EC Seeks Comments on Its Expiring GSP Scheme
The European Commission is seeking comments on possible revisions and updates to the European Union's scheme of Generalized System of Preferences (GSP), which is due to expire December 31, 2011.
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Comments are due by May 31, 2010.
(The EC's GSP scheme is a trade arrangement through which the EU provides preferential access to the EU market to 176 developing countries and territories, in the form of reduced tariffs for their goods.)
GSP Scheme Expires Dec 31, 2011
The current GSP Regulation, which operates on the basis of Council Regulation (EC) No. 732/2008 of July 22, 2008, expires on December 31, 2011. In the absence of new legislative action to provide for the maintenance of GSP beyond that point, imports from developing countries under the scheme would revert to standard most-favored nation (MFN) treatment, except for those from least developed countries which would still be covered by the open-ended Everything But Arms (EBA) regime.
Short-Term Renewal Planned as Interim Measure
The EC explains that due to the entry into force of the Lisbon Treaty on December 1, 2009, a more complex legislative process is now required for GSP and other "common commercial policies." As there is insufficient time to accommodate the new process and give affected parties adequate advance notice of any changes, the Commission intends to propose a time-limited extension of the current GSP Regulation so as to create sufficient space in which to decide on a new Regulation.
Public Consultation Part of Broader Review of GSP Regulation
The EC states that its public consultation on the GSP Regulation provides the opportunity to review and update the GSP scheme's objectives in light of new challenges and the changing economic environment.
Comments Sought on Cutting GSP for "BRIC" Countries, Product Eligibility, Etc
Among other things, the EC seeks comments on (partial list):
the appropriateness of maintaining access to GSP for certain countries such as the "BRIC" countries of Brazil, India, and China;
linking other economic indicators to graduation instead of or in addition to the current indicator (relative share in GSP covered imports);
major characteristics of countries that most need GSP benefits;
the current architecture of GSP and whether the three regimes of GSP, GSP, and EBA should be changed;
the product coverage and associated tariff treatment under GSP and GSP;
the balance between the treatment of sensitive and non-sensitive products.
(See ITT's Online Archives or 03/10/10 news, 10031005, for BP summary of U.S. Senate Finance leaders outlining their plans for trade preference reform in the U.S.)
See ITT's Online Archives or 07/30/08 news, 08073015, for BP summary of the EU's GSP scheme which took effect January 1, 2009 and expires December 31, 2011.)
EC notice on GSP public consultation available at http://trade.ec.europa.eu/doclib/docs/2010/march/tradoc_145972.pdf
EC online questionnaire available at http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=NEXTGSPSCHEME&lang=en
EC fact sheet on GSP available at http://trade.ec.europa.eu/doclib/docs/2008/july/tradoc_139988.pdf