Ahead of the August 1 deadline for further negotiations on the tariffs imposed by the Trump administration, the Sri Lankan rubber exporters said they faced the threat of losing the US market unless a better deal was worked out.
Kamal Silva, a spokesman for the exporters, said the tariff must be kept between 15 and 20 per cent to retain their edge over regional competitors.”Indonesia has gained a clear advantage already as Sri Lanka with the current 30 cent tariff will find it extremely hard to do business with the US,” he said.
“Even before the new tariff came, Sri Lankan exporters found it hard to compete with Indonesia. A 15 per cent tariff would be our ideal rate to be competitive in the US market,” Silva was quoted as saying by PTI.
He said the rubber exports fetched USD 300 million annually from the US market.
Dhammika Fernando, the spokesman of the Sri Lankan Free Trade Zone Exporters’ Association, said Indonesia had gained a clear advantage in the new tariff structure unveiled by US President Donald Trump.
“We have been told by the government that 1600 items and services will be allowed tariff free by the US. This will be good news if it comes through,” Fernando said. A Sri Lankan government delegation is currently in the US to negotiate a trade deal.
Deputy Economic Development Minister Anil Jayantha told reporters the US and Sri Lanka were discussing 1161 items, out of which Washington offered zero tariffs for about 80 items.
In April, the US imposed a 44 per cent tariff on Sri Lanka. The US brought the tariff down to 30 per cent on Sri Lanka in the latest letter sent by the Trump administration. The apparel industry also said the high tariff would endanger the apparel exports by making Sri Lankan products uncompetitive in the US market.
Sri Lanka exports 3 billion dollars worth of goods, while the US sends to Sri Lanka USD 300 million worth of goods annually.
(PTI)
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