Sri Lanka secures 10% US tariff rate for apparel exports

Sri Lanka secures 10% US tariff rate for apparel exports

Sri Lanka has secured a 10% tariff rate under the latest US trade measures, avoiding the higher 12.5% rate initially expected, the Joint Apparel Association Forum (JAAF) said.

The announcement by the United States Trade Representative (USTR) on the finalisation of Section 301 investigations into countries’ ability to impose and effectively enforce a prohibition on the importation of goods produced with forced labour placed 18 countries under a 10% tariff category, while 42 countries will face a 12.5% tariff.

JAAF said initial indications were that Sri Lanka would fall into the 12.5% category, which would have placed the country at a disadvantage against several key apparel exporting competitors.

Following submissions made by Sri Lanka to the USTR earlier this month, the country has now been placed in the 10% tariff category, alongside competitors including Bangladesh, Pakistan, India and Cambodia.

“Parity of tariffs is something JAAF has consistently and actively lobbied for, and we are extremely appreciative of the efforts of President Anura Kumara Dissanayake and the Government of Sri Lanka in ensuring that strong representations were made to the US authorities to secure this outcome,” JAAF said.

The organisation also recognised the contributions of Sri Lanka’s Ambassador to the United States Mahinda Samarasinghe, K. A. Vimalenthirajah, and teams at the Department of Commerce and the Sri Lankan Embassy in Washington for their efforts in securing the outcome.

JAAF said Sri Lanka’s apparel industry operates in a highly competitive global market, where even a 2.5 percentage point difference in tariff treatment can influence sourcing decisions.

“Securing parity with Bangladesh, Pakistan, India and Cambodia protects the competitiveness of an industry that remains the country's largest export earner and a major source of employment, particularly for women, across the country,” JAAF said.

The organisation added that the outcome reflected sustained collaboration between the private sector and the government, including submissions to the USTR and direct representations in Washington.

“We remain committed to continuing this collaboration, both to safeguard the gains secured and to ensure Sri Lanka’s apparel and textile industry is well positioned to compete on a level playing field internationally,” JAAF said.