Categories: Headlines

Colombo gets unintended shock treatment from US

Sri Lanka will begin the New Year with inauspicious news coming from US, its biggest export market, that the much sought after General System of Preferences would no longer be available from January 01.

The US embassy in Colombo yesterday broke the bad news through a statement headlined ‘Generalized System of Preferences Program Expires on December 31, 2017’.

It said “The United States Congress did not re-authorize GSP before adjourning for the year.  The immediate effect of GSP expiration is GSP eligible imports to the United States from Sri Lanka and other GSP beneficiary countries and territories will be subject to non-preferential duties beginning January 1, 2018.

The United States is proud to serve as the top export market for Sri Lanka. According to the Global Trade Atlas, in 2016, the United States imported $2.8 billion of Sri Lankan goods”.

According to available data in 2014 when Sri Lanka exported US$ 2.5 billion worth of products to US, approximately seven percent or US$ 179 million worth of goods went under the GSP scheme.

The bad news however came amidst the veiled threat issued by the Trump administration against countries who voted last week against the Washington decision to recognise Jerusalem as the Israeli capital. The U.N. body voted 128-9 to declare Trump’s recognition of Jerusalem as Israel’s capital “null and void.” Thirty-five nations abstained.

President Trump warned last Wednesday that the vote could impact “billions of dollars” in U.S. aid.

However sources said the Congressional decision not to renew the GSP scheme had nothing to do with the UN vote.

Lankanewspapers

Recent Posts

LNP – MP Chamara Sampath granted bail

New Democratic Front (NDF) Parliamentarian Chamara Sampath Dassanayake, who was arrested over the alleged misappropriation…

2 mins ago

LNP – 4 dead, another 4 injured in Kurunegala fuel station fire

Four individuals, including the manager of the facility, were burnt to death, while four others…

5 hours ago

LNP – No benefit for Tamil Nadu from Modi’s Sri Lanka visit: CM Stalin

The recent visit of Indian Prime Minister Narendra Modi to Sri Lanka did not benefit…

20 hours ago

LNP – Leading liquor store owner booked for promoting booze sales through Facebook

A leading liquor store chain owner cum hotelier had been booked by the Department of…

23 hours ago

LNP – Saudi Arabia bans visas for 14 countries including India, Pakistan, Bangladesh

Saudi Arabia has temporarily suspended issuance of visas to citizens from 14 countries, including India,…

23 hours ago

LNP – Heavy rainfall likely in several provinces

The Meteorology Department says that showers or thundershowers will occur at most places of the…

1 day ago