MRF and Sovereign Leverage, page-4

How big is a Free Trade agreement with China for a nations businesses and industries?

Sri Lanka to sign FTA with China

http://www.thehindu.com/news/intern...-with-china/article6413628.ece?ref=sliderNews

Chinese President Xi Jinping will arrive here on Tuesday, on a significant visit to the island nation, during which Beijing and Colombo are expected to firm up a Free Trade Agreement (FTA).

Sri Lanka will also join China’s efforts in the 21st Silk Road trade cooperation, President Mahinda Rajapaksa told Xinhua in a recent interview.

During his visit, Mr. Xi will visit the site of a $1.4-billion port city development project, Beijing’s latest investment in Sri Lanka, adjoining Colombo’s commercial port, which is also funded by China. His visit to Sri Lanka — the first by a Chinese President in nearly three decades — has evoked much interest, with Sri Lanka and China set to sign 20 major agreements, including the FTA. As many as 21 agreements worth $1.6 billion in loans are also to be signed during Mr. Xi’s visit, Export and Import (Exim) Bank of China announced recently.

While the Chinese President is likely to sign nearly as many agreements in India, where he will arrive on Wednesday, foreign policy analysts are closely watching the emerging dynamics among India, Sri Lanka and China, particularly after Mr. Modi assumed charge in May. Analysts often refer to Sri Lanka playing the ‘China card’ against India.

Increased investment

Since Sri Lanka’s civil war ended in 2009, China has been heavily investing in infrastructure, including ports, expressways, an airport and a power plant amounting to $4 billion, according to Chinese state media reports.

“Since I took office, I have toured China seven times, during which I have met President Xi Jinping on several occasions,” President Rajapaksa told Xinhua. On the proposed FTA, he said Sri Lanka and China would cooperate in several spheres. While Sri Lanka and India have an FTA since 2000, India has been negotiating a Comprehensive Economic Partnership Agreement with its neighbour.

China has been a vocal supporter of Sri Lanka at the Human Rights Council, backing the island by voting against a U.S.-sponsored resolution calling for an international probe into Colombo’s rights record. Some sections have been voicing concern over Sri Lanka’s reliance on China.

The widely read Sunday Times here, in its editorial this week, noted that Sri Lanka’s outstanding debt to China, in disbursed loans, was nearly Rs. 196 billion at the end of December 2013.


It is hard to doubt the logical prediction that the BRIC's and Global/Asian Investor class is about to descend upon Sri Lanka and everyone knows Sri Lanka is more then just pretty beaches! Sri Lanka is Vein Graphite...

America has blundered using way too much stick and not enough patience and carrot. China should give America lessons!



Kind Regards

PS - I could be completely wrong! DYOR !!!