What is CEPA?
May 25, 2010 10:42 pm
India-Sri Lanka Free Trade Agreement signed in 1998 and became operational in 2000.
The bilateral trade between
The main Indian exports to
The chief Sri Lankan exports to
Joint Study Group (JSG) and Comprehensive Economic Partnership Agreement (CEPA)
A JSG was set up in April, 2003 to widen the ambit of ISLFTA to go beyond Trade in Goods to include Services and to facilitate greater investment flows between the two countries.
Report of JSG was submitted in October, 2003.
Based on the recommendation and conclusion of the JSG, CEPA negotiations were started in February, 2005 and concluded in July 2008, after Thirteen Rounds of Negotiations.
Both sides had decided to sign the CEPA during the 15th
SAARC Summit held in
Both sides after 13 Rounds of Negotiations have agreed to enter into Comprehensive Economic Partnership Agreement, the last round being concluded in July, 2008.
SALIENT FEATURES OF CEPA
Trade in Goods
· Reduction in Negative List by each country would provide additional market access.
· The Agreement provides for review of Negative Lists together with TLP within (60) days of signing of CEPA.
Trade in Services
· Both sides had
agreed as a base level to offer their schedule of commitments at the WTO level
· Both countries have also agreed to promote economic cooperation in mutually identified sectors like fish, energy, drugs & pharmaceuticals, textiles, financial, infrastructure, tourism etc. for greater economic integration.
· The Investment Agreement will provide an institutional framework to create an enabling environment for greater flow of investments between the two countries;
CEPA also has the following agreements:-
· MRA on standards - The Agreement on Mutual Recognition/equivalence will facilitate recognition of each other’s standards, assessment procedures, equivalence arrangements etc.
· MOU on Harmonisation of Ayurvedic medicines will enable both countries to cooperate in traditional system of medicines.
· Custom Cooperation Agreement – The Agreement aims at simplifying custom procedures and expediting custom clearance.
· Agreement on Consumer Protection and Legal Meteorology aimed at protecting the interest of consumers and creating awareness amongst consumers in both countries.
CEPA has been negotiated but it has not been signed yet. – (Source: Govt. of India Department of Commerce)