'Visit to Sri Lanka 'very productive' says U.S. Trade Representative for South Asia

Colombo Page
.............................................................................................................................................................................................

A United States delegation that visited Sri Lanka to review its GSP process said today that they had a very productive meeting with the Sri Lankan government and other interested parties.

Speaking at the conclusion of a two-day visit by a team of US government officials Assistant United States Trade Representative for South Asia Michael Delaney has said that they had very cordial and productive meetings during their visit to Sri Lanka with the Government of Sri Lanka, union leaders, company representatives, and other interested parties.

He has commented that the delegation was encouraged by the meetings with the Sri Lankan groups.

"We will continue our collaborative process of dialogue, and we look forward to working together on the issue of labor rights in Sri Lanka," the Trade Representative has said.

Delaney has said that there have been some media reports which have mischaracterized the United States Generalized System of Preferences (GSP) review process and he would like to clarify the statements.

"The United States GSP program is wholly independent of any other countries' review. Our GSP review is solely focused on labor rights. In addition, the GSP trade benefits continue during the ongoing review process," he was quoted in a press release issued by the U.S. Embassy in Colombo.

Delaney led an interagency team to Colombo on August 2 and 3 to engage in a dialogue with the Government of Sri Lanka on concerns related to a complaint under the United States Generalized System of Preferences (GSP) program that Sri Lanka is not affording workers internationally recognized worker rights.

The United States team included representatives from the Office of the United States Trade Representative, and the Departments of Labor and State. In addition to meeting with the Government of Sri Lanka, the U.S. delegation also met with labor unions, employer associations, and other interested parties. Adherence to international labor standards is mandatory under the United States GSP program.

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) filed a petition in 2008 with the US Government requesting a review of worker rights in Sri Lanka. The organization resubmitted an updated petition last year asking the US Trade Representative (USTR) to remove Sri Lanka from the list of eligible developing countries to receive GSP.

As part of the annual review process, on June 30, 2010, the United States accepted the AFL-CIO petition on Sri Lanka to review whether it met GSP eligibility criteria related to worker rights.

As part of the review, USTR analyzes petitions to withdraw or limit a country's GSP benefits on criteria including whether a country is taking steps to afford workers internationally recognized worker rights, whether it provides important investor protections including the enforcement of arbitral awards, and the extent to which a country adequately and effectively protects intellectual property rights (IPR).

The United States GSP program is designed to promote economic growth in the developing world, providing duty free treatment for over 3,400 products from 131 designated beneficiary countries and territories, including Sri Lanka.

According to the Embassy press release Sri Lanka benefited from GSP treatment on approximately $116 million of goods in 2009. Products covered under the GSP program include machinery, electrical goods, chemical products, agricultural products, jewelry and much more. Most textile and apparel goods are not eligible for GSP preferential benefits under the program.

© Colombo Page