FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» Ban of chemical fertilizers is a great news
by ADVENTUS Today at 6:29 pm

» DIPD/HAYC/HAYL
by ADVENTUS Today at 1:11 pm

» Peoples leasing technically positive Target Price Rs 20
by Eranx Today at 11:30 am

» PEOPLE'S LEASING & FINANCE PLC
by Eranx Today at 11:29 am

» "MFL" DEAL to 12 RS (multi finance plc)
by Bakka1988 Yesterday at 11:22 pm

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by ONTHEMONEY Yesterday at 11:21 pm

» GLAS will be winner with Super Gain.
by Promoney Yesterday at 10:30 pm

» What happens in the market is absolutely 100% out of your control. Stock market for beginners
by Asoka Samarakone Yesterday at 9:45 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 8:24 pm

» Synergies of possible merger between Sampath Bank and PABC
by CHRONICLE™ Yesterday at 5:42 pm

» Japanese money laundering via PABC Bank raise CB eye brows
by Sstar Yesterday at 3:29 pm

» ACCESS ENGINEERING ( AEL.N )
by ADVENTUS Yesterday at 1:50 pm

» Prime Lands Residencies Limited (PLR)
by Nandun Yesterday at 10:42 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Captain Wed May 05, 2021 11:51 pm

» Growing Fear
by Wickyz Wed May 05, 2021 8:15 pm

» CONGRATULATIONS TO FINANCIAL CHRONICLE ON THIS 11TH YEAR
by CHRONICLE™ Wed May 05, 2021 3:31 pm

» HNB to merge with Seylan Bank?
by reyaz Wed May 05, 2021 11:37 am

» There are howmany funds in Sri Lanka?
by reyaz Tue May 04, 2021 4:52 pm

» Positive for BIL
by samaritan Tue May 04, 2021 3:33 pm

» The Introduction of COVID 19 Vaccine and CSE
by Mr. X Tue May 04, 2021 1:22 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » What does US GSP renewal offer Sri Lankan exporters?

What does US GSP renewal offer Sri Lankan exporters?

Go down  Message [Page 1 of 1]

Invest_Wisely


Manager - Equity Analytics
Manager - Equity Analytics
Facebook page: https://www.facebook.com/InformedIntelligentInvesting

Web Page: http://nation.lk/online/2015/07/18/what-does-us-gsp-renewal-offer-sri-lankan-exporters/

For full details please refer to the above link:

President Obama signed the ‘Trade Preferences Extension Act of 2015’on 29 June 2015 authorizing the renewal of the US GSP scheme, almost 2 years after it expired. The scheme, instituted in 1974 and renewed periodically is designed to promote trade in developing countries. It provides exporters of 122 countries duty free access to the US market for selected products. There have been many renewals (6 so far since year 2000) and as highlighted in a recent article, the last was the eighth time in a period of 30 years that the scheme expired without being renewed. The latest round of concessions is expected to come into effect on July 29th this year. Sri Lanka as one of the beneficiary countries would no doubt benefit from the renewal of the GSP scheme but to what extent? And to what extent were the concessions utilized before? What’s the stability of the scheme? This article takes a brief look at what’s on offer.

US is the single largest export destination for Sri Lankan products accounting for nearly 25% of Sri Lanka’s total exports. Although the total exports to US has increased over the past decade, albeit with few fluctuations, share of exports to US as a percentage of Sri Lanka’s total exports has gradually declined (Figure 1). While the share of exports to US accounted to over 40% in 2001, it has nearly halved by 2014 recording a figure of 24%. At the same time export basket is concentrated around a few product categories (Figure 2). Bulk of the exports consists of apparel and articles of apparel, with a share of over 70% of Sri Lanka’s total exports US.

