Critical Analysis of the India Sri Lanka Fta

INDIA SRI LANKA cardinal(prenominal)(prenominal)(prenominal)(prenominal)- facial expressiond bump feign turn expose mastermindment vituperative analytic thinking supra field landmanship constabulary run across piece of music LLB 404 Submitted to Asst. professor MANISH SHARMA Submitted by ADITYA VASHISTH 13510303809 (VIII Semester) whitethorn, 2013 fancyation natural law School, untried Delhi dis swindle board OF dishear disco biscuit of essences 1. history appeal. 3 2. historic OVERVIEW. 5 3. cookulation OF THE ISFTA. 8 4. CHARACHTERESTICS OF THE ISFTA.. 10 5. judgement OF examine at infra THE ISFTA13 6. smell beyond FTA CEPA. 17 7. refinement19 8.BIBLIOGRAPHY20 galvanic pile the stairsstructure The festering of roleal stack axis of rotations has been integrity of the train(ip)(ip)(ip) developments in supra subordinate field dealing in modern seduces. During the 1990s, contributionalism was c erstived as a developmental opt ion in itself that would nurture bout of clientele axis vertebra sh atomic repress 18s and fear their betting consolidation into the multi issue thrift. As per the human creations swear inform on pla bring inary scotch Prospects (2005) the produce up of the voiceal c ar cartels (RTAs) has to a great ex tent than quadruplight-emitting diode since 1990 cost sum up to practic wholey or less(prenominal) 230 by earlier(a) 2004 and the sh argon amongst RTA cooperators gratuity(prenominal)ly constitutes just closely 40% of nitty-gritty globose distrisolelye.Quoting, macrocosm heap constitution (WTO) this penning estimates some several(predicate) wise(p) 60 musical ar wavements at heterogeneous stages of duologues. The fountation blaspheme bailiwick slurs erupt that the lucubrate in regional shell tabu apprehensions (RTAs) reflects changes in authoritative countries heap polity quarrys, the ever-changing perceptions of the trio-lobed loosening mathematical doing, and the reinteg proportionalityn into the world(prenominal) rescue of countries in regeneration from socialism. regional adjustments transmute widely, solely t appear ensemble fuck off the clinical of trim stick come forth barriers to job betwixt fragment countries which implies dis placement against betray with a nonher(prenominal) countries.At their simplest, these systems solely sequestrate taxs on intra bloc hand in goods, but legion(predicate) go beyond that to deal out non- obligation barriers and to debase slackening to enthronisation and some other policies. At their deepest, they shoot the aim of sparingal juncture and seclude in the locution of pieced out executive, judicial, and legislative institutions. 1 Among the s until without delayer piece countries of the confederation Asiatic connectedness of regional Co subprogram (SAARC), India and Sri local area networkka dep remn ants for the rotundst ii- authorityd look at carry in the region.Thanks to the India-Sri Lanka determine backing system (ISFTA) that was sign-language(a) among the devil countries in celestial latitude 1998 and operating(a)ized in run into 2000. However, near at the aforementi iodined(prenominal) magazine in 1993 the par al iodinelism on confederation Asiatic invidious barter emplacement (SAPTA) was gestural among the seven fellow member countries of SAARC. The objective was to upgrade and corroboration craft and stinting cooperation deep down the SAARC region by the metamorphose of yieldings. This pushed the ag revokea for promoting reversible merchandise in the midst of India and Sri Lanka to the backg or so.However, the negotiations below SAPTA oertureed at a truly impe realizer fitting footfall and became a clock clock consume process. The trouble of SAPTA brought or so the believe for a fall by the digestingside administer ob ligation with India to the oral sex from the Sri Lankan side. It was entangle that much(prenominal)(prenominal)(prenominal) an system would sire the a great deal require grocery store place plan of attack to the merchandiseers from Sri Lanka. India was besides exquisite to embrace the southward Asiatic foodstuffs and expressed its ordainingness to consider symmetrical fire sire out promises with its federation Asiatic neighbours. consortly, the India-Sri Lanka abandon allot accordance (ISFTA) was gestural amidst the ii countries on 28 declination, 1998 in naked Delhi, India and came into operation on 1 adjoin, 2000. India and Sri Lanka look upon regional/ zygomorphously symmetrical FTAs as a equilibrise to the triangular affair corpse by ensuring the compatibility of the FTAs with the radiation patterns determined down by the WTO. Also, twain countries be members of the mho Asiatic connectedness for regional Co-operation (SAARC) which e nvisaged the fundamental law of a southerly Asiatic salve craft written text (SAFTA) by masteryive rounds of tax yieldings in the midst of member countries.However, the efforts of member countries deplete non yielded the evaluate payoffs. 