Indo-Sri Lanka Trade and the Bilateral Free Trade Agreement: A Sri Lankan Perspective
Loading...
Date
1999
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
India-Sri Lanka trade has been growing in recent years. In the mid-1990s, India became the main import supplier of Sri Lanka. Although Sri Lankan exports to India remain small, they have been growing faster than Indian imports to Sri Lanka in recent years. The Indo-Sri Lanka Bilateral Free Trade Agreement is a further step, by removing existing trade barriers, to stimulate trade between the two nations. While trade brings benefits to both there is an import competing sector in both countries that is still not in a position to face external competition from free trade. The Agreement allows for a “negative list” to accommodate this sector but preparation of the negative list has proved to be a time-consuming and intricate exercise. Once the Agreement comes into force, the Sri Lankan export sector is faced with a challenge to produce goods that are in demand in the Indian market. The challenge may be a “warm up” exercise to face future free trade under the South Asia Free Trade Agreement (SAFTA).
Description
Keywords
Free Trade Agreements, FTAs, South Asia, South Asian Free Trade Agreement, SAFTA