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In the wake of another world trade meeting Sri Lanka decides to introduce safeguard laws to shield farmers and industries from rampaging imports. The island, that started opening up in 1977 and was a founder member of the GATT (General Agreement on tariff and Trade), is trying to rebalance its domestic and international trade obligations.
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The government is under huge pressure to defend its majority rural farming populations that are also the most vulnerable to trade shocks from liberalisation.
On Thursday, in his reading of the 2006 national budget, Sri Lanka’s new President, Mahinda Rajapaksa announced the government decision to go for domestic safeguards.
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"We will focus on internationally accepted tariff controls to provide a proper balance for our locally grown produce, as well as to keep the price levels acceptable to consumers," said Rajapaksa.
Domestic Security
The draft law on Safeguard Measures is waiting to go before Parliament.
The Commerce Department says