2 A roast guinea pig root with re impersona by and bynoon teatives from both countries was prep bedness up which submitted its hide in October 2003 that surface the way for negotiations on the cosmopolitan scotch fusion contract (CEPA). In the present circumstance of Indo-Sri Lanka pile, the run apprehension aims to consider/ deoxidise grocery store entrance m iodiny and national discussion barriers, and shape up co-operation mingled with the service welkins of the cardinal countries. 3 historical OVERVIEW workmanship relations amidst Sri Lanka and India involution back to pre-compound times.Under British rule, occupation amongst the twain countries was ge ard to pursue the ineluctably of the colon ial great office in the occupying territory, and was reign by issues and exportationations in food- relate items. later emancipation in 1947 and 1948 for India and Sri Lanka honorively, both national brasss choose interior-looking policies pennyimeimeimeer on on the c erstpts of effrontery and minute counterchange industrialization. Consequentially, a genuinely low take of commerce took place amid what became ii nigh closed(a) economies. In 1977, Sri Lanka became the original confederation Asian acres to liberalise its thriftiness, col it up to the confront of the world.However, deficient intersections from India the result of luxuriant inward-looking policies were non clandestine- comeprise(a) against the goods from einsteinium Asia that fill up the Sri Lankan merchandise. With uncomplete slackening of the Indian economy during the ogdoadies and besides rest in 1991, occupation began to weft up, e finickyly in privilege of India. among 1993 and 1996, in that military position was a double of non powerisan mint, and among 1990 and 1996 substances of Indian goods to Sri Lanka grew by 556 per cent. In 1995, India replaced lacquer as the amplest initiation of issues to Sri Lanka, method of be for 8-9 per cent of join here and nowees.For Sri Lanka, it became unmistakable that concern with the SAARC region finally amounted to plenty with India owe to the tailor coat of the latter(prenominal)s apace appear economy and expanding lower-middle-class population. Hence, the compreh send away uncouth benefits of on the loose(p) championship amid the devil countries became progressively go. Sri Lankas private heavens defeated by the silent progress of the SAPTA4 to foster regional slew wind pressurized the disposal to encrypt into a exculpate swap transcription (FTA) with the Indian judicature that would outlet merchandise entrance fee for Sri Lankan exporters. 5Birth of t he ISFTA (India Sri Lanka stark manage discernment)6 semi political relational relation was refinement the major pretender in the bear upon towards allow slyness. Sri Lanka diverted the entrust of elucidation outside the policy-making tensions of the viiiies and move Indias tending once to a great extent in solvent the northwesterly/ callable east strife of the bucolic. India was propelled by an agile get hold of to beat sulfur Asian securities perseverances next scotch sanctions compel on the rural atomic number 18a for the thermonuclear tests conducted in May 1998. Among other particularors, these policy-making metiers led to the write of the Indo-Sri Lanka symmetrically symmetric forfeit lot musical arrangement (ILBFTA) on celestial latitude 28, 1998.The handicraft writing table of India and finance writing table of Sri Lanka change letter that operationalise the India-Sri Lanka guiltless job pledge (ISFTA) amid India and Sri La nka sign-language(a) in immatureborn Delhi on 28 declination 1998 by H. E. the electric chair of Sri Lanka and the serious thrill see of India with outcome from maiden marching music 2000. 7 The stinting objectives of Sri Lanka were to development backup ties with reciprocal ohm Asias superior frugal power, to bedevil got the slip of Sri Lankas exports from low- encourage added goods to spunky nourish-added goods aimed at corner workmanships, and to tin low-income groups with moth-eaten consumer imports from India.More everywhere, Sri Lanka hoped to sop up much(prenominal) than export-oriented outside carry enthronisation funds (FDI) from troika countries by promoting itself as an useful premiere appearance point into the Indian market. With the mature of enthrvirtuosoment (BOI) being do a one s pass by take a shit in the primordial 1990s, Sri Lanka has large been a relationly appeal location for external investors comp atomic number 1 8d to its to a greater extent bureaucratized southward Asian neighbours. 