Textile Sector Hopes FTA With US Will Offset Competition

United States is the largest export market of Sri Lanka that accounts about 61 per cent of Sri Lanka''s total garments and apparel exports. With the free trade agreement with United States the textile and garment industry hopes that such deal will help offset competition from low-cost countries such as China if a deal is reached before the end of next year. During a visit last week to the Sri Lankan capital Colombo, deputy US trade representative Josette Shiner confirmed that issues under discussion included “looking at possible synergies between the apparel industry here and our textile industry and how we can make this a win-win venture.” Shiner said Sri Lanka''s improved economic performance and policy was a key factor behind the move forward in a proposed free-trade agreement. The two countries signed a Trade and Investment Framework Agreement in July 2002, and this provides a forum to discuss bilateral trade and investment issues. Sri Lanka’s economy has improved over the past two years after a ceasefire was signed between the government and Tamil Tiger rebels in February 2002 to end a 20-year long civil conflict. ”The country is now enjoying the benefit of peace, Professor GL Peiris, MP, Minister of Enterprise Development, Industrial Policy and Investment Promotion Minister of Constitutional Affairs, told just-style.com last week in Colombo. “And that means there are new opportunities for trade and investment.”