Brussels, 10/12/2001 (Agence Europe) - After lengthy discussions, the General Affairs Council finally adopted, on Monday in Brussels, the regulation that introduces a new generalised system of preferences (GSP) for the period 2002-2004. It covers around 10% of imports into the European Union, or a value of around EUR 90 billion annually. These figures were cited by Commissioner Pascal Lamy, who recognised that this was the volume of eligible imports but that only "a little less than half in fact receive such treatment at the present time". Mr Lamy welcomed adoption of the new regulation, and recalled that the aim was precisely to "improve the rate of access of developing countries" by making the GSP simpler and easier to use. The new trading regime is now only made up of two large categories: the so-called sensitive products category (mainly those for which there is a common market organisation within the EU), subject to customs law and the subject of safeguard measures, and the category of other products that enter the Community market duty free. In the first case, the preferential margin is taken to 3.5% (Ed.: in other terms, the beneficiary countries have customs duties applied to them that are 3.5% lower than those usually applied) In addition to this, there are two specific systems allowing countries that undertake to respect the international social or environmental norms to obtain an additional margin of 5%. Customs duties are therefore reduced by 8.5%. As the Commission hopes, social norms will now comprise the eight ILO conventions (instead of the previous two). On the other hand, at the environmental level, and because of the weaknesses of international law in this respect, only the protection of tropical forests was adopted although the Commission had initially hoped to go further. In Mr Lamy's view, the adoption of this incentive system for social rights demonstrates the consistency of European policy "even though we did not achieve our aims in Doha". Although the incentive system works on a voluntary basis, the whole of GSP is still subject to conditions, and its benefits could be withdrawn from countries that systematically and repeatedly violate social rights or if there are very harmful effects for the environment caused by the production of goods benefiting from such preferences. This withdrawal mechanism would work at the Commission's initiative with a consultation procedure allowing the country in question to present its arguments and, where necessary, to adjust its behaviour. If this is not so after six months, the country in question would then have the benefit of GSP temporarily withdrawn. This temporary withdrawal would be confirmed after a further six month period, explained Mr Lamy, stressing that the system guarantees "things will be done in a transparent and open manner". Mr Lamy also stressed that the regulation adopted by the Council provides for Pakistan to be added to the list of countries benefiting from the GSP, but it was agreed that the list should not be extended to other countries between now and end 2004.