By NNN-APP
Colombo : Direct discussions and negotiations is the best way to increase trade turnover between Sri Lanka and Pakistan, says Bandula Gunawardhana, Lankan Minister of Trade, Marketing Development, Cooperatives and Consumer Services.
In an interview with APP, Gunawardhana invited Pakistani traders to directly deal with the ministry’s newly constituted importing arm, the State Trading Cooperative Wholesale Corporation (STCWC).
The ministry, through its different bodies is willing to import much more items than the traditional consumer goods such as rice, potato and onions, said Gunawardhana.
The list will include but will not be limited to cement and other building material, machinery, electric items and motor bicycles.
“We had very successful dialogue with trade representatives from Pakistan.
We have requested for their offers which they have agreed to submit in the next week. Thereafter, the negotiations will soon begin,” he said.
A trade delegation representing the Pakistani businessmen who participated at the Pakistan single country trade exhibition in Colombo met with the Lankan Trade Minister and chairs of some of its institutions, the State Trading Corporation and Building Materials Corporation Sunday and Monday.
Further negotiations are ongoing for rice imports from Pakistan.
However, “Pakistan should try to get more benefits from the FTA. (Free Trade Agreement with Sri Lanka) Its implementation has brought benefits to both countries. Nevertheless, the FTA is not utilized to its full capacity,” he said.
The FTA between Pakistan and Sri Lanka, which came in force in July 2005, granted immediate 100 percent tariff concessions to over 300 items.
Pakistan has granted duty free access to 206 Lankan products including fruits, nuts and spices, selected coconut, rubber, leather, wood, ceramic, iron or steel, copper and aluminum products, fabrics, yarn and thread while the Sri Lanka has permitted 102 items inclusive of food items including grains and fruits, selected chemicals and pharmaceuticals, selected polymers and polyethylene items, apparel and clothing accessories, sanitary ware, selected machinery, engines and parts.
Since its implementation, trade turnover between the two countries has nearly doubled, from USD 146 million in 2004/5 to USD 264 million in 2006/7.
According to the Sri Lankan Department of Commerce figures, Sri Lanka’s total imports from Pakistan has grown to USD 147 million in 2006, from that of USD 115 million in 2005.
Commenting on the recently concluded Pakistan trade exhibition in Colombo he said that it was an eye-opener for Lankans to trade with Pakistan.”The variety of products, quality and competitive prices exhibited would attract a substantial share in the market,” he pointed out.
Speaking of the need for improved trade relations within the region, he pointed out that it would help countries face world food shortage better. “Rising consumer price and cost of living is inevitable in a world facing a food shortage.
However, to successfully overcome the problem of food shortage regional support is the key.
The SAARC region produces most of the food items we need, therefore exchange of products between our countries with both the government and private sector involvement would be the answer,” he said.