highlights of the eu's new generalised scheme of preferences

8/12/2019 Highlights of the EU's new Generalised Scheme of Preferences

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Highlights of the EU's new

Generalised Scheme of Preferences

(GSP)

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This presentation is part of the Commission's Info Pack on theEU's new GSP and is best read together with the description infull text of the Info Pack

This is not a legal document and has been preparedexclusi!el" for information purposes This should not be usedb" an" part" as a basis for an" decisions with legalimplications The exclusi!e legal basis for the new GSP is#egulation $EU% &o ()*+,-+ of the European Parliament andof the Council

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TIMELINE

Current scheme: Preferences applicable until .- /ecember+,-. $Council #egulation $EC% &o (.+*+,,) rolled o!er b"Council #egulation $EC% &o 0-+*+,--%

New scheme: 1asic rules published on .- 2ctober +,-+&ew preferences to appl" from - 3anuar" +,-4

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M IN !"#E$TI%ES of NE& GSP

1. Focus the preferences on those most in need 56east /e!eloped

Countries and other poor economies with no other preferential channels toaccess the EU market #eflection of different trade7 financial andde!elopment needs of countries

2. Enhance GSP+ as a tool to support partners which are serious aboutimplementing international con!entions

3. Ma e the s!stem more transparent and predicta"#e for economicoperators

$. %dapt to &is"on procedures 5enhanced role for the European Parliament

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oc s on artners most in need

Current

1'' countries and o!erseas territories7 di!ided in . groups89 'Standard' GSP $generous preferences%

9 GSP: $enhanced preferences because countries ratif" andimplement international con!entions relating to human and labourrights7 en!ironment and good go!ernance%

9 E!er"thing 1ut ;rms $E1;7 dut"9free


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oc s on artners most in need

New

, countries which need GSP trade preferences the most89 4 least de!eloped countries under E1;9 4- 6ow income' and 'lower middle income' countries7 as classified b" the>orld 1ank These countries ma" benefit from standard GSP and*or GSP:$see below%

Partners which are no longer eligible8 .. 2!erseas countries and territories$alread" ha!e access5do not need GSP%

Partners which no longer benefit89 .4 Partners which ha!e been granted preferences through other tracks$e g bilateral agreements7 autonomous arrangements5do not need GSP%

9 +, '?igh income' or 'upper middle income' partners7 as listed b" the >orld1ank $these more ad!anced de!eloping countries no longer need

preferences to export@ in fact7 continuing to pro!ide preferences to themincreases the competiti!e pressure on exports from 6/Cs and other poorcountries7 which lag behind This is particularl" damaging for thesecountries7 in a context of increased competition due to the general drop inEU tariffs %

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E(er!thin)*"ut*%rms E,%- "eneficiaries

%frica 3$-: ;ngola7 1urkina =aso7 1urundi7 1enin7 Chad7 /emocratic #epublic

of Congo7 Central ;frican $#epublic%7 /Aibouti7 Eritrea7 Ethiopia7 Gambia7

Guinea7 E


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Standard GSP "eneficiaries

;rmenia7 ; erbaiAanH7 1oli!ia7 China7 Cape erde7 Colombia7 #epublic of Congo7

Cook Islands7 Costa #ica7 Ecuador7 Georgia7 Guatemala7 ?onduras7 India7

Indonesia7 IranH7 Ira


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GSP+ "eneficiaries

The list of GSP: countries in the new law is originall" empt" This is because

countries which meet the criteria will be entered into GSP: as the" appl"

The new GSP: law expands the number of eligible countries $see the slides on

GSP: below%

;ll eligible countries interested in GSP: under the new law $including those

which enAo"ed GSP: under the preceding law% must appl" under the new

rules to obtain GSP:

Eligible countries ha!e more than one "ear to appl" and obtain GSP: before

the new preferences enter into force on - 3anuar" +,-47 but earl"

application is ad!isable

oc s on artners most in need ( continued )

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0hich partners are no #on)er e#i)i"#e 33 (erseas Countries and erritories C s- which ha!e

alread" a special market access arrangement to the EU or belongto de!eloped countries8

;nguilla7 &etherlands ;ntilles7 ;ntarctica7 ;merican Samoa7 ;ruba7 1ermuda7 1ou!et

Island7 Cocos Islands7 Christmas Islands7 =alkland Islands7 Gibraltar7 Greenland7

South Georgia and South Sandwich Islands7 Guam7 ?eard Island and Bc/onald

Islands7 1ritish Indian 2cean Territor"7 Ca"man Islands7 &orthern Bariana Islands7

