MEPs extended the existing rules aimed at reducing or eliminating import duties on products entering the EU market from over 60 developing countries until 2027.
Parliament voted on Thursday with 561 in favour, 5 against and 2 abstention to extend current rules on the scheme of generalised tariff preferences (GSP) after talks with the Council on the new rules were paused in June. The draft report by rapporteur Heidi Hautala (Greens/EFA, FI) only amends the date of application of the regulation currently in place, extending it until 31 December 2027. The extension gives more time for the European Parliament and member states to agree on the new rules.
The current GSP regulation was set to expire at the end of 2023, and the negotiations between the Parliament and the Council of member states took off in January 2023 to establish new rules. In June, talks were paused as the gap between the position of the Parliament and member states could not be bridged, and as a result, the current rules were prolonged.
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“By dealing swiftly and efficiently with this prolongation and rollover, the Parliament underlines that it will not let beneficiaries down,” rapporteur Heidi Hautala (Greens/EFA, FI) said during the plenary on Wednesday. “The 2012 regulation expires at the end of this year, thus it was necessary to prolong its validity in order to avoid significant socio-economic disruptions for the beneficiary countries and as well for the companies,” she added. “However, this rollover is an unfortunate consequence of not being able to reach an agreement between the Council and Parliament on the ongoing review of the GSP regulation,” she said, adding that there are two outstanding issues: the link the Council wants between tariff preferences and the obligation of readmission, and safeguarding rice producers without creating excessive trade barriers. On the first issue, Hautala said: “The European Parliament’s position is against the inclusion of this type of migration policy measures because this is a trade and development policy instrument, which benefits 2 billion people in the developing world.” She added: “The trilogues will continue, and it is vital to conclude them as soon as possible. Now it is very important that the Parliament and the Spanish presidency go the extra mile and make this review a reality. This would require, however, a change in the approach by the Council on the question of readmissions. We need to preserve the GSP as a development tool,” she added.
Next steps
The Council is expected to give its final approval for the extension of the current rules soon. The Spanish presidency has pledged to push for continued talks between the Parliament and the Council to reach an agreement on the new rules.
Background
The Generalised System of Preferences (GSP) has been the EU’s preferential trade arrangement with developing countries since 1971. Under this scheme, developing countries get to pay reduced import duties when exporting to the EU. For countries meeting specific economic vulnerability criteria, and ratifying and implementing 27 international conventions on human and labour rights, environmental standards, and good governance, the EU completely waives customs duties on select products. This policy covers more than 60 countries and benefits approximately two billion people.
Source – EU Parliament