The European Parliament has tightened the rules of trade benefits for developing countries and binds them to human rights and the climate. At the same time, it protects European rice producers.
Members of the European Parliament (EP) approved an updated regulation on the Generalized System of Preferences (GSP) in Strasbourg on Tuesday, which allows vulnerable developing countries to export goods to the European Union with low or zero tariffs. The new rules, supported by 459 MPs, introduce stricter criteria and an expanded list of international conventions that countries must ratify in order to enjoy these trade benefits.
- Members of the European Parliament approved a stricter updated regulation on the Generalized System of Preferences.
- Vulnerable developing countries receive a low or zero tariff on imports into the European Union.
- Ratification of the Paris Climate Agreement and key human rights conventions becomes a condition.
- Preferential tariffs can be withdrawn if countries do not cooperate with the readmission of illegal migrants.
- The new rules apply for ten years and ensure stable access to the European market.
The new requirements also include the inclusion of major international treaties such as the Paris Climate Agreement, the Convention on the Rights of Persons with Disabilities and the Convention on the Rights of the Child. These treaties underline the EU’s commitment to support the protection of human rights and the environment in developing countries.
Stricter conditions
One of the key changes is the introduction of stricter criteria for the withdrawal of preferential tariffs in case of non-cooperation of countries in the readmission of illegal migrants. This process will involve a longer evaluation period and mandatory cooperation with the affected countries for at least 12 months. In addition, a two-year postponement of the application of this condition will apply to the least developed countries.
Another important measure is the protection of the sensitive rice sector in the EU. Automatic safeguards are activated if rice imports reach a 45 percent increase on average over ten years. This step is to ensure a balance between the support of developing countries and the protection of European producers.
Long-term commitment of the EU
Bernd Lange, German MEP and chairman of the EP Committee on International Trade, called the approval of the regulation an important step for more than two billion people in more than 60 countries. According to him, with this step, the EU is doubling down on its efforts to be a reliable partner for the developing world, providing almost duty-free and quota-free access to its market for the next ten years.
At the same time, Lange pointed out that the negotiations on the regulation were complicated mainly by questions related to the conditionality of the readmission of migrants and protective measures for rice. Despite this, it was possible to reach a compromise that takes into account the concerns of the European Parliament and the EU member states.
After formal approval of the regulation by the Council of the EU, the legislation will be signed and enter into force after publication in the Official Journal of the EU. The new rules will apply for ten years, thus ensuring stability and predictability for both developing countries and the European market.
