unemployment.
However, experts aver that, it could have been possible to avoid this crisis, if the government had initiated proper steps and had strategized a plan to aid the ailing private sector. Also the resultant effects flowing in the form of job losses, too could have been averted.
Earlier, with the signing of the GSP plus trade agreement, garment exports to the EU countries grew by over 60 percent, which constituted 40 percent of country's overall exports.
The trade concession facility which entitled the country to export over 2,000 products to EU without any duties, ended on August 15. Subsequent to withdrawal of the facility, the exporters now are required to pay duty at the rate of 9.6 percent on all their exports to EU.
Further to that, after withdrawal of the facility, many of the industries including garments, ceramics, etc. are now nearing closure with no export orders coming in, and this has stirred up the issue of unemployment.
However, experts aver that, it could have been possible to avoid this crisis, if the government had initiated proper steps and had strategized a plan to aid the ailing private sector. Also the resultant effects flowing in the form of job losses, too could have been averted.
Earlier, with the signing of the GSP plus trade agreement, garment exports to the EU countries grew by over 60 percent, which constituted 40 percent of country's overall exports.
Fibre2fashion News Desk - India
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