Bridges Weekly Trade News Digest • Volume 12 • Number 42 • 10th December 2008
EU: 16 Developing Countries to Receive GSP+ Market Access Benefits
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The European Union has granted preferential tariff rates to 16 developing countries that meet its criteria for sustainable development and good governance, Brussels announced Tuesday.
The preferences, dubbed GSP+, are in addition to the standard Generalised System of Preferences (GSP) the EU extends to developing countries. Under the standard GSP, preferential access to the EU market is provided to 176 developing countries and territories in the form of reduced tariffs on around 6400 goods when entering the EU market, with no expectation of reciprocal treatment.
With the GSP+ programme, Brussels offers additional tariff reductions to support vulnerable developing countries that have ratified and effectively implemented 27 key international conventions in such fields as human rights, labour standards, sustainable development and good governance. The current GSP+ scheme, which was begun in 2006, expires at the end of the year.
“GSP+ is at the heart of our pro-development trade policy. The decision today ensures that sustainable development and good governance will continue to be rewarded,” EU Trade Commissioner Catherine Ashton said in a statement.
The EU found that 16 countries met the eligibility criteria and granted them GSP+ preferential treatment for the period 2009 to 2011. Armenia, Azerbaijan and Paraguay will receive the benefits for the first time beginning in January. Countries whose GSP+ benefits will continue in the next period include Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Peru, Sri Lanka and Venezuela.
But Panama, a previous recipient, will miss out on the preferential treatment because its application was not submitted by Brussels’ due date, the end of October. Additionally, the preferential treatment extended to El Salvador and Sri Lanka is contingent on current investigations into their effective implementation of certain UN and International Labour Organisation conventions. “Depending on the findings, they could be withdrawn from the scheme,” Brussels said.
According to Brussels, in 2007 there was 4.7 billion euros’ worth of trade under the programme. The nominal duty loss for the EU was more than 357 million euros, compared to that under the standard GSP. Tariff reductions beyond that of the standard GSP scheme include, among others, cuts of up to 52 percent on tobacco, up to 30 percent on various fruit juices, and up to 20 percent on fruits and fish.
The EU also offers an Everything But Arms (EBA) arrangement, which provides duty-free, quota-free access for all products for 50 least developed countries on 7200 tariff lines.
ICTSD reporting; “EU grants preferential tariff rates to 11 Latin American countries,” XINHUA, 9 December 2008; “EU grants GSP + trade status to 16 countries,” REUTERS, 9 December 2008.
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dear european community!
actually today sri lanka garments facing a huge problem without gsp+.For businessman i know how to we are facing that.we don’t have orders.so pls accept it and save sri lanka garments.