Brussels: The European Council Presidency and the European Parliament's negotiators have successfully reached a provisional agreement on revising the Generalised Scheme of Preferences (GSP) regulation, a move that grants EU trade preferences to developing countries.
According to Emirates News Agency, the new framework introduces significant improvements to the existing system, emphasizing stronger connections to human rights and environmental respect, as well as enhanced monitoring and transparency. The agreement also introduces a crucial link between trade preferences and beneficiary countries' cooperation on migration and the readmission of their nationals illegally present in the EU.
Lars L¸kke Rasmussen, Denmark's Minister for Foreign Affairs, expressed satisfaction with the agreement, stating, "I am satisfied that Europe with this agreement strengthens our support to developing countries through trade and preferential access to the single market. This is not a trivial accomplishment in a world of rapid change." He highlighted the importance of linking trade benefits to human rights, good governance, environmental protection, and, for the first time, cooperation on the return of nationals illegally present in the EU.
The revised framework retains the main components of the current system while introducing broad enhancements, such as expanding the international agreements that beneficiary countries must comply with. It allows for the withdrawal of preferences in cases of serious human rights or environmental violations and imposes similar measures when climate agreement principles are not upheld.
The framework also permits the suspension of trade benefits for countries failing to cooperate with the EU on migration and readmission. The European Commission is tasked with monitoring compliance, informing the Parliament and Council of any decisions, and enhancing transparency by involving stakeholders in monitoring the implementation of GSP programme commitments.
Least developed countries will benefit from a flexible transition, allowing them to receive GSP support contingent upon adherence to strict sustainability standards. The graduation threshold for suspending preferences in specific sectors will decrease from 57 percent to 47 percent to ensure support focuses on products needing competition.
Mechanisms to protect European producers are included, notably an automatic safeguard for rice imports via a tariff quota system imposing the most-favored-nation duty on quantities exceeding historical levels. Special safeguard measures for textile and ethanol imports are also established when such imports exceed 6 percent of the EU's total imports of the relevant product and 47 percent of combined imports from GSP countries.
The preliminary agreement will now be submitted for formal adoption by the Council and the European Parliament before it enters into force.