Sri Lanka Apparel Exporters Association with its apex body, Joint Apparel Association Forum (JAFF), has requested the Department of Commerce to explore the possibilities of undertaking a joint request to the European Union between Sri Lanka and selected ASEAN countries to agree on cross regional accumulation for fabric.
Chairman of Apparel Exporters of Sri Lanka, Felix Fernando made these remarks speaking at the annual general meeting of Sri Lanka Apparel Exporters Association.
“We reliably understand that the European Commission has basically agreed to consider granting this benefit and we have selected Indonesia, Thailand and Malaysia to start with.”
He expressed hope that the government authorities will consider this as a priority and do the needful sooner, since it will give a huge advantage to apparel exporters in maximizing the use of GSP Plus facility. From 2004-2011, apparel exports grew from US$ 2.7 billion to US$ 4 billion, registering a 60% growth. Following the withdrawal of the GSP Plus facility, apparel exports however had been stagnating. In the months of July, August and September 2017, apparel exports grew considerably after the restoration of the GSP Plus facility.
“It is visible that Sri Lanka has already started reaping the benefits of the GSP Plus facility. Apparel exports up to September 2017 have recorded an 11.6% overall growth compared to year 2016. And the total value of apparel exports is expected to surpass US$ 5 billion mark for the first time.
Sri Lankan apparel exports will also have the GSP Plus facility for the full year in 2018 and it is expected that the industry will record a further increase in apparel exports.
Despite the fact that 40% of the total apparel exports, amounting to US$ 1.9 billion are exported to the EU, bulk of it goes to UK market, Fernando said.
With the uncertainties around Brexit, Fernando pointed out that Sri Lankan authorities need to hold discussions with UK counterparts for the latter to agree to continue to offer the same trade facilities for Sri Lankan exports.
“Due to these uncertainties, it is imperative that we consider the EU countries and especially Germany where our presence is limited. We seek the help of the German Ambassador to Sri Lanka to convey the strength and the size of the industry and see the possibility of creating a link between our industry with that of importing industry and the fashion industry in Germany.
“It is also heartening to note the importance given to the export sector, when the present government launched its Vision 2025; the government has realised the limitations of the present market and hence plans to position Sri Lanka as an export-oriented economic power at the centre of the Indian Ocean.”
Fernando also noted that the government’s idea in formulating National Exports Strategy (NES) is very well recognized by the Association and thanked the Minister of Development Strategies and International Trade in taking initiatives and inviting all stakeholders to the process making of the NES.
The apparel sector which has been identified as a mature export expects that the NES formulated by the government will improve trade facilitation through export and import trade documentation, logistics and other relevant support services.
Fernando also thanked Minister Mangala Samaraweera for heeding apparel exporters’ concerns and deciding to put on hold the abolition of Simplified Value Added Tax (SVAT) system.
0 comments: