=RCEP sets up a lot of Asian trade for final markets in Asia

=Progressively lowers tariffs across many areas

=Gives incentives for companies to build supply chains within the region

By Sanath Nanayakkare

President Ranil Wickremesinghe last week said that the government would be submitting an application this week to join the Regional Comprehensive Economic Partnership (RCEP).RCEP is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam.

The 15-member countries account for about 30% of the world’s population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.

‘The government will this as it is trying to build its crisis-hit economy’, the President said.

He made this statement while addressing the AGM of Sri Lanka Institute of Directors (SLID) held at the Cinnamon Grand Hotel on 29th June.

“If we receive RCEP membership, it will put us into the whole of South East and East Asian markets. We have already spoken to India about upgrading our free trade agreement with them. We are going to talk to the EU also about how we can deepen our trade agreements with them. Such strategic partnerships and renewed trade agreements are necessary to build competitive and robust industries in Sri Lanka, and joining the RCEP would be an important entry point in this endeavour,” he said.

President Ranil Wickremesinghe expressed hope that Sri Lanka would be able to shed its bankruptcy status by September 2023 and urged everyone to work collectively to back the government’s efforts.

“Whether you are Sinhalese, Tamil, Muslim or any other nationality, no one likes to be called ‘bankrupt’. If you dislike it as an individual, why should we collectively have this label on us? We must get rid of it,” he said.

“A Climate Prosperity Plan was launched in November, for which more resources are required from the government and from other investments, including private investments. Sri Lanka needs to work in line with this plan and the reviews. If we fail, the country will lose $700 million the World Bank is set to provide the country. Therefore, Sri Lanka needs to play a more active role in the area of climate resilience programmes”, he said.

The President said that after completing domestic debt restructuring, he would ask the chambers, the professionals, the trade unions, farmers and all other stakeholders to discuss a Social Contract that addresses the concerns and aspirations of all the people. All of us must have a fair share of prosperity; not only a few rich people. That’s another discussion we are planning with the objective of creating a secure future for all the people,” he said.