Sri Lanka could expand trade with Russia through Vladivostok using existing aviation and maritime routes, Minister of Transport, Highways and Urban Development, Bimal Rathnayake said.

Speaking to Sputnik India, the minister noted that Sri Lanka’s position along major Indian Ocean shipping lanes and its established air connectivity could support faster trade links with Russia.

“If we think about starting something in immediate terms, within months, the best option is aviation, as we already have well-established connections,” he said, adding that cargo operations could begin through commercial flights.

He also pointed to Sri Lanka’s maritime links with countries such as China, Japan and South Korea, noting that Vladivostok is geographically close to these routes.

The minister highlighted the role of Hambantota Port in facilitating trade, noting its growing capacity as a regional logistics hub.

“There is already significant infrastructure in place. Hambantota has developed into a major automobile export hub in South Asia to Africa,” he said.

He added that these existing systems could be leveraged to develop sea-based trade links under a broader Eurasian transport framework. (Newswire)

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Sri Lanka’s apparel industry made a strong debut with its first-ever country pavilion at Source Fashion London 2026, held from 13 to 15 January at Olympia London, one of the UK’s and Europe’s leading apparel sourcing exhibitions.

The Sri Lanka Pavilion was officially inaugurated on Tuesday (13 Jan) with a ribbon-cutting ceremony graced by Nimal Senadheera, High Commissioner of Sri Lanka to the UK, and Lord Hannett of Everton OBE, the UK’s Trade Envoy to Sri Lanka, in the presence of industry representatives and officials from the Sri Lanka Export Development Board (EDB) and the Sri Lanka High Commission in London.

Sri Lanka’s participation was jointly organised by the EDB, the Sri Lankan apparel industry, and the Sri Lanka High Commission in the UK, with the objective of strengthening trade ties, expanding buyer networks, and positioning Sri Lanka as a preferred sourcing destination for the UK and European markets. A total of 20 Sri Lankan apparel booths, including 12 SMEs, showcased locally manufactured apparel, textiles, handmade products, and value-added solutions. 

The pavilion highlighted high-quality, ethically produced collections with a strong emphasis on sustainability, transparency, innovation, and long-term partnerships. 

Exhibitors included Star Garments Group, Insomnia, J K Garments (Pvt.) Ltd, New Universe Clothing SL, Protector Clothing Manufacturers, Janasri Mills, Pridemo Apparel, Senvin Collection, True Digital Printing, Concord Manufacturing, Kobithan Garments, Hayleys Free Zone Ltd, JAS Activewear, Krisherert Holdings, Jia Moda, Randhi International, “Creative Sri Lanka” booth and the EDB booth.

Sri Lankan apparel also featured prominently in Source Fashion catwalk shows, demonstrating the country’s design excellence, manufacturing capability, and competitiveness in meeting global market expectations. Sri Lanka’s presence was further strengthened by new trade opportunities under the UK’s Developing Countries Trading Scheme (DCTS), effective from 1 January 2026, which grants zero import duty and flexible Rules of Origin, creating greater competitive advantages for Sri Lankan apparel exports to the UK market.

Source Fashion London continues to serve as a key platform for ethical and responsible sourcing, bringing together brands, buyers, manufacturers, and suppliers from nearly 25 countries, including Sri Lanka, China, India, Turkey, Portugal, and the UK. Sri Lanka’s participation underscores its growing reputation as a trusted, sustainable, resilient, and innovative apparel sourcing destination, aligned with global market expectations, evolving supply chain requirements, and the Government of Sri Lanka’s vision for export promotion, industrial development, and increased export revenue in overseas markets. (Newswire)

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The Sri Lanka Embassy in Belgium, which is also accredited to Luxembourg, hosted a “Country Seminar on Sri Lanka” in collaboration with the Luxembourg Chamber of Commerce, highlighting the growing opportunities for two-way trade and investment.

According to the Embassy of Sri Lanka in Brussels, the event held at the premises of the Luxembourg Chamber of Commerce in October marked another milestone in fostering economic, commercial, and bilateral cooperation between the two countries.

In welcome remarks, International Affairs Lead at the Luxembourg Chamber of Commerce, Sabrina Aksil, emphasized the strong complementarity between Luxembourg’s globally recognized expertise in finance, ICT, consulting, and logistics, and Sri Lanka’s dynamic efforts to diversify and expand its economy.

Ambassador of Sri Lanka to Luxembourg, Chandana Weerasena, highlighted Sri Lanka’s current economic developments and its forward-looking economic vision, underscoring how enhanced two-way trade and investment could create mutual benefits for both countries. 

Newly nominated Luxembourg Ambassador for Sri Lanka, Christian Biever, shared his perspectives on potential areas of collaboration and expressed his keen interest in strengthening bilateral economic ties of the two countries.

Chairman of the Board of Investment (BOI) of Sri Lanka, Arjuna Herath and the Executive Director (Investment Promotion & Research), Priyanka Samaraweera joined the seminar online and presented Sri Lanka’s current investment climate, reasons for selecting Sri Lanka as a promised destination for investments and emerging investment opportunities in Sri Lanka in manufacturing, services, infrastructure and agriculture sectors to drive FDIs.

Minister (Commercial) of the Sri Lanka Embassy, Thavishya Mullegamgoda, presented trade & export potential in Sri Lanka, highlighting sectors poised for mutually beneficial partnerships between the two countries, including sectors like finance, ICT services, logistics, high-tech manufacturing, R&D, and innovation. She also highlighted some challenges faced by the export sector in Sri Lanka, inviting companies in Luxembourg to explore those challenges as opportunities to create win-win situations for both sides in the future.

This event underscored the shared vision of both countries to further deepen bilateral engagement and promote sustainable, innovative, and inclusive economic and commercial collaborations between Sri Lanka and Luxembourg in the years ahead. (Newswire)

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Minister of Trade, Commerce, Food Safety, and Cooperative Development, Wasantha Samarasinghe, yesterday undertook an inspection tour of the Sri Lanka Thriposha Company in Ja-Ela.

Following the site visit, Chairman Amal Attanayake and the Board of Directors briefed Minister Sanarasinghe on the current status of the company and its future goals. 

Previously slated for closure under the former government, Sri Lanka Thriposha Limited was re-established under the Ministry of Health after the new government came to power. 

A recent gazette notification, issued following a cabinet reshuffle, has now placed the company under the Ministry of Trade, Commerce, Food Safety, and Cooperative Development.

To strengthen food security, the company was transferred to the Trade Ministry, while Health Minister Nalinda Jayatissa had previously ensured continuous production and public distribution of Thriposha products.

During his visit, Minister Wasantha Samarasinghe emphasized the importance of an uninterrupted supply of raw materials such as maize and soybeans, which are essential for producing Thriposha and other nutritional products. 

He also provided guidance on expanding production and ensuring proper distribution to infants, pregnant mothers, and lactating women. Additionally, he encouraged the promotion of other products like Suposha, cookies, cupcakes, calorie bars, and aggala to the public.

Minister Samarasinghe was also briefed on operational challenges and pledged to provide practical solutions, ensure timely intervention for employee welfare, and explore cooperative-based distribution models to deliver Thriposha products directly to consumers. (Newswire)

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United States President Donald Trump and Chinese President Xi Jinping have agreed to call off a mutual escalation in their countries’ trade war, lowering the temperature in a heated confrontation that has threatened to upend the global economy.

