The decision of USTR to continue trade benefits granted for Sri Lanka that had faced possible suspension because of labor concerns follows an interagency review of a petition filed by the AFL-CIO in 2008 alleging shortcomings in Sri Lanka's recognition or worker rights. US Trade Representative Ambassador Ron Kirk has said that the closure of the GSP country practice review of Sri Lanka was based on the Sri Lankan government's noteworthy efforts to address worker rights issues over the past few years. "This welcome outcome to the review demonstrates that GSP remains an effective tool for engaging GSP beneficiary countries on worker rights." The GSP concession for Sri Lanka came under review when the United States accepted a petition filed by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) in 2008 requesting a review of worker rights in Sri Lanka. As part of the annual GSP review process, on June 30, 2010, the United States accepted the AFL-CIO petition on Sri Lanka to review whether it met GSP eligibility criteria related to worker rights. One such criterion is whether the beneficiary country "has not taken or is not taking steps to afford internationally recognized worker rights to workers in the country." Issuing a statement the USTR has said that over the course of the last few years, the government of Sri Lanka has taken significant steps to improve the worker rights environment in the country. "Among these steps are: progress in initiating, investigating and resolving unfair labor practices cases; the establishment of trade union facilitation centers in each of the three largest Economic Processing Zones; improved procedures for conducting union certifications; and enactment of legislation to increase the fines for labor practices violations," the statement noted. The AFL-CIO has said that it was disappointed USTR had closed its investigation of labor practices in Sri Lanka, a Reuters news report said. "The government of Sri Lanka has made progress during the period the GSP review has been open, but we believe much more effort is needed to improve the ability of workers to exercise their fundamental rights," the AFL-CIO has said. The USTR has said that the governments of the United States and Sri Lanka will continue to engage on worker rights issues in the newly established Labor Affairs Committee of the United States-Sri Lanka Trade and Investment Council. In 2011, U.S. imports from Sri Lanka under GSP totaled $135 million and included tires, activated carbon, rubber gloves, plastic products, and kitchenware. The United States GSP program is designed to promote economic growth in the developing world, providing duty-free importation into the United States for up to 5,000 types of products from 128 designated beneficiary countries and territories, including Sri Lanka.
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