Lanka mulls legal action if EC suspends GSP trade concessions
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South Asia

Lanka mulls legal action if EC suspends GSP trade concessions

Last Updated: Saturday, December 19, 2009, 17:52
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Colombo: The European Commission (EC) has temporarily suspend the GSP plus trade concession to Sri Lanka because of its poor human rights record prompting Colombo to consider legal options.

The Sri Lankan threat comes as its garment industry to a great extent is dependent on the GSP Plus facility for its survival and it is estimated that the fate of over 100,000 jobs and over USD 2 billion in export earnings hang on country getting the facility extended for 2009-2011.

"Recommendation by the European Commission temporarily to withdraw GSP benefits for Sri Lanka is extremely unfair, unwarranted and unjust," Export Development and International Trade Minister G L Peiris told reporters yesterday.

Peiris said all dignitaries who came here to inspect the war affected zone after peace was restored expressed satisfaction over the manner the displaced persons were looked after in the welfare camps.

"If that was so with people like(UN Emergency Relief Coordinator) John Holmes (who visited Sri Lanka) the delay in giving us that facility gives reason to believe its a conspiracy", Peiris claimed.

The Commissions structures against Colombo came as its spokesman Christiane Hohmann said, "The Commission completed a thorough investigation into the human rights situation in Sri Lanka and in particular whether Sri Lanka is living up to the commitments it made to respect international human rights standards when it became a beneficiary of the European Union’s GSP+ trade incentive scheme."

However, the Sri Lankans claimed that WTO has established norms which govern these matter and "we are now taking legal advice with regard to the remedies that are available to us", Peiris said.

A trade union activists from the Garment sector, Anton Marcus said to protect the interest of the workers in Sri Lanka, it was necessary to look at the demands of the European nations vis-à-vis GSP Plus trade concession.

These included the issues of International convention on human rights as well as the workers rights, he said.

Rohan Masokorala of Sri Lanka's Joint Apparel Association Forum told a Private TV channel that the industry is pretty concerned about what is going on.

This is because buyers are keen on know about stability because they need to place orders for the future months, Masokorala pointed out.

So what we are worried is if the GSP Plus concessions is definitely withdrawn, there will be consequences to the local industry because we will lose business.

"We could lose buyers," he told Newsfirst channel. "As a result we could have serious problems to carry on the industry the way we are doing right now.

The government will have to engage in a dialogue with the EU as the European Union has raised some questions relating to their concerns, he said.

PTI

First Published: Saturday, December 19, 2009, 17:52

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