Trump and Xi sealed a one-year trade truce on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, where the two leaders met face-to-face for the first time since 2019.

But while Trump and Xi’s agreement offered a reprieve to businesses unsettled by months of back-and-forth trade salvoes, it did little to roll back existing trade barriers and left numerous points of contention between the sides unresolved.

“The apparent results of this meeting will be a pause and a small roll back in the trade war,” Dennis Wilder, a professor at Georgetown University who worked on China at the CIA and the White House’s National Security Council, told Al Jazeera.

“Both sides have not given up their trade weapons but merely have agreed to stop firing as long as both sides hold to the agreements,” Wilder said.

Under the deal, China agreed to defer its planned export controls on rare earths, while the US will drop a threatened 100 percent tariff on Chinese goods.

Trump said he would also lower a 20 percent fentanyl-related tariff to 10 percent after Xi agreed to “work very hard” to stem flows of the synthetic opiate.

“I believe he is going to work very hard to stop the death that is coming in,” Trump said on Air Force One after departing South Korea.

Trump, who hailed his nearly two-hour meeting with Xi as “amazing”, said the issue of rare earths had been “settled” under the agreement, which he said would be renegotiated every year.

“There’s no roadblock at all on rare earths – that will hopefully disappear from our vocabulary for a little while,” Trump said.

Trump, whose meeting with Xi capped a whirlwind tour of Asia that included stops in Malaysia and Japan, said China had also agreed to purchase “tremendous amounts” of American soya beans.

After Trump’s comments, Xi said the sides had reached a “consensus to address problems” in the talks, but did not directly reference specific details of the agreement.

Washington and Beijing should “promptly refine and finalise follow-up actions” to implement the consensus and “offer tangible results to reassure both countries and the global economy,” Xi said, according to a readout by the state-run Xinhua News Agency.

China’s Ministry of Commerce later confirmed aspects of the agreement, including the one-year deferral of its export controls.

The ministry also said that the US had agreed to suspend plans to extend technology-related export controls to Chinese subsidiaries, and that both sides would suspend tit-for-tat port fees.

Asian stock markets were largely unmoved, with benchmark indexes in Hong Kong, Shanghai and Sydney closing lower and Japan’s main index finishing flat.

China’s plans to require companies anywhere in the world to obtain a licence to export goods containing even trace amounts of its rare earths had raised fears of massive disruption to global supply chains.

Chinese producers hold a near monopoly on the supply of the critical minerals, which are used to make everything from smartphones to fighter jets.

Shan Guo, a partner with Shanghai-based consultancy Hutong Research, said the cut in the fentanyl tariff was “largely expected”.

“China has been asking for the fentanyl cut since Stockholm, it is now getting what it wants using rare earth as leverage,” Guo told Al Jazeera, referring to US-China trade negotiations that took place in the Swedish capital in July.

“It is a 10 percent cut instead of 20, likely because US still wants to maintain some leverage as the two sides talk more going forward. Regardless, this lowered tariff on China will reduce the competitive disadvantage of Chinese goods vs ASEAN peers,” Guo said, referring to the bloc of 11 Southeast Asian economies, many of which, like China, rely heavily on exports.

Expectations for a deal had been modest ahead of the summit, and Thursday’s agreement left most tariffs and export controls hindering trade between the sides in place.

Trump’s pledge to halve his fentanyl tariff would leave the average US duty on Chinese goods at around 47 percent, and China’s average tariff on US products at about 32 percent.

Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore, said the agreement could be seen as a “partial freeze” or “minor rollback” in the US-China trade war.

Cameron Johnson, a partner at Shanghai-based consultancy Tidalwave Solutions, said US-China ties should not deteriorate in the near term, describing the agreement as “probably the best both sides could have done given the circumstances”.

But Johnson noted Trump’s comments that the agreement would be subject to annual review.

“It allows both sides to calibrate the relationship, and also buying power, of each side every year now going forward,” he said. (Al Jazeera)

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India and Qatar will soon finalise the framework to launch negotiations for a free trade agreement, with a deal expected to be concluded by mid or third quarter of 2026, Commerce and Industry Minister Piyush Goyal confirmed on Monday. Goyal is currently in Doha for a two-day visit, leading a business delegation aimed at boosting trade and investment between the two nations.

“I would think that sometime by the middle of next year, or third quarter of next year, we will be able to finalise an FTA (free trade agreement), if not earlier,” Goyal told reporters during the visit.

Qatar, a key trading partner of India within the Gulf Cooperation Council, recorded over $14.15 billion in bilateral trade with India during 2024–25. India already holds a trade pact with the United Arab Emirates and is set to sign a similar agreement with Oman soon.

Goyal held talks with Sheikh Faisal bin Thani bin Faisal Al Thani, Qatar’s Minister of Commerce and Industry, to outline the terms of reference for the upcoming trade negotiations. “We have discussed that we should quickly launch FTA negotiations. We are discussing the contours of terms of reference and once we finalise that, the Qatar Minister and I have discussed that we will fast-track it so that trade and business can double by 2030 from $14 billion today to $30 billion,” he said.

A potential FTA would reduce or eliminate import duties across most goods traded and liberalise service sectors and investments. Currently, India’s trade with Qatar is heavily skewed toward energy imports. Crude petroleum and gas-related products make up nearly 90 per cent of total imports. In the last fiscal year, India imported $12.46 billion worth of goods from Qatar, while exporting just $1.68 billion, resulting in a trade deficit of $10.78 billion.

India’s imports from Qatar include liquefied natural gas, propane, butane, fertilisers, plastics, and aluminium. Its exports feature industrial goods, rice, jewellery, processed minerals, automobiles, electricals, electronics, and food items such as buffalo meat and sugar.

India has received $1.53 billion in foreign direct investment from Qatar from April 2000 to June 2025. Goyal also co-chaired a meeting with business leaders from both nations. “I can see a lot of opportunities and possibilities here,” he said, noting strong potential for cooperation in agriculture, food products, renewable energy, AI, data centres, tourism, cosmetics, and pharmaceuticals.

On Qatar’s earlier commitment of $10 billion in investments, Goyal said, “They have already invested between $4–5 billion in India and another $1–1.5 billion is already in the pipeline where they are looking at opportunities and are almost at the finalisation stage.” 

He added, “They are looking at good promoters and good projects in India and I am hopeful that our associations like CII and FICCI will certainly provide very good opportunities for investment in manufacturing and in services (sectors) like banking, insurance and AI and data centres and real estate.” (Business Today)

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India is expected to soon announce a Free Trade Agreement (FTA) with Oman, its second pact with a Gulf nation after United Arab Emirates (UAE).

Moneycontrol explains the bilateral trade patterns between India and Oman, as well as the potential sectoral gains due to the FTA.

India-Oman’s $10 billion trade: Details

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.

India imported goods worth $6.55 billion from Oman, while exports to the Gulf nation stood at $4.07 billion, leading to a trade deficit of $2.48 billion in the previous financial year.

