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Sri Lanka India new trade deal stuck in more negotiations

Dec 02, 2020 (LBO) - Sri Lanka has had 13 rounds of negotiations on a new trade deal with India and "certain sections" of the proposed Comprehensive Economic Partnership Agreement (CEPA) had not yet been concluded, a government minister has said.
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Sri Lanka started liberalizing trade in 1977. India had been Sri Lanka's biggest trade partner for centuries.

The existing trade deal with India also has a large 'negative list' of 1,180 items put in place as a sop to Sri Lankan business interests, restricting the liberties of ordinary people, especially the poor.

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According to available data a 'negative list' of 1,180 items protect Sri Lankan business and production interests.
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Sri Lanka is allowing 3,922 items on zero duty while India allows 4,383.

However there have been complaints from Sri Lankan businesses that India has non-tariff barriers. The new CEPA deal has rules and a mechanism to resolve such issues or new ones that may come up.

Negotiators have said that the new deal provides for bi-annual meetings at the level of Commerce Secretaries and annual meetings at the level of Commerce Ministers of the two countries to deal with unresolved issues.

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In case the problems cannot be resolved at a government level, CEPA provides

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