Proposal for a Regulation on applying a generalised scheme of tariff preferences and repealing Regulation (EU) No 978/2012

Summary:

Legislative initiative published by the European Commission on 22 September 2021, setting out a new Generalised Scheme of Preferences (GSP).

Further information:

The European Union (EU) has granted trade preferences to developing countries through the Generalised Scheme of Preferences (GSP) since 1971. This is part of its Common Commercial Policy. The GSP consists of three arrangements: the Standard GSP, the GSP+ and the Everything But Arms (EBA). Regulation (EU) No 978/2012 - also known as the GSP Regulation - sets out the existing scheme, which applies until 31 December 2023. Unless a new Regulation was adopted, the Standard GSP and the GSP+ arrangements would then cease to apply.

This draft law seeks to renew the scheme for a further period of ten years. The review carried out was about fine-tuning the way the GSP works and improving its efficiency and effectiveness. The EU’s overarching objectives with the revised GSP Regulation are to maintain the essential features of the existing Regulation, while also not jeopardising EU interests.

The draft law was tabled by the European Commission on 22 September 2021. The European Parliament endorsed a negotiating position in May 2022. The Council of the European Union adopted its general approach on 20 December.

Official

EUR-LEX: SWD(2021)266: Staff Working Document accompanying the Proposal - Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:266:FIN

EUR-LEX: SWD(2021)267: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:267:FIN

European Parliament: Legislative Observatory: Procedure File for Proposal on Generalized scheme of tariff preferences (GSP) (2021/0297(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2021/0297(COD)

European Parliament: Legislative Train Schedule: Review of the Generalised Scheme of Preferences (GSP) Regulation https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-new-gsp-regulation

European Union: GSP Hub https://gsphub.eu/

European Commission: DG Trade: Generalised Scheme of Preferences (GSP) https://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/index_en.htm

European Commission: Press Release, 22/09/2021: Trade and sustainability: Commission proposes new EU Generalised Scheme of Preferences to promote sustainable development in low-income countries https://ec.europa.eu/commission/presscorner/detail/en/ip_21_4801

European Commission: Questions and Answers - Review of EU Generalised Scheme of Preferences (22 September 2021) https://ec.europa.eu/commission/presscorner/detail/en/qanda_21_4802

European Parliament: Press Release, 03/05/2022: New rulebook on trade preferences for developing countries https://www.europarl.europa.eu/news/en/press-room/20220502IPR28416/

Renew Europe EP Group: Newsroom, 03/05/2022: Generalised Scheme of Preferences (GSP): an efficient and renewed instrument that takes into account human rights, labour rights and environmental standards in developing countries https://www.reneweuropegroup.eu/news/2022-05-03/generalised-scheme-of-preferences-gsp-an-efficient-and-renewed-instrument-that-takes-into-account-human-rights-labour-rights-and-environmental-standards-in-developing-countries

Council of the European Union: Press Release, 20/12/2022: Council approves reinforced rules on granting trade preferences to developing countries https://www.consilium.europa.eu/en/press/press-releases/2022/12/20/council-approves-reinforced-rules-on-granting-trade-preferences-to-developing-countries/

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News

Reuters, 22/09/2021: EU to tie green goals to trade access for developing nations https://www.reuters.com/world/europe/eu-tie-green-goals-trade-access-developing-nations-2021-09-22/

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Commentary and Analysis

Mayer Brown: Perspectives & Events, 27/09/2021: European Commission Proposes Update of Generalized System of Preferences (GSP) https://www.mayerbrown.com/en/perspectives-events/publications/2021/09/european-commission-proposes-update-of-generalized-system-of-preferences-gsp

White & Case: Alerts, 14/10/2021: EU raising the bar for next EU GSP? https://www.whitecase.com/publications/alert/eu-raising-bar-next-eu-gsp

EPRS: Briefing, December 2021: Towards a new Generalised Scheme of Preferences regulation for developing countries - Initial Appraisal of a European Commission Impact Assessment https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2021)699468

Jacques Delors Institute [Notre Europe]: Blog, 22/04/2022: Making migrant returns a pre-condition of trade openness. A geopolitical error that makes no sense for development https://institutdelors.eu/en/publications/suspendre-les-preferences-commerciales-au-retour-des-migrants/

EPRS: Briefing, July 2022: New EU scheme of generalised preferences https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI(2022)698857

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