1. An analysis of EU’s
Generalised Scheme of
Preferences (GSP +) & its
impacts on Sri Lanka’s
International trade

2. Content
1.Three GSP regimes under the EU for developing countries.
2. GSP + & Sri Lanka
b) Sri Lanka withdrawn from GSP Plus – Violation of 3 Conventions
c) Outcome of losing GSP Plus Sri Lanka
3. Current Status & the getting back of GSP +
4. Conclusion
4. Bibliography
a) Value of Sri Lanka’s exports to EU

3. 1.Three GSP regimes under the EU for developing
countries.
1.The “standard” GSP
2. Generalised Scheme of Preferences “GSP Plus”
3. The Everything But Arms (EBA) arrangement

4. GSP Plus
The special incentive arrangement known as “GSP Plus”, which offers additional tariff
reductions to support vulnerable developing countries in the implementation of
international conventions in the areas of sustainable development and good governance.
GSP Plus and 27 International Conventions
These concessions are granted to countries which ratify and implement 27 international
conventions on human rights, labour rights, women’s rights, environment and
good governance that form part of the substantive qualifying criteria for GSP Plus.
All GSP Plus beneficiaries, committed to maintain its ratification and effective
implementation of the 27 (7 human rights, 8 labour rights, 8 environment, 3
narcotic control and 1 corruption) when it applied for the scheme.

5. Trade in goods 2012-2014, € billions
Year EU imports EU exports Balance
2012 2.6 1.3 -1.3
2013 2.3 1.2 -1.1
2014 2.5 1.3 -1.2

6. 2. GSP + & Sri Lanka
a) Value of Sri Lanka’s exports to EU
More than 7,200 products categories were allowed duty-free into EU.
The EU is Sri Lanka’s largest export market. Accounting for one-fourth 36% of all
exports(garments constitute around 60%)
EU imports from Sri Lanka under GSP Plus totaled US$ 1.67 billion.
In 2014, bilateral trade between Sri Lanka and the EU exceeded US$ 5.07 billion, increasing 3.6%
Year-on-Year (YoY) of which 69% consisted of Sri Lankan exports to the EU.
Total export of textile and apparel industry of Sri Lanka 46% is represented in the EU market.
 In 2014, Sri Lanka’s apparel exports to the EU increased by 10.5%YoY to US$ 2.16 billion.
Gained about $150 million annually due to preferential tariffs.
 If Sri Lanka was not withdrawn from GSP Plus concession export trade figures to EU
may have gone higher.

7. b) Sri Lanka withdrawn from GSP Plus – Violation of 3 Conventions
1. Convention on the Rights of the Child (CRC)1. Convention on the Rights of the Child (CRC)
2. International Covenant on Civil and Political Rights (ICCPR)2. International Covenant on Civil and Political Rights (ICCPR)
3. Convention Against Torture (CAT)3. Convention Against Torture (CAT)
 GSP+ benefit from 15 July 2005 to 15 August 2010.
 Decision to withdraw GSP+ based on investigation launched in October 2008 and
completed in October 2009.
 The reports identified shortcomings in respect of Sri Lanka's implementation of three UN
human rights conventions:
 In the case of Sri Lanka the findings of the investigation led the Council to adopt the
temporary withdrawal Decision on 15 February 2010.

8. The CRPD embraces a Human rights approach to disability.
As stated, ‘the CRC enshrines, comprehensively, the rights of the child. The
CRPD is uniquely placed to offer a constructive, rights-based framework for the
protection of children with disabilities.
It is the first Human Rights Convention of the 21st century that has been ratified
by the EU as a regional entity. Sri Lanka is the only country in the South Asian
region which has still not ratified the CRPD.
Convention on the Rights of Persons with
Disability

9. c) Outcome of losing GSP Plus Sri Lanka
Loss of the facility has caused the closure of 25 apparel factories,
forcing almost 10,000 people out of work resulting in a total loss
exceeding Rs. 782 million from apparel exports. One large factory
closed down in the Katunayake Free Trade Zone (FTZ) that
employed approximately 2000 workers.
Lost a number of orders due to the concessions being withdrawn.
Overall apparel, ceramic and fisheries sector industries were mainly
affected by the losing of GSP Plus.
The GSP Plus concession enabled Sri Lanka to compete with other
exporters whose production costs were lower.

