Sri Lanka to tighten trade deals with South Asia

June, 14, 2012 (LBO) – Sri Lanka’s cabinet has decided to make changes to free trade deals where necessary with South Asian nations after having discussions with counterparty country or countries concerned, minister Keheliya Rambukwelle said. Protection may also be a ‘tax’ on exports through the bidding up of wages and raw material prices.

Some of the earliest trade restrictions on the citizens of Sri Lanka were imposed by the Dutch East India Company.

The world also saw a rise in trade restriction during the Great Depression which is credited with prolonging and worsening it.

After gaining power over their citizens from Britain, many native rulers took away citizens trade freedoms.

Unlike the ASEAN region, which have brought down trade barriers and has become increasingly integrated with intra regional trade now 27 percent of total trade, South Asia lagged far behind, a Pakistani politician said in Colombo earlier this week.

“The lowest share of intra-regional trade in the world was South Asia,” Asad Umar, senior vice president of Pakistan’s Tehreek-e-Insaaf, a political party said.

“I guess it is no surprise that, in all of Asia the lowest per capita incomes are also in South Asia

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