Bontserrat7 &ew Caledonia7 &orfolk Island7 =rench Pol"nesia7 St Pierre and Bi


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0hich partners no #on)er "enefit

3$ Partners with another mar et access arran)ement 8 Euromed (6): Algeria, Egypt, Jordan, Lebanon, Morocco, Tunisia. ari!orum ("#): $eli%e, &t. 'itts and e is, $a*amas, +ominican

epublic, Antigua and $arbuda, +ominica, Jamaica, &aint Lucia, &aint-incent and t*e /renadines, $arbados, Trinidad and Tobago, /renada,

/uyana, &urinam. Economic 0artners*ip Agreement Mar1et Access egulation (2): 3te

d45 oire, /*ana, ameroon, 'enya, amibia, $ots ana, & a%iland, 7i8i. Eastern and &out*ern A!rica (9): &eyc*elles, Mauritius, imbab e 0aci!ic ("): 0apua e /uinea ;t*er (


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oc s on artners most in need ( continued )

0hich partners no #on)er "enefit

4 5i)h income countries and territories $according to >orld 1ank% : Saudi ;rabia7 Fuwait7 1ahrain7 Jatar7 United ;rab Emirates7 2man7 1runei/arussalam7 Bacao

12 6pper midd#e income countries 6M7s-8: 6atin ;merica $0%8 ;rgentina7 1ra il7 Cuba7 Urugua"7 ene uela@ ex9USS# $.%8 1elarus7 #ussia

7 Fa akhstan@ other $4%8 Gabon7 6ib"a7 Bala"sia7 Palau

Limited drops in e=ports ("> range) !or some o! t*ese partners. E enmarginal drops in e=ports by t*e more ad anced, bigger economies, canpotentially pro ide signi!icant opportunities !or t*e poorest, *ose e=portsare ery small in comparison. To gi e an idea o! t*e order or magnitude, a

drop o! "> in, say, $ra%ilian e=ports, is e?ui alent to more t*an "6 times$ur1ina 7aso4s total e=ports to t*e E@.

H In 3ul" +,-+ both ; erbaiAan and Iran were classified as upper9middle income countries for thethird time Therefore7 preferences will be deferred for these countries This was announced in aCommission delegated regulation published on +- =ebruar" +,-. Preferences will no longer appl"as of one "ear later7 pro!iding an ample transition period for operators to adAust

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New 9d!namic9 approachnce the new GSP enters into force 7 status of countries is re!ised

continuousl" >hen a countr" no longer fulfils criteria to be a beneficiar"7the partner exits the beneficiar" list with ample transition periods toensure economic operators can adapt Two cases8

orld $an1 lists t*e country as B*ig*-incomeB or Bupper middle incomeCt*ree years in a ro At t*e beginning o! t*e !ollo ing year, t*e country

is no longer bene!iciary o! /&0 and a transition period o! one year isgranted !or t*e economic operators to adapt.

i! a pre!erential mar1et access arrangement (typically, a bilateral !reetrade agreement) is applied (e en on a pro isional basis), a transitionperiod o! t o years is granted.

oc s on artners most in need (contin ed)

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oc s on rod cts most in need* grad ation of sections

Current

1ased on import share in +- product sections $largel" based on the EU's customscategories%

Preferences are not applied if threshold of -0K of total imports b" all GSP beneficiariesis reached

6ower threshold of -+ 0K for textiles Graduation applies to standard GSP and GSP:

New

Product sections further split up to impro!e coherence of product classification Thresholds increased to -( 0K $general% and to -4 0K $textiles% to better identif"

competiti!e sectors and to neutrali e 'o!er graduation effect' due to decrease in thenumber of beneficiaries

Graduation onl" applies to standard GSP List of grad ated sectors for the eriod from + #an ar, -.+/ to 0+ 1ecem2er

-.+3 has 2een ado ted 2, the $ommission on +4 1ecem2er -.+-5

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Grad ated sectors ( eriod -.+/ 6 -.+3)

China : new#! )raduated sectors-: S*1a : #i(e anima#s and anima# productse;c#uded fish< S*1": fish= crustaceans= mo##usc and a>uatic in(erte"rates 7 S*2" :(e)eta"#es and fruits< S*2c: coffee= tea= mat? and spices< S*2d: cerea#s= f#our= nuts=resins and p#aitin)< S*$": prepared foosdtuffs e;c#. meat and fish-= "e(era)es=

spirits and (ine)ar.

