brand logo

SL prefers PTA with China

22 Jan 2022

 
  • Keen on PTAs with Bangladesh and the Maldives too
By Skandha Gunasekara The Government is exploring the possibility of entering into a Preferential Trade Agreement (PTA) with China instead of a Free Trade Agreement (FTA), with some Cabinet Ministers believing that it would benefit the Sri Lankan economy more than a FTA, The Sunday Morning learns.  Meanwhile, the Government is also keenly pursuing PTAs with Bangladesh and the Maldives. State Minister of Foreign Affairs Tharaka Balasuriya told The Sunday Morning that the Cabinet was deliberating switching to a PTA with China.  “There have been some concerns by the Cabinet regarding an FTA with China. The Cabinet is of the view that it would be better to go for a PTA while China is very keen to go for an FTA. After the recent meeting of the Chinese Foreign Minister, there have been three or four rounds of talks pertaining to the FTA and we will have more talks on how best we can proceed,” Balasuriya said. He said concerns were raised by the Cabinet on issues such as harm to domestic industries and the lengthy process required to enter into a FTA.  “We need to be mindful when we go for an FTA and make sure they don’t affect our domestic industries. Also, before an FTA is signed feasibility economic reports are submitted, which takes time. It’s far more complicated to get into an FTA,” Balasuriya added.  The Cabinet also believes that Sri Lanka will benefit more from a PTA since it would specify the product on which tariff would be lifted unlike an FTA where tariff is lifted across the board. He added that Sri Lanka would be signing PTAs with several countries, including Bangladesh and the Maldives, this year.  “We are negotiating a PTA with Bangladesh as well as with the Maldives. Regionally, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is looking at an FTA within the BIMSTEC countries. We are also looking at PTAs with other countries similar in size to Sri Lanka. I think the Maldives and Bangladesh PTAs will be concluded this year.”  


More News..