On Tuesday, 28 April, Parliament approved the updated regulation concerning the generalised system of preferences (GSP). The revised rules, which garnered 459 votes in favour, 127 against, and 70 abstentions, enable vulnerable developing countries to export goods to the European Union with reduced or eliminated tariffs.
The updated framework incorporates several international human rights and environmental conventions that participating countries must ratify to qualify for trade preferences. These conventions include the Paris Agreement, the Convention on the Rights of Persons with Disabilities, and the Convention on the Rights of the Child.
“Today we deliver on the EU’s flagship development scheme that benefits more than 2 billion people in over 60 countries. By providing near-duty-free and quota-free access to the EU market for another 10 years, the EU is redoubling its efforts to be a trustworthy, predictable and durable partner for the developing world,” said Bernd Lange (S&D, DE), Chair of the Committee on International Trade, and rapporteur.
Readmission of irregular migrants
MEPs successfully advocated for the inclusion of stricter criteria governing the withdrawal of preferential tariffs for GSP countries that do not cooperate on the readmission of irregular migrants. This includes an extended evaluation process and a mandatory engagement period of at least 12 months with the affected countries. Additionally, there will be a two-year delay in applying readmission conditionality to the least developed countries.
The rice sector
To further safeguard the sensitive rice sector within the EU, Parliament’s negotiators have established automatic triggers for safeguards when rice imports surge by an average of 45% over 10 years. The negotiations were prolonged by two primary issues: the readmission process, in which the Council made considerable adjustments to address Parliament’s concerns, thereby creating a balanced system with clear guidelines and a differentiated approach for least developed countries. Enforcing this conditionality may pose challenges. Regarding rice safeguards, the newly established system will automatically activate in cases of excessive rice imports.
Promoting sustainable growth
This regulatory system is designed to promote sustainable growth, alleviate poverty, and ensure fair globalisation. Trade serves not merely as an end but as a means to enhance economic conditions. This approach is particularly significant in the context of China expanding its trade relations and the United States raising trade barriers for developing nations.
Following formal adoption by the Council of the EU, this legislation will be signed and published in the Official Journal of the EU. It will come into effect and remain in force for a duration of ten years.
The Generalised System of Preferences (GSP) represents the EU’s trade initiative aimed at reducing export duties to support poverty eradication and sustainable development. It encompasses more than 60 countries and was extended by Parliament in October 2023 following a pause in talks regarding the new regulations.
