Eleventh US-SL talks conclude in Colombo

GSP, Labour, trade promotion among discussed items
‘SL-US biz relationship at $3Bn’-Trade RepDelaney
‘US Ex-Im Bank renewing ties with Lanka’-Rishad
US Biz team also in town
‘US-SL Biz Forum this Friday!-Rishad
YoY SL-US trade up by 21% to $2.8B

The premier annual trade event in historic US-Sri Lanka relations that opened for the eleventh time in Colombo on 15 October concluded on the same day-and a top US institution that ensures “Made in America” brand across the world, is renewing its ties with Sri Lanka after more than a decade. “US-Sri Lanka Trade and Investment Framework Agreement (TIFA) is the premier dialogue for managing bilateral trade and investment relationship between both countries. This relationship amounts to $3 Bn” said an upbeat Michael Delaney (the visiting Assistant United States Trade Representative for Central and South Asia) on 15 October in Colombo.

Assistant US Trade Representative Delaney, who is leading a ten member official delegation to Sri Lanka, was addressing the eleventh Joint Council Meeting (JCM) under the US-Sri Lanka Trade and Investment Framework Agreement (TIFA) held on 15 October at Hotel Taj Samudra, Colombo. Joining Trade Representative Delaney in his team were Andrew Mann (Chargé d’Affaires of the Embassy of US in Sri Lanka), Ann Zollner (Division Chief, Trade Policy and Negotiations, Bureau of International Labor Affairs /United States Department of Labor), Matthew Beh (South Asia Trade Officer/ United States Department of State), Ryan Essman (Sri Lanka and Maldives Desk Officer/ United States Department of State), John Michael Fleming (Commercial Consul/ U.S. Consulate General Chennai), Manimala Venkatram (Senior Commercial Specialist/ U.S. Consulate General Chennai), Jessica Slattery (Foreign Affairs Officer/ U.S. Department of State Office of International Labor Affairs) Kalpana Reddy (South Asia Intellectual Property Attaché/ U.S. Embassy New Delhi, India), Allison V. Areias (Economic and Commercial Counselor/ Embassy of USA, Sri Lanka). Joining the opening session were Rishad Bathiudeen (Minister of Industry and Commerce), (HE) Prasad Kariyawasam (Sri Lanka’s Ambassador in USA), RDS Kumararatne (DG-DoC), and Bandula Egodage (Chairman & CEO-EDB). The 15 October technical session is co-chaired by Trade Representative Delaney and Anura Siriwardena (Secretary, Ministry of Industry and Commerce of Sri Lanka). 27 delegates from Sri Lankan side-including reps from Ministries of Industry and Commerce, Agriculture, Economic Development, Labour Relations, Civil Aviation, Petroleum Industries, Investment Promotion, Highways, Ports and Shipping, External Affairs, Finance and Planning, as well as Sri Lanka Customs, Ports Authority, Sri Lanka Tea Board, BoI, and EDB- were in attendance.

After the conclusion of the session, a Joint Readout by both Sri Lanka and US on the 11th United States and Sri Lanka TIFA Joint Council Meeting was issued, which stated:

“Senior officials from the Governments of the United States and Sri Lanka met today to continue their trade dialogue and evaluate progress under the United States-Sri Lanka Trade and Investment Framework Agreement (TIFA). The officials discussed a wide range of trade and investment issues including market access, the U.S. Generalized System of Preferences (GSP), labor, trade promotion efforts, intellectual property rights, agriculture, and sector-specific investment challenges. Progress on all of these trade and investment issues fosters economic growth, thus providing a strong foundation for inclusive economic development. The meeting marks the 11th session of the U.S.-Sri Lanka TIFA Council. The U.S.-Sri Lanka TIFA, signed in 2002, has been the primary forum for bilateral trade and investment discussions between the two countries. The TIFA process has been the focal point of a sustained and multi-faceted high-level engagement between the United States and Sri Lanka on trade and investment issues, including addressing impediments to greater trade and investment flows between the two countries. During the TIFA Council Meeting, both parties took note of progress made in the subcommittee working group on labor. The TIFA process encourages public and private sector dialogue and facilitates Private-Public Partnership Conferences, Business Opportunities Events and investment fora on the sidelines of TIFA official meetings. Following this tradition, the U.S.-Sri Lanka Business Forum will be held at the Ceylon Chamber of Commerce at 10.00 am on Thursday, October 16.”

At the morning’s opening session, Trade Representative Delaney said: “US-Sri Lanka Trade and Investment Framework Agreement (TIFA) is the premier dialogue for managing bilateral trade and investment relationship between both countries. This relationship amounts to $3 Bn. As such, being the premier dialogue channel, we attach considerable importance to the TIFA and in our view, over the years, TIFA has proven itself that it has been successful in deepening our economic relationship. US greatly values our trade and investment relationship with Sri Lanka. That relationship is responsible for a lot of beneficial things and is hundreds of years old. Today we in this room, have been entrusted to manage this relationship and take the necessary measures that will enable it to continue to grow. Our economic relationship is about creating employment and prosperity for both our countries. We have accomplished much and we can do so much more. Today we have a diverse agenda of issues to work through and let address ourselves to this task, and grow our economic relationship.”

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) delivering his inaugural address at the morning session, said: “We are pleased that this is the fourth occasion Mr Delaney is visiting Sri Lanka. It is with satisfaction that recall as to how you generated support of the US government for Sri Lanka’s Conflict Affected Widows Project and facilitated a significant monetary contribution for project commencement, thereby uplifting their lives. I am happy to note that a US business and investment team is now in Colombo on the side-lines of TIFA talks. My Ministry will be hosting the US-Sri Lanka Business Forum in association with the Ceylon Chamber of Commerce and AMCHAM Colombo this Friday 17, followed by B2B meetings. I have noted today’s senior officials meeting would cover many important aspects thereby opening the door to jointly explore new opportunities in trade and investment. TIFA has become a very effective mechanism for the two governments to advance trade and investment interests, since it began in 2002. As Sri Lanka takes on a journey to become the Economic Hub of South Asia, it is clear that TIFA’s importance would continue to grow. Thanks to the visionary leadership of H.E the President Mahinda Rajapaksa, Sri Lanka is now on a journey to achieve upper middle income country in the near future. Sri Lanka is reporting stronger GDP growth, modern infrastructure facilities, as well as a better positioning to become the Economic Hub of South Asia. Due to our strategic location, the proposed five hubs plus tourism strategy, the new port and airport infrastructures, and our connectivity, our international trade is improving. As for bilateral trade, the US is the single largest buyer of our exports since 1979. Seen from our side, bilateral trade between both countries increased by a strong 21 percent to 2.8 billion dollars in 2013, compared to 2012. US absorbs 23% of Sri Lanka’s annual total exports, of which 73% comes from high end apparels. Sri Lanka also has the most liberal investment climate in South Asia. According to the Washington based Heritage Foundation’s Index of Economic Freedom of this year also, Sri Lanka has maintained its commanding position as the most economically free nation in South Asia. The US, is an important source of foreign direct investments to Sri Lanka. So far there have been more than 220 US investment projects to the value of around US $ 400 million. Speaking of investments, I have been given to understand that the US Export Import Bank is has renewed its partnership with Sri Lanka after almost a decade. Through its facilitation, a US company has invested $65 Million in a water supply project in Badulla District. I invite other US investors to make use of Export Import Bank’s benchmark initiative for infrastructure development projects in Sri Lanka.”