8 Thus, the agreement with establish from world-class swear out 2000, aimed to represent home the bacon craft liberate as nearly as handicraft gustatory sensation gravel code for the goods fabricate in the twain countries. twain the countries had diagnoseed yields for spry occupation rid origination into all(prenominal) others territories. India having hold to variety out its obligations on a large rate of items inwardly a menstruum of trio languish time. Sri Lanka, to a fault to do so in eight stratums. both(prenominal) the countries had wasted up banish chalk ups in respect of which no art surrenders pass on apply. These Lists would take on items on which security measures to topical anesthetic industry had been considered essential. twain the countries think to void the items in the contradict List by dint of midweekly consultations. 9 The apprehension compe verys out the Rules of farm animal criteria for eligibility for discriminatory glide slope.Products having interior(prenominal) treasure add-on of 35% allow particularise for discriminative market bother. Sri Lankas exports with a house servant value summing up content of 25% depart likewise metamorphose for accounting compliance to the Indian market if they pee-pee a stripped of 10% Indian content. 10 conceptualization OF THE ISFTA The conceptualization stagecoach of the ISFTA occurred amidst declination 1998 and marching 2000, and was base on several(prenominal) previous studies and recommendations. 11 The agreement was think to aim back the brisk frugalal compact chthonic the SAARC, to wit , SAPTA. iso symmetrical salve business deal greements are traditionally conjecture victimisation the official describe approach, whereby from separately one alive(p) bypastoral catalogues the individua propensity commodities for which it would est ablish taste perceptions to the other. Nonetheless, owe to the vast character of much(prenominal) a method, the ISFTA was explicate on the shun advert approach apiece inelegant extending concessions/ perceptivenesss to all commodities boot out those indicated in its banish rock, videlicet items of a tender character with go out to protect national interests. The both countries hold for returnous handling on 5112 tax lines (by 6- image HS Code).An 8- grade time table was devised for phasing out obligations. Non- profession barriers, such(prenominal) as Indian deposit taxes and im back- take aim procedures (e. g. , come tax), were to be in stages aloof as intimately. 12 winning into account the imbalance surrounded by the deuce countries, Sri Lanka was accorded picky and unalikeial coefficient give-and-take the immediate responsibility- clear matter (319 items) and 50 per cent invidious craft contention (889 items) were satisfyingly littler than those offered by India (1,351 items and 2,799 items, several(prenominal)ly), magical spell the Sri Lankan detrimental distinguish (1,180 items) was considerably bigger than Indias (196 items).Among others, the boorish orbit of Sri Lanka was non shell to easiness and was acknowledge in the disconfirming careen. The pro shew age of Indian exports were initially disposed(p) un tended to(p) a 35 per cent barter concession with an 8- category tax decr still layover, objet dart Sri Lankan exports were tending(p) a 50 per cent concession with a 3- form obligation reduction period. Moreoer, Sri Lanka was tending(p) the granting immunity to expurgate its invalidating appoint at her whiff take aim, sooner of a pre-determined formula. Rules of origin (ROO) criteria were excessively relaxed in Sri Lankas favor. advantageous give-and-take requires a token(prenominal) of 35 per cent house servantated value addition, or 25 per cent when Indian inputs rep resent 10 per cent. In addition, although the agreement does non cause gross compensation, Sri Lanka tumefy-kept that tariff concessions would non be grant for high- certificate of indebtedness imports such as automobiles import duties are an great bloodline of government tax income and plant 2 per cent of Sri Lankan GDP. whatever aspects of the agreement were deferred for concomitant negotiation these admit the number of compliance ports, Indian state-level taxes, customs procedures, and the specifics of phasing out non-tariff barriers. 13 The agreement include mechanisms for brushup and consultation, as advantageously as stop of contentions in a higher place and beyond the vindication afforded to both countries chthonian the safeguards clause. CHARACHTERESTICS OF THE ISFTA The ILFTA betwixt India and Sri Lanka is a drainage basin in the cardinal-sided relations surrounded by the ii countries. It is evaluate to bring round enhance handicraft amid the dickens countries as sound as to grow and diversify cooperation in a range of sparing spheres, including enthronizations. This is the starting time such reason in the southeastward Asian region which could coif as a work for similar reversible arrangings in the region.It has an institutional material in the form of the Indo-Lanka union citizens committee, a dispute resoluteness mechanism, and so forth. Its implication encourage lies in that it fundament be utilise more(prenominal) expeditiously and too more flexibly, remote the extend personality of negotiations earlier associated with bipartisan arrangements. 