+( graduated sectors in total

The onl" sectors that are not graduated are8

S9+a8 !egetable productsS9.8 animal or !egetable oils7 fats and waxesS94a8 meat productsS94c8 tobaccoS908 mineral products

7ndia : / new#! )raduated sectors-: S*/: minera# products< S* a: inor)anic andor)anic chemica#s< S* ": chemica#s= other than or)anic and inor)anic chemica#s< S*4a: raw hides and s ins and #eather< S*1'": road 8ehicles9 2ic,cles9 a8iation ands ace9 2oats and arts thereof5 S*11a: te;ti#es= remains )raduated.

7ndonesia : 2 new#! )raduated sectors-: S*1a: #i(e anima#s and anima# productse;c#uded fish< S* ": chemica#s= other than or)anic and inor)anic chemica#s< S*3:anima# or (e)eta"#e oi#s= fats and wa;es remains )raduated.


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hai#and 2 new#! )raduated sectors-: S*$a: preparations of meat and fish< S*$": prepared foosdtuffs e;c#. meat and fish-= "e(era)es= spirits and (ine)ar< S*1$: Pear#s and precious meta#s is sti## )raduated.

Ecuador 2 new#! )raduated sectors-: S*2a: (e)eta"#e products< S*$a: preparations of meat and fish.

6 raine 1 new#! )raduated sector-: S*1'a: railwa, and tramwa, 8ehicles androd cts .

Ni)eria 1 new#! )raduated sector-: S*4a: raw hides and s:ins and leather5

Costa @ica 1 new#! )raduated sector-: S*2": (e)eta"#es and fruits.

or Aietnam 9 sectors 12a (footwear) and 12" (headgear9 m2rellas etc5 ) are no

longer grad ated

N,: if a countr! is )ranted GSP+= the )raduation does not occur

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Grad ated sectors ( eriod -.+/ 6 -.+3) ; continued


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Current

Standard GSP* < st nder 33= of tariff lines co8ered (eithertariff red ction or >ero tariffs)

Products split between 'sensiti!e' and 'non9sensiti!e 9 Sensiti!e8 tariff reductions 9 &on9sensiti!e8 dut"9free

GSP?* < st o8er 33= of tariff lines co8ered (>ero tariffs)"oth sensiti8e and non;sensiti8e rod cts d t,;free

E8er,thing " t rms* @@5A= of tariff lines co8ered (>ero tariffs) ;ll products dut"9free $except arms%

To note8 +0K of tariff lines are subAect to ,K dut" >hen added to the LLK tariff lines co!ered b" GSPor GSP:7 this implies that onl" K of lines carr" normal dut" for GSP and GSP: beneficiaries5underlining generosit" of the scheme

oc s on need* more rod cts nder references9 largerreferences for some rod cts

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New

GSP* +B more tariff lines (3;digit) nder the scheme9 /tariffs lines (A;digit) see reference eC and (the, mo8efrom Dsensiti8e to Dnon;sensiti8e )5

GSP?* / more tariff lines (3;digit) nder the scheme5

Prod cts caref ll, selected to a8oid that more ad8anced2eneficiaries t additional ress re on oorer2eneficiaries5

oc s on need* more rod cts nder references9larger references for some rod cts (contin ed)

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New

GSP* +B more 3;digit tariff lines all non;sensiti8e


$N code 1escri tion-A.B+@ Al1aliDal1aline-eart* metals ot*er t*an sodium calcium-A.B0. are-eart* metals, scandium yttrium, *et*erDnot intermi=edDinteralloyed-A+A-. Aluminium o=ide (e=cl. arti!icial corundum)0+.--+ Ammonium sulp*ate

0+.-/.

Mi=tures o! ammonium nitrate it* calcium carbonateDot*er inorganic non-

!ertilising substance0+.-B. &odium nitrate0+.-3. +ouble salts mi=tures o! calcium nitrate ammonium nitrate0-.+-. attle e=tract4A.+@@ @n roug*t lead ot*er t*an re!ined, n.e.s. in F2.G"A+.+@/ @n roug*t tungsten ( ol!ram), incl. bars rods obt. simply by sinteringA+./++ @n roug*t magnesium, containing at least HH.2> by eig*t o! magnesiumA+./+@ @n roug*t magnesium (e=cl. o! 2"G#."")A+.4-. @n roug*t cadmiumI po ders

A+.A-. @n roug*t titaniumI po dersA+.A0. Titanium aste scrap

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New

GSP* / A;digit tariff lines go from sensiti8e to non;sensiti8e


GSP?* / 3;digit new tariff lines

$N code 1escri tion.3.0+-..