India’s exports to Oman during the previous fiscal stayed almost steady with slight dips from $4.48 billion in FY23 and $4.43 billion in FY24, while imports witnessed an almost 45 percent jump on-year due to a sharp contraction in 2023-24.

Top exports to Oman in FY25 were led by petroleum products at $1.43 billion, engineering goods worth $812.2 million, mica, coal and other ores of $428.6 million and chemicals amounting to $241.4 million.

The country also ships limited amounts of textiles, gems and jewellery, and leather products to Oman. A trade deal could boost exports of these labour-intensive goods that are facing the brunt of steeper tariffs from the US.

The FTA could also give a boost to India’s second-largest export item to Oman – engineering goods, shipments of which to the US declined by 5.1 percent in August compared to the previous month as it started to feel the effects of steeper tariffs.

Around 80 percent of Indian goods are subject to an average import duty of 5 percent by Oman.

Oman’s import duty ranges from zero to 100 percent along with steeper tariffs on specific meats, wines and tobacco products.

When it comes to India’s imports from Oman, mineral fuels and fertilisers make up the largest share.

Out of India’s imports worth $6.55 billion from the Gulf nation in FY25, $4.01 billion consisted of mineral fuels and fertilisers, followed by organic chemicals worth $608.74 million and plastics valued at $219.24 million.

India-Oman FTA timeline

Talks for a free trade agreement between India and Oman began in November 2023.

Termed as a Comprehensive Economic Partnership Agreement (CEPA), both sides have held five rounds of in-person negotiations on the proposed deal, with the last one held in New Delhi in January.

Minister of State for Commerce & Industry, Jitin Prasada had in August 2025 informed the Rajya Sabha that negotiations for the CEPA with Oman have concluded.

As of September 2025, both India and Oman have indicated that the trade deal will be announced soon, with Commerce Minister Piyush Goyal indicating earlier this month that it could happen within weeks.

Attempts to broker a trade deal with a second Gulf nation follows India’s Comprehensive Economic Partnership Agreement with UAE, signed on February 18, 2022 and entered into force from May 1, 2022.

Since the signing of CEPA, bilateral merchandise trade has nearly doubled to $83.7 billion in 2023-24 from $43.3 billion in FY21, according to commerce ministry.

Bilateral trade between India and the UAE reached $100.06 billion in FY25. However, imports grew significantly faster at 32.02 percent on-year, versus exports at 2.84 percent.

India’s trade deal with UAE helped boost its labour intensive exports notably in gem and jewellery that have grown from $4.95 billion in FY22 to $8.04 billion in FY24, an increase of over 60 percent.

New Delhi is therefore targeting $100 billion in bilateral non-oil and non-precious metal trade with the UAE by the next three to four years as it seeks to further diversify its exports.

Given the benchmark set by the India-UAE FTA and a pact with Oman on the anvil, the government hopes to sign similar deals with more members of the Gulf Cooperation Council (GCC), including Qatar.

Faced with steeper US tariffs, the India-Oman FTA and additional deals with GCC nations could play a key role in diversifying Indian exports by reducing dependence on traditional buyers. (Money Control)

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Sri Lanka’s Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, completed a four-day official visit to Sichuan Province, China, aimed at deepening economic cooperation and enhancing bilateral trade relations.

Deputy Minister Chathuranga Abeysinghe visited China at the invitation of the China Council for the Promotion of International Trade (CCPIT).

During his visit, the Deputy Minister addressed the South Asia & Southeast Asia Business Development Cooperation Conference and delivered a keynote presentation at the Sri Lanka Economic and Trade Matchmaking Conference, a high-level state–business dialogue. His remarks highlighted Sri Lanka’s potential as an investment destination and emphasized opportunities for strengthening trade partnerships.

Chathuranga Abeysinghe also engaged in discussions with the Nanchong Municipal Government, where he delivered opening remarks at an official session. In addition, he visited a manufacturing facility, an agricultural technology park, and a trade platform supporting small and medium-sized enterprises (SMEs), gaining valuable insights into models for industrial and agricultural innovation.

The visit primarily sought to explore mechanisms for integrating Sri Lankan manufacturing enterprises with their counterparts in Sichuan Province, while also identifying strategies to expand exports of Sri Lankan products to the region. Another important outcome was the initiative to establish a direct institutional partnership between CCPIT and Sri Lanka’s Ministry of Industry to advance future trade promotion efforts.

The Deputy Minister also held meetings with provincial governors, focusing on strengthening mutual trust and reinforcing cooperation between Sri Lanka and the regional governments of China.

Accompanying the Minister were the Chairman of the Federation of Chambers of Commerce and senior private-sector executives. The visit was facilitated by Sri Lanka’s Ambassador to China, Majintha Jayesinghe, and the Embassy’s Director of Commerce, Nalika Jayakody. (Newswire)

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India’s foreign minister said on Saturday that trade negotiations with Washington are continuing but there are lines that New Delhi needs to defend, just days before hefty additional U.S. tariffs are due to hit.

Indian goods face additional U.S. tariffs of up to 50%, among the highest imposed by Washington, due to its increased purchases of Russian oil. A 25% tariff has already come into effect, while the remaining 25% is set to be enforced from August 27.

A planned visit by U.S. trade negotiators to New Delhi from August 25-29 has been called off, dashing hopes that the levies may be lowered or postponed.

“We have some redlines in the negotiations, to be maintained and defended,” Indian Foreign Minister Subrahmanyam Jaishankar said at an Economic Times forum event in New Delhi, singling out the interests of the country’s farmers and small producers.

India-U.S. trade talks collapsed earlier this year due to India not agreeing to open its vast agricultural and dairy sectors. Bilateral trade between the world’s largest and fifth largest economy is worth over $190 billion.

“It is our right to make decisions in our ‘national interest’,” Jaishankar said.

Analysts at Capital Economics said on Friday that if the full U.S. tariffs come into force and stick, the hit to India’s economic growth would be 0.8 percentage points both this year and next.

“The longer-term harm could be even greater as a high tariff could puncture India’s appeal as a global manufacturing hub.”

The Indian minister described U.S. President Donald Trump’s policy announcements as “unusual”.

“We have not had a U.S. president who conducts his foreign policy so publicly as the current one and (it) is a departure from the traditional way of conducting business with the world,” Jaishankar said.

He also said Washington’s concern over India’s Russian oil purchases was not being applied to other major buyers such as China and European Union.

“If the argument is oil, then there are (other) big buyers. If argument is who is trading more (with Russia), than there are bigger traders,” he said. Russia-European trade is bigger than India-Russia trade, he added.

The minister also said India’s purchases of Russian oil had not been raised in earlier trade talks with the U.S. before the public announcement of tariffs. (Reuters)

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The British High Commission in Colombo says Sri Lankan garment manufacturers will gain unprecedented access to UK markets under liberalised trade rules taking effect in early 2026. 

Issuing a statement, the British High Commission said the reforms enable manufacturers to source up to 100% of garment inputs from any country worldwide while maintaining tariff-free access to the UK.

Under the UK’s Developing Countries Trading Scheme (DCTS), Sri Lanka receives benefits as an ‘Enhanced Preference’ country. Current rules allow tariff-free access to Sri Lankan garments if inputs are sourced from the South Asian region, along with restrictions around processing. 

