Lanka Lobbies US Groups on FTASri Lankan diplomats leading negotiations for a Free Trade Agreement (FTA) with the United States declined last week to set a deadline for tying up the deal, but said they were lobbying support among a variety of American groups including trade unions, industrial organisations and multinationals.

Significantly, one of the worker coalitions Washington-based diplomats are courting is the American Federation of Labour-Congress of Industrial Organizations (AFL-CIO), a trade union that has repeatedly fuelled international concern about labour standards in Sri Lanka’s Free Trade Zones.

Earlier this year, the European Union suspended a vital trade concession to Sri Lanka after AFL-CIO and the International Confederation of Trade Union (ICFTU) petitioned the European Commission and International Labour Organization, saying workers in FTZs were denied freedom of association and collective bargaining. Both unions have connections or affiliations with local worker bodies.

A senior Sri Lankan diplomat in Washington confirmed they had already met AFL-CIO representatives several times and will work with them in future to "realistically resolve issues". He said their response had been "positive and constructive".

Meanwhile, several US companies are backing Sri Lanka’s case for the FTA in what is seen as a major boost to diplomatic and direct government efforts.

A high-profile list of multinationals and leading enterprises last week became part of a US-Sri Lanka Working Group within the US Chamber of Commerce (USCC). The inaugural meeting – co-chaired by USCC President Thomas Donahue and Sri Lankan Ambassador Devinda Subasinghe – was held in Washington and attended by thirty companies. Economic Reforms Minister Milinda Moragoda, who was in town, addressed the gathering.

Among the firms supporting Sri Lanka are Lockheed Martin, Coca Cola Company, IBM, General Electric (GE), JP Morgan Securities, Riggs Bank, Caterpillar Power Ventures Corporation, Sara Lee Branded Apparel, Eureka Online, Wachovia Corporation, Virtusa Corporation, Singer Corporation and Walmart.

A press release from the Sri Lanka Embassy in Washington said, the new working group will "help promote increased business relationships with Sri Lanka and provide a strong impetus to deepening the trade relationship and the flow of US investments to the country". The senior diplomat who was quoted earlier added that the body will unite in future to lobby for the FTA and promote Sri Lanka’s case with US trade representatives.

Despite the hype, however, officials emphasized that many other countries – including Thailand, Philippines, Pakistan and Colombia — were vying for FTAs with America. Thus, it was not realistic to set a deadline.

"There are lots of impediments and certainly a lot of traffic," one Sri Lankan official said. "Everyone wants a Free Trade Agreement with the US. It is very competitive.

"In fact, Sri Lanka is still in the preliminary stages of the process: Diplomats are waiting for White House to announce Sri Lanka’s bid. After the announcement, Congress must concur for negotiations to start. Subsequently, a report is presented to Congress and the latter votes either in favour of or against the new deal.

Meanwhile, Sri Lanka’s tactics to clinch the deal with America haven’t always been well received back home. For instance, several sectors of the media and public have criticized Prime Minister Ranil Wickremesinghe’s speech at the UN General Assembly last month, supporting the US attack on Iraq. He told world leaders that Sri Lanka felt the US and their allies had "no choice but to intervene".

In Cancun, too, Sri Lanka refused to join a new group of developing countries (known as G22) that was formed to condemn farm subsidies in the United States and European Union. But Sri Lankan diplomats defended their stand, saying that nobody in the group had been offended.

"We explained that we had to look after our own interests and they were fine with that," one of them said.