EU decision could affect Sri Lankan leather firms
A recent European Union (EU) decision to withdraw preferential trade agreements from Sri Lanka has met with concern from many manufacturers in Sri Lanka.
The sector that will be most affected is the garment sector, however, leathergoods producers will also be negatively impacted, along with exporters of tuna, fresh fruit and vegetables and porcelain goods.
The Generalised System of Preferences, which offers preferential access to EU markets for countries that pursue good governance and sustainable development, has temporarily been suspended.
"This decision follows an exhaustive investigation by the European Commission, which identified significant shortcomings in respect of Sri Lanka's implementation of three UN human rights conventions relevant for benefits under the scheme," an EU statement said.
EU trade commissioner, Karel De Gucht said: "I would like to emphasise that I hope Sri Lanka will sit with us over the next six months in order to agree upon a set of measures that will result in rapid, demonstrable and sustainable progress in relation to the human rights shortcomings we have identified.”
