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Benefits of international trade and economic integration in sri lanka

Early harvest scheme is a mini fast track prelude to the FTA under negotiation. Under the EHS, the trading countries are agreeing to accept and implement the results of a portion of the negotiations before the rest of the negotiations are completed.

It is primarily a confidence building measure. What are the four modes of supply under trade in services? Depending on the territorial presence of the supplier and the consumer at the time of the transaction, the definition of services trade under the GATS is as follows; from the territory of one Member into the territory of any other Member Mode 1 — Cross border trade ; in the territory of one Member to the service consumer of any other Member Mode 2 — Consumption abroad ; by a service supplier of one Member, through commercial presence, in the territory of any other Member Mode 3 — Commercial presence by a service supplier of one Member, through the presence of natural persons of a Member in the territory of any other Member Mode 4 — Presence of natural persons Examples: Cross-border A user in country A receives services from abroad through its telecommunications or postal infrastructure.

Such supplies may include consultancy or market research reports, tele-medical advice, distance training, or architectural drawings. Consumption abroad Nationals of country A have moved abroad as tourists, students, or patients to consume the respective services. Commercial presence The service is provided within A by a locally-established affiliate, subsidiary, or representative office of a foreign-owned and — controlled company bank, hotel group, Construction Company, etc.

Movement of natural persons A foreign national provides a service within A as an independent supplier e. What are the different categories of Natural persons and how are they defined? Business visitors are not directly engaged in the delivery of the service, but are just facilitating future trade, which may take place though a variety of modes of supply.

  1. The new FTAs that the government has advocated go beyond trade in goods and covers investments and services. Sri Lanka made a concerted decision to expose its services sector for more international trading in 2002.
  2. Consumption abroad Nationals of country A have moved abroad as tourists, students, or patients to consume the respective services. What is the current situation of ETCA negotiations?
  3. The 1st Round of Negotiations was taken place on 16th Aug 2016 where the scope of the agreement was discussed. SATIS liberalization is an ongoing process which is progressing slowly.
  4. The idea was initiated during the 5th joint commission which held on 24th April 2013.

The supplier would hence not represent or be an employee of any business entity that has the service contract. Professionals in the EU can move across borders in European Economic Area and practice their occupation. The new FTAs that the government has advocated go beyond trade in goods and covers investments and services.

Members make Market Access and National Treatment commitments in each of the four modes of supply, totaling eight commitments for each activity. These commitments are sectoral, made in sectors which members are willing to table for negotiations. Sri Lanka opened up many of its services — finance and banking, insurance, tourism, telecommunications etc.

Thereafter, a gradual opening of these sectors took place as the liberal economy got more opened to foreign competition until about mid-2000s. Sri Lanka made lower commitments in in GATS compared to the extent of unilateral liberalization that has been undertaken. This allowed a greater deal of policy space for the government to shift within the committed level of liberalization and the unilaterally provided level. Sri Lanka made a concerted decision to expose its services sector for more international trading in 2002.

Export Impact For Good

SATIS liberalization is an ongoing process which is progressing slowly. Services liberalization was discussed in the proposed FTA with China initiated in 2013.

Trade in services liberalization in built into the FTA and negotiations on possible sectors for liberalization has commenced in 1st and 2nd round of negotiations of CSFTA in 2014 and discussion revived in 2016.

A bone contention of all agreements that include trade in services liberalization is the possible opening up of Mode 4. Moreover, based on various discussions with industry sectors, the Hon. Minister in charge of International Trade took a decision to keep Mode 4 unbound in all services sub — sectors that are selected for liberalization with India.

This means that professional labour liberalization on a stand — alone basis will not take place under the ETCA. Also it should be noted if Sri Lanka engages in Mode 4 liberalization.

What is a Mutual Recognition Agreement? A mutual recognition agreement MRA is an international agreement by which two or more countries agree to recognize one another's conformity assessments.

