New EU preferential import scheme

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.