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Kevin Kennedy, a professor of law at the Michigan State University in the USA, speaking at a seminar on opportunities to compete in the US market for Sri Lankan exporters organised by the Ceylon Chamber of Commerce said it is highly likely the EU would extend the concessions but is adopting a 'carrot and stick' approach.
"My prediction is you are going to get GSP Plus," he told the seminar audience.
"What the EU is doing is what the
"I'd be very, very surprised if you're denied GSP Plus," Kennedy added.
The GSP Plus, preferential trade scheme from the EU allows
For eligibility, recipient countries need to have ratified 27 international conventions on human rights, labour standards, environmental protection, and governance principles by
Kennedy believes the EU would grant the concessions irrespective of the island state’s compliance to the 27 international conventions specified and then apply a carrot and stick policy. However, analysts point out that once the concessions are renewed there would no incentive for
The EU will "grant GSP Plus and then the carrot and stick will start," Kennedy said.
"They'll say 'if you want to continue to get GSP Plus you need to do better in this area or that area'."
Kennedy further told the seminar audience that
"For
“The EU will say if you really want this additional benefit - you have to comply with and ratify all these conventions." he added.
A recent study by economists at the
Whilst the west continue to remind Sri Lankan how much it needed the GSP Plus, the Sri Lankan political leader are not too concerned about losing the EU trade concessions.
Speaking at an election rally last month, Sri Lankan President Mahinda Rajapakse snubbed the West and said the country no longer dependent on western hand outs. Rajapakse proclaimed that the era of rulers who were dependent on the West was over with his regime in
Given the widespread allegations of human rights violations by the Rajapakse government, there has been much speculation recently that the European scheme may not be extended to
Observers point out that whilst the GSP Plus is a generally seen as a trade concession for developing countries, where the local manufacturer is owned by a European business it becomes a way of importing subsidised goods into the EU for the European business.
This is true for firms like Marks and Spencer’s which own garment factories in the island.
In a visit to Sri Lanka earlier this year, Marks & Spencer’s boss, Stuart Rose, hailed the country’s “ethical standards” and assured that he will he do ‘everything possible to support Sri Lanka’s application for the GSP+ concessions’.
Some European Union officials also have shown similar enthusiasm in renewing
This is visible in European Commission’s stand that whilst the continuation of the GSP Plus scheme depends on the implementation of the 27 conventions, it does not expect “absolute compliance.”
“No one expects absolute compliance. This would be unfair but we need to be clear that there would be an objective assessment on the implementation of these conventions,” said Peter Maher, Head of Operations of the Delegation of the European Commission to
Julian Wilson, EU ambassador in
The ‘Daily Mirror’ newspaper at the time quoted him as saying at a function on the issue of GSP Plus that "I will only say that a lot of melodramatic rubbish has been written about the renewal of GSP+ in the local press. The truth is simple if somewhat banal--the EU wants