  • Trade in services liberalization in built into the FTA and negotiations on possible sectors for liberalization has commenced in 1st and 2nd round of negotiations of CSFTA in 2014 and discussion revived in 2016;
  • Moreover, Sri Lanka expects have mutual cooperation in several emerging areas such as e-commerce and intellectual property rights.

MRAs can be in both areas of goodsand services for recognition of various quality standards and professional qualifications. The SAARC Commerce Ministers have been monitoring the progress in this regard and giving requisite directives aimed at time-bound actions for finalization of Schedules of Specific Commitments. However, the Schedules of Specific Commitments are yet to be finalized.

A trade agreement that is being negotiated between Sri Lanka and India with a view to promoting investments, technical cooperation and trade in services and goods between two countries. What is the current situation of ETCA negotiations? Sri Lanka side has reiterated the need of continuing the services sector negotiations giving due consideration to the asymmetry between the two countries. Both sides have agreed to consult their respective stakeholders for finalizing outstanding issues.

  • A mutual recognition agreement MRA is an international agreement by which two or more countries agree to recognize one another's conformity assessments;
  • This means that professional labour liberalization on a stand — alone basis will not take place under the ETCA;
  • The new FTAs that the government has advocated go beyond trade in goods and covers investments and services;
  • What is a Mutual Recognition Agreement?

The next round of negotiations will be held. During the discussions it was recognized that services cover broad areas encompassing telecommunication services, financial services Insurance, Banking and Business Services under which professional services comes under.

Although services area covers various sectors, Sri Lanka clarified its position with regard to movement of natural person or Mode 4.

Accordingly, Sri Lanka will not open Independent professionals moving to provide services.

  1. Although services area covers various sectors, Sri Lanka clarified its position with regard to movement of natural person or Mode 4. However, the Schedules of Specific Commitments are yet to be finalized.
  2. A mutual recognition agreement MRA is an international agreement by which two or more countries agree to recognize one another's conformity assessments. It is primarily a confidence building measure.
  3. The 2nd round of negotiations was held on 21st Oct 2016 in Colombo and further discussed the country positions with regards to all areas of the agreement. Members make Market Access and National Treatment commitments in each of the four modes of supply, totaling eight commitments for each activity.
  4. This means that professional labour liberalization on a stand — alone basis will not take place under the ETCA.

Furthermore, Commercial presence where an investor will establish an entity in Sri Lanka with minimum investment threshold and such an investor after establishment will be allowed to engage high managerial persons, as currently done under BOI law.

Therefore, quota on apparel should be removed to rectify this sectoral imbalance. India agreed to further to examine and request and provide a response early. Furthermore, this mechanism would act as a trade facilitation point and promptly address the issues brought before it by exporters.

It is important to mention that during the first round and second round of negotiations Sri Lanka stated that this Early Harvest Mechanism should be implemented the day ETCA Agreement is signed. The idea was initiated during the 5th joint commission which held on 24th April 2013.

Accordingly, first two rounds were held in April and November 2014. During these rounds, the text in the Chapters was discussed and there have been matters related to Trade in Goods, Services and Investment in particular which both parties are required to resolve internally and come to consensus in forthcoming negotiation rounds.

  • It is important to mention that during the first round and second round of negotiations Sri Lanka stated that this Early Harvest Mechanism should be implemented the day ETCA Agreement is signed;
  • Business visitors are not directly engaged in the delivery of the service, but are just facilitating future trade, which may take place though a variety of modes of supply.

Moreover, Sri Lanka expects have mutual cooperation in several emerging areas such as e-commerce and intellectual property rights. The 1st Round of Negotiations was taken place on 16th Aug 2016 where the scope of the agreement was discussed.

Singapore side expressed its willingness to identify gaps and jointly develop solutions for mutual cooperation. The 2nd round of negotiations was held on 21st Oct 2016 in Colombo and further discussed the country positions with regards to all areas of the agreement.