Initiated by the Commercial Division of the Embassy of Sri Lanka Beijing and supported by the Department of Commerce, Sri Lanka Fruits and Vegetable Exporters Association and the Sea Food Exporters Association signed a memorandum of understanding (MOU) with the Chinese Agricultural Wholesale Market Association (CAWA) on the sideline of the First China Import Expo held in Shanghai from November 5th to 10th. This MOU will see exports to China expand rapidly in the coming years. It was signed at the international agro products B-B Round table conference in which more than 100 leading whole sales market associations participated .
The MOU was signed by Mr Viraj Pilapitiaya and Mr Zuraish Hashim of the Sri Lanka Fruits and Vegetable Exporters Association and Sea Food Exporters and the President of the Chinese Agricultural Wholesale Market Association (CAWA) Mr Zengjun Ma, and witnessed by H E the ambassador Dr Karunasena Kodituwakku and Minister (Commercial) Alexi Gunasekera.
“We’re delighted – the MOU is a strategic alliance which provides benefits to members of both associations – and a first for Sri Lanka Fruits and Vegetables", said Zuraish Hashim, President of Fruits and Vegetable Exporters association Sri Lanka.
As a precursor to this MOU, 6 CAWA Members led by its President visited Sri Lanka and had fruitful discussions with the Department of Commerce, the Hon Minister and the two Associations in October this year. This led to the formation of a relationship with the CAWA, China’s largest agricultural distributor with over 300 members, representing about 70 per cent of the total whole-sale trade in China; a well-timed initiative.
The China National Agriculture Wholesale Market Association (CAWA) is a national industry association approved in 1986 by the Chinese Ministry of Civil Affairs.
CAWA is composed of national and local agricultural product and byproduct wholesale and retail markets, as well as related enterprises, research units, social associations and individuals. CAWA is an association with a wide social foundation within the Chinese agricultural products and distribution field. CAWA is supported by the Ministry of Agriculture in making and implementing relevant policies and regulations in the management of the industry. It also contributes to information systems that connect the government with enterprises.
The CAWA has members in all provinces and municipalities. The trade volume of its member markets accounts for 70% of the national total. “All of the top 200 wholesale markets in China are members of CAWA, therefore the MOUs signed will help Sri Lanka enormously not only to enter the Chinese market but for collaboration in Technology Transfer and FDI”, said Alexi Gunasekera, Minister (Commercial) addressing the gathering. As a member of the World Union of Wholesale Markets, CAWA actively promotes international trade in fresh agricultural products. It has cooperation agreement with over 20 government institutions and export associations in order to jointly promote international trade based on the platform of wholesale markets through regular information exchange, trade mission comprised of purchasers and participation in each other’s events.
Further the association holds important Exhibitions such as the China International Agricultural Products Trade Fair and China, International Organic Food & Green Food Expo in Zhengzhou city, Henan. The MOU will pave the way for Sri Lanka’s participation at the future editions of these exhibitions.
CAWA considered Sri Lanka’s clean environment, the premium quality of the products and counter-seasonality major benefits of Sri Lanka Products.
“The prospects are very good because Sri Lanka Government has placed fruits and sea food as potential exports to promote in the overseas market and China has huge demand for these products. Through these MOUs we will strive to achieve positive results", said H E the Ambassador. As non tariff measures seem to be more challenging than the tariff measures for fruits, vegetables and fisheries products, market entry in China and Technical Barriers are commonly cited as issues. Signing of a MOU will help to achieve positive results in the future.