The liberalised rules will now offer Enhanced Preference countries, including Sri Lanka, the same product-specific rules for apparel (chapters 61 and 62) as lower-income countries covered by the scheme, such as Bangladesh, which have ‘Comprehensive Preferences’.

The British High Commissioner to Sri Lanka, Andrew Patrick said: “We are pleased to confirm further details of the reforms to the DCTS. I know from my discussions with the JAAF, Sri Lankan manufacturers and UK brands that the changes are likely to have a significant positive impact on garment sector in Sri Lanka, while helping lower prices on the UK high street.”

The President of The Council for Business with Britain, Mark Surgenor, said: “The upcoming changes to the DCTS will further strengthen Sri Lanka’s exports to the UK. This is a particular success story for Sri Lanka’s garment industry where the proposed changes will mean that more of Sri Lanka’s garment exports to the UK could qualify for zero tariffs. The Council for Business with Britain is very supportive of these changes and looks forward to continuing our work with businesses to promote trade between the UK and Sri Lanka.”

The enhanced trade arrangements demonstrate the UK’s role as a progressive trade partner. By simplifying rules of origin, the reforms enable Sri Lankan manufacturers to compete more effectively in global markets while maintaining preferential access to the UK.

The Developing Countries Trading Scheme provides preferential trading arrangements for 65 developing countries. Sri Lanka holds Enhanced Preference status, offering significant tariff reductions across multiple product categories.

Aside from the changes to product-specific rules associated with garments, the UK announced in June the creation of a new Asia Regional Cumulation Group of 18 countries that Sri Lanka can source from for all other products eligible to access the UK’s preferential tariff benefits. Input sourced from another country in this regional group will be considered as originating in Sri Lanka, where the final processing or manufacturing takes place. Increasing cumulation provisions and adding value to exports in this way support countries to be competitive by allowing more products to qualify for preferential tariffs. (Newswire)

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The United States and the European Union have reached a wide-ranging trade agreement, averting a full-blown transatlantic trade war days ahead of an August 1 deadline for the introduction of steep tariffs.

The deal, which imposes a 15 percent tariff on most European goods, came after a private meeting on Sunday between US President Donald Trump and European Commission President Ursula von der Leyen in Scotland.

“It was a very interesting negotiation. I think it’s going to be great for both parties,” Trump told reporters at his Turnberry golf resort, hailing the agreement as the “biggest deal ever made”.

Von der Leyen said the agreement would “bring stability” and “bring predictability that’s very important for our businesses on both sides of the Atlantic”.

The deal, sealed days before Washington was due to impose a 30 percent tariff on EU imports, is the most significant of Trump’s trade deals announced so far, following preliminary pacts with Japan, the United Kingdom, Indonesia, Vietnam and the Philippines, and a 90-day trade truce with China.

The EU is the US’s largest trading partner, with two-way trade in goods and services last year reaching nearly $2 trillion.

Under the deal, the 15 percent tariff will be applied broadly to European exports, including automobiles.

The 15 percent baseline rate marks a reprieve for Europe’s auto industry, which had since April been subject to a 25 percent duty on top of a pre-existing 2.5 percent levy.

Under the agreement, a limited range of goods, including plane parts, semiconductor equipment, certain chemicals and some agricultural products, will be fully exempt from tariffs.

Trump said the EU also committed to buying about $750bn worth of US energy, in addition to boosting overall investment in the US by $600bn and placing a large order for military equipment.

“We have the opening up of all of the European countries,” Trump said.

Still, few details were included in the announcement.

“The big caveat to today’s deal is that there is nothing on paper, yet,” Carsten Brzeski, Global Head of Macro for ING Research, said in a note.

“The next hours and days will hopefully bring more clarity, Therefore, any assessment has to be taken with more than only one pinch of salt.”

The breakthrough follows months of tense back-and-forth exchanges between European officials and Trump, who has long accused the EU of unfair trade practices.

Just before negotiations began, Trump called the existing arrangements “a very one-sided transaction; very unfair to the United States”.

On Sunday, Von der Leyen pointed to the combined economic might of the US and Europe, saying that their trade encompassed “hundreds of millions of people and trillions of dollars”.

Von der Leyen also acknowledged Trump’s “tough” reputation as a negotiator, to which he replied: “But fair.”

Trade conflict averted

Earlier this month, negotiations appeared close to collapse when Trump threatened to proceed with the 30 percent tariff unless the EU matched the 15 percent rate he recently agreed to with Japan.

Asked if he would accept anything lower, Trump flatly said, “No”.

In anticipation of the possibility that the sides could fail to reach a deal, Brussels had prepared a long list of retaliatory tariffs targeting everything from beef and beer to Boeing aircraft and car parts.

German Chancellor Friedrich Merz welcomed the agreement.

“This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,” Merz said in a statement.

“This applies in particular to the automotive industry, where the current tariffs of 27.5 percent will be almost halved to 15 percent.”

Italian Prime Minister Giorgia Meloni said it was “positive” that a trade deal had been reached, but she would need to see the details to properly judge the agreement.

Other European lawmakers were more critical.

Danish MP Rasmus Jarlov said the announcement was “nothing to celebrate”.

“Almost everything will become more expensive in both Europe and the USA, and we will all be worse off,” Jarlov, a member of the Conservative People’s Party, said on X.

“The economic illiteracy in the White House is doing serious damage to the West.”

Trump, who is in Europe until Tuesday, is scheduled to meet UK Prime Minister Keir Starmer on Monday for talks that are also expected to focus heavily on trade.

While a separate US–UK trade framework was unveiled in May, many elements of the agreement have not been clarified.

On Tuesday, Trump will travel to Aberdeen to open a third golf course under the family name before departing for Washington later in the day. (Al Jazeera)

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The Government of the United Kingdom (UK) has unveiled a package of reforms to simplify imports from developing countries like Sri Lanka after upgrades to the Developing Countries Trading Scheme (DCTS).

According to a British High Commission statement, the upgrades to the SCTS scheme make it easier for businesses to trade with the UK and help lower prices on the UK high street.

The changes, announced as part of the UK’s wider Trade for Development offer, aim to support economic growth in partner countries, including Sri Lanka, while helping UK businesses and consumers access high-quality, affordable goods. 

This announcement builds on the UK’s Trade Strategy published last month. New measures include simplifying rules of origin, enabling more goods from countries such as Sri Lanka, Nigeria, and the Philippines can enter the UK tariff-free, even when using components from across Asia and Africa.

The announcement follows engagement with UK businesses and international partners, major importers and trade associations. This included the Sri Lankan government and the  Joint Apparel Association Forum (JAAF). The most significant positive change for Sri Lanka is that the rules of origin for the garments sector specifically will be liberalised. 

The changes will ensure that DCTS countries can now source their materials from a wider range of nations and will give manufacturers from countries such as Sri Lanka the opportunity to take advantage of 0% tariffs on garments. These changes are expected to be in place by early 2026.

The British High Commissioner to Sri Lanka, Andrew Patrick, said: “This is a win for the Sri Lankan garment sector, and for UK consumers. With the UK being the second largest export market and garments making up over 60% of that trade, we know manufacturers here will welcome this announcement.

“We want Sri Lanka to improve the utilisation of the UK’s Developing Countries Trading Scheme for a wider range of goods, not just garments. With the Sri Lankan government’s ambition to grow exports, and with the simplification of rules of origin for other sectors too, we strongly encourage more exporters to explore how they can benefit from the preferences offered by the DCTS. The UK remains committed to working towards creating shared prosperity for both our countries.”

Responding to the announcement, Secretary General of the Joint Apparel Association Forum (JAAF) Yohan Lawrence said: “We warmly welcome the UK’s Trade Strategy. JAAF has worked very closely with the UK Government to work on solutions to improve the utilization of the Scheme. We are delighted that, for garments, it will now be possible to source more raw material regionally and continue to qualify for duty-free export to the UK. This will be a game-changer for our trade with the UK under the DCTS.”

“We believe that the changes will also deliver significant improvements against the objectives of the Scheme. At around USD 675m in value, the UK is the second largest market for Sri Lanka Apparel, accounting for close to 15% of apparel exports, while the industry supports a million livelihoods across the country. This announcement will help secure employment opportunities and ensure sustainable growth in Sri Lanka by allowing us to compete on equal terms with our major competitors, and we expect exports to increase significantly when the new rules come into effect.”

Launched in 2023, following the UK’s exit from the EU, DCTS is the UK’s flagship trade preference scheme, covering 65 countries (including Sri Lanka) and offering reduced or zero tariffs on thousands of products. It is one of the most generous schemes of its kind in the world. The recent changes further improve this offer. 

This will open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies. In addition to the DCTS changes, the UK will continue to provide targeted support to help exporters in Sri Lanka to access the UK market and meet import standards, particularly focused on agri-foods and apparel sectors. 

This is through programmes being delivered by the International Trade Centre (ITC) in partnership with the Sri Lanka Export Development Board:

• The UK Trade Partnerships programme will continue to support ongoing work on strengthening and rolling out Sri Lanka’s national organic standards, alongside completing certification audits of existing beneficiaries, and delivering training on digital marketing.
• Following the work on establishing the SheTrades Commonwealth+ hub in Sri Lanka earlier this year, the UK will continue to support building policy capacity to mainstream gender into trade policy. 

Full government statement: https://shorturl.at/Iso2z (Newswire)

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US President Donald Trump has announced that he will unveil a new round of trade-related correspondence on Wednesday, targeting at least seven additional countries with fresh reciprocal tariff measures, as his administration doubles down on efforts to address what it claims are longstanding global trade imbalances.

In a post on Truth Social, Trump said: “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter!”

The letters, expected to be published publicly before being officially dispatched, will notify countries of new tariff rates ranging from 25% to 40%, scheduled to come into effect on 1 August 2025. 

On Monday, Trump posted 14 letters from countries, including South Africa, Malaysia, and Thailand, outlining tariffs ranging from 25% to 40%.

President Trump ramped up his tariff threats on Tuesday with a post on Truth Social, saying there will be no extensions and that money will be due and payable starting Aug. 1.

“There has been no change to this date, and there will be no change,” Trump wrote. “In other words, all money will be due and payable starting AUGUST 1, 2025 – No extensions will be granted.”

Trump’s renewed firmness on that deadline came after he posted a flurry of letters warning world leaders, threatening to impose tariffs similar to those he announced in April. (Foreign Media)

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The United States and China have agreed on a framework to implement their trade truce, officials on both sides said Wednesday, after concluding two days of talks in London to defuse tensions and ease export restrictions that threaten to disrupt global manufacturing.

American and Chinese negotiators agreed “in principle” to a framework on how to implement the consensus reached by the previous round of talks in Geneva last month and a phone call between the two countries’ leaders last week, China’s trade negotiator Li Chenggang told reporters in London, according to Chinese state broadcaster CGTN.

Officials on both sides will now take the proposal back to their leaders for approval, US Commerce Secretary Howard Lutnick told reporters in a separate briefing in London, Reuters reported. “If that is approved, we will then implement the framework,” he said.

While neither side disclosed any specifics of the deal, Lutnick indicated that both had agreed to roll back export controls on goods and technologies that are crucial to the other.

China’s restrictions on exports of rare earth minerals and magnets to the US will be resolved as a “fundamental” part of the framework agreement, Lutnick said, according to Reuters.

“Also, there were a number of measures the United States of America put on when those rare earths were not coming,” he added. “You should expect those to come off, sort of as President Trump said: ‘In a balanced way.’”

Frustrated by what it saw as Beijing’s retreat from its pledge made in Geneva to ease rare earth exports, the US restricted chip design software sales to China and vowed to “aggressively revoke” Chinese student visas.

Kevin Hassett, director of the National Economic Council, told CNBC Monday that the Trump administration may be open to loosening restrictions on some microchips that China views as critical to its manufacturing sector. The US will maintain restrictions on “very, very high-end Nvidia” chips that are capable of powering artificial intelligence systems, he added.

CNN has reached out to the White House for comment.

Export controls take center stage

The latest round of talks, held at the ornate Lancaster House in central London, underscored the increasingly central role export controls have played in the trade war between the world’s largest economies.

It also highlighted Beijing’s powerful leverage from its dominance of the rare earth supply chain – and its growing readiness to wield it in pressing the US to ease export restrictions on China.

Rare earth minerals and their magnets are essential for everything from cars to fighter jets, and China holds a near-monopoly on these materials that are critical to American industries and defense.

Following their long-anticipated phone call last week, Trump said Xi had agreed to restart the flow of rare earth minerals and magnets, though he did not elaborate on how fast that would happen or the volume of the materials that would be released.

Since early April, when Beijing imposed new licensing rules on certain minerals in response to Trump’s tariffs, China’s overseas shipments of rare earths have plunged, threatening industries globally, from electronics and defense to energy and carmaking.

Over the past month, Trump has imposed punitive measures on Beijing, including limits on technology sales to China and threatening to revoke the US visas of Chinese students, which was prompted by a belief that China had failed to live up to commitments it made in Geneva, administration officials told CNN in May.

The measures also include a ban on US companies selling to China software used to design semiconductors. The White House additionally warned US companies against using artificial intelligence chips made by China’s national tech champion Huawei.

The moves have triggered backlash from China, which views Washington’s decisions as violating the Geneva consensus.

The US and China agreed in the Swiss city on May 12 to temporarily roll back crippling tariffs on each other and use a 90-day window to hash out a broader deal to address their trade imbalance. But despite the reprieve, China’s exports to the US suffered a steep decline of 34.5% in May, according to Chinese customs data, and the renewed friction necessitated another round of talks.

“The progress made during this round of talks in London is conducive to further building trust between China and the United States, promoting the stable and healthy development of China-US economic and trade relations,” Li, China’s top international trade negotiator and vice commerce minister, said Wednesday, CGTN reported.

Semiconductor chokepoint

Although US access to rare earths has not been a source of friction until recently, the feud over advanced technology has been rumbling for some time. In recent years, Washington has stepped up efforts to restrict China’s access to chip-related technologies, aiming to prevent Beijing from using American innovations to bolster its military and AI capabilities.

During his first term, Trump imposed targeted restrictions on companies like Huawei, including limits on chip sales to them. In 2022, then-President Joe Biden intensified these efforts, curbing the sale of advanced semiconductors to China over concerns that they could power its military. The controls were subsequently expanded to include restrictions on sales of chipmaking equipment, high-bandwidth memory chips and even products manufactured outside the US using American technology, in order to limit China’s technological progress.

The mounting restrictions have put heavy pressure on China’s strategic sectors that Xi has prioritized, including semiconductors and AI.

But in recent years Huawei, the Chinese telecom and electronics giant, has re-emerged as a national champion, with Beijing pinning its hopes on the company to lead innovation in these sectors.

Although US restrictions initially crippled its smartphone business, the company made a stunning comeback in 2023 with a handset powered by advanced chips, technology Washington believed it had blocked. The launch of the Mate 60 smartphone in 2023 even triggered investigations by the US government.

In a rare interview Tuesday, Ren Zhenfei, the founder of Huawei, dismissed the impact of the technology restrictions the US had imposed on China and Huawei, while conceding that its chip technology remains one generation behind US technology.

“The US has exaggerated Huawei’s capabilities. We’re not that advanced yet,” he told the People’s Daily, a newspaper run by China’s Communist Party.

But he added that China’s current needs could be met by bundling microchips together, an approach the industry commonly refers to as packaging or stacking.

“There’s actually no need to worry about the chip issue. By using methods like stacking and clustering, the computational results are comparable to the most advanced levels,” he said. (CNN)

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China’s export growth slowed to a three-month low in May as shipments to the United States dropped following tariffs imposed by President Donald Trump, according to customs data released on Monday.

While exports rose 4.8% year-on-year, it was down from 8.1% in April, with shipments to the US falling almost 12% month-on-month.

The report of the slowdown comes just hours before another round of trade talks between US and Chinese officials in London.

In May, China exported $28.8 billion (€25.23 billion) worth of goods to the US, down from $33 billion in April.

Analysts say the strong trade figures in March and April can be attributed to a rush by exporters to ship goods ahead of anticipated tariff hikes.

At the same time, imports from the US also fell 7.4% to $10.8 billion.

Trump, Xi phone call signals thaw in ties

On Thursday, Trump said he had a “very good phone call” with China’s President Xi Jinping, which “resulted in a very positive conclusion for both Countries.”

The call comes amid a 90-day tariff truce that came into effect last month which paused a spiraling trade war between the world’s two largest economies.

Trump has lowered his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks while China also reduced its taxes on US goods from 125% to 10%

Beijing braces for economic fallout

The China-US trade talks are happening as US policymakers have voiced frustration at China’s stalling on export license approvals for rare earths and other elements needed in the high-tech, defense, and clean energy sectors.

China’s government data also showed a fall in the producer price index, while consumer prices dipped.

Meanwhile, to cushion the economic blow, Beijing introduced new stimulus measures in May, including interest rate cuts. (DW)

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The Sri Lanka-Canada Business Council (SLCBC) of the Ceylon Chamber of Commerce successfully concluded its nine-member trade and investment mission to Canada, strengthening bilateral ties and exploring trade, investment, and allied opportunities in key sectors. 

According to the Ceylon Chamber of Commerce, held from 14-22 October, the mission was led by SLCBC President Priyantha Chandrasekara and included constructive exchanges with Canadian business leaders, government officials, academic institutions, and business chambers.

Before departing for Canada, the delegation held a briefing with Sri Lankan Prime Minister Dr. Harini Amarasuriya to discuss the objectives and anticipated impact of the mission, signalling the importance of this initiative at the highest levels of Sri Lanka’s government.

The mission’s flagship event, the Sri Lanka-Canada Business Forum, was held on 15 October and showcased abundant opportunities for collaboration between the two nations. 

Keynote speaker Kula Sellathurai, President of the Canada Sri Lanka Business Convention (CSBC), the SLCBC’s counterpart in Canada, highlighted Sri Lanka’s growth potential in emerging sectors. The SLCBC leadership, including President Priyantha Chandrasekara and Vice President Mohammad Hameez, outlined Sri Lanka’s strategic advantages in trade and investment, focusing on critical areas such as higher and tertiary education, smart and green agriculture, travel and tourism IT and startups. The forum spotlighted the Colombo Port City project and the Industrial Processing Zone in Kankesanthurai (KKS), presenting compelling investment incentives for Canadian businesses.

Following the forum, CSBC hosted a networking session attended by prominent business leaders and members of the Scarborough Business Association, facilitating discussions on joint ventures and collaborative projects.

The delegation engaged with the Council of Ontario Universities, including its President and CEO, Steve Orsini, to explore educational partnerships, research initiatives, and student mobility opportunities, particularly in STEM fields.

Additionally, discussions with the J’pura Canada Alumni Association highlighted a strong demand for enhanced educational exchanges, paving the way for expanded academic collaboration between Canada and Sri Lanka. In further engagements, the delegation explored agriculture, mineral exports, and educational partnerships with the Can Lanka Business Association.

In Ottawa, Chandra Arya, Member of Parliament for Nepean West, welcomed the delegation to the Canadian Parliament for discussions on reducing trade barriers and fostering a favourable business climate. The Sri Lanka-Canada Business Council (SLCBC) also met with the Sri Lankan High Commissioner to Canada, U.L. Mohammed Jauhar, who expressed strong support for these initiatives. 

The delegation then proceeded to Montreal, where discussions continued with Global Affairs Canada and key Canadian food manufacturers. These meetings focused on expanding Sri Lankan exports, particularly coconut-based products, and creating pathways for Sri Lankan students seeking higher education in Canada, with a shared commitment to boosting bilateral trade flows.

In Vancouver, discussions with the Tri-Cities Chamber of Commerce and the Surrey Board of Trade centred on collaborative opportunities in Agri-Tech, IT, and tourism, further emphasizing the growth potential of bilateral ventures. The delegation also engaged in discussions with Surrey City Councillor Linda Annis, as well as Jim Bennett, Honorary Consul of British Columbia to Sri Lanka, and members of the Sri Lanka Friendship Association. The meetings highlighted Surrey’s extensive business landscape and provided insights into the vibrant Sri Lankan diaspora’s role in promoting bilateral ties.

The delegation was honoured at the 22nd Anniversary of the Saravana Bhawan Restaurant Chain by owner and philanthropist Ganesan Sugumar, who is also head of the CSBC’s counterpart organization in Canada. Sugumar warmly welcomed the delegation alongside prominent investors, for this anniversary celebration.

The delegation’s visit closed with reaffirmed commitments from both the SLCBC and Canadian partners to foster sustainable economic growth and formalize future collaborative efforts. This mission signifies an exciting new chapter in Sri Lanka-Canada relations, setting a robust foundation for increased trade, investment, and educational exchange initiatives.

The Sri Lanka-Canada Business Council (SLCBC) states it is pleased to welcome our Canadian counterparts and distinguished business leaders from various chambers to Sri Lanka in early 2025. This visit will provide a platform for discussions with prominent Sri Lankan business figures and government officials on trade, investment, and joint venture opportunities, strengthening the partnership between our nations. (Newswire)

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Sri Lanka and the UK have discussed ways to maximise trade under the concessional trade facility -the Developing Country Trading System (DCTS), including by expanding the export basket, with further assistance and collaboration from the UK, Sri Lanka’s Foreign Ministry said.

