India Sri Lanka ETCA, boosting of economic ties

[Nilgiri]

http://economictimes.indiatimes.com...-boost-economic-ties/articleshow/53678143.cms

NEW DELHI: India and Sri Lanka, after years of delay following ex-President Mahinda Rajapaksa's intransigence, have finally launched negotiations this week on Economic and Technical Cooperation Agreement (ETCA) formerly known as CEPA or Comprehensive Economic Partnership Agreement that will push both Indian investments and services into the island nation.

Indo-Lanka ETCA that promises Indian investments in Lanka besides boosting service sector hopes to be in place by year-end despite strong opposition from Rajapaksa supporters.

A four-member Indian team led by a commerce ministry official was in Colombo this week for the first round of negotiations with their Lankan counterparts, an official source said.

As this was the very first meeting, the two sides explored the broad contours of the ETCA in terms of areas it should cover and avoid.

The two sides also apprised each other of their needs and concerns in the light of the changing economic situation and the experience accruing from the India-Sri Lanka Free Trade Agreement (ISLFTA) which has been in existence since 2000.

While India is looking at the ETCA as a mechanism to enable it to participate in the post-war economic development of Sri Lanka through Indian investments in select areas, the Sri Lankan government is seeking to use ETCA to become part of the Indian supply chain for the manufacturing sector, indicated a person familiar with the discussions.

The Sri Lankan Ministry of Strategic Development and International Trade had issued a statement recently which said that the ETCA will enable Indian manufacturers to set up factories in Sri Lanka and export to third countries with which Colombo plans to have Free Trade Agreements. India plans to send professionals for the IT sector and ship building, where there is a need for expertise and higher levels of training there. These are also sectors that could boost Sri Lanka's exports.

@Gibbs @Godman

 

[Godman]

the main issue with ETCA is there is very little info on it so far(Trade negotiations are only starting)
Sri Lanka may not need Indian help in IT. Shipbuilding may benefit from

As this was the very first meeting, the two sides explored the broad contours of the ETCA in terms of areas it should cover and avoid.

There needs to be more info on these. Like how services are traded and if there are proper policies to look at the qualifications of the proffesionals that would give the services ,the limit on the number of Indians that come to SL.
There are fears among Sri Lankans that Indians will steal jobs from Sri Lankans and that concern needs to be properly addressed

 

[Desist]

the main issue with ETCA is there is very little info on it so far(Trade negotiations are only starting)
Sri Lanka may not need Indian help in IT. Shipbuilding may benefit from



There needs to be more info on these. Like how services are traded and if there are proper policies to look at the qualifications of the proffesionals that would give the services ,the limit on the number of Indians that come to SL.
There are fears among Sri Lankans that Indians will steal jobs from Sri Lankans and that concern needs to be properly addressed

The way it appears to me is that SL is trying to position itself as the gateway to India like Hong Kong is to China.
For that SL will need harmonization of laws to ensure that companies registered in Lanka are treated as equal to Indian companies in India.

I think this is heading towards that.

 

[Gibbs]

Sri Lanka need to have proper national policy on trade and foreign investments before they get in to any bilateral agreements especially regarding the service sector.. If the GOSL does not adhere to this there will be a huge backlash from the public

The other issue is the Indo-Lanka FTA which is in operation since 2000, Still has huge anomalies, Mainly concerning tariff's in India, What i dont understand is why rush in to ECTA before correcting the heavily one sided FTA first ? @Godman

 

[Desist]

Sri Lanka need to have proper national policy on trade and foreign investments before they get in to any bilateral agreements especially regarding the service sector.. If the GOSL does not adhere to this there will be a huge backlash from the public

The other issue is the Indo-Lanka FTA which is in operation since 2000, Still has huge anomalies, Mainly concerning tariff's in India, What i dont understand is why rush in to ECTA before correcting the heavily one sided FTA first ? @Godman

Etca once signed will replace fta.

 

[HeinzG]

The way it appears to me is that SL is trying to position itself as the gateway to India like Hong Kong is to China.
For that SL will need harmonization of laws to ensure that companies registered in Lanka are treated as equal to Indian companies in India.

I think this is heading towards that.

Hong Kong is an island outpost that is filled with mainly Chinese people. Essentially it is an extension of a Chinese mainland. However, Sri Lanka is a country with proud history and a different culture altogether to India. If Sri Lanka becomes Indian gateway to the world, Sri Lanka will loose it's identity and become another Indian colony.

There is no need to treat Indian companies equally in Sri Lanka, because Sri Lankan companies don't get that privilege from India also. ECTA is a death trap for Sri Lanka if signed. There is huge opposition to sighing the pact. Let's wait and see how the situation unfolds.