# IMMC.JOIN%282020%293%20final.ENG.xhtml.1_EN_ACT_part1_v5.docx

european flagEUROPEAN COMMISSION

Brussels, 10.2.2020

JOIN(2020) 3 final

JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

Report on the Generalised Scheme of Preferences covering the period 2018-2019

{SWD(2020) 16 final} - {SWD(2020) 17 final} - {SWD(2020) 18 final} - {SWD(2020) 19 final} - {SWD(2020) 20 final} - {SWD(2020) 21 final} - {SWD(2020) 22 final} - {SWD(2020) 23 final} - {SWD(2020) 24 final} - {SWD(2020) 25 final}

1.Introduction

Through its Generalised Scheme of Preferences (GSP)
  I
   the EU unilaterally supports developing countries to achieve sustainable development through trade. Trade preferences promote universal values of human rights, core labour standards, environmental protection and good governance.

This third biennial report on GSP is accompanied by ten Joint (European Commission and High Representative of the Union for Foreign Affairs and Security) Staff Working Documents. These provide the assessment of the performance of nine beneficiaries of the GSP+ arrangement and of three beneficiaries of the Everything But Arms (EBA) arrangement under enhanced engagement.

This report specifically covers:

1.The extent to which beneficiary countries take advantage of the scheme.

2.A number of overarching themes, including death penalty, civil society space, child labour and environment.

3.Partnerships: examples of how the EU works with partners to make GSP more effective.

The report is based on EU monitoring missions, the midterm evaluation of GSP
  II
  , EU engagement with partner countries (including human rights dialogues), international organisations, civil society and industry. A dedicated civil society dialogue took place on 16 July 2019
  III
  .

2.Highlights

GSP beneficiaries are advancing. In the period 2018-2019, several countries graduated out of the scheme due to reaching upper middle-income economy status. In addition, EU’s successful negotiating agenda contributed to countries leaving GSP due to entering bilateral preferential arrangements with the EU. At the end of 2019, there were 71 beneficiaries, i.e. 11 less than in the last report.

Regarding the impact of preferences, GSP has become more important, in absolute and relative numbers. Despite the falling number of beneficiaries, value of imports to the EU from GSP countries grew by 16.2% i.e. from €158 billion in 2016 to €183.6 billion in 2018 (overall EU imports increased by 13.3%). Of these, €68.9 billion were imported using GSP.

GSP is especially important for the poorest countries: the share of Least Developed Countries (LDCs) in EU's overall imports reached 2.2% in 2018, more than double that of LDC share in world imports (0.98% in 2017
  IV
  ). EBA beneficiaries saw an increase of 15.3% of their preferential exports to the EU.

The value of preferential imports from African GSP beneficiary countries to the EU has increased by 17.2% and reached €3.3 billion. Mauritania increased its GSP exports by 62% and Senegal by 44%. Yet, the share of African GSP imports to the EU remains relatively low, accounting for less than 5%, despite the fact that 38 out of 71 beneficiaries are from Africa. The most prominent sectors benefitting from GSP are garments, where other countries tend to be more competitive. As GSP offers opportunities in many other sectors (such as processed food), more advantage could be taken. The lack of awareness of the scheme and factors restricting export capacities of African companies play a role too.

Utilisation of trade preferences under GSP has gone up to 81.8% in 2018 (78.8% in 2016). For EBA, this was 93.4%. Benefits taken are largely in the garment sector, as export diversification remains a challenge.

EU importers and industry present in the GSP beneficiary countries support the sustainable development agenda and can play a positive role, notably in promoting labour reforms and occupational health and safety. Exporting industries, for instance in Pakistan, Bangladesh, Myanmar, and Sri Lanka are keen to meet international standards. This is a direct result of (European) buyers insisting on responsible supply chains, and has a broader impact on the countries.

GSP+ beneficiaries have made progress in effective implementation of the 27 international conventions listed in the arrangement. They have also taken additional commitments. All GSP+ countries have signed the Paris Agreement, sometimes responding to requests from GSP+ monitoring missions (Philippines). Armenia signed the Second Optional Protocol to the UN International Covenant on Civil and Political Rights (ICCPR), effectively abolishing the death penalty, and to the Convention on the Rights of Persons with Disabilities (CRPD).

