Trade agreements that don’t deliver the goods = ප්‍රතිලාභ හිඟ වූ ශ්‍රී ලංකාවේ වෙළඳ ගිවිසුම්

Abstract

Sri Lanka faces two problems in relation to trade agreements. First is the quantity of trade agreements and second is the quality. This insight analyses the second problem of the low quality of Sri Lanka's trade agreements. It examines 3 main issues that have prevented Sri Lanka's existing agreements from being effective. These include: (i) the agreements reduce trade barriers only for a selected number of products and at times the reductions are too small to be of any commercial interest to traders; (ii) complex trade regulations, bureaucratic red tape and additional border taxes can often be higher trade barriers than import duties; and (iii) Sri Lanka’s trade agreements tend to be hobbled by rules of origin restrictions. Finally, the insight goes on to provide recommendations to Sri Lankan negotiators to help them avoid these same issues as they engage in trade negotiations with China for the proposed Sino-Sri Lanka free trade agreement.