10. 3. Current Status & the getting back of
GSP +
 The UPFA Government did not work towards getting back the GSP Plus.
 The New Democratic Front (NDF) government promising positive engagement with the international
community.
 Under the current circumstances the NDF government initiated a dialogue to discuss with the EU
how to get the GSP Plus to Sri Lanka.
 Last month a high level delegation of the EU visited Sri Lanka and met with relevant officials of the
Sri Lankan government on re-considering the GSP Plus for Sri Lanka.
 Government should address the shortcomings and effectively implementing the three
conventions (ICCPR, CAT and CRC).

11. 4. Conclusion
EU Ambassador to
Sri Lanka
Mr. David Daly
"He who comes into equity
must come with clean
hands."
“It is however not up to me to say for
whom people of Sri Lanka should vote,
but it is very important that elections
are held and people participate and if
they vote for a change and there is a
change and a smooth transfer, this is
what Sri Lanka demonstrated.”

12. 4. Bibliography
Islam, M. R. (2006). International Trade Law of the WTO. Melbourne: Oxford University Press.
Weerarathne, B. (2005). Labour Standards & International Trade , the Case of EU GSP
concessions to Sri Lanka. Colombo: Institute of Policy Studies.
Wijasri, J. (2007). Utilization of Preferential Trade Arrangements:Sri Lanka's Experience with
the EU & Us GSP Schemes. Colombo: Institute of Policy Studies.
Daily Mirror. (2015, April 08). Retrieved May 05, 2015, from Daily Mirror Wab site:
http://www.dailymirror.lk/68777/gsp-international-conventions-and-sri-lanka
Nathaniel, C. (2015, May 13). The Sunday Leader. Retrieved May 13, 2015, from The Sunday
Leader Web site: http://www.thesundayleader.lk/2015/05/10/sri-lanka-still-has-a-lot-
to-do-eu-envoy/
Rohan Edirisinha & Asanga welikala. (n.d.). cpalanka. Retrieved May 7, 2015, from cpalanka
Web site:http://www.cpalanka.org/wp-content/uploads/2015/01/ICCPR-Chapter-Final.pdf

14. 1.International Covenant on Civil and Political Rights (ICCPR)
2.International Covenant on Economic Social and Cultural Rights
3.International Convention on the Elimination of All Forms of Racial Discrimination
4.Convention on the Elimination of All Forms of Discrimination Against Women
5.Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment (CAT)
6.Convention on the Rights of the Child (CRC)
7.Convention on the Prevention and Punishment of the Crime of the Genocide
8.Minimum Age for Admission to Employment (N 138)
9.Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (N 182)
10.Abolition of Forced Labour Convention (N 105)
11.Forced Compulsory Labour Convention (N 29)
12.Equal Remuneration of Men and Women Workers for Work of Equal Value Convention (N 100)
13.Discrimination in Respect of Employment and Occupation Convention (N 111)
14.Freedom of Association and Protection of the Right to Organise Convention (N 87)
15.Application of the Principles of the Right to Organize and Bargain Collectively Convention (N 98)
16.International Convention on the Suppression and Punishment of the Crime of Apartheid
17.Montreal Protocol on Substances that Deplete the Ozone Layer
18.Basel Convention on the Control of Trans boundary Movements of Hazardous Waste and Their Disposal
19.Stockholm Convention on Persistent Organic Pollutant
20.Convention on International Trade in Endangered Species
21.Convention on Biological Diversity
22.Cartagena Protocol on Biosafety
23.Kyoto Protocol to the UN Framework Convention on Climate Change
24.UN Single Convention on Narcotic Drugs (1961)
25.UN Convention on Psychotropic Substances (1971)
26.UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988)
27.Mexico UN Convention on Corruption.

15. The Supreme Court decided in the case of Singarasa v. Attorney General (2006) that while
the accession of Sri Lanka to the ICCPR was legal, valid and bound the State at international law,
it created no additional rights (as recognized in the ICCPR) for Sri Lankan citizens in the
absence of domestic legislation.
The Supreme Court also went on to hold that the accession to the First Optional Protocol was
invalid and unconstitutional, because in the view of the Court (wrongly, in our view), recognizing
the jurisdiction of the Human Rights Committee was an unconstitutional alienation of the
sovereign judicial power of the people of Sri Lanka.
The Joint Apparel Association Forum and Others v. Sri Lanka Ports Authority and
Others (2008), the Court refused to grant costs to the respondent trade unions on the ground
that the unions had made applications to the Freedom of Association Committee of the ILO whilst
the fundamental rights action was pending. In the view of the Court, the unions were not entitled
to seek redress from an external body while their matter was pending before the Court, even
though within Sri Lanka’s obligations under the ILO conventions, the right of access to the
treaty-body is recognized.Slide 5