100,000 jobs at stake if GSP Plus is lost

Industry experts predicted the loss of European Union (EU) trade concessions for Sri Lankan textile exports would lead to massive closure of apparel manufacturing units and loss of at least 100,000 jobs in the Indian Ocean Island.

The loss of trade concession enjoyed by the Sri Lankan textile industry through Europe’s GSP Plus (Generalised System of Preferences) combined with the downturn in global economic conditions would bring a lot of harm to the country’s economy and exports of apparel in particular, according to industry experts.

The EU recently warned it may not renew the GSP Plus trade scheme after it expires in December because of continuing human rights abuses stemming from Sri Lanka's civil war and asked to send an investigating team to ensure Sri Lanka was complying with human rights standards.

Sri Lanka refused to allow a EU investigation into rights abuses calling it an "infringement of Sri Lanka's sovereignty, self respect and dignity', and announced plans to support the garment industry financially if existing trade concessions are not renewed by EU.

Unveiling his latest budget proposals, President Mahinda Rajapakse reiterated his government’s stand on the issue and said he was not ready to bow to foreign financial pressure.

”The European Union has adopted a new trend, wherein conditions are being attached to concessions granted by them such as GSP plus. It is unfair to engage in international trade and investment within a framework through which political objectives are tried to be achieved,” the President said, referring to a concessionary garment export programme from the EU.

According industry experts, the government move would put the women working in garment units at a big disadvantage as they would be the first to feel the heat of a drop in garment exports.