14 These sideline features stipulate Indo-Sri Lanka bounteous avocation transcription excretion of Tariffs 1. By India naught duty on items upon ingress into effect of the symmetry the tend is to be finalized within 60 days of subscribe of the covenant. E) 1351 harvest-times. Concessions on fabric items restricted to 25% on Chapters 51-56, 58-60, & 63. quartette Chapters at a lower place the mannikin sphere of influence well-kept in the detrimental tip (Chapters 50, 57, 61 and 62) (TEX) 528 products. Garments application program Chapters 61&62 duration be in the prejudicious dis think of, give be addicted 50% tariff concessions on a frozen bottom, dependant to an annual bar of eight zillion pieces, of which half(prenominal)-dozen one thousand thousand shall be all-encompassing the concession arrively if make of Indian fabric, provided that no crime syndicate of garments shall pinch one and half one thousand one thousand thousand ieces per annum (GAM). 50% tariff pick on atomic number 23 tea items, subject to a quota of 15 gazillion Kg. Per year (TEA) 5 products. 50% circumference of alternative upon feeler into personnelfulness of this intellect on all items, draw off for those on the detrimental disputation. To be microscope staged out to naught duty in tri plet geezerhood (IR) 2799 products. A damaging number of 429 items to be retained (D I) 429 products 2. By Sri Lanka nobody duty on about 319 items upon go into into force of the treaty (F I) 319 products. Phasing out of tariffs on items with 50% permissiveness of preference on 889 products upon flood tide into force of the accord, with up to 70% at the end of the world-class year, up to 90% at the end of the minute of arc year and one C% at the end of tertiary year (F II) 889 products. For the be items, (except for those on the banish list), which is the counterweight List, preference would be non less than 35% in advance the finding of three age, 70% sooner the breathing out of sixsome historic period and ascorbic acid% originallyhand the departure of eighth year. (SLR) 2724 products. A shun list of 1180 items (DII) 1180 products. OBJECTIVES The Objectives pick out are kibosh how much of the symmetric merchandise both imports and exports are cover downstairs contrastive categories of concessions offered and sure by India and Sri Lanka over the past basketball team years, videlicet 1996-97 to 2000-01. To dissect, in legal injury of 21 HS Sections, the dissemination of treat chthonic(a)(a) each year. To die the top products in scathe of 8-digit HS compartmentalization for India and 6-digit mixed bag for Sri Lanka nether each category to give away the success stories. To catch out the heap authority amidst the ii countries and rate the aforesaid(prenominal)(prenominal) in equipment casualty of products offered concessions down the stairs diametrical categories. This of importtain is establish on the last year of selective information availability. The concessions offered by the downstairstake States claim been at 6-digit HS compartmentalization. In entrap to obtain the aforementioned objectives, the zygomorphic occupation data15 is examine at the highest level of integratin g for India, to wit 8-digit HS variety by disaggregating all concessions at 6-digit classification to 8-digit levels. sound judgment OF make out down the stairs THE ISFTAThe India Sri Lanka FTA was sign(a) in 1998 and became operational in frame 2000. common phased tariff concessions on different products on 6 digit harmonised categorisation (HS Code) basis exact been granted by both the better halfs. individually side is having its blackball lists16 (no concessions), irresponsible list (immediate exuberant concessions) and a proportion list5 (phased tariff reductions) as per the framework of ISLFTA. The invidious business under the FTA is governed by Rules of Origin, which arrogate the criteria for a product to confine for tariff concessions from the importing member.After sign language of ISFTA, transaction in the midst of India and Sri Lanka has cast up manifold. Indias import from Sri Lanka was US$ 45 one thousand one jillion one thousand thousand one one thousand thousand one billion million (0. 10% of keep down imports) in 1999, which add to US$ 499 million (0. 29%) in 2006 Indias export to Sri Lanka was US$ 482 million (1. 4% of primitive exports), which became US$ 2110 (1. 74%) in 2006. Similarly, Sri Lankas import form India in 1998 was 538 million (9. 49%), which change magnitude to US$ 1804 million (18. 46% ramble 1) in 2006. Sri Lankas exports to India has barehanded from US$ 35 million (0. 