‘Thanks US-Renewed GSP boosts our trade even more’

The re-authorised US GSP shall become active for Lankan exporters from this April, according to Sri Lanka’s Minister of Industry and Commerce. Meanwhile, Lankan exports to US is now almost at $ 3 Bn threshold for the first time.

“We thank the US government for renewing their GSP support to Sri Lanka. This initiative greatly strengthens relations with our biggest trade partner in the world and helps not only our exporters but US importers and US consumers as well. Officials of my Department of Commerce have informed me that the re-authorised US GSP shall become active for Lankan exporters as early as April 22” said Minister of Industry and Commerce Rishad Bathiudeen on 28 March during his meeting with top Ministry officials.

Minister of Industry and Commerce Rishad Bathiudeen (left) becomes the joyful co-pilot as (HE) Atul Keshap (U.S. Ambassador to Sri Lanka and Maldives-right) takes over the controls of the Aviator Flight Simulator at the US Trade Show at Galadari Hotel, Colombo held in 2015.

US President Donal Trump re-authorised US GSP facility for 120 beneficiary countries (which was not renewed in December 2017) when he signed the US Omnibus Spending Bill on 23 March. His re-authorisation opens opportunities for around 5000 products to be imported to US without tariff from 120 developing countries.

US has been the leading buyer of Lankan exports over the years and it continued its lead even last year. Sri Lanka’s total exports to US last year was almost notching $3 Bn threshold at US$ 2.9 Billion. This is a growth of 3.65% from 2016’s $2.8 Billion. The second largest buyer of Lankan exports last year was UK at $ 1.03 Billion and the third, was India at $689 Million. Apparel products are Sri Lanka’s biggest export item to US, taking around 70-75% of annual exports. Total US-Sri Lanka trade (both exports and imports) in 2016 was US $3.3 Billion.

Sri Lanka will now benefit from the renewed US GSP Scheme until 31 December 2020. Since the effective date of the renewal is 22nd April 2018, Lankan exports to USA under the GSP Scheme will be eligible for tariff concession after 22nd April 2018. However the US importers are eligible to claim customs duties they had to pay during the period of inactive GSP (from 1st January 2018 to 22nd April 2018) due to the retroactive effect of US President’s renewal.