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EU's preferential trade with Sri Lanka : waste of tax money or modern development policy?
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on the corresponding realistic and practical ground situations that can strategically guar­antee the exercise of some core rights relating to freedom of association and collective bar­gaining. It specifically seeks to engage situa­tions of forming and joining unions by work­ers, elimination of anti union discrimination, the right to engage in trade union actions and collective manifestations and finally achieving constitutional consistency for the wider and unrestricted implementation of ILO Conven­tions in general. The benchmarks proposal also sets out precise recommendations to the gov­ernment of Sri Lanka to achieve compliance with each of the described areas. With the help of the Benchmarks Sri Lanka should aim at a systematic and gradual im­provement over a given period, followed by a process of close review and monitoring by the EU and relevant social stakeholders assisted by the expertise of the ILO. It is only through such a carefully designed tool that the benefits of the EU GSP+ can go beyond a select few and reach the workers, society and the government as additional tax revenue. It is only then that it can give real meaning to the efforts of European taxpayers and serve its true development objectives. The new EU GSP Plus Regulations for 2009­2011 clearly provide space for extended con­structive practical engagements to make changes possible in beneficiary countries. If Sri Lanka fails to comply with the required stan­dards it could be offered to meet the terms in a mid-term period(by 30 April 2010), in order to be considered for GSP Plus benefits for the second half of the 2009-2011 period. In the meantime, EU can take every step possible to convince the government of Sri Lanka to im­plement the most important parts of those ratified ILO and UN conventions until April 2009. Table 1: Total Exports and Market share of Apparels in Sri Lanka, in Billion USD Row Destination Category 1 Total Exports 2 EU Apparel Exports 3 Apparel/ Total Export 4 Total Exports 5 Total Apparel Exports All Coun­6 tries Apparel to EU/ Apparel Ex­ports 7 Apparel/ Total Source: Central Bank of Sri Lanka, Annual Reports 2002 1,4 0,7 51 4,7 2,3 2003 1,5 0,8 51 5,1 2,4 2004 1,9 1,0 53 5,8 2,7 2005 2,0 1,0 51 6,4 2,8 2006 2,3 1,2 50 6,9 2,9 2007 2,9 1,4 50 7,7 3,2 31 32 37 36 40 45 48 47 46 43 42 41 Table 2: Annual Growth in Apparel Export Value(percentage) Country/ 2002 2003 2004 Region EU-1.2 11.7 26.7 All Countries-3.8 8.6 8.8 Source: Central Bank of Sri Lanka, Annual Reports 2005 0.8 3.5 2006 16.2 6.2 2007 23.5 7.8 - 5-