7res* ut arnations And $uds, ;! A 'ind &uitable 7or $ou?uets ;r 7or;rnamental 0urposes

-/.++.3. &un- ured ;riental Type Tobacco, @nstemmed ;r @nstripped

[email protected] BEt*ylene Terep*t*alateB, 5n 0rimary 7orms, a ing A iscosity

umber ;! K F2 MlD/B)

AB-+@...

ideo ecording ;r eproducing Apparatus (E=cl. Magnetic Tape-Type)I ideo ecording ;r eproducing Apparatus, *et*er ;r ot

5ncorporating A ideo Tuner (E=cl. Magnetic Tape-Type And ideoamera ecorders)

$N code 1escri tion-A.B+@ Al1aliDal1aline-eart* metals ot*er t*an sodium calcium-A.B0. are-eart* metals, scandium yttrium, *et*erDnot intermi=edDinteralloyed

-A+A-. Aluminium o=ide (e=cl. arti!icial corundum)4A.+@@ @n roug*t lead ot*er t*an re!ined, n.e.s. in F2.G"

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Current

Graduation app#ies to GSP+ Entr!

- ulnerability import s*are criterion: country only eligible i! itrepresents less t*an "> o! imports by all /&0 bene!iciaries in productsection

- ulnerability non-di ersi!ication criterion: N largest product sectionsmust co er at least FN> o! total e=ports !rom country to E@

- Entry indo : e ery ".N years

New

Graduation no #on)er app#ies to GSP+ Entr!

- ulnerability import s*are criterion: t*res*old increases !rom "> to

- ulnerability non-di ersi!ication criterion: number o! sectors to co er

at least FN> increases !rom N to F (neutral)- o entry indo s: can apply any time New countries which can now app#!: Phi#ippines= Pa istan= 6 raine.

;ll eligible countries need to app#! to recei(e GSP+ 7 e!en if the" arealread" beneficiar" under the present scheme

Enhanced GSP?*More incenti8es to


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Current

+( con!entions

Entr! 9 Commitment to ratif" and implement con!entions7 to report and to accept monitoring

Monitorin)9 #eporting to Council e!er" . "ears

0ithdrawa# mechanism 9 2nus on EU to show that beneficiar" countr" is in breach of con!entions 9 ;pplicable legal benchmark of 'effecti!e implementation' undefined 9 1ased on reports b" international monitoring bodies $e g U&7 I62% 9 Undefined role for other parties $e g ci!il societ"%

Enhanced GSP?* im ro8ed mechanisms forim lementation of con8entions

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New +( con!entions $;partheid no longer rele!ant and falls7 U& =ramework Con!ention on Climate Changein%

Entr! $inding commitment to rati!y con entions, to accept monitoring, and to cooperate ommitment to accept it*out reser ations con entions4 reporting re?uirements ountry *as not !ormulated a reser ation *ic* is pro*ibited by any o! t*ose con entions o serious problems o! implementation

Enhanced monitorin) More scrutiny by ouncil and E0 on t*e basis o! ommission report, e ery < years

0ithdrawa# mechanism ;nus on t*e bene!iciaries to pro e positi e record Applicable legal benc*mar1 o! 4e!!ecti e implementationO de!ined More sources o! in!ormation allo ed (broader t*an @ , 5L;, P) &peci!ic role !or Bt*ird partiesB (e.g., ci il society)

Enhanced GSP?* im ro8ed mechanisms forim lementation of con8entions (contin ed)

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Current

@easons:- &erious and systematic iolations o! core *uman and labour rig*ts con entions (on

t*e basis o! monitoring bodies)- ;t*er grounds speci!ied in t*e egulation, e.g. un!air trading practices, non-

compliance it* customs rules, P @u#es app#! to standard GSP= GSP+ and E,%

New

@easons:- 5dem $@T not e=clusi ely on t*e basis o! monitoring bodiesI also Bt*ird partiesB- lari!ication t*at un!air trading practices include t*ose lin1ed to ra materials

@u#es continue to app#! to standard GSP= GSP+ and E,%

Im ro8ement of tem orar, withdrawal r les

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Current

Genera# safe)uards 8 EU producers ha!e no right tore


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New Genera# safe)uards 8 EU producers ha!e right to seekaction7 legal trigger defined $safeguard applies if EU producerssuffer deterioration of their situation% Clothing also can besubAect to general safeguards

