EU decides to withdraw GSP+ trade benefits from Sri Lanka

The European Union today decided to withdraw the preferential tariff benefits given to Sri Lanka under the Generalized System of Preferences plus (GSP+) following an investigation by the European Commission that says the country fell short in implementing three UN human rights conventions relevant for benefits under the scheme.

However, the EU says the suspension of GSP+ benefits is temporary and will take effect in six months time, giving Sri Lanka extra time to address the problems identified during the EU investigation as the objective of the EU remains to use GSP+ as an incentive to bring about the improvements in the human rights situation in Sri Lanka.

In a press release EU Trade Commissioner Karel De Gucht said he would like to see Sri Lanka will initiate a set of measures to address the shortcomings and improve the situation.

“I would like to emphasise that I hope Sri Lanka will sit with us over the next six months in order to agree upon a set of measures that will result in rapid, demonstrable and sustainable progress in relation to the human rights shortcomings we have identified,” De Gucht said.

The EU said it will remain open to a full dialogue with the Sri Lankan government to encourage to take the necessary steps towards an effective implementation of the human rights conventions relevant to the trade benefit.

The Commissioner said the EU will monitor the progress during the next six months and once sufficient progress has been made the Commission will reevaluate and suggest the member states to restore the tariff benefit.

Sri Lankan government says that the suspension is unfair because the EU investigation was done when the country was at war against the Tanil rebels and the situation is much improved since the conclusion of the war. (LankaPage.com)

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