Sri Lanka wins historic export judgment in US Trade Court
July 17, 2018 11:40 pm
Sri Lanka has won the first ever revocation of countervailing duty imposed in United States for a Sri Lankan export, according to the Department of Commerce of Sri Lanka.
“I praise the officials of the Department of Commerce for their committed work to win this judgement in favour of Sri Lanka,” said the Minister of Industry and Commerce Rishad Bathiudeen in Colombo upon learning about the decision of US Court of International Trade.
“This will greatly help our Ministry’s efforts to enhance manufacturing exports, specially rubber products. This helps to strengthen our trade with US as well and helps achieve $3 Bn exports to US very soon. We thank the people of US for looking for Sri Lankan products,” Minister Bathiudeen added.
Director General of Commerce Ms Sonali Wijeratne agreed that the latest win by DOCSL strengthens US-Sri Lanka trade. “This is Sri Lanka’s first international victory on countervailing duties especially for a well-known rubber product export.”
The US Court of International Trade, on 11th July 2018 has ruled that the 0.95 percent countervailing duty attributed to the guaranteed price scheme on import of off-road OTR tyres from Sri Lanka be removed.
Interestingly, as a result, not only 0.95% duty is out but a larger, 2.18% countervailing duty on the imports of off-the-road (OTR) rubber tyres from Sri Lanka to the United States too will be eliminated as a result due to the operation of WTO Agreements once the 0.95% duty is removed.
Sri Lanka’s solid tyre exports to US has been on a growing trend-US $ 58.21 Mn in 2012, $ 56.15Mn in 2013, $ 50.70 Mn in 2014, $ 53.22 Mn in 2015, $ 60.38 Mn in 2016 and further strengthening last year to US $ 69.04 Mn. Total Lankan exports to US last year was almost close to $3 Bn-in that, in 2017, $ 2.9 Bn, which was an increase from 2016’s $2.8 Bn.
Total bilateral trade with US increased by 12% to US $ 3.7 Bn last year, from 2016’s $3.3 Bn.