The apparel industry calls for trade agreements with the EU, US, and the UK that are tailored to Sri Lanka’s needs.
Yohan Lawrence, Secretary General of the Joint Apparel Association Forum (JAAF), emphasized the importance of retaining GSP+ after December 2023. He noted that regional peers such as Vietnam and India have already signed or have renewed their focus on securing FTAs with the EU.
He says it ” is important pushing for better trade agreements with the EU, US, and the UK that is tailored to Sri Lanka’s needs”, at the same time look for opportunities in China and India.
This, according to Lawrence, is critical for the apparel industry to gain the temporary boost it requires to aid the country’s economic recovery.
He shared his thoughts at a workshop titled “De-risking Sri Lankan Apparel.”
Kavida, a UK-based start-up, teamed up with the American Chamber of Commerce (AMCHAM) in Sri Lanka to launch ‘Resilient Sri Lanka,’ a new industry forum aimed at facilitating supply chain resilience in manufacturing sector.
The forum hosted its first in-person workshop, titled “De-risking Sri Lankan Apparel.”
It navigated the numerous supply chain risks in the apparel industry, which were characterized by post-COVID-19 realities, increasing uncertainties in the global geopolitical landscape, market volatility, and the need for resilience in the face of such external shocks. The discussion topic was timely, and it highlighted efforts made by the Sri Lankan apparel industry to navigate supply chain disruptions through innovation and collaboration with the tech industry.
Kavida also debuted its new AI platform, which aims to help procurement managers ensure on-time delivery and improve supplier collaboration.
The Joint Apparel Association Forum pledged its support for the effort to identify technology-intensive solutions in the discussion areas.
Lawrence emphasized that Sri Lanka’s largest export markets, the United States, the European Union, and the United Kingdom, are also experiencing supply chain disruptions, including shipment delays, which are contributing to high inflation. The UK’s inflation rate of 10% is the highest in 40 years, with Germany expecting double-digit inflation. He stated once more that “there is opportunity in crisis.”
“In light of growing global trade shifts, the EU is considering an EU-Asia connectivity strategy, a trading system based on sustainable, comprehensive, rules-based connectivity that ensures people’s prosperity, safety, and resilience.” Sri Lanka already has a strong track record of delivering goods to customers in difficult circumstances. However, we must ensure that these opportunities do not disappear.”
Lawrence also emphasized that Sri Lanka must develop a framework to ensure compliance with global trade legislation, which places a greater burden on suppliers to demonstrate that they have robust systems and risk analysis mechanisms in place, as well as that they have done their due diligence.
The event featured a panel of key industry leaders who expressed optimism about how the know-how and innovation culture of the tech industry can complement the scale and resilience of the apparel industry in order to break through supply chain barriers.
The forum also brought together fashion brands from the United States and the United Kingdom, who pledged their support to Sri Lanka and the apparel industry in this time of crisis.
(Courtesy Colombo Gazette)