Specific pro(isions for agriculture maintained

Specia# safe)uards for c#othin) maintained and extendedto textiles and to ethanol Thresholds adAusted to -.70K forannual increase of imported !olumes@ -470K of share ofimports from GSP beneficiar" countries $new graduationthreshold%@ de minimis share LK

More o erational safeg ards (contin ed)

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Current

Scheme has .9"ear duration #ights of parties not alwa"s defined

New

Bore than - "ear for economic operators to adapt to the news"stem until new preferences appl" on - 3anuar" +,-4

6onger duration8 -, "ears E1; is open9ended

#ights of parties are specified and enhanced $GSP: entr"7withdrawal7 safeguards% Transition periods for countries which no longer benefit $- "ear or

+ "ears7 depending on the case%

Enhanced trans arenc, and redicta2ilit,

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da ating to the Treat, of Lis2on*$o ncil and EP on eF al footing

Current

&o role for EP

New

6isbon rules8 extensi!e EP role7 e


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Annex VI - GSP Regulation(amended by ordinary legislative procedure)

Chapter I General provisions

$ha ter II GSP

1ecision to amend nneC I toadd or remo8e a co ntr, from

the list of eligi2le co ntriesnneC I List of eligi2le co ntries

nneC II GSP 2eneficiar, list

nneC % GSP rod ct list

nneC %I Grad ation thresholds

$ha ter III GSP?

nneC %III List of con8entions

nneC I GSP? rod ct list

nneC %II % lnera2ilit, thresholds

$ha ter % Tem orar, withdrawals

nneC I% E" 2eneficiar, list

$ha ter %I Safeg ards

$ha ter %II $ommon ro8ision

nneC III GSP? 2eneficiar, list

inal ro8isions

$ha ter I% E"

ecitals

1ecision to amend nneC %II to change

8 lnera2ilit, thresholds

1ecision to amend nneC I to change

GSP? rod ct list

1ecision to amend nneC III toadd or remo8e a co ntr, from thelist of GSP? 2eneficiar, co ntries

1ecision to amend nneC %I tochange grad ation thresholds

1ecision to amend nneC % to change GSP rod ct list

1ecision to amend nneC II toadd or remo8e a co ntr, from the

list of GSP 2eneficiar, co ntries

1ecision to amend nneC I% toadd or remo8e a co ntr, from

the list of E" 2eneficiar, co ntries

eg lation on roced res*;a lication for GSP?

;withdrawal reinstatement of GSP?;withdrawal reinstatement of GSP9 GSP?9 E"

-Safeg ards

1ecision to esta2lish or re8iew a list of GSP sections that are s s endedfrom GSP references

1ecisions amending the nneCes

1ecision to initiate or terminate GSP? tem orar, withdrawal roced re

1ecision to amend anneC II9 III or I% to tem orar, withdraw orto reinstate GSP9 GSP? or E" references

1ecision to amend the decision to tem orar, withdraw references

1ecision to initiate or terminate GSP9GSP? or E" tem orar, withdrawal roced re for reasons of rt+@(+)

1ecision to amend anneC III to tem orar, withdraw orto reinstate GSP? references

1ecision to tem orar, withdraw the references9 rolong or terminate tem orar, withdrawal in the case of fra d 1ecision to amend the decision to tem orar, withdraw references

1ecision to s s end references d e to serio sdist r2ance to EU mar:ets9 in artic lar to o termost regions

1ecision to immediatel, reintrod ce $ommon $ stoms Tariff d ties for a eriod of to +- months in the eCce tional circ mstances

1ecision to reintrod ce $ommon $ stoms Tariff d tiesd e to findings of safeg ard in8estigation

1ecision to terminate safeg ard in8estigation 1ecision to a l, s r8eillance mechanism in agric lt reand fisheries sectors

1ecision to remo8e references in teCtile and agric lt re sector

1ecision on r les for im lementing the ro8isions onim orts of s gar rod cts

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NE T STEPS

Be#e)ated acts to amend countr! #ists 2 13- %nne; 777 GSP+ "eneficiaries- ther amendments a#so possi"#e

Be#e)ated acts on some procedura# aspects GSPDGSP+withdrawa#= safe)uards- 2 13-

%d ustment of preferentia# ru#es of ori)in new "eneficiaries-2 13-

New tariff preferences to app#! as from 1 anuar! 2 1$

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highlights of the eu's new generalised scheme of preferences

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