• Fresh mandate required as PTA previously handled by Commerce Dept.: Chief Negotiator 
• Memorandum approved by Cabinet two weeks ago

The International Trade Office (ITO) established under the Presidential Secretariat received a fresh mandate last week from the Cabinet to revive the stalled talks with Bangladesh regarding the proposed Preferential Trade Agreement (PTA) and will accordingly be taking steps to fix a date for the next round of talks.

Speaking to The Sunday Morning Business, Sri Lanka International Trade Office Chief Negotiator K.J. Weerasinghe explained that the negotiation of trade agreements had previously been the responsibility of the Department of Commerce and that several rounds of discussions had already been carried out between the Department of Commerce and the Bangladeshi authorities. 

However, the International Trade Office has been tasked with leading all negotiations on bilateral trade agreements following its establishment under the Presidential Secretariat.

“Talks with Bangladesh in respect of this PTA have been delayed for a while. Bangladesh is also keen to expedite and conclude these negotiations. That is why we sent a Cabinet Memorandum, since we needed a fresh mandate from the Cabinet to go ahead with these discussions. Earlier, approval had been granted to the Department of Commerce and the Cabinet also had some concerns which we sought to answer. This is the Cabinet Memorandum that was approved by Cabinet two weeks ago,” Weerasinghe explained. 

He further stated that although Cabinet had approved the Cabinet Memorandum presented by the International Trade Office, the relevant documentary approval was yet to be officially received and would likely take a few more days. Following this, steps will be taken to fix a date with the Bangladeshi delegation for the next round of talks that may be held either virtually or in person in Colombo.

“The first stage of these talks involves the exchange of the lists of tariff concessions sought and we have already completed this stage. We have given Bangladesh a list of products consisting of around 150 tariff lines, seeking preferential tariffs on these. Similarly, Bangladesh has also given us a list of products for which they are seeking tariff concessions. We will have to negotiate with Bangladesh regarding the granting of these concessionary tariffs. Therefore, we know what Bangladesh wants and they know what we are expecting.”

Free Trade Agreement (FTA) negotiations with Bangladesh have been in the works since 2013 and signing an FTA would mean the successful completion of this discussion. It is expected that the FTA will enable both countries to overcome tariff and non-tariff barriers that exist, hampering trade between the two countries. 

In March 2021, during then Prime Minister Mahinda Rajapaksa’s tour of Bangladesh, an agreement was reached with the Government of Bangladesh to start a free trade accord to strengthen economic relationships, following which, in June 2021, the Cabinet granted approval to commence talks with Bangladesh on a PTA. 

Sri Lanka and Bangladesh are parties to the SAARC Preferential Trading Arrangement (SAPTA) and the South Asian Free Trade Area (SAFTA).

Both Sri Lanka and Bangladesh are also parties to the Global System of Trade Preferences (GSTP), the Asia-Pacific Trade Agreement (APTA), and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Co-operation (BIMSTEC).