In August 2010, The European Union (EU) withdrew its preferential trade agreement GSP+ from the island nation of Sri Lanka that was recovering from a long drawn civil war. The grounds for the...Show moreIn August 2010, The European Union (EU) withdrew its preferential trade agreement GSP+ from the island nation of Sri Lanka that was recovering from a long drawn civil war. The grounds for the withdrawal was cited to be Sri Lankan Government's poor human rights record in the latter stages of the war which had garnered international outcry. The ad hoc withdrawal of the scheme which was yoked to the Sri Lankan economy was damaging to the Sri Lankan economy and in particular its Ready-Made-Garment (RMG) industry that is central to povery alleviation in rural sectors of the country. In addition to the Sri Lankan Government was defiant of the EU's verdict and is believed to have made very little change. It is for this reason scholars argue that while the Human Rights concerns of the conflict were pressing, the objective of the EU withdrawal was unclear granted it achieved very little of its desired effect. Other writers have described it as 'democracy building' and 'economic terrorism' on the part of the EU. The objective of this research is to assess the effectiveness of the EU's withdrawal of GSP+ from the Sri Lankan economy and draw a conclusion on which side of the scholarly debate is more plausible.Show less
