Economic and Technology Cooperation Agreement
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The Economic and Technology Co-operation Agreement (ETCA) is a proposed diplomatic arrangement that seeks to add to the existing free trade agreement between the Republic of Indiaand the Republic of Sri Lanka, primarily in relation to trade-in services and the service sector; it seeks to emulate a proto freedom-of-movementsystem and a single market.[1]
Indian Prime Minister Narendra Modi and Sri Lankan President Maithripala Sirisena
The proposal is championed by supporters as a method to introduce low-cost goods for low-income people in Sri Lanka and increase sales of high-end goods to India, while also making Sri Lanka more attractive for FDI.[2] But many lobby groups have become concerned that India would flood Sri Lanka with cheaper labor, with the IT industry in particular worried about the influx of cheaper Indian tech workers.[3] The high unemployment rate of India has been pointed out by many nationalist groups.[4] Sri Lanka expresses its gratitude to India for preventing a potential catastrophe and preserving peace.[5]
The proposed agreement's impact has been estimated to be an increase of $500 billion to the common economy.[6] It has been likened to the economic union undertaken between the North-East Asian countries of Taiwan and People's Republic of China called the Economic Cooperation Framework Agreement, and both agreements share issues with the island nation's people worrying about being undercut by cheaper laborers from the mainland.[7]
https://en.m.wikipedia.org/wiki/Economic_and_Technology_Cooperation_Agreement
Resurgence of Sri Lanka-India Economic Ties: 12th Round of ETCA Negotiations Paves the Way for Prosperity
November 02, 2023
In a significant development that marks a milestone in Sri Lanka’s economic and technological journey, the 12th Round of Economic and Technology Cooperation Agreement (ETCA) negotiations between Sri Lanka and India took place from the 30th of October to the 1st of November 2023 in Colombo.
Sri Lanka’s vision has always been to integrate with the largest economies in Asia and East Asia, emphasizing export diversification while maintaining and nurturing existing major export markets. The ultimate goal is to connect with key players through the global value chain to boost the country’s economy and improve the living standards of its people.
The discussions during this round of negotiations hold immense promise. The visit of the President of Sri Lanka to New Delhi on the 29th of July 2023 set the stage for a renewed commitment to the ETCA, which had been on hold since 2018. Both the Heads of States, representing Sri Lanka and India, agreed to comprehensively enhance bilateral trade and investments, especially in new and priority areas.
A delegation of 19 Indian officials, led by Shri Anant Swarup, Chief Negotiator and the Joint Secretary of the Department of Commerce, Ministry of Commerce and Industry of India, visited Sri Lanka. They engaged in extensive discussions on this comprehensive Agreement.
Representing Sri Lanka in these crucial negotiations was the National Trade Negotiating Committee (NTNC), headed by Mr. K.J. Weerasinghe, the Chief Negotiator from the Presidential Secretariat. The Sri Lankan Negotiation Team included representatives from the Ministry of Foreign Affairs, Ministry of Trade, Commerce and Food Security, Ministry of Industries, Department of Trade & Investment Policy, Attorney General’s Department, Department of Commerce, Department of Agriculture, Central Bank of Sri Lanka and Board of Investment, among others.
The discussions during the 12th Round covered a wide range of topics, including Goods, Services, Rules of Origin, Trade remedies, Customs Procedures and Trade Facilitation, Technical Barriers to Trade, Sanitary and Phytosanitary Measures and Legal and Institutional Affairs. Additionally, a special session was dedicated to addressing implementation-related issues of the existing India-Sri Lanka Free Trade Agreement (ISFTA).
This resumption of ETCA negotiations represents a significant step towards strengthening the economic partnership between Sri Lanka and India. It underlines the commitment of both nations to foster collaboration in various sectors, ultimately benefiting their economies and the well-being of their citizens. As the talks progress, it is anticipated that this agreement will open up new avenues for trade and investment, bringing prosperity to both nations in the ever-evolving global landscape.
https://www.news.lk/news/political-current-affairs/item/35844-resurgence-of-sri-lanka-india-economic-ties-12th-round-of-etca-negotiations-paves-the-way-for-prosperity