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India-Sri Lanka Bilateral Free Trade Agreement : Six Years Performance and Beyond

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  • Saman Kelegama

    (RIS)

  • Indra Nath Mukherji

Abstract

India-Sri Lanka Bilateral Free Trade Agreement signed in1998 was a pioneering attempt in the direction of trade liberalization in South Asian region. This paper examines the performance of the Agreement in the first six years of its coming into being and draws lessons from its success that could be relevant in the context of SAFTA and other such initiatives. Section 1 of the paper gives an overview of the history of Indo-Lanka trade links and the birth of the Indo-SriLanka Bilateral Trade Agreement. It also talks about the conceptualization of the ILBFTA. Section 2 highlights the positive outcomes of the ILBFTA. Section 3 highlights the negative outcomes and problematic areas that have caught the attention of the trade negotiators. Section 4 describes the steps taken and progress made in moving the FTA towards a Comprehensive Economic Partnership Agreement (CEPA). Section 5 discusses about lessons from six years of success.

Suggested Citation

  • 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.
    • Handle: RePEc:eab:tradew:22104
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    References listed on IDEAS

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    1. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters, in: Bengt-Åke Lundvall & Patarapong Intarakumnerd & Jan Vang (ed.), Asia’s Innovation Systems in Transition, chapter 10, Edward Elgar Publishing.
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    Cited by:

    1. Kelegama, Saman, 2014. "The India–Sri Lanka Free Trade Agreement and the Proposed Comprehensive Economic Partnership Agreement: A Closer Look," ADBI Working Papers 458, Asian Development Bank Institute.
    2. Prema-chandra Athukorala, 2014. "Intra-regional FDI and Economic Integration in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 1-35, March.
    3. Weitzel, Matthias & Peterson, Sonja, 2011. "The carbon content of trade: Under border tariff adjustments and a global carbon regime," Conference papers 332076, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Chandrima Sikdar, 2010. "India–Sri Lanka Bilateral Trade," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(2), pages 155-180, September.
    5. Nagesh Kumar, 2007. "Regional Economic Integration, Foreign Direct Investment and Efficiency-Seeking Industrial Restructuring in Asia : The Case of India," Macroeconomics Working Papers 22110, East Asian Bureau of Economic Research.
    6. Deshal de Mel & Suwendrani Jayaratne, 2012. "Vertical Integration of Industries in South Asia," Chapters, in: Sultan Hafeez Rahman & Sridhar Khatri & Hans-Peter Brunner (ed.), Regional Integration and Economic Development in South Asia, chapter 2, Edward Elgar Publishing.
    7. Saman Kelegama, 2015. "The India–Sri Lanka Free Trade Agreement and the Proposed Comprehensive Economic Partnership Agreement: A Closer Look," Working Papers id:6597, eSocialSciences.
    8. Nagesh Kumar & Kevin P. Gallagher, 2007. "Relevance of ‘Policy Space’ for Development : Implications for Multilateral Trade Negotiations," Trade Working Papers 22111, East Asian Bureau of Economic Research.
    9. Nagesh Kumar, 2007. "Investment Provisions in Regional Trading Arrangements in Asia : Relevance, Emerging Trends, and Policy Implications," Trade Working Papers 22109, East Asian Bureau of Economic Research.
    10. Pal, Barun Deb & Pohit, Sanjib, 2019. "Anatomy of Non-Tariff Barriers in India-Lanka Free Trade Agreement," MPRA Paper 94751, University Library of Munich, Germany.
    11. Ahmed, Saira & Ahmed, Vaqar & Sohail, Safdar, 2010. "Trade agreements between developing countries: a case study of Pakistan - Sri Lanka free trade agreement," MPRA Paper 29209, University Library of Munich, Germany.
    12. Sirimal Abeyratne, 2013. "Integration of Sri Lanka into Indian Supply Chains under the Bilateral Free Trade Agreement," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 14(2), pages 275-292, September.
    13. Dushni Weerakoon, 2010. "The Political Economy of Trade Integration in South Asia: The Role of India," The World Economy, Wiley Blackwell, vol. 33(7), pages 916-927, July.
    14. Aradhna Aggarwal, 2008. "Regional Economic Integration and FDI in South Asia - Prospects and Problems," Macroeconomics Working Papers 22141, East Asian Bureau of Economic Research.
    15. Jayatilleke S. Bandara & Wusheng Yu, 2012. "Non‐economic gains of Sri Lanka's FTAs with neighbours," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(10), pages 750-763, August.
    16. Lakatos, Csilla & Walmsley, Terrie, 2009. "Modeling cross-border investment in CGE: some alternatives and mechanisms," Conference papers 331838, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Ram Upendra Das, 2009. "Regional Economic Integration in South Asia : Prospects and Challenges," Macroeconomics Working Papers 22987, East Asian Bureau of Economic Research.
    18. Ahmed, Saira & Ahmed, Zafar & Sohail, Safder & Sarfraz, Irfan & Shafqat, Mohammad & Mamoon, Dawood & Saadia, Hissam, 2012. "Lessons Drawn From Pakistan-Sri Lanka FTA," MPRA Paper 81488, University Library of Munich, Germany.
    19. Sejut Jha, 2010. "Restrictive Rules of Origin and Their Circumvention," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 11(1), pages 31-52, March.
    20. Biswajit Nag, 2011. "Comprehensive Economic Partnership Agreement between India and Sri Lanka: Where does it lead?," Working Papers 1004, Indian Institute of Foreign Trade.
    21. Biswajit Nag, 2011. "Comprehensive Economic Partnership Agreement between India and Sri Lanka: Where does it lead?," Working Papers 1103, Indian Institute of Foreign Trade.
    22. Nagesh Kumar, 2010. "Capital Flows and Development: Lessons from South Asian Experiences," MPDD Working Paper Series WP/10/11, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    23. Rupa Chanda & Sasidaran Gopalan, 2009. "Understanding India's Regional Initiatives with East and Southeast Asia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 66-78, May.

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    More about this item

    Keywords

    Free Trade Agreement; ILBFTA; Comprehensive Economic Partnership Agreement;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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