Sri Lanka has failed to implement UN human rights conventions and gets punished by the European Union from next month, the EU announced on Monday.
The EU decided to suspend Sri Lanka’s preferential access to the 27 member European Union market starting from August 15.
"We very much regret the choice of Sri Lanka not to take up an offer made in good faith and in line with the EU commitment to a global human rights agenda. We will however keep the door open for Sri Lanka to return to talks," commented EU High representative Catherine Ashton.
The European Commission, the executive arm of the EU announced in a statement the decision to withdraw the preferential tariff system GSP+ from the country had been taken by the EU Council of Ministers in February.
Based on dialogue with the Sri Lankan authorities on shortcomings in its implementation of three UN human rights conventions, the EU in June offered to delay the entry into force of the Council decision by a further six months.
In exchange, it asked for tangible and sustainable progress on a number of outstanding issues.
This decision followed an exhaustive 12-month investigation concluded in October 2009 by which the European Commission identified significant shortcomings in respect of Sri Lanka's implementation of three UN human rights conventions relevant for benefits under the scheme, noted the statement.
"GSP+" is common shorthand for the "special incentive arrangement for sustainable development and good governance" which is one of three non-reciprocal, preferential import regimes for developing countries under the EU's Generalised System of Preferences (GSP).
Under GSP+ the EU provides additional preferences to economically vulnerable developing countries which have ratified and effectively implemented 27 international conventions in the fields of human and labour rights, sustainable development and good governance and which voluntarily apply for GSP+ benefits and accept the associated conditions.
Sri Lanka is a current beneficiary of GSP+, along with 15 other developing countries. Like all other GSP+ beneficiaries, Sri Lanka committed to maintain its ratification and effective implementation of the 27 conventions when it applied for the scheme.
Sri Lanka is a major beneficiary of the trading opportunities offered by GSP+. In 2008, EU imports from Sri Lanka under GSP+ totalled 1.24 billion euro.
The most important import products benefiting from these trade preferences were t-shirts and other clothing items, as well as fisheries products.
After temporary withdrawal takes effect, EU imports from Sri Lanka will instead be subject to standard GSP preferential treatment, under which Sri Lanka would still enjoy preferential access to the EU market for its key export items such as clothing that is at least as generous as it presently enjoys in other major developed country markets, added the statement.
A spokesperson for the Sri Lankan embassy in Brussels was quoted by the EuAsiaNews as saying that, "We have no comments to make for the moment," adding that a reaction will come directly from Colombo.
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