Sri Lanka is set to join the Organization of African, Caribbean, and Pacific States (OACPS) with the possibility of a Free Trade Agreement (FTA) with the European Union (EU). This move is seen to enhance the country's international trade relations and drive economic growth. Sri Lanka's Presidential Envoy to Europe and the Commonwealth, Niranjan de SilvaDeva Aditya (Nirj Deva), has already begun discussions on Sri Lanka's bid to join OACPS.
The Organization of African, Caribbean, and Pacific States (OACPS) was established in 1975 with the aim of promoting sustainable development and economic cooperation among its 79 member states. OACPS members include countries from Africa, the Caribbean, and the Pacific regions. Countries that are part of the OACPS benefit from various trade initiatives, financial assistance, and technical cooperation programs.
Sri Lanka is strategically located in South Asia and has a deep water harbor, which is considered one of the world's busiest ports. Joining the OACPS would provide access to new markets, particularly in Africa and the Caribbean region. The move would also enable Sri Lanka to take advantage of the various initiatives offered by the organization.
Furthermore, Sri Lanka's decision to join the OACPS opens the door for a potential FTA with the EU. The European Union is Sri Lanka's second-largest export market, with exports totaling €743 million in 2018. The EU-Sri Lanka trade relationship has already benefited from 0% tariffs on Sri Lankan exports to the EU under the Generalized System of Preferences (GSP+).
An FTA between Sri Lanka and the EU would deepen trade ties and strengthen economic cooperation. The FTA would provide exporters with increased market access and duty-free access to the EU market. This deal would be particularly beneficial to Sri Lanka's apparel and textile industry, which accounts for almost 50% of Sri Lanka's total exports to the EU.
Sri Lanka has previously attempted to sign an FTA with the EU. In 2010, talks were held, but negotiations failed to reach a conclusion. This time, Sri Lanka's chances of securing an FTA with the EU are higher due to the country's current status as a GSP+ beneficiary, which grants the country preferential access to the EU market.
Moreover, Sri Lanka's decision to join the OACPS could act as a catalyst for other countries in the South Asian region to join the organization. This move could promote greater economic cooperation and integration in the region.
In conclusion, Sri Lanka's decision to join the OACPS is a strategic move towards enhancing the country's trade relations and economic growth. Joining the organization would provide access to new markets and allow Sri Lanka to take advantage of various trade initiatives. Furthermore, Sri Lanka's decision to join the OACPS could provide a gateway for a potential FTA with the EU, which would deepen trade ties and promote economic cooperation. The move could also promote greater economic cooperation and integration in the region.
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