On child labour, Mongolia agreed to conduct a child labour survey following a recent monitoring mission. A countrywide survey on child labour is carried out in Pakistan. Sri Lanka was able to bring child labour down from 16% to 1%, n, through pioneering ‘Child Labour Free Zones’. Meanwhile, Bolivia raised the minimum age for work to the international minimum standard of 14 years. Cabo Verde made progress in criminalising the use and facilitation of minors for prostitution and sexual exploitation. Paraguay adopted a national strategy to eradicate child labour by 2024.

Beneficiaries maintain commitments also after they have left GSP. For example, in 2019 Paraguay issued – after it exited from GSP - its voluntary mid-term report on the implementation of the recommendations of the Universal Periodic Review of the UN Human Rights Council.

In some countries, commitments are taken before they apply for GSP+: on 14 October 2019, Uzbekistan adopted a law on accession to the Cartagena Biosafety Protocol, as part of its agenda to apply for GSP+.

Yet, challenges related to compliance with GSP requirements remain: civil society space is shrinking, notably in Pakistan and the Philippines. Calls for (implementation of) capital punishment have become louder, including in Sri Lanka, Mongolia and the Philippines. Most beneficiaries face challenges when it comes to freedom of association.

Countries that are unwilling to address and engage on issues of concern are being scrutinised. Through enhanced engagement, the EU intensified the dialogue with Bangladesh, Cambodia and Myanmar to press for concrete actions on and sustainable solutions to serious shortcomings in respecting fundamental human and labour rights.

Engagement with each of the countries follows a different track:

The engagement with Bangladesh focuses on compliance with ILO Conventions. During an EU monitoring mission in October 2019, the authorities of Bangladesh agreed to develop a roadmap with timelines aiming to improving labour rights, notably the alignment of the Bangladesh Labour Act and the Export Processing Zone-Act.

With regard to Myanmar, concerns related to human and labour rights were discussed during high level monitoring missions in October 2018 and February 2019. Discussions continued during the first ever EU-Myanmar Senior Officials Meeting in May 2019 and the EU-Myanmar human rights dialogue co-chaired by the EU Special Representative for Human Rights in June 2019.

Lack of results in Cambodia on human and labour rights led to the launch of the procedure for temporary withdrawal of tariff preferences.

3.Developments since the last report

The Generalized Scheme of Preferences consists of three arrangements:

Under the general GSP arrangement the EU grants tariff reductions for products covered by around 66% of tariff lines and originating from low-income or lower-middle income countries, which do not benefit from other preferential access to the EU market.

For countries benefiting from the special incentive arrangement for sustainable development and good governance (GSP+) the EU eliminates tariffs for products covered essentially by the same tariff lines.

Under the Everything But Arms (EBA) arrangement, the EU grants duty-free, quota-free access for all imported products except arms and ammunition from countries classified by the UN as Least Developed Countries (LDCs). Beneficiaries do not lose EBA status by entering into a free trade agreement (FTA) with the EU.

3.1.Legislative updates

The European Commission adopted a number of legal acts related to the Regulation:

-Product graduation: Commission Regulation of 12 February 2019 suspended tariff preferences for a number of products for the period of 2020-2022 for three beneficiary countries: India, Indonesia and Kenya
  V
  .

-Removal of from the list of GSP beneficiaries: v GSP status was withdrawn from countries which reached upper middle income economy status for three consecutive years: Cameroon, Fiji, Georgia, Iraq, Marshall Islands and Tonga
  VI
  (1 January 2017) and Paraguay
  VII
  (1 January 2019);

-Several countries lost beneficiary status due to entering into a preferential trade agreement with the EU: Cote d’Ivoire, Ghana, and Swaziland (1 January 2019). Georgia (1 January 2017)
  VIII
  and Ukraine (1 January 2018)
  IX
  .

Some countries lost their EBA preferences because of graduation from LDC status: Samoa (1 January 2019)
  X
   and Equatorial Guinea (1 January 2021)
  XI
  (in each case after 3-year transition period from the date graduation).

Other legal acts related to the GSP Regulation:

-Commission Implementing Regulation of 16 January 2019
  XII
  imposing safeguard measures with regard to imports of Indica rice originating in Cambodia and Myanmar/Burma;

-Commission Implementing Decision of 11 February 2019 initiating the procedure for temporary withdrawal of the tariff preferences provided for Cambodia
  XIII
  .

3.2.Upcoming amendments

GSP beneficiary countries that are classified by the World Bank as upper middle-income economies, during three consecutive years, lose their GSP beneficiary status. Accordingly, Nauru, Samoa and Tonga will be removed from the list of beneficiary countries from 1 January 2021.

