US reciprocal tariff AKD should directly negotiate with Trump: Namal

By Yohan Perera and Ajith Siriwardana   

President Anura Kumara Dissanayake should directly negotiate with US President Donald Trump to ensure an amicable solution to the crisis brought on by the 44 percent reciprocal tariff, SLPP MP Namal Rajapaksa told Parliament yesterday.   

“Appointing a committee to negotiate with the US will not bring desired results,” the MP said.   

He said the issue would become serious if workers stage trade union action when the companies in sectors such as apparels curtail bonuses as a result of reciprocal tariff.   

“The main issue on the reciprocal tariff would be job losses as investors can move out of Sri Lanka and set up factories in nations which are not affected by reciprocal tariffs. “Some investors have already begun negotiations to move out of Sri Lanka,” he said.   

“The Government is lucky as no opposition party will get its unions to stage strikes. We don’t intend to engage in petty politics at a time such as this,” he added.   

Deputy Minister of Industries Chathuranga Abeysinghe who responded said the reciprocal tariff issue is not confined to Sri Lanka but is a global issue. “The USA has imposed reciprocal tariffs on a number of countries where trade balance is unfavourable,” he said.   “Countries have followed two different strategies to deal with the USA. This is retaliation and negotiation. Countries such as China and Canada have retaliated while small countries such as Sri Lanka only have the option of negotiating, “ he added.   The Deputy Minister said the Opposition has got into the habit of harping on the reciprocal tariff issue rather than talking of the VAT Amendment Bill which will rectify all shortcomings of VAT.