Brussels, 15/12/2000 (Agence Europe) - The EU and Sri Lanka mutually conceded to each other a better access to their respective markets for textile products and clothes, as of 1 January 2001. The agreement signed in Brussels, foresees a reduction and consolidation of customs duties that Sri Lanka applies to European textiles with, in exchange, the lifting of quantitative restrictions that still hit Sri Lankan textiles in Europe. This agreement, qualified as "determining" in Brussels, is the first result of the Directive for negotiation that the European Commission had received from the Council last 9 November, in view of improving access to Community textile exports to third countries markets on the basis of a reciprocity of concessions. It "shows that the EU is ready and willing to further open its textile and clothing markets to countries that are also ready" to do so for European industry, underlined the Commission spokesperson.
Sri Lanka more specifically undertakes to: i) consolidate in the WTO the sector based customs duties for imports to the value of 0% for raw materials, 5% for fibres and thread, 10% for cloth and 17.5% for clothes, ii) reduce a certain number of tariff peaks, from 25 to 10%, notably for carpets, iii) abstain from erecting non-tariff barriers to textile imports. Once confirmed the notification of these undertaking to Geneva and the application of the tariff reduction cited, the EU will undertake the suspension of four present restrictions (quotas) that target trousers (category 6), cotton shirts (category 7), cotton blouses (category 8) and anoraks (category 21) from Sri Lanka. To avoid the possible circumventing of quotas by other suppliers via Sri Lanka, the two parties agreed to submit certain products to a system of double checks on import and export licences, in particular for T-shorts, trousers, blouses, dresses and sweaters. Safe guard clauses will allow for the withdrawal of concessions in case of non respect of the undertakings made in the agreement. Sri Lanka is the twentieth largest supplier of textiles to the EU, with EUR 707 million in deliveries in 1999, while the European textile exports towards Sri Lanka are estimated at around EUR 90 million.