Other countries were classified as Upper Middle Income Countries since 2018 (Armenia) and 2019 (Sri Lanka). Vietnam will lose GSP-beneficiary status two years following the upcoming entry into force of the FTA with the EU. However, operators will be able to use the GSP duties if these are more favourable.

Meanwhile, a number of LDCs are scheduled to graduate. This means removal from the list of countries benefiting from EBA following a transition period of three years. Following this, they could apply for GSP+, if conditions are met, or benefit from the general GSP arrangement. In 2023, Bhutan will graduate; to be followed by São Tomé and Principe; and Solomon Islands in 2024. A date for the graduation of Tuvalu and Kiribati will be fixed in 2021. Bangladesh, Lao People’s Democratic Republic, Myanmar, Nepal and Timor-Leste could be recommended for graduation the same year.

Two countries, which benefit from the general GSP (Tajikistan and Uzbekistan), have expressed an interest in joining the GSP+ arrangement.

3.3.Future GSP regulation

The current GSP Regulation will expire on 31 December 2023. In order to allow economic operators and beneficiaries to adapt to a new regulation, the Commission has launched the preparations for the new regulation. It is intended that the new regulation will continue to pursue the same policy of fostering sustainable economic, social and environmental development of beneficiary countries, including the respect for good governance and human rights, with the primary goal of eradicating poverty. Public consultations will be undertaken in 2020.

The European Parliament adopted a non-legislative resolution on the implementation of the GSP Regulation on 14 March 2019
  XIV
  . The European Parliament acknowledges the positive impact of the GSP Regulation and makes a number of recommendations in view of the preparation of the future GSP regulation. In particular, the future regulation should encourage diversification, place more emphasis on improving environmental standards and enhance monitoring

4.GSP is working: economic benefits for developing countries

In the reporting period 2018-2019, despite the lower number of GSP beneficiaries, the overall value of EU imports from GSP countries went up considerably from €61.3 billion in 2016 to €68.9 billion in 2018. €32.3 billion came from the countries benefitting from the general GSP arrangement, around €9.5 billion from GSP+ beneficiaries and €27.1 billion from EBA countries
  XV
  .

Figure 1. Value of imports to the EU under the three GSP arrangements

Looking at total EU imports (including non-preferential) in the years 2016-2018, imports from GSP beneficiaries increased by 16.2%. EBA countries saw their exports to the EU grow by 9.9%, GSP+ beneficiaries by 13.4%, and general GSP arrangement by 18.8%. India is the GSP beneficiary with the largest share of overall imports (including non-preferential), followed by Vietnam, Nigeria, Bangladesh and Indonesia.

Looking at

total EU imports

(including non-preferential) in the years 2016-2018, imports from GSP beneficiaries increased by 16.2%. EBA countries saw their exports to the EU grow by 9.9%, GSP+ beneficiaries by 13.4%, and general GSP arrangement by 18.8%.

India

is the GSP beneficiary with the largest share of overall imports (including non-preferential), followed by

Vietnam

,

Nigeria

,

Bangladesh

and

Indonesia

.

If considering only preferential imports, Bangladesh has become the EU's number one GSP partner closely followed by India, Indonesia, Vietnam and Pakistan.

If considering only

preferential imports

,

Bangladesh

has become the EU's number one GSP partner closely followed by

India, Indonesia, Vietnam and Pakistan

.

Table 1. Value of EU’s GSP imports from major beneficiaries (million €) and their % share in overall imports and total EU GSP imports in 2018

Table 1. Value of EU’s GSP imports from major beneficiaries (million €) and their % share in overall imports and total EU GSP imports in 2018

In terms of product sections, the majority of imports under GSP (47.9% of €33 billion) remains in apparel and clothing, followed by footwear (11%), mechanical appliances (7%), fish products (4%), leather (3.7%) and plastics (2.7%) – see Figure 2.

In terms of product

sections

, the majority of imports under GSP (47.9% of €33 billion) remains in

apparel and clothing

, followed by

footwear

(11%),

mechanical appliances

(7%),

fish products

(4%),

leather

(3.7%) and

plastics

(2.7%) – see Figure 2.

Figure 2. Main product sections in EU's GSP imports in 2018

Figure 2. Main product sections in EU's GSP imports in 2018

4.1.Midterm evaluation: GSP is effective

4.1.