The US GSP scheme provides duty-free access to only about 3500 products (8-digit tariff lines) for beneficiary developing countries like Sri Lanka.  43 countries listed as least developed beneficiary countries (LDBCs) receive additional benefits. LDBC’s receive the following benefits:(i) GSP treatment for a higher number of products – in addition to the 3500 products that all other beneficiaries receive preferential access, 1500 products from LDBCs get duty-free access to the US market – and (ii) they are not subject to competitive need limitations. In other words, if a beneficiary country exports over 50% of US’ total imports of that product or exceeds a designated dollar-value limit (US$ 170 million in 2015); a country will lose its GSP concession for that product. Sri Lanka however, being a middle-income country does not receive LDBC benefits.

All SAARC countries except Bangladesh are beneficiaries of the US GSP program and among them Afghanistan, Bhutan and Nepal are identified as LDBCs. A benefit of other countries in the SAARC region receiving GSP preferential access is that Sri Lanka can utilize the provisions extended by US GSP to treat these SAARC countries as one country under GSP under cumulativerules of origin requirements.

Products such as textiles and footwear are prohibited from receiving GSP treatment. In addition, watches, work gloves and other leather apparel are not eligible for GSP concessions. However, products which were deemed ‘import sensitive items’ such as certain handbags, luggage, and flat goods and were previously excluded from receiving GSP concessions are now allowed to be considered for duty-free treatment under 2015GSP program.

Due to the limited coverage of the products exported by Sri Lanka under the GSP scheme,its benefits have been limited for Sri Lankan exporters. In 2012, only 7% of Sri Lanka’s total exports to US received GSP concessions (United States International Trade Commission, 2015).Of the apparel products only 0.11% of the total apparel exports to US were eligible for GSP in 2012,and the potential coverage of apparel after the revival of the GSP will be about 0.16% based on 2014 trade data. About 17% of the rubber exports to US were exported under the GSP scheme and the potential coverage under the new program will be about 25%. Table 1 presents some of apparel and rubber exports which are currently being exported to USA and are eligible for 2015-GSP concessions.

Nevertheless, an IPS study shows that the utilization of US GSP concessions has been high. The study highlights that high utilization rates combined with a low coverage indicates that Sri Lanka has been making use of the few preferences it receives under the US GSP scheme. A reason maybe that US GSP is simpler than some other GSP schemes. Unlike some of the GSP schemes offered by other countries, US provides duty free access to all products eligible for preferential treatment instead of varying levels of preferential treatment. At the same time, the documentation requirements are relatively simpler.
Renewal of the US GSP scheme in June is for all beneficiary countries. US GSP concessions have not been withdrawn from Sri Lanka in recent times under any reason. Rather, the renewals are for the GSP program as a whole. The requirement for renewal/reauthorization arise due to the new budget rules adopted by the US in 1990 which entail a ‘pay-as-you-go’ approach that require changes in government revenue/expenditure to include offsetting measures. In other words, for every year the GSP scheme is extended it needs to be complemented by spending cuts or tax increases in the budget. This has resulted in political complications.

GSP expiration has hurt US businesses as well. According to the US government, US businesses have had to pay over US$ 1 billion as tariffs for products which entered duty-free prior to the expiration of the program. Coalition for GSP claims that US businesses had to pay close to US$ 2 million daily as additional import taxes due to the expiration of the GSP program in 2013. They say GSP expiration has resulted in lost sales, delayed capital expenditure, layoffs, etc. Although the duties collected during the period of expiration are refunded to the importers with the reauthorization of GSP, US businesses have been reported to be negatively affected by the expiry of the GSP.
All-in-all,the renewal of US GSP concessions is expected to be only marginally beneficial to Sri Lanka. Although nearly three quarters of Sri Lanka’s exports to US are concentrated on apparel & articles, only about 0.2% of the current apparel exports are eligible to receive GSP concessions. Exporters of rubber, the second largest export product to US, will have only about a quarter of their exports covered under GSP concessions.

However, on a positive note the utilization of US GSP concessions by Sri Lanka has been high historically, despite low product coverage. Therefore, while providing some benefits to Sri Lankan exporters, the renewal of US GSP concessions cannot be expected to make a significant enhancement to Sri Lanka’s exports to the US, especially given the country’s concentrated export basket.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum