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Comprehensive Economic Partnership Agreement between India and Sri Lanka: Where does it lead?

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Author Info

  • Biswajit Nag

    ()
    (Indian Institute of Foreign Trade, New Delhi, India)

Abstract

India-Sri Lanka signed free trade agreement (FTA) in 1998. Looking at the success of the agreement both the countries engaged themselves in negotiating a ‘Comprehensive Economic Partnership Agreement’ (CEPA), which include trade, investment, and technology transfer etc. The CEPA negotiation was initiated in 2005 and concluded in July 2008, after thirteen rounds of negotiations. CEPA comprise of four objectives; widening and deepening of the existing FTA, establishing an agreement on trade in services, including measures for promotion of investment in each other's countries and enhancing economic cooperation. Both sides had decided to sign the CEPA during the 15th SAARC Summit held in Colombo but due to reservations expressed by Government of Sri Lanka, the agreement has still not been signed. Reservations were based on two broad concerns: about the nature of the CEPA itself and that the drawbacks in the FTA should be dealt with first, prior to embarking on a CEPA. It is important to note that CEPA has made attempts to address both the issues. The paper analyses the positive and negative views about the current trade dynamics between these two countries and their possible implication in post CEPA period. The article also analyses various clauses imbibed in the agreement for services and investment issues.

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File URL: ftp://wpaper.iift.ac.in/WorkingPapers/eciift1004.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Indian Institute of Foreign Trade in its series Working Papers with number 1004.

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Length: 19 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:ift:wpaper:1004

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Keywords: Economic Integration; India-Sri Lanka Trade;

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  1. Saman Kelegama & Indra Nath Mukherji, 2007. "India-Sri Lanka Bilateral Free Trade Agreement : Six Years Performance and Beyond," Trade Working Papers 22104, East Asian Bureau of Economic Research.
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