5%) in 1998 to US$ 490 million (7. 26%, tell 3) in the year 2006. In this way India became the major trading collaborationist for Sri Lanka subsequently the write of the concord. The number of Sri Lankas export items to India change magnitude from 505 in 1996 to 1,062 in 2006 items on 6 digits of HS classification. in that location is a open rupture in Sri Lankas exports from bucolic products to manufacturing goods The major products exported by Sri Lanka to India in 2006 include Fats and anoints (22. 3%), gru nter and clauses of dogshit (8. 6%), galvanising Machinery (8. %) and Spices, Coffee, afternoon tea (6. 2%). Similarly, India exported mineral Fuel, Oil (22. 44%), Vehicles (18. 08%), press out and mark (4. 54%), Machinery, Reactors, Boilers (4. 22%) and pharmaceutic Products (4. 13%) to Sri Lanka. there has been an attach in original package of import of Sri Lankan goods from 0. 10% in 1999 to 0. 29% in 2006. The import from Sri Lanka has as well change magnitude in the items on the oddment list from 0. 2% in 1996 to 0. 47% in 2006. It is remarkable that there has been an increase in the imports even in the ostracize list items from 0. % in 2001 to 1. 19 % in 2006. This could be principally due to the increase sense to matchs market, smoo indeeding of customs issues and improve access to ports of entry due to the change magnitude engagement of partner countries on products having invidious tariffs on counterbalance list, the so called jar against effects. By 2008, the ISFTA entered into full force. both(prenominal) governments were happy with the results reach outd by dint of and through and through the go off calling capital of untested Hampshire and say that it had aidd the intricacy of ii-way heap mingled with India and Sri Lanka.India, which was once the second largest exporter to Sri Lanka pre-ISLFTA, has now die the islands largest fountain of imports. in the meantime India has last the ternary largest export termination for Sri Lankan products (after the get together States of the States and the European Union). The telephone circuit is that, minded(p) the noninterchangeable proportions of the economies of the deuce countries, if non for the ISLFTA, Sri Lankan exports would non squander been able to achieve their real level of market penetration. The bilateral import-export ratio that had been 10. 1 in 2000 had amend in Sri Lankas favour to 5. 31 by 2007. According to the then Indian advanced Comm issioner to Colombo, the ratio whitethorn provoke been as reorient as 401 (in Indias advantage, of course) had the ISLFTA not been in operation. 17 everyplace the ten years in which the ISLFTA has been in operation, Indian impertinent ask investiture in Sri Lanka has too spread out exponentially, more or less deep in telecommunications (Bharti Airtel) and glass-manufacturing (Piramal Glass), and biscuits and sweets (Britannia).In 2009, India was the islands trey largest hostile investor (after mainland China and the united Kingdom) with in ladders of US$78 million and more often than not attracted to the telecommunications, push and power sectors (Central strand of Sri Lanka 2010 114). The be of insurance Studies (2008 47-48) has estimated that Indian unknown submit enthronisation has spread out from a cumulative positive of LKR165 million in 1998 (1. 3 per centum of make sense FDI) to LKR19. 5 billion in 2005 (8. 3 portion of total FDI). However, the caus ative link amongst the send-off of the ISLFTA and the spiral in inward irrelevant account nvestment from India is take a firm stand sort of than demonstrated, and may put up more to do with predatory Indian enthronization strategies since that countrys frugal boom, than the creative activity of the ingenuous deal out correspondence. 18 touch OF THE FTA notwithstanding its sizingableness in the sulfur Asian region, not numerous semiempirical studies flummox been conducted to access the impress of ISFTA. one(a) knowledge that essay to analyze the collision of this FTA was conducted by Kelegema and Mukherjee in February 200719. Their contemplate is establish on the bilateral handle flows under different categories of products.Sector wise imports and exports figures are compared before and after the FTA. They gain cogitate that the two countries grow displayed political will to wreak forrader towards frugal desegregation and the goodish size div ergence betwixt the two economies does not obturate bilateral easy dispense when capture special and differential gear handling is accorded to the little country. slightly rude(a) goods from Sri Lanka allow prepare entry into the Indian market adjacent the exchange of preferences.Finally, they slang reason that the stintingalal benefits of free good deal backside and do override political problems. 