Utilization of Preferential Trade Arrangements: Sri Lanka ‘s Experience with the EU and US GSP Schemes

Research team

Saman Kelegama
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Janaka Wijayasiri




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Published Year

January 2007


US$ 15 (for hardcopy)

The publication using three indicators (coverage, utilization and utility rates) assesses the usefulness of the EU and US GSP schemes for Sri Lanka and discusses Sri Lanka’s performance under both schemes while suggesting possible measures that can be taken to improve them. Sri Lanka has been a beneficiary of the GSP scheme since its inception in 1968. However, meeting the scheme’s objective of export expansion seems to have fallen short and Sri Lanka has not been able to export effectively under the EU and US GSP schemes, which are the most important non-reciprocal preference arrangements providing access to Sri Lanka’s main export markets. The analysis of Sri Lanka’s experience under both schemes highlights several reasons for their limited use. These include low product coverage (in the case of the US scheme), strict rules of origin criteria (in the case of EU scheme), and weak supply capacity of the country. Lack of awareness of the schemes on the part of exporters and understanding the conditions attached to the schemes do not seem to have caused problems in their usage.

Table of Contents
Introduction of the publication
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Table of Contents:

List of Tables
List of Figures
List of Boxes
Executive Summary
Literature Survey
GSP Schemes of the US and the EU
Imports to the US and EU from Sri Lanka under the GSP Schemes
What are the Main Reasons for the Low Utilization of Trade Preferences under the EU and US GSP Schemes?
Appendix 1: List of Interviewees
Appendix 2: Questionnaire

Edited by Saman Kelegama