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NEWSLETTER_EN05/August/2017 AUGUST 2017 (date of issued: 4/9/2017)
Pretty Dutch doll houses,
Amsterdam
Power of Lobbying is the
sum total of the collective effort
by an organization, trade union
or an association making an
effort to influence the
government on any policy or
regulatory issue that hinders the
growth of an industry. The
rationale of being a member of a
trade association or a Business
Chamber is to protect and
nurture the industry and to
ensure its continuity as a
thriving industry.
The governments are prone to
impose regulatory mechanisms
and taxing business
organizations in keeping with
the social and economic
imperatives of a country. No
single individual can change
policy decisions. A responsible,
well informed, likeminded
citizens and organizations could
make a collective effort at
influencing the policy reviews
mostly through generating
sufficient public opinion
through advocacy and media
initiatives.
The Business Chambers can
play a very crucial role in
raising awareness among the
population and it can galvanise
the industry stake holders and
demand a fresh look at policy
decision. The skill of marshaling
the facts and figures and
undertaking independent
industry research would
certainly carry much weight in
business advocacy and it could
build a new case for
reconsideration by policy
makers. It is therefore important
for industry lobby groups to
continuously monitor the
developments within the
industry through discussion
and consultations.
When the industry is together it
resolves its own problems
through discussion and
dialogue. The success of
collective lobbying does
therefore depend on the level of
interaction among the
likeminded business entities
often under an umbrella of an
influenctial business chamber.
Where there's a will there's a
way.
Power of Lobbying - The Importance of being together
ECCSL is on its way to build a rapport with Catalonia
Trade & Investment
Catalonia Trade & Investment is the
Catalan Government’s agency for
foreign investment and business
competitiveness. It promotes
innovation, internationalisation,
trade and funding of Catalan
companies and startups. It also
organises trade missions in countries
chosen strategically for their
business and technology
cooperation opportunities. In
addition, it offers specialised one-
stop-shop services to international
investors and corporations,
attracting foreign direct investment
to Barcelona and Catalonia.
Headquartered in Barcelona,
Catalonia Trade & Investment
operates from 39 offices around the
world, covering 110 markets.
Its South Asian office is
headquartered in Mumbai and
takes care of the regions of Sri
Lanka, India, Pakistan,
Bangladesh, Nepal and Bhutan
and works extensively in
assisting companies with their
investment projects, finding the
right business partner, sourcing
most competitive supplier or
locating the state of the art
technology you need in
Catalonia. In the last 30 years,
the agency’s track record
includes 5,500 investment
projects managed, €8.8 billion
attracted in inward investment
and 44,560 jobs created.
The initial discussion on this
strategies partnership will take
place on 8th September 2017 with
the visiting delegates from
Catalonia Trade & Investment,
South Asian office. This
collaboration will focus on the
development of Renewable
Energy, Smart Cities,
Biotechnology, Technological
collaborations, Innovation, IT and
other potential sector. This
initiative will lead to enhance the
membership services and
visibility of ECCSL.
By Srinath Fernando
GM, ECCSL
By Srinath Fernando
GM, ECCSL
The economy of Sri Lanka continues to see mixed signals
from various sources without a clear direction on the macro-economic underpinnings of the economy. The international organizations believe that Sri Lankan economy would grow at a modest pace of 4.5% this year. The country has been plagued with many natural disasters owing to flooding and drought in some areas of Sri Lanka. This would certainly have an adverse impact on the rural economy/ agricultural sector and the resultant impact on the GDP growth rate. The salient feature in the economic activity was the sealing of an agreement between China Merchant Holdings and Sri Lanka Port Authority
to manage the loss making Port of Hambantota. The government’s initiative to manage the Port of Hambantota under Public Private Partnership (PPP) won plaudits from various Chambers of Commerce and other industry and trade associations across the country. The Port development project would expect to generate an infusion of US$ 1.12 billion which would eventually raise the foreign currency reserves and stabilize the rupee which had been under pressure for a year or so. Though some have argued that this was a sellout but real facts show that
it is more of a Foreign Direct Investment (FDI) in partnership with Government of Sri Lanka. This project will carve out an investment zone in and around the Port of Hambantota and any investor from any part of the world could invest in this zone. The project is also expected generate employment avenue for many Sri Lankans. The project would entail constructing, inter alia, a container terminal, bulk cargo terminal, LNG/LPG terminal, a Tank farm, and a dry-dock etc. Tourism is a major source of revenue for the government and there has to be a holistic approach to further develop the industry. The industry stake holders believe that there is a shortage of skills required in the hospitality industry. This must be addressed either with a new strategy to attract local nationals for the hospitality industry or a special visa regime to bring in labor from
overseas. All in all economic governance is on the right track despite some public demonstrations against policy matters by Trade unions as is the case with any democracy around the globe. It would be prudent for the government to have wider stake holder consultations so that no union is left out of discussions and there would not be any need to demonstrate against policy decisions.