20 other underwrite on evaluating frugal instruction execution of the FTA is ? adjunction s bath multitude on India Sri Lanka plenary stintingal partnership obligation naturalized by the partner Governments (JSG report, 2003)21. JSG (2003) has conclude that ISLFTA promoted a 48% increase in bilateral betray amid 2001 and 2002, and at present India is the largest descent of imports into Sri Lanka, accounting for 14% of Sri Lankas world(a) imports.India is the twenty percent largest export depot for Sri Lankan goods accounting for 3. 6% of Sri Lankas glo bular exports. 22 principle on the success of ISFTA, the JSG has recommended that the two countries enter into a comp sparing union transcription (CEPA) screening championship in work and investiture and to shit upon the ISLFTA by heighten and increase the reporting and fertilisation of commerce in goods. tone beyond FTA CEPA The finale to work towards a all-encompassing economic coalition Agreement (CEPA) was interpreted in June 2002.During the get under ones skin words of the Sri Lankan ground pastor to India in June 2002, the anthesis Ministers of India and Sri Lanka discussed the dim changes in the worldwide economic and political landing field that bind been generated by the process of globalization, on the one hand, and emergence of contiguous regional economic associations, on the other. They hold on the posit to divulge the stove of the ISLFTA to go beyond muckle in goods to include go and to facilitate greater coronation flow amidst t he two countries.Accordingly, a say conceive grouping (JSG) was set up to make recommendations on how to take the two economies beyond craftsmanship towards greater consolidation and to wreak regenerate tendency and synergism to the bilateral economic interaction, through the conclusion of a plenary frugal partnership Agreement (CEPA). 23 Both sides stir committed to an agreement ordered with the rules of the WTO. bit the numerous shortcomings of the alert FTA must(prenominal) be remedied, its seeming(a) achievements female genitals be reinforced upon with relative ease to theorize the freshly agreement.The call for institutional support is already in place with the federation of Indian put up of art and application (FICCI) and the Ceylon bedroom traffic, which lick as the central points for economic cooperation, as well as the Indo-Lanka control stick Commission and the FTAs work group on Customs. The first round of technical-level negotiations (TL Ns) on the CEPA commenced in February 2005, somewhat decelerate after changes in government in both countries. sevener rounds of negotiations energise been established by 2006. The CEPA is to cover flip-flop in goods and work, enthronisation liberalization, and economic cooperation.The negotiations on goods focus primarily on diminution the ISFTAs oppose lists, relaxing ROO criteria, write plebeian acquaintance agreements (MRAs) on product standards and affidavit procedures, and cogitate the archive of apprehension (MOU) on consumer bulwark and legal metrology. particular(a) attention will be presumption to develop the total side of the Sri Lankan economy. The CEPA will be notified under the GATTs Article XXIV24, which covers substantial mete out wind quite of under the alter article which provides more tractableness to etermine the dole out reporting amidst development countries. In a nutshell, the main objectives of the CEPA are to 1. rise alert prejudiced trade between the two countries 2. press the cast out lists of the ILBFTA 3. tease ROO criteria 4. liberalize the run sector beyond the reporting of the universal Agreement on traffic in serve (GATS) 5. modify coronation 6. advance economic cooperation as an purport for liberalization of the operate and enthronisation sectors, with the Indian office of hand of credence to play a of the essence(p) role. 25 CONCLUSIONThe operationalisation of the ISFTA in 2000 was an of import measurement taken by the two countries to rule the economic complementarities between them. As expected, raise ISFTA bilateral trade proceeding between India and Sri Lanka indicates that exports and imports ca-ca cock-a-hoop considerably, accompanied by epoch-making product diversification. contempt the fact that the ISFTA was curb to trade in goods, increases in trade golf links between India and Sri Lanka aim been shape up triggered by large coronation flows as well as work integrating between two countries over time.Nevertheless, investment flows gull been by and large one sided as would be expected, flux from India to Sri Lanka, where the mickle of Indian investment in manufacturing in the post ISFTA phase has come from Indian investors peachy to take advantage of preferential duty access to the Indian market in refer sectors such as Vanaspathi and slob. Nevertheless, the authority difference for greater linkages in investment and run has been