DUSHANBE, July 25 2008, Asia-Plus — The European Commission has welcomed the adoption of a new Regulation applying the EU Generalized System of Preferences (GSP) for the period from January 1 2009 until the end of 2011, press release by issued by the Delegation of the European Commission in Tajikistan said.
It will allow 176 developing countries, including those of Central Asia, to attain a preferential access to the EU market.
EU Trade Commissioner Peter Mandelson said: “The continuation of GSP will ensure stability and predictability for beneficiaries and traders in the EU and developing countries. GSP is a vital tool of our pro-development EU trade policy.”
The GSP is a trade arrangement through which the EU provides non-reciprocal preferential access to the EU market for developing countries and territories. In 2007, developing countries exported €57 billion worth of goods under GSP, with a nominal duty loss for the EU of €2.5 billion.
The renewed preference system will be updated and improved, ensuring that GSP is targeted at those countries that need it most. The adjustments are triggered automatically when a country”s performance on the EU market goes above or below a certain threshold. Suspension of preferences, called “graduation”, reflects the fact that a particular country is competitive in the EU market for the products in question.
Alongside the standard GSP scheme, the EU also offers a special incentive arrangement for Sustainable Development and Good Governance, known as “GSP+”. It offers additional preferences to support vulnerable developing countries in their ratification and implementation of relevant international conventions on human and labor rights, environmental protection, and good governance. At present, 14 beneficiary countries receive the additional preferences offered under the GSP+. Interested countries have to apply until 31 October this year in order to benefit from this incentive scheme from January 2009.
A special arrangement for the 50 least-developed countries, known as “Everything But Arms” and providing an open-ended duty-free, quote-free access to the EU market is also maintained.