ON THE STATE OF THE ECONOMY – JULY/AUGUST
Europe is very much sensitive about food safety, which is why applying various legal and other
buyer requirements on fresh
agricultural products.
But, there are also opportunities
to distinguish yourself
These are few tips to get a broader knowledge about the buyer
requirements, regulations, and standards for fruits and vegetables in
Europe.
Legal and non-legal requirements Limited use of pesticides
Control of food imported to the EU
Marketing standards
Fresh fruits and Vegetables to Europe
- Use the EU Pesticide Database to find out the maximum residue levels (MRLs) that are
relevant for your products.
- Apply integrated pest management (IPM) to reduce the amount of pesticides. IPM is an
agricultural pest control strategy, which is also part of a GlobalGAP certification. It uses
natural control practices such as importation of pests’ natural enemies. The fewer chemicals
you use, the better your marketing position will be for export to Europe.
- Check if your buyers have additional requirements on MRLs and pesticide use
- Familiarize yourself with the procedures. Failure to follow the right procedures could cause
decrease and delay of orders, increase costs, and result in actions by EU enforcement
authorities.
- Make sure that the accompanying documents (such as bill of lading) correspond exactly with
the food products contained in the consignment, including indicated volumes, classes and
sizes, number of pallets and boxes and the names of growers.
- There are specific marketing standards (MS) for the following fresh fruit and vegetables:
apples, citrus fruit, kiwi fruit, lettuce, peaches and nectarines, pears, strawberries, sweet
peppers, table grapes and tomatoes. These products must be accompanied with a certificate
of conformity with each consignment. A sample certificate of conformity can be found on
page 115 in Annex III to EU Regulation No 543/2011.
- Check which standards are applicable to your product and make sure your products and the
necessary documentation are in order.
- Check out the Codex Alimentarius published by the Food and Agriculture Organization
(FAO) with marketing standards for fresh fruits and vegetables.
Labelling and packaging
Plant Health
Contaminants
Additional requirements Certification as guarantee
Quality specifications
- Make sure that all mandatory information is mentioned, but also think of other useful
information such as logos of importers or certificates.
- For pre-packed fruit and vegetables for consumers, read the full regulation concerning
labelling for foodstuffs at the EU Export Helpdesk.
- If a phytosanitary certificate is needed for EU entry, arrange one with your Department
of Agriculture, Sri Lanka and ask your EU importer for specific requirements.
- Find the relevant contaminant levels in the annex of Regulation (EC) 1881/2006. Check if your
food product is included in one of the product groups. Be aware that the particular product
may not be mentioned specifically but can be included in a product group. For instance,
mango may not be found, but fruit can.
- Find out more about prevention and reduction of lead contamination in the Code of Practice
published by the Codex Alimentarius.
- Check the European Commission’s factsheet on food contaminants: " Managing food
contaminants: how the EU ensures that our food is safe".
- Read more on the different Food Safety Management Systems and hygiene standards at the
Standards Map or consult the Global Food Safety Initiative (GFSI). It contains a benchmark for
relevant additional standards.
- Become familiar with GLOBALG.A.P.
- Buyers and EU regions may have different preferences for certain management systems, so
before considering certification against one of the standards, check which one your buyer
prefers.
- Agree with your buyer on important topics:
o Delivery and payment terms
o Specifications
o The certification scheme(s) that will be used
o Be on top of quality
- If you are not sure, do not send your products, but rather look for (local) alternatives. If you
decide to ship your products anyway, be transparent about the quality and discuss this on
beforehand with your buyer.
Source: CBI
- Regulation (EU) 2017/1369 of the European Parliament
and of the Council of 4 July 2017 setting a framework for
energy labelling and repealing Directive 2010/30/EU (Text
with EEA relevance.)
Direct text access: pdf
- Regulation (EU) 2017/1128 of the European Parliament
and of the Council of 14 June 2017 on cross-border
portability of online content services in the internal
market (Text with EEA relevance.)
Direct text access: pdf
- Regulation (EU) 2017/1129 of the European Parliament
and of the Council of 14 June 2017 on the prospectus to be
published when securities are offered to the public or
admitted to trading on a regulated market, and repealing
Directive 2003/71/EC(Text with EEA relevance.)
