The European Union is suspending preferential treatment for Sri Lankan imports because it says the government has not committed to resolving human rights complaints. This means that frozen and chilled tuna exports from Sri Lanka will now be slapped by the full duties, instead of the zero-tariff which was applicable.
Sri Lankan imports to Europe will lose “GSP-plus†treatment beginning Aug. 15, which means higher tariffs will apply to imports worth about €1.24 billion, or $1.56 billion, annually.
The move, announced Monday, is likely to hurt Sri Lanka’s garment and fisheries industries the most, with some tariffs jumping from zero or near zero to as high as 18 percent.
The E.U. has asserted that Sri Lanka has not fully complied with conventions on civil and political rights, torture and rights of children.
The Sri Lankan government has previously rejected the E.U. complaints, which stem from the final stages of its war with the Tamil Tiger insurgency. The 25-year war ended last year with the defeat of the Tamil Tigers, who were seeking a separate state for their ethnic minority.
On Tuesday, a Sri Lankan government spokesman, Keheliya Rambukwella, said the country had “taken necessary measures to counteract the losses†that businesses would suffer because of the change in tariffs.
The E.U. offers the GSP-plus trade benefit to 16 countries that have agreed to comply with certain conventions on human rights, labor rights, sustainable development and good governance. Sri Lanka had enjoyed GSP-plus status since 2005.
