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The Economic And Technical Cooperation Agreement (Etca)

Opublikowano: piątek, gru 18, 2020

Following the implementation of the free trade agreement, Sri Lanka`s trade with India increased: between 1995 and 2000 (the date of entry into force), Sri Lanka`s average annual exports to India amounted to 3 $9 million (nearly 1% of Sri Lanka`s total exports), while average imports amounted to USD 509 million (nearly 10% of Sri Lanka`s total imports). This underlines that, although India was an important source of imports, it was not considered an important export market for Sri Lanka (in 2000, India was ranked 14th in terms of export destinations). In 2005, Sri Lanka`s exports to India amounted to USD 566 million, ten times more than in 2000. While India was ranked in 2000 as the 14th highest target for Sri Lankan exports, this rank rose to fifth place in 2008 and third place after the European Union and the United States in 2012. This trend continues to this day. Data released by the Central Bank of Sri Lanka in its latest annual report confirm enormous progress in optimizing bilateral trade agreements with Sri Lanka. As a result of ongoing ILFTA negotiations, Sri Lankan exports to India amounted to USD 406 million in 2015, up from $354 million the previous year. Until 2015, ILFTA exports accounted for about 63% of Sri Lanka`s total exports to India (6.1% of total exports). Exports to India also increased by 3 per cent to $643 million, up from $625 million in 2014.

This was mainly fuelled by increased exports of spices, transportation and feed. In light of the success of IlFTA, India and Sri Lanka have both sought to expand the existing agreement to promote economic integration through the search for new areas such as trade in services and investment. Following recommendations from a joint task force, a Comprehensive Economic Partnership Agreement (CEPA) was implemented in 2005. After three lengthy negotiations, the EPA agreement was to be signed in parallel with the 15th OSCE summit in Colombo in July. Due to lobbying and the Sri Lankan government`s reservations, EPA negotiations were suspended indefinitely in 2008 after 13 rounds of negotiations. Since then, it has been on hold. The original ECTA project, which replaces the EPA, has been under negotiation for eight months. If adopted, it will be a decisive reform in the direction of a strengthened economic partnership with India. The project aims to take into account the disadvantages of the free trade agreement and to conclude an agreement on trade in services and technological exchanges (which the EPA has not done). The framework was negotiated in the areas of trade and investment, economic cooperation, trade in goods, services, technological cooperation, early implementation of mutual recognition procedures for compliance assessment procedures and a final chapter on other provisions relating to dispute settlement strategies, institutional agreements , modifications and fencing, etc. Under the draft agreement, each country proposed a list of services for trade under the proposed agreement, which was a source of controversy among activists.

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