US Promotes Economic Integration in South Asia

Secretary of State John Kerry says the U.S. is backing economic integration among countries in South and Southeast Asia, as a way to strengthen local economies.

He commented in Sri Lanka on Saturday where he held talks with the country’s top officials on trade and other issues.

Kerry said South Asia is one of the world’s least economically integrated regions.

“Trade among its countries amounts to some five percent of total trade and the cost of doing business across borders due to non-tariff barriers, import duties and bottlenecks at border crossings is a huge impediment to growth,” he said.

The U.S. has been promoting the Indo-Pacific Economic Corridor, a trade plan designed to spur growth in both regions.

In addition to promoting regional trade, Kerry said the U.S. is also looking to broaden bilateral ties with Sri Lanka.

Kerry said that he and Sri Lankan Foreign Minister Mangala Samaraweera had agreed to establish an annual partnership dialogue between the two governments.

“I have also asked teams from across our government to mobilize quickly in order to provide technical assistance,” said Kerry.

In a joint news conference with Kerry, Samaraweera said his country is seeking foreign investment help and technical expertise.

“Sri Lanka has been considered a paradise for tourists for many years but our government is now also keen to make Sri Lanka an investor’s paradise,” he said.

Kerry also met with Sri Lanka’s new president, Maithripala Sirisena. 

He took office in January on a pledge to reduce presidential powers, promote human rights and roll back other authoritarian-like measures enacted by his predecessor, who consolidated his grip on power near the end of the country’s long civil war against Tamil Tiger rebels.

The U.S. is trying to do a balancing act with Sri Lanka, said Teresita Schaffer, a former U.S. ambassador to the country. 

Schaffer, a South Asia analyst at the Brookings Institution, said the U.S. wants to offer help but does not want to appear to be meddling.

“In this initial three-month period, the United States has been trying not to go too far in the direction toward trying to micromanage how a new government in Sri Lanka manages a very difficult political situation with a very diverse population,” said Shaffer.

Kerry’s trip also included a visit to a Buddhist Temple.

He will meet with the Tamil National Alliance political group before wrapping up his visit to the country and traveling to Africa.

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