Sri Lanka and China have agreed that the recommencement of negotiations on the bilateral Free Trade Agreement with the view to concluding it soon would be advantageous to Sri Lanka.
This was revealed during discussions Ambassador Dr. Palitha Kohona held with Vice Minister of Foreign Affairs of China Mr. Luo Zhaohui on 03 March 2021.
Ambassador Kohona also raised the issue of non-tariff barriers which are hindering access to the lucrative Chinese market for a range of natural, agricultural and industrial products.
Sri Lanka has shown interests in exploring a bilateral trade agreement with China.
Both countries now have agreed that they would embark on a free trade agreement, which is hoped to open up the vast Chinese market to Sri Lanka’s producers, manufacturers and exporters.
This would not only boost bilateral trade but help reduce Sri Lanka’s heavy reliance on traditional markets in Europe and the USA. In this regard, it is imperative that the agreement covers a substantial number of tariff lines and trade as well as address non-tariff barriers that may hinder export expansion.
Considering the reservations about adverse effects of a FTA with China, the agreement needs to be prepared carefully taking into account asymmetries between the two economies, with a rational negative list and a longer phase-out liberalisation schedule.
Vice Minister Luo warmly welcomed the Ambassador and stated that the Ministry of Foreign Affairs of China will continue to extend its fullest support to the Ambassador in Beijing and effusively acknowledged his long standing connections with China.
The long discussion that followed included cooperation and mutual support in international fora, in economic matters for post Covid-19 recovery, effective management of the Covid-19 pandemic and future high-level visits.
Vice Minister Luo assured of China’s support to Sri Lanka at the UNHRC and its continued assistance as Sri Lanka confronts a critical economic challenge.
The Chinese Foreign Ministry will proactively support efforts to increase Chinese tourism to Sri Lanka and more businesses, including SOEs, to invest in the Colombo Port City and the Hambantota Industrial Zone.
The Vice Minister acknowledged that it was time for these two Chinese supported ventures to get off the ground.
Dr. Kohona commended China for successfully eliminating extreme poverty by 2020 consistent with a key SDG and congratulated the Communist Party of China as it celebrated its 100th year Anniversary.
China’s spectacular success could be attributed to the prudent management of the country by the Party.
Leave your comments
Login to post a comment
Post comment as a guest