Hon Mangala Samaraweera shared these thoughts during today’s press meeting. The loss of GSP + would have a most devastating effect on local economy. The negotiations to obtaining GSP + started by Hon. Ranil Wickramasignhe in 2003 and the country was granted these special concessions in 2005 under President Kumarathunga. We have reaped many economic benefits, from the exception of taxes, under this scheme to the EU. Since the granting if GSP + the country has more than doubled its exports to the EU, which had led to growth in the garments, ceramics and fisheries sectors.
The EU is Sri Lanka’s largest trading partner, and having duty free access to the world’s largest market through the GSP+ scheme, gave impetus to the Sri Lankan exporters to increase trade with the EU. Sri Lanka currently exports goods and services worth over US$ 3 billion to the EU. The scheme has helped boost exports to the EU, by enabling local manufacturers to remain competitive despite an increasingly competitive global environment. As a result, the value of exports to the EU increased from US$1.8 billion in 2004 to US$2.9 billion in 2009. More than a million Sri Lankans would either be directly or indirectly affected by the loss of GSP +. The loss of GSP + its not merely a numbers game as the government portrays it, and the loss would be a tragic disaster for countless Sri Lankans. Now countries such as China and Bangladesh would make serious inroads into the European export markets, while we would be at the losing end. The innocent poor worker would be the
one who would have paid the greatest price for government mismanagement of the GSP + issue.
Mangala Samaraweera went on to state that the issue of GSP + could have been averted a long time ago, if the government took concrete steps in meeting its obligations. It is the right of the EU to make sure Sri Lanka fulfills its obligations under the GSP + scheme. How is the securing Human Rights, securing Workers’ Rights implementing our own constitution (17th Amendment) which are the obligations under the GSP + weakening the sovereignty of this country? It would only strengthen it. It was not so long ago that the current President spoke in support of AID that is tied to upholding human rights. On 25th of October 1990 Hon. Mahinda Rajapakshe said, “If the government takes steps to close state corporations, to fire people from their jobs, to take of the rice subsidies, to hit the poor man where it hurts the most, to increase the price of sugar, to privatize the C.T.B just because the World Bank made a request to do so, and then for the government to dance to the tune of these organizations, we asked other countries that give us AID, “Why not put conditions on the aid you give us which would protect human rights?” We made that request. Today these requests are being acted on.” This could be found on, Sri Lanka Parliament Hansard Report (Page No. 365).
Mangala Samaraweera stated that as far back as 2006 he warned the government in his capacity as the Foreign Minister of losing GSP + and other pressures being exerted by international actors, due to Sri Lanka’s deteriorating human rights record. However, no action was taken in this regard. In a final bid, a 11 page letter addressed to the President was written warning the GoSL of severe problems if the HR violations in Sri Lanka was not addressed. The letter stated, “More importantly, it will bring undue pressure on the government and there may even be certain sanctions such as the withdrawal of the GSP+ concession, which would have a serious impact on our economy, and the livelihood of thousands of our youth would be at risk.” The fact that the President and the government did not heed these warnings has directly endangered the livelihoods of many Sri Lankans and reduced Sri Lanka’s ability to grow. Thus, the government should take full responsibility for not only the sad state of HR in the country, but the subsequent loss of GSP + as a result of it.
Hon. Mangala Samaraweera in summing up, stated that it may still not be too late for the government to clear up its act so that we may be given a chance to keep GSP +. He called on the government to implement the 17th amendment immediately. For an independent police commission, independent election and an independent public service commission to be implemented so that the transparency and rule of law would yet again prevail in the country. To bring to justice those who have carried out great crimes against the civilians of this country.
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