EU unveils new Generalised System of Preferences

27 Jun '05

4 min read

EU Member States have this afternoon backed EU Trade Commissioner Peter Mandelson's reform of the EU's Generalised System of Preferences (GSP). Agreement by Member States, led by the Luxembourg Presidency, breaks a three month deadlock in Council that has delayed the adoption of the new preferential access system.

The reform of the GSP will make the EU's system of preferential market access for developing countries both simpler and fairer. While the new GSP system as a whole will apply from 1 January 2006, application of the GSP Plus incentive system, which grants additional preferences to vulnerable developing countries that pursue good governance and sustainable development policies, will be fast tracked to apply from 1 July 2005.

EU Trade Commissioner Peter Mandelson said: "I am delighted with this agreement. This is our single most important trade tool for development. It will focus EU trade preferences on the countries most in need, including those hit hard by the Asian tsunami last December. The agreement reached with China on their textile exports has unlocked the previous blockage. It shows that the EU retains its economic strength and ability to project its values internationally, even amidst the most difficult internal political debates."

Through its Generalised System of Preferences the European Union extends preferential access to its markets to developing countries. The EU GSP is the most generous of all developed-country GSP systems.In 2003 EU imports under GSP totalled €52 billion. Under the EU GSP between 1999-2003 developing countries share in total EU imports grew from 33% to 40%.

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