The views were exchanged during the Second Sri Lanka – UK Strategic Dialogue held at the Ministry of Foreign Affairs on Tuesday (May 07). 

According to the Ministry of Foreign Affairs, the Sri Lanka delegation at the meeting was led by Director General / Europe and North America Shobini Gunasekera and the UK side by Director / India and Indian Ocean Directorate at the Foreign Commonwealth and Development Office (FCDO) Ben Mellor.  Discussions were also held with Foreign Secretary Aruni Wijewardane.

During the discussions, the delegations acknowledged the cordial ties over 75 years of diplomatic relations and the regular exchange of high-level visits. The two delegations exchanged views on foreign and security policy priorities in the context of evolving dynamics on the global stage, and mutual commitment to multilateralism. The discussion also focused on ongoing economic cooperation.  

Views were also exchanged on ways to maximise trade under the concessional trade facility -the Developing Country Trading System (DCTS), including by expanding the export basket, with further assistance and collaboration from the UK. Both sides acknowledged the growth observed in tourism between the two countries and the need for expanding Sri Lankan Airlines operations to the UK.  

The two delegations also exchanged views on climate change and environmental policies and further collaborated in this area. Sri Lanka appreciated the UK’s collaboration through the Ocean Country Partnership Programme, which aims to strengthen marine science expertise in the country. Sri Lanka was briefed on the Offshore Wind Roadmap, and views were exchanged on potential collaboration in this area with the expertise of the UK.

Both delegations exchanged views on the need for facilitating legal migration channels, including in the healthcare sector. Views were also exchanged on expansion of maritime cooperation focusing on the early conclusion of an MOU on Cooperation between the Hydrographic Offices of the two countries.  Opportunities for collaboration in education and Cooperation at international fora, particularly at the UN, Commonwealth and IORA were also discussed.

British High Commissioner Andrew Patrick and senior officials from the Ministry of Foreign Affairs and several government agencies also participated.  The next Dialogue will be held in 2025. (Newswire)

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President Ranil Wickremesinghe has underscored the critical importance of fortifying the extensive trade and economic ties between Sri Lanka and India promptly to ensure mutual advantages for both nations.

The President said Sri Lanka’s immediate focus should be on enhancing these relations, adding “We aim to foster comprehensive ties between our two nations, particularly in the realms of transportation and energy.”

“Furthermore, we must strategically leverage Sri Lanka’s advantageous position to benefit South India. Our efforts are concentrated on revitalizing Trincomalee, especially as Southeast Asia and the Bay of Bengal regions experience growth. The increasing strategic importance of the Bay of Bengal area has led to improvements in the utilization of the Colombo Port. Our objective is to secure advantages for Sri Lanka and provide additional renewable energy resources for South India,” President Wickremesinghe said. 

He expressed these views during his presence at a special commemoration ceremony organized by the Sri Lanka India Society in Colombo yesterday (14). 

This event was arranged to mark the 76th Independence Day of Sri Lanka and the 75th Republic Day of India, signifying the historical and diplomatic significance of the occasion.

According to the President’s Media Division (PMD), President Ranil Wickremesinghe and Professor Maithree Wickramasinghe were the chief guests at this event. 

Their attendance was complemented by the presence of Santosh Jha, the Indian High Commissioner to Sri Lanka, who graced the event as a special guest, underscoring the warm relations between the two neighbouring nations. 

This gathering of notable personalities served as a symbolic representation of the shared values and concerted endeavours dedicated to enhancing the bond between Sri Lanka and India, reflecting a spirit of collaboration and mutual respect.

President Ranil Wickremesinghe’s full address at the event;

“There is a profound religious and cultural bond between Sri Lanka and India, and we share a common heritage. One of the notable aspects of this year’s 75th anniversary is the “Joint Vision” statement that was signed by Prime Minister Narendra Modi and me.

Throughout our discussions, we have consistently focused on the cultural and religious ties between our two countries, as well as the fact that we are both democracies with a shared British legal system. However, we have unfortunately overlooked the trade and economic relationship between Sri Lanka and India.

It’s important to remember that our relationship extends beyond cultural connections. Historical evidence suggests that even during the time of the Mohenjodaro civilization, ships sailed from India to Sri Lanka. Particularly in South India and Sri Lanka, the four kingdoms of Anuradhapura, Thanjavur, Madurai, and Kanchipuram either formed alliances or were embroiled in conflicts based on their economic interests.

The Trincomalee harbour played a crucial role as a major harbour for three Indian kingdoms to access eastern countries around the world on numerous occasions. The discovery of a substantial number of coins in shrines like the Munneswaram temple, Ketheeswaram temple, Mantai, Naguleswaram temple (constructed for people from Jaffna, known as Dambakolapatuna), Koneswaram temple, and Trincomalee vividly illustrates the extensive trade relationship and activities between India and Sri Lanka.

Moreover, coins issued by South Indian trade organizations have been unearthed in certain areas during excavations of ancient villages in Anuradhapura. This archaeological evidence indicates that well before the agreement on the use of the Sri Lankan Rupee and the Indian Rupee was signed, people in the past utilized a common currency for conducting trade transactions.

Therefore, our immediate focus should be on enhancing these relations. We aim to foster comprehensive ties between our two nations, particularly in the realms of transportation and energy. Furthermore, we must strategically leverage Sri Lanka’s advantageous position to benefit South India. Our efforts are concentrated on revitalizing Trincomalee, especially as Southeast Asia and the Bay of Bengal regions experience growth. The increasing strategic importance of the Bay of Bengal area has led to improvements in the utilization of the Colombo Port. Our objective is to secure advantages for Sri Lanka and provide additional renewable energy resources for South India.

In terms of the tourism industry, it’s noteworthy that we see a significant influx of tourists from India visiting Sri Lanka, while many Sri Lankans frequently travel to India. Notably, a considerable number of Sri Lankan tourists visit destinations like Thirupathi, Ayodhya, and Guruvayur, mirroring the interest of Indian tourists who visit Sri Lanka.

If we collaborate effectively, our country will prosper alongside the development of the Indian Ocean. Our goal is to achieve economic integration, as there is no alternative path forward. We must learn from the mistakes made by Britain during its time in the European Union, which ultimately led to their decision to leave.

Despite this, Britain is currently seeking a free trade agreement with India, although the outcome remains uncertain. Nonetheless, we must recognize the opportunities before us and strategize on how to progress together with India. It is important to note that this process can be relatively straightforward.

For instance, a person from Bangalore can easily plan a vacation in Sri Lanka compared to traveling to Rajasthan. The proximity and accessibility are evident, with a one-hour flight to Sri Lanka compared to a two-hour flight to Rajasthan. Additionally, there are prospects for establishing supply chains across various sectors, including industrial activities, amidst the growing development of the Indian Ocean.

The Indian Ocean region is experiencing significant growth, with countries like India, Indonesia, Iran, and Saudi Arabia rapidly advancing in various aspects.

