The proposed Free Trade Agreement (FTA) between Pakistan and Sri Lanka is expected to be finalised early next year, said Deputy Director of Commerce Department Saman Udagedara.

He was speaking at the Ceylon Chamber of Commerce organised presentation on the proposed FTA with Pakistan. "Initially, the Government received a draft proposal from Pakistan on the proposed FTA and we are consulting the private sector and the Trade Chambers to get their views on the proposed agreement".

"We have prepared a negative list but since it is not the final it is open for discussions," he said. Udagedara said that it will be similar to the FTA signed with India.

"But we intend to negotiate the framework agreement and time schedules for implementation simultaneously to speed up the process." Since Pakistan has non-tariff barriers as well, removal of these too are necessary to get the maximum benefits under the FTA.

Board of Investment's Director Research, Dr. Nihal Samarappuli saidthat there is potential to increase the number of items from 79 to 928 and to include footwear, electronics, garments, machinery and ceramics. He said that Pakistan has imported goods worth Rs 535,535 million during 1999. Dr. H.N. Thenuwara of the Central Bank said that the latest trend is to have "overlapping" preferential trade agreements. "Tariff barriers cannot protect a country, but non-tariff barriers can. Therefore, once the environment is right, entrepreneurs should be able to exploit the situation and grow."

Sunday observer 1.10.2000

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