Baigou city in the Hebei Province of China is known locally as the City of Bags and is an important centre for the Chinese leather industry.

According to reports, the Sri Lankan government is now looking into investment opportunities in the city within the leather sector and the Sri Lankan embassy in China has initiated a programme in Baigou to promote the Sri Lankan leather industry.

The government will offer a range of incentives including the GSP+ scheme which allows Sri Lankan products to be shipped to EU countries without any duties. The government has also introduced a 0% duty on machinery and raw materials imports for the leather sector. It has also signed free trade treaties with India and Pakistan.

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