Tuesday, February 16, 2010
The EU recently withdrew preferential trade benefits from Sri Lanka after an investigation into the allegation of Human Rights abuses. The benefits, worth about $135 million will certainly put a dent in the economy of Sri Lanka. The garment industry will be hit the hardest after previously enjoying tax breaks to sell merchandise to retailers in Europe. The action proposed by the EU will take effect in 6 months time in order to give the country a chance to address the "shortcomings." The year long investigation by the European Commission recently came to a conclusion following allegations of war crimes in the war between security forces of the Sri Lankan government and Tamil Tiger rebels. The well publicized war between the two sides has been ongoing for years and groups such as Amnesty International, Human Rights Watch, U.S. State Department, and the EU have all expressed concern about the state of violations in the past.