Sri Lankan protesters march against proposed trade pact with India
The protesters, including doctors and engineers, sought assurance from Rajapaksa that he would not sign the Comprehensive Economic Partnership Agreement (CEPA) with India during his visit to New Delhi on June 8.
By PTI |
COLOMBO: Ahead of Sri Lankan President Mahinda Rajapaksa's visit to India next month, hundreds of protesters took to the streets here against a proposed comprehensive bilateral trade pact, claiming it would benefit the neighbouring country at the expense of domestic industry.
The protesters, including doctors and engineers, sought assurance from Rajapaksa that he would not sign the Comprehensive Economic Partnership Agreement ( CEPA) with India during his visit to New Delhi on June 8.
Rajapaksa met the protesters at his official residence yesterday and pledged that he would not ink any agreement that would have an adverse impact on the country. The CEPA was expected to be signed during Prime Minister Manmohan Singh's visit here two years ago for the SAARC summit, but it was put off at the last moment.
It had been held up due to opposition from Sri Lankan business community which feared that the island could be dominated by cheaper and skilled Indian services at the expense of the domestic industry.
During his meeting with the protesters, Rajapaksa said any bilateral agreement should have equal benefits to both countries, a statement from the Sri Lankan Presidential Secretariat said today. Some groups argue that CEPA benefits India more than Sri Lanka and would adversely affect Sri Lankan businesses.
The Indo-Sri Lanka Free Trade Agreement (ISFTA), which was signed on December 28, 1998 and had entered into force from March 1, 2000, has promoted economic linkages between the two countries through enhanced bilateral trade and investment.
The agreement covers only trade in goods and requires the two countries to offer market access to each other's exports on duty-free basis and concessionary tariffs. The ISFTA also does not provide for elimination of non-tariff barriers.
After the implementation of ISFTA in 2000, exports from Sri Lanka to India have increased, except for the year 2006. Its exports to India increased from USD 55.7 million in 2000 to USD 516.4 million in 2007.
For the first time in the history, the 2-way merchandise trade exceeded USD three billion in 2007, representing 17 per cent of Sri Lanka's trade with the world, the statement said.
India, accounting for 6.7 per cent of Sri Lanka's total exports to the world, remained the island's third largest buyer in the year 2007 after the US and UK. At present, more than 70 per cent of the total value of Sri Lanka's exports enter India under the tariff preferences offered under ISFTA.
In 1996, 1997 and from 2001 India became the largest supplier to Sri Lanka overtaking Japan. Sri Lanka's share of imports from India during 2007 accounted for 24.4 per cent of its total imports from the whole world.
The protesters, including doctors and engineers, sought assurance from Rajapaksa that he would not sign the Comprehensive Economic Partnership Agreement ( CEPA) with India during his visit to New Delhi on June 8.
Rajapaksa met the protesters at his official residence yesterday and pledged that he would not ink any agreement that would have an adverse impact on the country. The CEPA was expected to be signed during Prime Minister Manmohan Singh's visit here two years ago for the SAARC summit, but it was put off at the last moment.
It had been held up due to opposition from Sri Lankan business community which feared that the island could be dominated by cheaper and skilled Indian services at the expense of the domestic industry.
During his meeting with the protesters, Rajapaksa said any bilateral agreement should have equal benefits to both countries, a statement from the Sri Lankan Presidential Secretariat said today. Some groups argue that CEPA benefits India more than Sri Lanka and would adversely affect Sri Lankan businesses.
The Indo-Sri Lanka Free Trade Agreement (ISFTA), which was signed on December 28, 1998 and had entered into force from March 1, 2000, has promoted economic linkages between the two countries through enhanced bilateral trade and investment.
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The agreement covers only trade in goods and requires the two countries to offer market access to each other's exports on duty-free basis and concessionary tariffs. The ISFTA also does not provide for elimination of non-tariff barriers.
After the implementation of ISFTA in 2000, exports from Sri Lanka to India have increased, except for the year 2006. Its exports to India increased from USD 55.7 million in 2000 to USD 516.4 million in 2007.
For the first time in the history, the 2-way merchandise trade exceeded USD three billion in 2007, representing 17 per cent of Sri Lanka's trade with the world, the statement said.
India, accounting for 6.7 per cent of Sri Lanka's total exports to the world, remained the island's third largest buyer in the year 2007 after the US and UK. At present, more than 70 per cent of the total value of Sri Lanka's exports enter India under the tariff preferences offered under ISFTA.
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In 1996, 1997 and from 2001 India became the largest supplier to Sri Lanka overtaking Japan. Sri Lanka's share of imports from India during 2007 accounted for 24.4 per cent of its total imports from the whole world.
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