The Comprehensive Economic Partnership Agreement (CEPA) with India is more than just opening up trade in goods, services and investments but is also the tool with which to sort out issues and problems that arise. The opponents of CEPA argue that the Free Trade Agreement with India brought no benefits because India imposed so many non-tariff barriers that hindered access of Sri Lankan enterprises into Indian markets. They fear that CEPA will do the same while allowing more access of Indian enterprises into Sri Lanka. But one function of CEPA is to identify and resolve constraints and issues that may arise. A research officer of the Institute of Policy Studies (IPS), Deshal De Mel, said that constraints to trade could be dealt with through CEPA, which is still under negotiations. "The private sector can identify their export interests and request for market access through CEPA. It can also identify constraints and resolve them through CEPA," he said. CEPA is to be reviewed every six months by the technical committee and annually at ministerial level. De Mel said that the services component of CEPA will be reviewed every three years. "If there are unresolved disputes in a particular sector, commitments can be cancelled by either country upon payment of compensation on investments made." He also said that considering the size of the two countries, less than full reciprocity was expected. This means that Sri Lanka does not have to open up its markets to the same extent as India and could take more time in liberalization of the areas committed. "In all such agreements there are opportunities and challenges. It is important for the private sector and government to work in tandem to identify and address the latter in order to take advantage of the former," De Mel said. De Mel was the Guest Speaker at the 12th Information and Communication Technology Agency (ICTA)—Private Sector Forum last week. India has offered to open up the following sectors to Sri Lankan IT professionals. Consultancy services related to the installation of computer hardware, Systems and software consulting services, Systems analysis services, Systems design service, Programming services, Systems maintenance services, Input preparation services, Data processing and tabulation services, Time sharing services, Other data processing services, Data base services, Maintenance and repair services of office machinery and equipment including computers, Data preparation services and Other computer services (e.g. training services for staff of clients, and other professional computer services). According to De Mel the movement of these professionals will be limited according to the classification given below. * Business Visitors (BV) - for sale or to secure agreements for trade in services or for employees of a Juridical Person (JP) to set up commercial presence – 180 days and the BV will not receive remuneration in India. • Intra-Corporate Transferee (ICT) - employee of a JP in SL who is transferred to a JP in India owned or controlled by the JP in SL, for temporary provision of services. – limited to managers, executives and specialists. Maximum 5 years. • Contractual Service Supplier (CSS)- employee of a JP owned or controlled by SL who travels to India to perform a service pursuant to a contract between the JP in SL and the client in India. CSS for periods up to 1 year. • Independent Professionals (IP) – natural persons traveling to India or short periods up to 1 year to perform a service pursuant to a contract between him and the client in India. Same sectors as above. As far as Sri Lanka’s offer list is concerned De Mel pointed out that technical staff can be hired from India in the ratio of 10 percent of total staff cadre for every US$ 100,000/- of investment, up to a maximum of 50 percent. Technical staff must have a minimum of a Masters degree in the relevant ICT field and work experience of no less than 5 years. Access is available for expert trainers with high-end technical professional qualifications (CCIE/MCAP or equivalent) who can benefit the development of Sri Lanka’s IT sector both in terms of human resource development and firm level performance. Consultancy services related to the installation of computer hardware, Software implementation services, Data processing services, Database Services and Data preparation services are the areas open to Indian ICT professionals. |
