Trade Agreements Between Australia and Sri Lanka: An Overview
Australia and Sri Lanka have a long-standing trade relationship that dates back to the 1800s. Over the years, both countries have worked to strengthen their economic ties, resulting in the signing of several trade agreements. These agreements have facilitated the growth of bilateral trade, increased investment opportunities, and improved economic cooperation between the two nations.
Let`s take a closer look at the main trade agreements between Australia and Sri Lanka.
1. Australia-Sri Lanka Free Trade Agreement (FTA)
The Australia-Sri Lanka FTA was signed in 2017 and came into effect in 2018. It is a comprehensive free trade agreement that covers trade in goods, services, and investment. Key features of the agreement include reduced tariffs for Sri Lankan exports to Australia, improved market access for Australian businesses in Sri Lanka, and enhanced cooperation in areas such as intellectual property and electronic commerce.
Under the FTA, Sri Lanka has duty-free access to the Australian market for more than 4,000 products, including tea, garments, and rubber products. In return, Australia has duty-free access to the Sri Lankan market for wheat, sugar, and pharmaceuticals, among other products.
2. AANZFTA
The ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) is a regional trade agreement that includes ten ASEAN countries, Australia, and New Zealand. Sri Lanka is not a signatory to the agreement but has expressed interest in joining the bloc. The AANZFTA covers a wide range of areas, including goods, services, investment, and intellectual property.
For Sri Lankan businesses, the AANZFTA provides access to a market of over 660 million people, including some of the world`s fastest-growing economies. Australian businesses, on the other hand, benefit from preferential tariffs on their exports to ASEAN countries and New Zealand.
3. GSP+
The Generalised Scheme of Preferences Plus (GSP+) is a trade arrangement between the European Union (EU) and certain developing countries that provides duty-free access to the EU market for selected products. Sri Lanka was granted GSP+ status in 2017, giving it preferential access to the EU market for its exports.
The GSP+ status is subject to certain conditions, including the implementation of international human rights, labour rights, and environmental standards. By meeting these conditions, Sri Lanka has been able to export products such as textiles and clothing to the EU market on a duty-free basis.
Conclusion
The trade agreements between Australia and Sri Lanka have played a significant role in boosting trade and investment between the two countries. The Australia-Sri Lanka FTA has paved the way for increased market access and reduced trade barriers, while the AANZFTA and GSP+ provide wider opportunities for Sri Lankan businesses to tap into regional and global markets.
As the two nations look to strengthen their economic ties, the role of these trade agreements will become even more critical. By working together, Australia and Sri Lanka can create a more vibrant and prosperous economic partnership that benefits both countries.