Direct text access: pdf
- Regulation (EU) 2017/1130 of the European Parliament
and of the Council of 14 June 2017 defining characteristics
for fishing vessels
Direct text access: pdf
- Regulation (EU) 2017/1131 of the European Parliament
and of the Council of 14 June 2017 on money market
funds (Text with EEA relevance.)
Direct text access: pdf
- Regulation (EU) 2017/1004 of the European Parliament
and of the Council of 17 May 2017 on the establishment of
a Union framework for the collection, management and
use of data in the fisheries sector and support for
scientific advice regarding the common fisheries policy
and repealing Council Regulation (EC) No 199/2008
Direct text access: pdf
- Regulation (EU) 2017/1001 of the European Parliament
and of the Council of 14 June 2017 on the European Union
trade mark (Text with EEA relevance. )
Direct text access: pdf
- Regulation (EU) 2017/852 of the European Parliament and
of the Council of 17 May 2017 on mercury, and repealing
Regulation (EC) No 1102/2008 (Text with EEA relevance. )
Direct text access: pdf
- Regulation (EU) 2017/852 of the European Parliament and
of the Council of 17 May 2017 on mercury, and repealing
Regulation (EC) No 1102/2008 (Text with EEA relevance. )
Direct text access: pdf
- Regulation (EU) 2017/821 of the European Parliament and
of the Council of 17 May 2017 laying down supply chain
due diligence obligations for Union importers of tin,
tantalum and tungsten, their ores, and gold originating
from conflict-affected and high-risk areas
Direct text access: pdf
- Regulation (EU) 2017/826 of the European Parliament and
of the Council of 17 May 2017 on establishing a Union
programme to support specific activities enhancing the
involvement of consumers and other financial services
end-users in Union policy-making in the area of financial
services for the period of 2017-2020 (Text with EEA
relevance. )
Direct text access: pdf
- Regulation (EU) 2017/746 of the European Parliament and
of the Council of 5 April 2017 on in vitro diagnostic
medical devices and repealing Directive 98/79/EC and
Commission Decision 2010/227/EU (Text with EEA
relevance. )
Direct text access: pdf
- Regulation (EU) 2017/355 of the European Parliament and
of the Council of 15 February 2017 on certain procedures
for applying the Stabilisation and Association Agreement
between the European Union and the European Atomic
Energy Community, of the one part, and Kosovo * of the
other part
Direct text access: pdf
- Regulation (EU) 2017/352 of the European Parliament and
of the Council of 15 February 2017 establishing a
framework for the provision of port services and common
rules on the financial transparency of ports (Text with
EEA relevance)
Direct text access: pdf
This is an excerpt from the EUR-Lex website
EU Regulations
The Dutch United Provinces declared their independence
from Spain in 1579; during the 17th century, they became a
leading seafaring and commercial power, with settlements
and colonies around the world. After a 20-year French
occupation, a Kingdom of the Netherlands was formed in
1815. In 1830, Belgium seceded and formed a separate
kingdom. The Netherlands remained neutral in World War
I, but suffered German invasion and occupation in World
War II. A modern, industrialized nation, the Netherlands is also a large exporter of agricultural
products. The country was a founding member of NATO and the EEC (now the EU) and
participated in the introduction of the euro in 1999. In October 2010, the former Netherlands
Antilles was dissolved and the three smallest islands - Bonaire, Sint Eustatius, and Saba - became
special municipalities in the Netherlands administrative structure. The larger islands of Sint
Maarten and Curacao joined the Netherlands and Aruba as constituent countries forming the
Kingdom of the Netherlands.
IMPORTANT FACTS
Conventional long form: Kingdom of the Netherlands
Population: 17,016,967 (July 2016 est.)
Location Western Europe, bordering the North Sea,
between Belgium and Germany
GDP (purchasing power parity): $870.8 billion (2016 est.)
GDP - real growth rate: 2.1% (2016 est.)
GDP - per capita (PPP): $50,800 (2016 est.)
Exports: $480.1 billion (2016 est.)
Exports - commodities: machinery and transport equipment,
chemicals, mineral fuels; food and
livestock, manufactured goods
Exports - partners: Germany 24.5%, Belgium 11.1%, UK 9.3%,
France 8.4%, Italy 4.2% (2015)
Imports: $422.3 billion (2016 est.)
