China opens window of opportunity for Sri Lanka exporters

China has taken a maiden initiative to promote South Asian exports to the Chinese Market by organising the South Asian Commodity Fair which scheduled from December 28 to 30, in Beijing.

The booming economic growth in China has also brought her a fare share of commitment to other nations. As a means of assisting countries particularly those having an adverse trade balance, the Chinese Government has taken measures to encourage global purchasing and investing overseas.

China is now becoming not only a big seller but also a huge buyer as the living standards of the people keep improving.

The South Asian Countries Commodity Fair is primarily aimed at assisting South Asian exporters to penetrate the Chinese market. The venue for the Fair is the prestigious China International Exhibition Centre in downtown Beijing.

It is planned to have 300 trade display stalls, covering 5500 square meters allowing participants to display their products. The Chinese Government has taken responsibility in providing: Free display stalls including furniture

* Free publicity service and exhibitor’s brochure

* Free service for Customs clearance and domestic transportation of exhibits.

* Free facilities for products promotion conferences and investment policy introduction seminars upon request, for the participants from the South Asian Nations.

The Ministry of Commerce of China and the event organiser will invite influential and prominent Chinese traders and buyers such as supermarket chains and similar organisations to the Fair.

Dealers who are engaged in domestic market and main distributors who are engaged in mining, energy, raw material imports and processing, enterprises that are engaged in finance and investment and have an interest in trading with South Asian Countries will also be invited for the Fair.

China is planning to increase its imports up to $1 trillion by 2010 - up more than 25 percent from $792 billion last year - in an attempt to balance trade, according to the Ministry of Commerce. The Ministry of Commerce has abolished the import licensing of over 1600 products.

The projected 2010 imports figure is almost equal to the country’s total trade volume in 2004. The Chinese Government will unveil more policies to increase imports from countries that have a large deficit with China and simplify import procedures.

Under the Asia-Pacific Trade Agreement (APTA), previously known as the Bangkok Agreement, China also offers Sri Lanka, tariff concessions for 1697 Products including tea, gems and jewellery, coconut based products, fruits, spices, electrical parts & accessories, farm products, medicines, chemicals, textiles, metal products to electro-mechanical products and auto parts.

We are in an advantageous position to reap the benefits of the APTA especially with regard to exports to China. The corridor is open for many Sri Lankan potential products such as coir-fibre, black tea, gems and jewellery, garments, fruit juices, coconut oil, essential oils, spices, fruits, fish, and many other top 50 Sri Lanka exports items to the world.

The Business Support Organisations ought to create awareness among the exporters in Sri Lanka about the unexploited market opportunities in China, especially the concessions granted under APTA.

The reduced duty structure has given a distinct advantage for Sri Lanka exporters and to utilise this advantage, it is important that all consignments (APTA Concession list) to China include the Rules of Origin Certificate issued by the Department of Commerce in Sri Lanka.

Furthermore, China and Sri Lanka have been friendly Countries and cooperated closely on many international and regional affairs for decades, with the dimension of economic and trade cooperation expanding and bilateral trade volume growing rapidly.

However, the trade imbalance in favour of China is getting bigger to which the Chinese side attaches great importance.

The necessity to increase economic co-operation between Sri Lanka and China has been discussed during the visit of HE the President of Sri Lanka to China in February this year to celebrate the Golden Jubilee of establishing diplomatic relations between the two countries.

Thereafter, the Minister of International Trade, Professor G.L. Peiris, has conducted meetings with Business Support Organisations and Sri Lanka exporters to increase our volume of trade to the Chinese market.

In considering these efforts already made by the Government, this opportunity given by the Ministry of Commerce of the People’s Republic of China (MOFCOM) should not be missed.

In view of the above, and having in mind the next year’s Olympic Games and the forthcoming Shanghai Expo 2010, this Trade Fair should be made the stepping stone or the launching pad for Sri Lankan exporters to set foot on the Chinese market.

The Embassy of Sri Lanka in Beijing advocates the maximum participation from Sri Lankan Exporters at this event and would like to assure the Sri Lankan exporters its maximum support to promote their products.

As this Fair is being coordinated in Sri Lanka by the Department of Commerce, you could contact the Department of Commerce for further details and visit the official website of the Government of China for the Fair at www.saccfair.com and also get in touch with the Commercial Counsellor of the Embassy via alexicomsecchina@gmail.com.

The Embassy of Sri Lanka in Beijing is appreciative of the positive response shown by the business community and the trade chambers with regard to participation and encourage those who are interested in exporting to China to make maximum use of this opportunity.

Embassy of Sri Lanka in Beijing.