A new Regulation applying the EC’s Generalised System of Preferences (GSP) has been adopted by the EU Member States.  This decision will allow the EU to maintain preferential access to its market for 176 developing countries for the period from 1 January 2009 until the end of 2011. The system is being updated and improved every three years, ensuring that GSP is targeted at those countries that need it most.

As a result of the current re-calculations, GSP preferences will be re-established for six countries and suspended for one.  Below we give you an overview of these changes per beneficiary country and product group combinations:

Re-establishment of preferences:

• Algeria, Section V (Mineral products)
• India, Section XIV (Jewelry, pearls, precious metals and stones)
• Indonesia, Section IX (Wood and articles of wood)
• Russia, Section VI (Products of the chemical or allied industries) and Section XV (Base Metals)
• South Africa, Section XVII (Transport equipment)
• Thailand, Section XVII (Transport equipment)

Suspension of preferences:

• Vietnam, Section XII (Footwear, headgear, umbrellas, sun umbrellas, artificial flowers, etc…) 

The net effect of these adjustments is worth at least €160 million to beneficiary countries in terms of import duties that would otherwise be imposed. 

Two countries (Myanmar and Belarus) remain temporarily withdrawn from GSP preferences because of human rights violations. Moldova is removed from the list of beneficiary countries as the EC granted special preferences under a separate legal instrument in March 2008.

GSP covers three separate preference regimes: 

1. The standard GSP, which is an autonomous trade arrangement through which the EU provides non-reciprocal preferential access to the EU market to 176 developing countries and territories.  In 2007, developing countries exported €57 billion worth of goods under GSP, with a nominal duty loss for the EU of €2.5 billion. 
2. The EU also offers a special incentive arrangement for Sustainable Development and Good Governance, known as GSP+.  The GSP+ offers additional preferences to support vulnerable developing countries in their ratification and implementation of relevant international conventions on human and labour rights, environmental protection, and good governance. 
3. A third arrangement is the EBA initiative (Everything But Arms). The EBA gives the 50 least-developed countries duty free access to the EU for all products, except arms and ammunition and 41 lines concerning rice and sugar, for which duty free quotas are established until full liberalisation is achieved in September 2009 (rice) and October 2009 (sugar).  For the period from 1 October 2009 to 30 September 2012 the importer of sugar shall undertake to purchase such products at minimum price not lower than 90% of the reference price.