Midterm evaluation: GSP is effective

in 2018, the Commission submitted its report on the application of the GSP Regulation to the European Parliament and the Council
  XVI
  . This midterm evaluation shows that EU’s GSP is delivering: it succeeded in focusing preferences on countries most in need and contributed to their sustainable development. The effectiveness of the EU’s GSP has increased as a result of the monitoring mechanism, which has led to improvements in human and labour rights. In the textile and clothing sector, preferential exports under EBA had a positive impact on business and job creation.

in 2018, the Commission submitted its report on the application of the GSP Regulation to the European Parliament and the Council

XVI

.

This midterm evaluation shows

that EU’s GSP is delivering: it succeeded in focusing preferences on countries most in need and contributed to their sustainable development. The effectiveness of the EU’s GSP has increased as a result of the monitoring mechanism, which has led to improvements in human and labour rights. In the textile and clothing sector, preferential exports under EBA had a positive impact on business and job creation.

Some recommendations and follow-up from the midterm evaluation

Some recommendations and follow-up from the midterm evaluation

·With regard to increased transparency: the Commission is considering a number of practical actions to improve GSP+ monitoring and to further civil society involvement and raise awareness for businesses and civil society organisations, including social partners.

·

With regard to increased transparency

: the Commission is considering a number of practical actions to improve GSP+ monitoring and to further civil society involvement and raise awareness for businesses and civil society organisations, including social partners.

·To use the safeguard provisions in the GSP Regulation: In 2019 the EU imposed safeguard measures with regard to Indica rice originating in Cambodia and Myanmar following investigation as set out in the GSP regulation

·To initiate withdrawal procedures when severe and systematic violations are reported by relevant monitoring bodies: on 11 February 2019, the Commission launched the temporary withdrawal procedure regarding the tariff preferences provided to Cambodia.

·To further enhance cooperation with development partners, also to attract more investment in LDCs.

5.GSP is contributing to Sustainable Development

With regard to labour and human rights, the mid-term evaluation found effectiveness of GSP+ in creating leverage through both the GSP+ monitoring mechanism and through the prospect of accession (for applicant countries). The higher frequency and improved scope of the monitoring of GSP+ compliance has increased the EU leverage.

During the 2018-2019 reporting period, the European Commission services and the European External Action Service (EEAS) conducted monitoring missions in Armenia, Bolivia, Kyrgyzstan, Mongolia, Pakistan, the Philippines, and Sri Lanka, Cambodia, Bangladesh and Myanmar. Besides the impact the GSP has on job creation, for which estimates vary between 500,000 in Myanmar and 5 million in Bangladesh, the engagement also meant more attention for labour standards, human rights and in the case of GSP+ - environment and good governance.

In terms of children’s rights, there is progress: In Mongolia child rights protection acts were adopted and budgets increased substantially. Paraguay made efforts to promote and protect the rights of children. In Sri Lanka, child labour was brought down to 1%. In Bolivia, the minimum age for work was brought in line with ILO standards. In Pakistan, the government agreed to child labour surveys. Cabo Verde made important progress in criminalising sexual exploitation of minors.

Potential backtracking on human rights is addressed. Calls to re-introduce the death penalty are worrisome. Most concerning is a renewed call for a vote on a bill on the death penalty in the Philippines. Such a bill would go against the commitments the Philippines made under the Second Optional Protocol to the ICCPR. In Sri Lanka, statements to the effect that executions would be resumed are a cause for concern. Still, the picture is not only bleak: for instance, during a recent GSP+ mission, government officials in Sri Lanka were confident that the de facto moratorium would stand. Mongolia’s own assessment concluded that the re-introduction of the death penalty would be incompatible with its international obligations. This assessment helped to counter plans for a re-introduction of the death penalty. Finally, Pakistan is debating whether to narrow down the number of crimes punishable with the death penalty and it has meanwhile substantially reduced the number of executions and reformed the procedure for mercy petitions.

In some countries, civil society space is shrinking. In Pakistan, a number of international NGOs are being expelled, with implications on the freedoms of those organisations still in the country. Freedom of expression including through the media is under threat. In Bolivia, verbal and physical violence against human rights defenders and journalists are reported, as well as an increasing number of criminal proceedings being brought against them. With regard to the Philippines, there is serious concern about the death toll associated with the campaign against illegal drugs and the lack of effective, impartial and transparent investigations of all cases of death. Civil society space is also shrinking due to measures taken in the context of the war on terrorism. This has led to increased violence against members of civil society, human rights defenders, indigenous peoples, journalists, and lawyers. In Cambodia, over the last three years, there has been a deterioration of democracy, respect for human rights, and the rule of law, including shrinking space for political opposition, media and civil society.

