The discontinuing of the GSP programme by the US from next year to 120 countries including Sri Lanka would not make a significant impact on the exports to the US, the Government said today.
National Policies and Economic Affairs Deputy Minister Dr. Harsha De Silva said people seemed to be confused with the US GSP and Generalised Scheme of Preferences (GSP) Plus given by the European Union (EU).
“The US GSP applies to 120 countries and there is nothing special or significant to Sri Lanka. Once it was removed, the cost of exports will rise only by about 3% in tariff.
Sri Lanka’s total exports to the US was USD 2.8 billion in 2016. Only USD 173 million exports, which amounted to 6.2% of the total, received the GSP.
The number of textile exports was only 1% which amounted to USD 27 million. Any person can realise that this has no significant impact on our exports to the US,” he told a news briefing.
He said rubber based products, which were exported to the US enjoyed the GSP benefits largely.
“However, USD 173 million worth of exports which received GSP benefit is not a big amount of our total exports of about USD 11,000 million. This will make a negligible impact,” he said.
He said the EU GSP plus was more important than US GSP as only nine countries including Sri Lanka harvest the benefits of the GSP plus when exporting goods to 28 European countries.
“The GSP plus tariff concessions span from 10-20% which is a considerable reduction in tariff. Our exports to the EU stand at USD 3.1 billion in 2016 and over USD 2 billion worth of exports were textiles. We are able to and continue to benefit from the GSP plus. Due to GSP plus, 47% of our fish exports had increased recently. Therefore it is very vital,” Dr. De Silva said.
He said that all 120 countries which received the GSP will have to pay 3% increase in tariff from next year.
“This is not significant as the 10-20% tariff reduction we receive from the GSP plus,” he reiterated.
The deputy minister refused reports which say the concession was not renewed because of the UN vote over Jerusalem, in which President Donald Trump’s decision to recognise Jerusalem as Israel’s capital was defied.
“The GSP has been removed for all 120 countries including the countries which abstained the UN vote and even those who voted alongside the US. The reports are unfounded,” he said.
He also said there was no need to go for State-level discussions with the US over GSP as its a policy based decision of that country. (Lahiru Pothmulla)
Video by Buddhi
Comments - 15
nishantha Friday, 29 December 2017 09:12 PM
we have heard the same statement made by the previous clowns when the EU withdrew the GSP then we sucked our way back in to the facility after the PM did the needful.now a different clown makes the statement.to show who false pride !!!! still cannot balance a budget but the talk.......
Lord Wolfstein Saturday, 30 December 2017 10:18 AM
The last government lost the EU GSP because it constantly violated human rights. MR promised all affected companies he would compensate them. That never happened and companies went bankrupt. Empty words of an incompetent dictator.
AM Saturday, 30 December 2017 06:25 AM
The truth whatever it maybe will be distorted by the JO thinking to gain political mileage and fool the masses. Also a TV channel run by a businessman also distorts the Government efforts thinking that the country is solely run by the Prime Minister.
lion Saturday, 30 December 2017 06:52 AM
we should accept the fact that theses fellows are trying to do some thing better for this country.UNP has lot of good talents like Harsha,Eran,Sajith,Akila, Hope they will get back GSP as they did earlier. What can we expect from people like siripala, susil premajayantha, SB, yapa the famous judge who sat for CJ case. Look at rathnapura john, dayasiri the whole lot around my 3 are corrupt. .The floating vote will decide which party should come to power and the floating vote which appoints my 3 will turn their back to him this time.
SL Saturday, 30 December 2017 07:05 AM
Talk Talk Talk,Then Sleep Sleep Seep. you are dreaming Dr!
Eds Saturday, 30 December 2017 07:22 AM
Yes yes, since your credibility is at an all time high with you being a member of the CB's " Foot Note Gang " we have no reason to doubt you !
Doug Saturday, 30 December 2017 08:08 AM
There will be a long term impact, but then Harsha, which politician cares about long term
Jude Saturday, 30 December 2017 08:38 AM
Hey SL going to pay the price for not supporting at UN resolution regarding Jerusalem issue!!! I can remember back when George W.Bush invaded Iraq with the help of Tony Blair (UK PM then) for WMD(actually looking for stable oil supply-backup for Saudis) Canadian government didn't support!! And in retaliation Americans found MAD COW out of Millions of Cattle exported by Canada subsequently banned Canadian Cattle exports to USA and at the same time imposed Extra Tariffs (Duty) for Canadian softwood lumber contrary to NAFTA (Free Trade agreement) Since then Canada toe the line with Americans on any issues!!! Mind you Canada abstain from voting on Jerusalem issue, which SL should've done to stave off from any diplomatic fall out!!??
Jaliya Saturday, 30 December 2017 10:50 AM
You are utterly ignorant with mentality of a typical SLK the reason for removal of GSP has nothing to do with not supporting at UN resolution regarding Jerusalem issue but it has deeper issues that are not public. (and) the US has been importing livestock from Canada well before the NAFTA agreement was implemented in 1994 by then US president Bill Clinton. Mr. Clinton has nothing to do with the first Gulfwar nor he is from the same party as President Bush who has been supported by the Canadian Government during the war. Canada never had a problem with Mad cow disease that I know of but it was started in the UK so get your facts in order pal !
Thilak Saturday, 30 December 2017 08:47 AM
We still remember Harsha, the kind of voice cuts you gave over media, and the fanfare you made by calling GSP facility as an absolute victory ur leader..
Ronnie Bugger Saturday, 30 December 2017 08:59 AM
One idiot in the previous regime who hangs a name board calling himself a professor said the very same thing in essence the last time. The PM wasted a lot of taxpayers money on trips to the EU plus the good life to get it back. There was a lot of fanfare to re-introduce the facility and now this. Try to explain all this in a a language that the man on the street will understand.
Dickie bird Saturday, 30 December 2017 11:09 AM
Ho.. Ho... Hooo !!!!!!!!!!!!!Its not Jerusalem thingy man !!!!!!!!!!Sri Lanka is going to pay the price for not handing over Raufovich the Russian arrested by SL at the request of America at weligama. Sira's arms dealing Russians whisked him away even without the Americans or the SL Immigration knowing.This ... of a Dr. day dreaming.
Roshan Saturday, 30 December 2017 11:33 AM
FD Saturday, 30 December 2017 12:08 PM
This fellow also has two tongues same as other politicians. It is pity and dirty to see such a comment. When they have reactivates GSP back in 2015, same tongue praise the party and leadership as a big achievement. Sri Lanka, such a poor and corrupted country should have stay away voting in favor at UN proposal against the US declaring the city of Jerusalem is a capital of Israel.
Jigsaw Jakson Saturday, 30 December 2017 12:38 PM
The average person on the street need not worry about such complex things He/She fights on a daily basis to make ends meet and to keep the home fires burning this daunting task is enough to add a few more wrinkles in an already wrinkled face and makes us look 5 years older than we truly are,Now that being said,what about our local business, investors and entrepreneurs, The cost of engaging in business in our land is reaching an unhealthy hight ,Just look around you how many strikes/ProtestsAll want or most of them want more money,they are asking us the taxpayer to pay more money, yes the government can't pay without collecting from the taxpayer that's how the system works no. This GSP thing will pass, but come Feb 10th all hell will break loose,please do not elect rowdies, the uneducated (must have at least 2 O'Levels) look for those individuals who will or promise, to walk the talk. and not pocket our money and play us out. We have the power.
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.