Brussels, 05/10/2012 (Agence Europe) - The next EU scheme of generalised tariff preferences (GSP), to be applied as of 1 January 2014, does not include high-income or higher middle-income countries but will focus on the poorer countries.
Further to a first reading agreement with the European Parliament on 13 June (see EUROPE 10633), the Council adopted, on Thursday 4 October, a regulation amending the current GSP for developing countries, to take effect on 1 January 2014.
In force since 1971, the EU's GSP contributes to integrating developing countries into the global trade system through the granting of tariff preferences for exports of products from those countries to the European market. The GSP comprises a general arrangement and two special incentives. On one hand, there is the special incentive GSP+, which provides for further tariff reductions for developing countries that sign, ratify and effectively implement a set of 27 core UN and International Labour Organisation conventions on human and labour rights, environmental protection and good governance. On the other hand, there is the special incentive “Everything But Arms” (EBA), which provides for full duty-free and quota-free imports of all goods from the least developed countries with the exception of arms.
GSP reform aims to adapt the scheme to the changing global context and to make it more transparent, more predictable and more generous towards the countries that need it most. Preferences will now mainly be granted to the least developed, low income and lower middle-income countries, taking account of changing economic and trade patterns and acknowledging that the economic crisis and preference erosion have hit the poorest countries hard. The countries already benefitting from preferences under free trade agreement with the EU or autonomous arrangements will be excluded from the scheme. (EH/transl.jl)