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Apparel industry confident that SL will give its best shot to protect GSP+

The Joint Apparel Association Forum (JAAF) last week expressed confidence that the Sri Lanka government will ``actively engage itself in a constructive dialogue’’ with the European Commission to ensure that GSP+ benefits, assured now till November/December of 2009, will continue for the full three-year period extending to December 2011.

JAAF President Ajith Dias, setting out the accurate position regarding concessionary entry of Lankan exports to the EU in the context of different and sometimes contradictory reports on the subject, expressed this sentiment.

Although Sri Lanka has said it will not subject itself to an EU investigation on effective implementation of international covenants and conventions relating to civil and political rights, torture and the rights of the child, it has continued to engage with the EU with a continuing dialogue between the European Commission (EC) and Ambassador Ravinatha Ariyasinghe in Brussels.

``We have not disengaged and are continuing the dialogue,’’ Export Development and International Trade Minister G.L. Pieris said. ``Our ambassador continues to discuss these matters with officials of the EC.’’

Dias pointed out that in terms of its regulations, the EU investigation must be completed by Oct. 18, 2009 adding that ``this one year depends on whether Colombo provides additional information and cooperates with the EU during the investigation.’’

But if the information requested by the Commission is not provided within the specified period or the investigation ``significantly impeded,’’ findings may be made on the ``facts available.’’

``Therefore if the GOSL does not provide additional information or cooperate with the investigation, it could be completed and a determination made by the EU in less than a year,’’ Dias warned.

He said there were two possible scenarios – the first that GOSL does not provide information and actively engages with the EC (European Commission) or alternatively that it does provide the information and actively engages.

``One could assume that under the first scenario that if the findings of the investigation are unfavourable and the Council decides to withdraw the GSP+ concessions by May 2009, Sri Lanka will have GSP+ benefits till Nov./Dec. 2009 as Council decision will come into force in Nov./Dec. 2009,’’ Dias said.

But if the GOSL provides the additional information and actively engages with the EU, GSP+ benefits could be available till mid-2010 ``even if the findings are negative.’’

``This is based on the fact that providing additional information and active engagement with the EU could provide more time and in such a situation, the Commission’s proposals for the withdrawal could be in the latter part of 2009,’’ he explained.

``In such a case, the Council decision would be taken towards the end of 2009, with the decision entering into force in mid-2010.’’

It is in this context that JAAF expressed confidence that the government will actively engage itself in a constructive dialogue with the EC so that the otcome of the investigation is favourable to the country.

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