US embassy cable - 03COLOMBO1779

UNCLAS COLOMBO 001779 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, CE 
SUBJECT: INDIAN HIGH COMMISSION TAKE ON INDO-LANKA FREE TRADE 
AGREEMENT EXPANSION 
 
REF: COLOMBO 1704 
 
1.  (U) THIS TELEGRAM IS SENSITIVE BUT UNCLASSIFIED, PLEASE 
HANDLE ACCORDINGLY 
 
2. (SBU) On October 7, 2003, Econchief met with Mr. Venkastesan 
Ashok, Commercial Counselor at the Indian High Commission. 
Ashok discussed preparations for the Sri Lankan PM's trip to New 
Delhi the week of October 20.  In bilateral meetings just 
completed in Kandy, Sri Lanka's second largest city, the GOI and 
the GSL reportedly agreed on a framework for pursuing an 
Economic Partnership Agreement (EPA).  This agreement would 
broaden the Indo-Lanka Free Trade Agreement beyond trade in 
goods to include trade in services, investment promotion and 
increased economic cooperation. 
 
3.  (SBU) Ashok thought that the joint commission that had been 
appointed to prepare the framework for EPA negotiations would 
finalize its report in time for PM Wickremesinghe and PM 
Vajpayee to approve it in their joint statement during 
Wickremesinghe's October visit to India. This approval would 
then launch formal negotiations, which Ashok thought would last 
4-6 months.  Ashok said India had recently begun wrapping up 
negotiations on a similar agreement with Singapore.  The 
negotiations on that front took almost 11 months.  The Singapore 
negotiations, however, provide a framework agreement that the 
GOI and GSL can use in their discussions. 
 
4.  (SBU) Comment: We find this information interesting in light 
of TIFA planning and the potential for a US-Sri Lanka FTA.  Much 
as the GSL has done with its analysis of the Singapore and Chile 
FTAs, they seem to be pursuing a similar strategy with the GOI, 
piggy-backing on the GOI-Singapore EPA as a model.  Further, 
Ashok never mentioned the rancor in Cancun and gave no 
indication that Sri Lanka's siding with the USG in Mexico would 
have any bearing on the progress of a potential GOI-SL EPA.  As 
we reported reftel, the GSL's Commerce Minister discussed the 
GSL's WTO position with the GOI in Cancun and felt the GOI 
understood its position.  The Commerce Ministry's Acting 
Director General told Econchief on October 8 that India seems 
unconcerned about the GSL's stance in Cancun and that the G-23 
already appears fragile.  End Comment. 
LUNSTEAD