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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Sri Lanka could gain from US-China trade war

Sri Lanka could gain from US-China trade war

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ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka could gain from US-China trade war-Sep 11 2018

Sri Lanka could get more manufacturing investment as economic tensions between the US and China grow, and companies try to re-organanize supply chains, a Singapore based trade economist said.


"We’re increasingly going to see relocation of fragments of production into territories where they can escape tariff increases," Amitendu Palit, a senior research fellow at the National University of Singapore's Institute of South Asian Studies said in Colombo.He was speaking at a roundtable discussion on trade organized by the Lakshman Kadiragamar Institute, a Colombo based think tank, and Asia Foundation.


The US and China have already slapped each other with tariffs on goods worth billions of dollars.
US President Donald Trump has started to raise taxes based on a false doctrine that trade (or current account) deficits are caused by imports, rather than government deficit spending or domestic private investment financed from abroad.Trump has threatened tariffs on more Chinese products.


A Sri Lanka Apparel Exporters Association official said several buyers in the US and Europe have already approached Sri Lanka to relocate their supply chains.
Sri Lanka has had to turn away many of the prospective buyers due to a lack of installed manufacturing capacity, constraints in the labour market and local political uncertainty. 

https://economynext.com/Sri_Lanka_co...3-11856-1.html

pererap


Stock Analytic
Stock Analytic
Better buy TJL  Basketball

ranferdi

ranferdi
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@ruwan326 wrote:Sri Lanka could gain from US-China trade war-Sep 11 2018

Sri Lanka could get more manufacturing investment as economic tensions between the US and China grow, and companies try to re-organanize supply chains, a Singapore based trade economist said.


"We’re increasingly going to see relocation of fragments of production into territories where they can escape tariff increases," Amitendu Palit, a senior research fellow at the National University of Singapore's Institute of South Asian Studies said in Colombo.He was speaking at a roundtable discussion on trade organized by the Lakshman Kadiragamar Institute, a Colombo based think tank, and Asia Foundation.


The US and China have already slapped each other with tariffs on goods worth billions of dollars.
US President Donald Trump has started to raise taxes based on a false doctrine that trade (or current account) deficits are caused by imports, rather than government deficit spending or domestic private investment financed from abroad.Trump has threatened tariffs on more Chinese products.


A Sri Lanka Apparel Exporters Association official said several buyers in the US and Europe have already approached Sri Lanka to relocate their supply chains.
Sri Lanka has had to turn away many of the prospective buyers due to a lack of installed manufacturing capacity, constraints in the labour market and local political uncertainty. 

https://economynext.com/Sri_Lanka_co...3-11856-1.html

Its good if Ministry of Trade appoints expert group who consistently monitor the world economic affairs and provide recommendations to Minister for swift action. 


I was thinking of this when North Korea was hit by US Sanctions, At such time the group can evaluate what those countries export (In NOKO case its semiconductors and fabric) and offer our country as substitute manufacturing location. 

Main challenge is this should be done in swiftly as to grab the vaccum in  the international markets. We can pre determine lands allocate them and keep for investors, At the same time we need to simulate the scenarios and evaluate what kind of tax concessions to be given for the new investors.

At such time our country is drying out of FDI what we need is swift actions to encourage export trade.

http://::::THIS EMAIL DOESNT WORK.. PLEASE CONTACT ME ON FB ACCO

samaritan


Moderator
Moderator
How could Sri Lanka gain from US-China trade war when our own policy makers are engaged in a bigger war???
Usually people take their problems to the President but we have a President who takes his problems to the people (ex: cashews served by Sri lankan). Next time if his office was not cleaned he will tell about it at the next rally.
God save Sri Lanka!


_________________




The biggest risk in life is not taking any risk at all.

ranferdi

ranferdi
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@samaritan wrote:How could Sri Lanka gain from US-China trade war when our own policy makers are engaged in a bigger war???
Usually people take their problems to the President but we have a President who takes his problems to the people (ex: cashews served by Sri lankan). Next time if his office was not cleaned he will tell about it at the next rally.
God save Sri Lanka!

Of course we do not have qualified people in politics, Yet they are not listening to experts..

http://::::THIS EMAIL DOESNT WORK.. PLEASE CONTACT ME ON FB ACCO

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