The Indian Ocean region is poised to become a significant economic hub in the next 50 to 60 years, especially as the African region undergoes development. It is imperative that we initiate this endeavour now. Given the existing political relations between our two countries and our proximity in various sectors, it is crucial that we collaborate and progress together. Such cooperation will yield benefits for both nations.

I extend my gratitude to the Sri Lanka-India Society for their efforts in strengthening the relations between our countries through last year’s program. I am optimistic that the “Joint Vision” statement we have unveiled will be effectively implemented moving forward.

Ministers Manusha Nanayakkara and Vidura Wickramanayake, along with State Ministers Aravind Kumar, Shehan Semasinghe, and Suren Raghavan, as well as Eastern Province Governor Senthil Thondaman, Senior Adviser to the President on National Security and Chief of the Presidential Staff Sagala Ratnayaka, Chief Justice Jayantha Jayasuriya and diplomatic officers were among the dignitaries present at this event. Additionally, the official board of the Sri Lanka India Club and its members, along with representatives from the business communities of both countries, were also in attendance on this occasion. (NewsWire)

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Bangladesh has expressed a keen interest in expanding trade and commerce with Sri Lanka.

Bangladesh Foreign Minister Dr Hasan Mahmud on Monday expressed his interest while Sri Lankan High Commissioner in Dhaka Dharmapala Weerakkody paid a courtesy call on him at the foreign ministry.  

According to The Financial Express, during the meeting, they discussed matters of mutual interest.

FM Mahmud expressed his satisfaction with the existing bilateral relations between Bangladesh and Sri Lanka.

He thanked the high commissioner for conveying the congratulatory message to Prime Minister Sheikh Hasina from the Head of State and the Head of the Government of Sri Lanka, following the victory in the 12th National Parliamentary elections.

The foreign minister also expressed happiness over Sri Lanka’s economic recovery, adding that Bangladesh always stands by Sri Lanka during times of crisis.

FM Mahmud emphasised realising the full potential of the two countries in strengthening relations for the betterment of the peoples of the two countries.

He mentioned that both countries may also further intensify bilateral cooperation in the areas of trade, agriculture, fisheries, ICT, and hospitality sector, shipping and maritime connectivity, and people-to-people contact.

FM Mahmud added that bilateral trade may be expanded by exporting high-quality pharmaceuticals and garments to Sri Lanka.

He also requested more Sri Lankan investment in economic zones. The foreign minister underlined the early conclusion of bilateral instruments, including the Preferential Trade Agreement (PTA).

High Commissioner Weerakkody informed the Foreign Minister of the prevailing economic situation in Sri Lanka and highlighted that Sri Lanka is now in an economic recovery phase with the support of its friendly countries like Bangladesh. 

He mentioned that both countries can work together to expand further sectoral cooperation for the mutual benefit of both countries.

The foreign minister sought the support of Sri Lanka in the early repatriation of Rohingyas. He also emphasised that Bangladesh and Sri Lanka can work together for extensive and substantial cooperation in regional bodies like SAARC, BIMSTEC, and IORA.

The foreign minister wished the high commissioner a successful tenure in Bangladesh and assured him of all-out support. (NewsWire)

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India-Greece trade has surged in the last two years on the back of re-engineering of global supply chains and strategic efforts of the countries to find their fruitful trade partners. Considering the complementarities and strategic proximity between India and Greece; the trade trajectory between the two can expand manifold in the coming years. The recent visit of Greek Prime Minister, Mr. Kyriakos Mitsotakis to India has opened new avenues for the trade expansion and humanitarian development. New initiatives for defence cooperation along with migration and mobility pact have potential to double the bilateral trade in the next 5-6 years.

India and Greece have strategic proximity in the realm of global supply chains. Both have advantages to enhance penetration in the large Indian and European Markets and opportunities to strengthen the supply chains between Europe and India. The post-pandemic years have witnessed strong resilience of supply chains, leading to a significant increase in bilateral trade between India and Greece. The trade between the two nations has grown from USD 569 million in FY 2020 to USD 1944 million in FY 2023 marking an increase of approximately 3.5 times. India’s exports to Greece surged from USD 445 million in FY 2020 to USD 786 million in FY 2023 and imports from Greece experienced a substantial increase from USD 124 million in FY2020 to USD 1158 million in FY 2023. Going ahead, trade trajectory is expected to double to the level of USD 4000 million by 2029-30.

There are significant complementarities in trade between the two countries; India exports primary, semi-finished, and finished goods, and importing mainly primary products, especially energy commodities like mineral fuels and related products.

The major items of exports from India to Greece are aluminium and articles thereof, organic chemicals, electrical machinery and equipment and parts thereof, fish and crustaceans, iron and steel, articles of apparel and clothing accessories, plastic and articles thereof, paper and paperboard;, other made up textile articles, and coffee, tea, mate and spices.

India’s major items of imports from Greece are mineral fuels, mineral oils and products, aluminium and articles thereof, pulp of wood or of other fibrous cellulosic material, edible fruit and nuts, iron and steel, copper and articles thereof, salt, miscellaneous chemical products, cotton, organic chemicals.

Numerous Greek companies, with various Greek conglomerates are expressing interest in engaging in various business activities in India including exporting olive oil, olives, wine, cheese, fruits, fruit juice, consumer goods, construction materials, and aluminium products to India.

In the same line, significant investments in Greece have been made by several Indian conglomerates and these investments serve as a catalyst for the further growth of India- Greece bilateral trade relations. The expanding economic cooperation between the two countries is expected to play a pivotal role in driving the significant gains from trade and welfare for each other emanated from defence production cooperation, migration and mobility pact, among others.

During the recent visit of Greek Prime Minister, Mr. Kyriakos Mitsotakis to India, both the countries agreed for enhanced bilateral cooperation in many promising areas such as pharmaceuticals, medical devices, technology, innovation, skill development and space. India’s skilled labour will be benefitted with its easier movement to Greece as both the nations have agreed to quickly finalise the proposed migration and mobility pact. Indian workers will have opportunities in the farm, manufacturing and construction sectors.

In his remarks about India, Greek PM Mr. Kyriakos Mitsotakis during his visit said

“Today, India is a great power on the world stage and an important ally in pursuit of peace and security — a rising force at the heart of G20 and a leading player in the fight against climate change”

Both the countries have emphasised to promote cooperation between higher education institutions, to set up a working group for defence, linking the defence industries of both countries, mutual coordination on common challenges like defence, cyber security, counter-terrorism, and maritime security. Greece has opportunities to become an important component of the India-Middle East-Europe Economic Corridor (IMEC) launched during India’s G20 Presidency. This will further enhance supply chains between India, Middle East and Europe and enhance the production possibilities and trade expansion between many countries in these regions.

In conclusions, both the countries are keen to boost their nascent strategic partnership; both have many common concerns and priorities. The new initiatives such as migration and mobility pact, defence co-production and co-development will give a modern shape to India–Greece bilateral relations to enter new orbit of opportunities. The strong cooperation and complementarities between the two will have boost to production processes and employment creation. The future holds a promising outlook for the expansion of trade trajectory, as the strengthening of supply chains and enhanced cooperation in many areas is set to propel growth of bilateral trade between the two countries. (News Bomb)

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