The latest trade battle between the US and the EU, as seen by economists and trade experts here, would have more indirect consequences for Sri Lanka rather than having a direct bearing on trade, emerging from the spillover effects of the trade restrictions between the two large trading partners. The indirect impact can be substantial as protectionist tendencies of advanced countries could have negative repercussions on world trade. Sri Lanka being a part of world trade, plans to have its own trade expansion. The negative spillovers of the US-EU trade battle could stifle Sri Lanka’s trade with the rest of the world. The World Trade Organisation (WTO) ruling will mean tariffs on EU goods ranging from aircraft to cheese, olives and jumpers from 18 October.

Source: Sunday Observer October 05, 2019 20:03 UTC