EU Council Presidency And Parliament Finalise Agreement To Enhance Trade Preferences For Developing Countries

The European Council Presidency and the European Parliament's negotiators have reached a tentative deal on revising the Generalised Scheme of Preferences (GSP) regulation. This framework grants EU trade preferences to developing nations. The updated system enhances the current one by strengthening ties to human rights and environmental respect, alongside improved monitoring and transparency.

A significant addition is the connection between trade preferences and cooperation on migration. Beneficiary countries must now collaborate on the readmission of their nationals illegally present in the EU. Lars Løkke Rasmussen, Denmark’s Minister for Foreign Affairs, stated, "I am satisfied that Europe with this agreement strengthens our support to developing countries through trade and preferential access to the single market. This is not a trivial accomplishment in a world of rapid change. At the same time, we make it clear that these trade benefits must be linked to the respect for human rights, good governance, environmental protection and - for the first time - cooperation on return of own nationals illegally present in EU."

The revised framework retains key elements of the existing system while introducing broad enhancements. It expands international agreements that beneficiary countries must follow. Preferences can be withdrawn if there are serious human rights or environmental violations. Similar measures apply if climate agreement principles are ignored.

Monitoring and Compliance

The new framework allows suspending trade benefits for non-cooperation on migration issues. The European Commission will monitor compliance, informing Parliament and Council of any decisions. Transparency is enhanced by involving stakeholders in monitoring GSP programme commitments.

Support for Least Developed Countries

Least developed countries will benefit from a flexible transition over the next decade. They can receive GSP support if they adhere to strict sustainability standards. The graduation threshold for suspending preferences in a specific sector will drop from 57% to 47%, focusing support on products needing competition.

Protecting European Producers

Mechanisms are included to protect European producers. An automatic safeguard for rice imports uses a tariff quota system imposing duties on quantities exceeding historical levels. Special safeguards apply to textiles and ethanol imports under GSP when they exceed 6% of EU total imports or 47% from GSP countries.

The preliminary agreement awaits formal adoption by the Council and European Parliament before implementation begins.

With inputs from WAM