The Joint Apparel Association Forum Sri Lanka (JAAFSL) is highlighting the significance of trade agreements to enhance the competitiveness of the local apparel sector. According to JAAFSL Secretary General Yohan Lawrence, joining the Regional Comprehensive Economic Partnership (RCEP) could unlock new markets in Japan, South Korea, and Australia for Sri Lanka’s apparel industry. Lawrence noted that lower tariffs under the RCEP could facilitate access to these lucrative markets, creating opportunities for growth and expansion.
The RCEP, which established the world’s largest free trade area, became effective on 1 January 2022. Lawrence emphasized the necessity of trade arrangements with target markets to ensure competitiveness. He explained that without such agreements, it would be challenging for Sri Lanka to compete effectively. For instance, a trade deal with Australia could open doors for Sri Lankan apparel, given the current high import duties that hinder competitiveness compared to countries like Bangladesh.
Regarding Sri Lanka’s bid to join the RCEP, Lawrence mentioned that while the Government has expressed its intent, the process may take time due to the need for a new member admission mechanism. Meanwhile, he praised ongoing trade negotiations with China and India, believing that these agreements would benefit the local apparel sector.
The Government’s efforts to expand trade agreements are seen as part of a broader strategy to align with RCEP membership aspirations. Lawrence indicated that most of these negotiations involve RCEP member countries, aligning with Sri Lanka’s goal of tapping into the benefits of this expansive free trade area.