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India to remove port curbs on Sri Lankan tea, apparel

B. Muralidhar Reddy

Colombo has been pressing for the opening of the Chennai port

COLOMBO: India has agreed to remove port restrictions on tea and apparel from Sri Lanka under the Indo-Sri Lanka Free Trade Agreement (FTA).

The decision was announced at the end of two days of technical-level negotiations on the Comprehensive Economic Partnership Agreement (CEPA) that concluded in Colombo on Thursday.

Joint Secretary of the Ministry of Commerce Rajeev Kher led the CEPA negotiations from the Indian side and Director-General of the Department of Commerce Manel De Silva headed the Sri Lankan delegation.

Cost-cutting move

Colombo has been pressing for the opening of the Chennai port for export of

Sri Lankan tea to India. This is not only a cost-cutting measure due its proximity to Sri Lanka but also because of the high demand for the product.

At the CEPA meeting, India also agreed to allow Sri Lanka to export three million pieces of garment out of the quota of eight million pieces given under the FTA.

Previously export was subject to the condition that only Indian fabric could be used.

Customs regulations

Issues related to customs regulations figured at the discussions and it was decided to establish a nodal point between the two sides.

Both sides intend to have another round of discussion on the draft CEPA in May and are hopeful of signing of the final agreement at the Foreign Ministry Secretaries-level meeting scheduled in July.

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India to remove port curbs on Sri Lankan tea, apparel

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