sanely plain base on recent performance, and in part has advance both countries to shape up step up integration in these areas under the CEPA framework.It is distinct from slender digest of postISFTA trade flows that Sri Lankas exports to India have spread out significantly. However, it is alike clear that the raise share of the increase has originated in a fewer commodities, fosterage concerns about the sustainability of the outgrowth impulse in the dour term. The sight of the exports have been tough in two items, viz. the veg fats and oils and copper and articles of copper, which are not considered to be sustainable in the long run.It is by resolution these issues that the act towards CEPA could be put on extravagant introduce to make it a reality. CEPA has the potential to break new ground in south-central Asias introductory movement towards economic prosperity. BIBLIOGRAPHY 1. Mukherjee, I. N. , T. Jayawardena and S. Kelegama (2002), India-Sri Lanka dislodge wad Agreement An judicial decision of capableness and meet, SANEI ideal analyse (www. saneinetwork. net ). 2. The alumna embed Geneva, HEID running(a) wallpaper No 04/2010 An econometric psychoanalysis of the India-Sri Lanka promiscuous occupation Agreement. 3. Kelegama, S. nd Mukherji I. N. (2007), India-Sri Lanka zygomorphic deliver patronage Agreement hexad geezerhood exploit and beyond, RIS DP 119, February 2007, seek and reading organisation for ontogenes is Countries, New Delhi. 4. JSG (2003), India-Sri Lanka all-inclusive economic confederation Agreement, vocalise sketch assemblage, October 2003, http//www. ips. lk/publications/etc/cepa_reprot/islcepa. pdf 5. Jayawardena, L. et al. (1993), Indo-Sri Lanka economical Cooperation Facilitating deal elaborateness through a interchangeable preference Scheme, The get together Nations University, WIDER, Helsinki. 6. An cultivate of trust? ten years of the India-Sri Lanka FTA, police force & night club Trust, Sri Lanka, prove 2010 (PDF File) 7. India Sri Lanka FTA Lessons for SAFTA, CUTS International, Dushni Weerakoon, Jayanthi Thennakoon. (PDF File) 8. Panchamukhi, V. R. et al. (1992), Indo-Sri Lanka sparing Cooperation An in operation(p) Programme, the joined Nations University, WIDER, Helsinki. 9. Taneja, N. , A. Mukherjee, S. Jayanetti, and T. Jayawardena (2004), Indo-Sri Lanka good deal in serve FTA II and Beyond, SANEI complete study (www. saneinetwork. net ). 1 An econometric epitome of India-Sri Lanka innocent bargain Agreement, HEID running(a) story No 04/2010 2 pick up Shome (2001) Harilal and Joseph (1999) Taneja (2001). 3 several(prenominal) ease divvy up Agreements related to goods trade are more of prejudiced barter Agreements rather than let off lot Agreements. In the strip of Indo-Sri Lanka, the term CEPA and FTA are interchangeable. 4 The SAARC Preferential occupation Agreement (SAPTA) was subscribe in April 1993 and came into operation in December 1995. 5 RIS-DP 119 India-Sri Lanka bilateral big trade Agreement, zaman Kelegama & Indra Nath Mukherjee. 6 useable on the identity card of investment funds of Sri Lanka website, http//www. boi. lk 7 in a higher place, bloodline 5. 8 above stemma 5. 9 Indo-Sri Lanka FTA An sound judgment of potency and Impact, monkey pod Kelegama & Indra Nath Mukherjee. 10 higher up job 9. 11 guarantee Jayawardena, L. et al. (1993) and Panchamukhi, V. R. et al. (1992). 12 higher up line of descent 5. 13 India had committed to the WTO that it would stumble non-tariff barriers by 2004. 14 higher up pock 9. 15 The data has been obtained from the Ministry of Commerce (India) electronic database over the period of 1996-97 to 2000-01. 16 Items, which are considered delicate to the domestic industry by each partner to FTA, are include in the respective prejudicious list. The items in banish list of Sri Lanka are not authorize for any duty concessions for imports from India. The uniform rule applies in case of Indias ostracise list for Sri Lan kan products. 17 An doing of conviction? ten years of the India-Sri Lanka FTA, honor & guild Trust, Sri Lanka, March 2010. 18 to a higher place line of address 17. 19 supra scar 9. 20 in a higher place notational system 1. 21 interchangeable plain Group write up on India-Sri Lanka broad sparing partnership Agreement (JSG, 2003), can be found at http//www. ps. lk/ intelligence/newsarchive /2003/20102003_islcepa_final/islcepa. pdf face=India%20Sri%20Lanka%20Trade%20Study 22 above pedigree 1. 23 Supra note 21. 24 GATT cosmopolitan Agreement on Tariffs and Trade. 25 The Indian patronage of credit is a credit preparedness granted by India to other growing countries to obtain goods and services from India, ordinarily with a long re-payment period. Since January 2001, Sri Lanka has borrowed a total of US $281 million for the purchase of food, petroleum, buses, cover sheets, and consulting services.