Imports - commodities: machinery and transport equipment,
chemicals, fuels, foodstuffs, clothing
Imports - partners: Germany 14.7%, China 14.5%, Belgium
8.2%, US 8.1%, UK 5.1% (2015)
Source: World Factbook
36%
33%
31%
Sri Lanka's Exports
2014 2015 2016
27%
37%
36%
Sri Lanka's Imports
2014 2015 2016
ECONOMIC OVERVIEW
BILATERAL TRADE RELATIONSHIP BETWEEN SRI LANKA AND THE
NETHERLANDS
The bilateral trade relations between Sri Lanka and the Netherlands, the volume stands at US$
321 million (the Netherlands exports to Sri Lanka = US$ 113 million and imports from Sri Lanka
to the Netherlands = US$ 208 million). The main exports from the Netherlands to Sri Lanka are
Iran and Steel, Machinery and agricultural products. The Netherlands imports from Sri Lanka are
apparels, rubber finished products, tea and fish. Sri Lanka is a very popular destination for Dutch
tourists. In 2016, Dutch arrivals grew 22.9% year on year to 11,990 tourists.
The Netherlands, the sixth-largest economy in
the European Union, plays an important role as
a European transportation hub, with a
persistently high trade surplus, stable industrial
relations, and low unemployment. Industry
focuses on food processing, chemicals,
petroleum refining, and electrical machinery. A
highly mechanized agricultural sector employs
only 2% of the labor force but provides large
surpluses for food-processing and underpins
the country’s status as the world’s second
largest agricultural exporter.
The Netherlands is part of the euro zone, and as
such, its monetary policy is controlled by the
European Central Bank. The Dutch financial
sector is highly concentrated, with four
commercial banks possessing over 80% of
banking assets, and is four times the size of
Dutch GDP.
In 2008, during the financial crisis, the
government budget deficit hit 5.3% of GDP.
Following a protracted recession from 2009 to
2013, during which unemployment doubled to
7.4% and household consumption contracted for
four consecutive years, economic growth began
inching forward in 2014. Since 2010, Prime
Minister Mark RUTTE’s government has
implemented significant austerity measures to
improve public finances and has instituted
broad structural reforms in key policy areas,
including the labor market, the housing sector,
the energy market, and the pension system. In
2016, the government budget returned to a
surplus of 0.3% of GDP, with economic growth
of 2.1%, and GDP per capita finally surpassed
pre-crisis levels. The Dutch government projects
steady but modest economic growth of 2.1% in
2017 and unemployment decreasing to 4.9%.
Top ten Export products
Product
code
Product label Sri Lanka's exports to Netherlands (USD ‘000’)
Value in 2014 Value in 2015 Value in 2016
'TOTAL All products 243,670 220,342 208,334
'61 Articles of apparel and clothing accessories,
knitted or crocheted
31,232 33,682 47,278
'62 Articles of apparel and clothing accessories,
not knitted or crocheted
59,256 60,083 42,205
'09 Coffee, tea, maté and spices 21,833 17,125 22,492
'40 Rubber and articles thereof 13,507 15,700 17,745
'03 Fish and crustaceans, molluscs and other
aquatic invertebrates
18,769 11,283 14,019
'87 Vehicles other than railway or tramway
rolling stock, and parts and accessories
thereof
2,985 7,745 7,991
'20 Preparations of vegetables, fruit, nuts or other
parts of plants
5,809 6,031 7,948
'53 Other vegetable textile fibres; paper yarn and
woven fabrics of paper yarn
4,778 4,331 5,821
'06 Live trees and other plants; bulbs, roots and
the like; cut flowers and ornamental foliage
4,262 3,935 5,505
'15 Animal or vegetable fats and oils and their
cleavage products; prepared edible fats;
animal ...
3,257 2,907 4,761
Source: Trade Map
Top ten Import products
Product
code
Product label Sri Lanka's imports from Netherlands(USD ‘000’)
Value in 2014 Value in 2015 Value in 2016
'TOTAL All products 83,585 115,634 113,308
'73 Articles of iron or steel 1,790 28,659 41,513
'84 Machinery, mechanical appliances, nuclear
reactors, boilers; parts thereof
20,357 11,609 10,849
'40 Rubber and articles thereof 6,667 8,522 7,521
'90 Optical, photographic, cinematographic,
measuring, checking, precision, medical or
surgical ...
10,720 3,953 5,011
'85 Electrical machinery and equipment and parts
thereof; sound recorders and reproducers,
television ...
5,506 3,144 4,967
'54 Man-made filaments; strip and the like of
man-made textile materials
2,684 2,493 4,718
'18 Cocoa and cocoa preparations 1,817 3,486 4,567
'39 Plastics and articles thereof 2,546 3,180 3,276
'30 Pharmaceutical products 3,664 3,710 2,896
'32 Tanning or dyeing extracts; tannins and their
derivatives; dyes, pigments and other
colouring ...
2,343 2,768 2,749
Source: Trade Map
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