EU proposes new GSP Regulation
18 May 2011
The European Union has produced a new draft Regulation to take the place the current regulation on the Generalised System of Preferences (GSP). It will focus the system on fewer countries to ensure that those that the most deserving derive the most benefit from the system.
The proposal modernises the current list of beneficiary countries. New criteria will be introduced based on the World Bank's classification of countries according to Gross National Income per capita, and they will reduce the number of beneficiary countries from 176 to around 80. Countries that will fall outside the scheme include, for example, Russia, Qatar, Kuwait and Saudi Arabia.
The GSP+ scheme offers additional tariff reductions to support vulnerable developing countries with a good human rights record. The framework surrounding this will also be brought up to date. The main change is that the EU will have more leverage and better monitoring of conditions in these countries.
The current system is due to end in December 2011. However, a "rollover" Regulation will extend the current regime to the end of 2013. The EU is hoping that the proposed Regulation will come into force after 2013.
There is more information on the changes in these EU documents:
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Proposal for a Regulation of the European Parliament and of the Council applying a scheme of generalised tariff preferences http://trade.ec.europa.eu/doclib/docs/2011/may/tradoc_147893.pdf
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More benefits from preferential trade tariffs for countries most in need: Reform of the EU Generalised System of Preferences http://trade.ec.europa.eu/doclib/docs/2011/may/tradoc_147892.pdf
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Speaking Points http://trade.ec.europa.eu/doclib/docs/2011/may/tradoc_147895.pdf