Implementation of New EU GSP Scheme Proposed to be Accelerated to April 1, 2005 (from July 1, 2005)
The European Commission (EC) has issued a press release announcing that it has proposed to accelerate the entry into force of the new European Union (EU) Generalized System of Preferences (GSP) in response to the tsunami disaster. Under this proposal, the new EU GSP would come into effect on April 1, 2005 (from the currently proposed date of July 1, 2005).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The EC explains that if this proposal is passed, the new GSP scheme, which is described as simpler, more transparent and more stable, would be in effect from April 1, 2005 until December 31, 2008.
New EU GSP Will Contain Three Schemes Instead of the Current Five
The new EU GSP system will be composed of the following three schemes instead of the current five:
General Scheme. Product coverage will increase from about 6,900 to about 7,200 and will incorporate an additional 300 products mostly in the agriculture and fishery sectors, of interest for developing countries. Under the proposed General Scheme, duties on non-sensitive products would be entirely suspended (except for agricultural components). With respect to sensitive products, the proposed scheme outlines methods for calculating duty reductions based on the type of duty at issue (e.g. ad valorem, specific, etc.)
GSP Plus. A new GSP Plus scheme will be created for especially vulnerable countries with special development needs. GSP Plus will cover approximately 7,200 products which can enter the EU duty-free; however, beneficiaries must meet a number of criteria including ratification and effective application of 27 key international conventions.
(According to EU sources, loosely speaking, three of the current GSP schemes would be collapsed into the proposed GSP Plus scheme. However, for countries currently receiving GSP benefits under these three schemes, the proposed GSP Plus benefits will not be conferred automatically. EU sources explain that certain conditions that must be met are unique to the proposed new GSP Plus scheme.)
"Everything but arms." The EU's "Everything but arms" scheme will remain unchanged and entails giving duty-free and quota-free access for all products (including textiles and apparel) from the world's 50 poorest countries, with the exception of arms and munitions, and with delayed benefits for sugar, rice, and bananas. (See ITT's Online Archives or 03/05/01 news, 01030260, for BP summary of the EU's elimination of duties for the countries listed under the Everything but Arms scheme.)
The following 50 countries are eligible under the "Everything but Arms" scheme:
| Lesotho | Samoa |
| Liberia | Senegal |
| Madagascar | Sierra Leone |
| Malawi | Solomon Islands |
| Maldives | Somalia |
| Mali | Sudan |
| Mauritania | Tanzania |
| Mozambique | Togo |
| Myanmar | Tuvalu |
| Nepal | Uganda |
| Niger | Vanuatu |
| Rwanda | Yemen |
| Sao Tome e Principe | Zambia |
Without a new EU GSP scheme, the current EU GSP scheme would be in effect through December 31, 2005.
the EU's tariff preferences for Myanmar are temporarily withdrawn
(See ITT's Online Archives or 10/29/04 news, 04102915, for BP summary of the proposed adoption of the new EU GSP, with more detailed descriptions of new features.)
EC Press Release detailing new EU GSP (MEMO/05/43, dated 02/10/05) available at http://europa.eu.int/rapid/pressReleasesAction.do?reference=MEMO/05/43&format=HTML&aged=0&language=EN&guiLanguage=en
EC Press Release announcing proposed acceleration of new EU GSP effective date (IP/05/160, dated 02/10/05) available athttp://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/160&format=HTML&aged=0&language=EN&guiLanguage=en
EU Proposed GSP (dated 10/20/04) available at http://europa.eu.int/eur-lex/lex/LexUriServ/LexUriServ.do?uri=COM:2004:0699:FIN:EN:PDF (EU sources note that a February 2005 version of this proposed GSP is not yet available. The February 2005 version contains the proposed April 1, 2005 acceleration of implementation and certain other changes.)