Armenia, on the other hand, displayed notable improvements in freedom of expression and assembly during the ‘Velvet Revolution’ of 2018.

In the area of labour rights, concerns on freedom of association remain in Sri Lanka, Pakistan, Bangladesh, and Myanmar. In Kyrgyzstan, adoption of a draft Trade Union Law would drastically limit the independence of trade unions. The Philippines Congress passed a Security of Tenure bill to put an end to the abuse of ‘contractualisation’, which was vetoed by the President recently.

With regard to environment and climate change, countries have improved reporting (e.g. the Convention on International Trade in Endangered Species of Wild Fauna and Flora). All beneficiaries signed the Paris Agreement and the Kigali Amendment to the Montreal Protocol. Yet, arguably, more focus on environment in the monitoring could allow for a stronger impact. The post 2020 global framework on biodiversity – under the Convention on Biological Diversity - is expected to set stronger targets and review mechanisms on countries’ progress and implementation.

6.General GSP arrangement

During the 2018-2019 reporting period, Ghana, Ivory Coast and Swaziland left GSP due to their FTAs with the EU, whereas one country joined (Samoa), due to graduation from LDC status, bringing the total of beneficiaries at 15 by the end of the period. The figure below shows the breakdown of preferential imports
  XVII
  under the general GSP arrangement in 2018.

Figure 3. Major beneficiaries of the general GSP arrangement in 2018

(EU imports in million €)

Despite GSP imports reducing slightly (from €16.6 billion in 2016 to €16.4 billion in 2018), India remains the largest beneficiary of the general GSP arrangement with 50.8% of all GSP imports to the EU, followed by Vietnam (27.9%) and Indonesia (20.5%). Nigeria and Uzbekistan follow in the top five, with marginal proportions (0.4% and 0.3% respectively).

Product graduation

Product graduation is meant as a removal of preferences from GSP beneficiaries for specific product sections based on the rationale that imports of those products no longer need EU preferences. It applies to the general GSP arrangement. New graduations apply from 1 January 2020 to 31 December 2022:

Table 2. Product graduation in the periods 2017-2019 and 2020-2022

| GSP beneficiary country | GSP section graduated until 31 December 2019 | GSP section graduated from 1 January 2020 | Product description |
| --- | --- | --- | --- |
| India | S-5 | | Mineral products |
| | S-6a | S-6a | Inorganic and organic chemicals |
| | S-11a | S-11a | Textiles |
| | S-14 | S-14 | Pearls and precious metals |
| | S-15a | S-15a | Iron, steel and articles of iron and steel |
| | S-15b | S-15b | Base metals (excl. iron and steel), articles of base metals (excl. articles of iron and steel) |
| | | S-17a | Railway or tramway locomotives, rolling-stock |
| | S-17b | S-17b | Motor vehicles, bicycles, aircraft and spacecraft, ships and boats |
| Indonesia | S-1a | S-1a | Live animals and animal products excluding fish |
| | S-3 | S-3 | Animal or vegetable oils, fats and waxes |
| | | S-5 | Mineral products |
| | | S-9a | Wood and articles of wood; wood charcoal |
| Kenya | S-2a | S-2a | Live plants and floricultural products |
| Ukraine | S-17a | | Railway and tramway vehicles and products |
| | S-3 | | Animal or vegetable oils, fats and waxes |

GSP beneficiary country

GSP section graduated until 31 December 2019

GSP section graduated from 1 January 2020

Product description

India

S-5

Mineral products

S-6a

S-6a

Inorganic and organic chemicals

S-11a

S-11a

Textiles

S-14

S-14

Pearls and precious metals

S-15a

S-15a

Iron, steel and articles of iron and steel

S-15b

S-15b

Base metals (excl. iron and steel), articles of base metals (excl. articles of iron and steel)

