brand logo

Expired Japan GSP+ to SL under review for extension 

03 May 2021

  • Japan GSP+ expired on 31 March 

  • UKGT benefits until expiration of EU GSP+ 

By Imsha Iqbal    With the GSP+ scheme provided by Japan for Sri Lanka being expired on 31 March this year, further extension of the scheme is being reviewed at the moment, according to the Annual Report of the Central Bank of Sri Lanka for 2020, released on Friday (30).  The Generalised System of Preferences (GSP) which was introduced by the General Agreement on Tariffs and Trade (GATT) to grant Autonomous Trade Preferences to all developing countries or the least developed countries by the developed countries or the industrialised countries as per the instructions of United Nations Conference on Trade and Development (UNCTAD).  The GSP facility provided by Japan to Sri Lanka grants preferential tariffs under the Temporary Tariffs Measures Law. The facility was granted from 1 August 1971 onwards. According to the Embassy of Sri Lanka in Japan, under its GSP scheme, Japan introduced measures such as expanding the product coverage of tariff-free and quota-free treatments for goods from Least Developed Countries (LDC). Tea, coconut non-kernel products, food, beverages and tobacco, rubber products and chemical products are among the major export products to Japan. The value of exports under the Preferential Trade Agreements of Sri Lanka is $ 71 million. However, it is a drop of -16.4% compared to the previous year.  Also, Japan’s simple average GSP tariff rate is 4.9% in the Financial Year (FY) 2012. Accordingly, the preferential tariff is granted for certain agricultural, fishery and industrial products.  In addition, according to the CBSL report, Sri Lanka benefits from Russia, Turkey, Australia, Canada, Switzerland, Norway and New Zealand and the UK’s Global Tariffs (UKGT). UKGT became effective from 1 January 2021 which is a separate tariff system from the European Union (EU). Whereas, the export of Sri Lankan products under the EU GSP+ scheme is eligible for accessing the duty free market on the UKGT until the expiration of the EU GSP+ scheme.  Under the Free Trade Agreements (FTAs), Sri Lanka was benefitted from bilateral FTAs such as the Indo-Sri Lanka Free Trade Agreement (ISFTA) and the Pakistan-Sri Lanka Free Trade Agreement (PSFTA) till 2020. The total exports remained high from both India and Pakistan. From regional trade agreements, the Asia Pacific Trade Agreement (APTA) and Global System of Trade Preferences (GSTP) improved in 2020, whereas exports under the SAARC Preferential Trading Arrangement (SAPTA) and the South Asian Free Trade Area (SAFTA) remained low in 2020.


More News..