The US GSP also at stake

The US government has decided to review the GSP facility extended to 3,400 Sri Lanka exports to the country.

The decision to review the facility was arrived at after studying a petition was handed in by American Federation of Labor and Congress of Industrial Organization. The petition had stated that Sri Lanka has not implemented the international labor charters. It states several areas of concerns like the minimum age of child laborers, minimum wage, the minimum number of working hours per day, security at the work place and health.

Sri Lanka currently exports goods amounting to US$ 150 million annually under the GSP scheme. However, apparels are not included in the US GSP system.

Sri Lanka currently holds the 14th position in the US GSP beneficiaries list and the withdrawal of such a facility would make it difficult for local exports to compete in the US market.