EU publishes revised preferential import scheme for developing countries
The
EU has issued its revised import preference scheme - known as the
Generalised Scheme of Preferences (GSP) - for developing countries most
in need which will take effect from 1 January 2014. Following agreement
with the Council and European Parliament, today’s publication contains
the specific tariff preferences granted under the GSP in the form of
reduced or zero tariff rates and the final criteria for which developing
countries will benefit.
The new scheme will be focused on fewer
beneficiaries (89 countries) to ensure more impact on countries most in
need. At the same time, more support will be provided to countries
which are serious about implementing international human rights, labour
rights and environment and good governance conventions.
"I am delighted that EU Member States and Members of the European
Parliament have backed the Commission's proposal to make our
preferential import scheme more effective. It was an important
recognition that key developing economies have become globally
competitive. This now allows us to tailor our pro-development trade
scheme to give the countries still lagging behind some additional
breathing space and support." said EU Trade Commissioner Karel De Gucht.
The current GSP scheme will remain valid until 1 January 2014, thus
giving economic operators time to adapt to the revised regime. The
Council and the European Parliament built on the Commission's proposal
by introducing a wider though limited expansion of products and
preferences, a longer transition period for the application of the new
GSP, and by expanding specific safeguards to include ethanol and plain
textiles.
Which partners are beneficiaries in the reformed GSP?
The new scheme is expected to start with 89 beneficiaries: 49 least
developed countries in the Everything But Arms scheme, and 40 other low
and lower-middle income partners:
Everything But Arms (49):
• 33 in Africa (Angola, Burkina Faso, Burundi, Benin, Chad, Congo
(Democratic Republic of), Central African (Republic), Djibouti, Eritrea,
Ethiopia, Gambia, Guinea, Equatorial Guinea, Guinea-Bissau, Comoros
Islands, Liberia, Lesotho, Madagascar, Mali, Mauritania, Malawi,
Mozambique, Niger, Rwanda, Sudan, Sierra Leone, Senegal, Somalia, Sao
Tome and Principe, Togo, Tanzania, Uganda, Zambia);
• 10 in Asia (Afghanistan, Bangladesh, Bhutan, Cambodia, Lao (People's
Democratic Republic), Maldives (until end 2013 as they have exited the
UN Least Developed Country list), Myanmar/Burma (preferences currently
withdrawn), Nepal, Timor-Leste, Yemen);
• 5 in Australia and Pacific (Kiribati, Samoa, Solomon Islands, Tuvalu, Vanuatu)
• 1 the Caribbean (Haiti).
Low and lower middle income partners (40):
• Armenia, Azerbaijan, Bolivia, China, Cape Verde, Colombia, Congo
(Republic of), Cook Islands, Costa Rica, Ecuador, Georgia, Guatemala,
Honduras, India, Indonesia, Iran (Islamic Republic of), Iraq, Kirghizia,
Marshall (islands), Micronesia (federate States of), Mongolia, Nauru,
Nicaragua, Nigeria, Niue, Pakistan, Panama, Paraguay, Peru, the
Philippines, El Salvador, Sri Lanka, Syrian (Arab Republic), Tajikistan,
Thailand, Tonga, Turkmenistan, the Ukraine, Uzbekistan, Vietnam.
How have products and preference margins been expanded?
Product coverage under standard GSP is already very high: 66% of
tariff lines. If we add the 25% of other lines which are already at 0%
normal duty, only 9% of tariff lines are today outside GSP. For EBA, all
products but arms receive duty-free, quota-free access already. This
underlines the generosity of the EU's GSP.
The new GSP incorporates a wider though limited expansion in products
and preference margins for 23 tariff lines, mainly dealing with raw
materials (see annex for a list). These products have been carefully
selected to avoid negative impacts on the poorest (LDCs), which already
have duty free, quota free access for all products.
Background
In 2011, imports that received GSP preferences were worth €87
billion, which represents around 5% of total EU imports and 11% of the
total EU imports from developing countries.
