Calling the move a ‘positive development’, JAAF applauded the commitment of the government to address critical trade impediments and pursue strategies that maintain market access and competitiveness for Sri Lankan exports.
The government is engaged in discussions with the Office of the US Trade Representative (USTR) in Washington DC.
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The forum represents key segments of the country’s textile sector including the Sri Lanka Apparel Exporters Association and the Fabric and Apparel Accessory Manufacturers Association.
The association says that the US remains an essential and enduring trade ally for the apparel sector in Sri Lanka. The industry is a significant employer, directly sustaining 350,000 jobs and indirectly supporting an additional 700,000 livelihoods nationwide.
It is hopeful that any forthcoming agreements on tariffs will ensure equality with concessions granted to other nations that produce apparel, providing an equitable competitive environment for exporters from Sri Lanka.
“As discussions progress towards a potential bilateral trade agreement, we take this opportunity to reiterate that Sri Lanka’s apparel sector operates with full traceability, transparency and sustainability, in line with internationally accepted ethical standards and that this should be recognised in setting a special concessionary tariff,” JAAF stated.
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By GlobalData“We remain confident that Sri Lanka’s value proposition as a responsible sourcing destination is both credible and competitive. We look forward to continued dialogue between the two governments and express our full support for a future-oriented agreement that will enhance trade, attract investment, and contribute to shared prosperity,” it added.
Despite provisional data indicating that apparel exports from Sri Lanka hit new highs in March and throughout the first quarter, concerns remain regarding the potential dampening effect of high duties in the US.
JAAF’s latest provisional data revealed that shipments in March increased by 11.65% totalling $467m, while first-quarter exports grew by 11.7% reaching $1.3bn.
US imports from Sri Lanka in March increased by 16.5% to $172m, with first-quarter apparel exports to the US growing by 11% to $494.6m.
This uptick in March was particularly encouraging as it followed a 7.4% decrease in February shipments which amounted to $153m.