S-17a

Railway or tramway locomotives, rolling-stock

S-17b

S-17b

Motor vehicles, bicycles, aircraft and spacecraft, ships and boats

Indonesia

S-1a

S-1a

Live animals and animal products excluding fish

S-3

S-3

Animal or vegetable oils, fats and waxes

S-5

Mineral products

S-9a

Wood and articles of wood; wood charcoal

Kenya

S-2a

S-2a

Live plants and floricultural products

Ukraine

S-17a

Railway and tramway vehicles and products

S-3

Animal or vegetable oils, fats and waxes

7.The GSP+ arrangement

The GSP+ arrangement is one of the EU's primary tools to promote sustainable development in vulnerable developing countries. Countries have to fulfill two additional sets of criteria: (i) vulnerability (consisting of imports share and economic diversification) and (ii) sustainable development. As concerns the latter, they have to ratify 27 core international conventions on human and labour rights, environmental protection and good governance. Moreover, countries must not have formulated reservations which are prohibited by these conventions; and the most recent conclusions of the monitoring bodies under those conventions must not identify any serious failure to effectively implement them. The 2018-2019 reporting period covers 9 GSP+ beneficiaries: Armenia, Bolivia, Cabo Verde, Kyrgyzstan, Mongolia, Pakistan, Paraguay, the Philippines and Sri Lanka.

Paraguay ceased to benefit from GSP+ on 1 January 2019, as it was classified as an upper-middle income country for three consecutive years. Figure 4 presents the value of preferential imports from GSP+ countries in 2018. The biggest share came from Pakistan, which accounted for 62.2% of all GSP+ imports to the EU (74% in 2018).

Figure 4. Major beneficieries of the GSP+ arrangement in 2018 (imports to the EU in million €)

8.The Everything But Arms arrangement

8.

The Everything But Arms arrangement

EBA is EU's flagship trade instrument designed to help the world's poorest and weakest countries, the LDCs. One country (Samoa) left the arrangement in 2019 due to graduation from LDC status in 2014, bringing the total to 48 beneficiaries

EBA is EU's flagship trade instrument designed to help the world's poorest and weakest countries, the LDCs. One country (

Samoa

) left the arrangement in 2019 due to graduation from LDC status in 2014, bringing the total to 48 beneficiaries

Figure 5 provides a breakdown of the value and percentage of preferential imports to the EU from EBA beneficiaries in 2018. The biggest share of imports under EBA came from Bangladesh (61.8%), followed by Cambodia (18.4%); and Myanmar (7.1%). In terms of overall GSP beneficiaries , Bangladesh overtook India in 2018 (with €16.8 billion preferential imports against €16.4 billion from India).

Figure 5 provides a breakdown of the value and percentage of preferential imports to the EU from EBA beneficiaries in 2018. The biggest share of imports under EBA came from

Bangladesh

(61.8%), followed by

Cambodia

(18.4%); and

Myanmar

(7.1%). In terms of overall GSP beneficiaries ,

Bangladesh overtook India in 2018

(with €16.8 billion preferential imports against €16.4 billion from India).

Figure 5. Major beneficiaries of Everything But Arms arrangement in 2018 (EU imports in million €)

9.Partnership

9.

Partnership

GSP is more than a trade tool: the dialogue with the EU on effective implementation of international conventions supports the longer-term sustainable development of the countries concerned.

GSP is more than a trade tool: the dialogue with the EU on effective implementation of international conventions supports the longer-term sustainable development of the countries concerned.

The EU is also providing financing for partners to help implement conventions and take more advantage of the benefits:

The EU is also providing financing for partners to help implement conventions and take more advantage of the benefits:

In Mongolia, products were identified that could be marketed to the EU using the GSP+ arrangement. EU budget support included – at the request of the government - a child labour survey. In Sri Lanka, EU helped to formulate a National Export Strategy. In the Kyrgyz Republic, EU technical assistance supported awareness of EU standards, procedures, and business models, increasing the rate of utilization of preferences. In Armenia, support to regional Civil Society Organizations helped produce evidence-based alternative reports to UN reporting. In Cape Verde, the EU supported the first Domestic Workers’ Association. In Bolivia, the EU supported the set-up of a centre providing online pro bono legal counselling on political violence cases. In Pakistan, EU supported a project focused on enhancing the socio-economic rights of women working in agriculture in Punjab; ‘SMART Myanmar’ promotes sustainable consumption and production of garments. Through the Trade for Decent Work project, the EU works with the ILO to improve the application of ILO fundamental Conventions in Bangladesh.

In

Mongolia

, products were identified that could be marketed to the EU using the GSP+ arrangement. EU budget support included – at the request of the government - a child labour survey. In

Sri Lanka,

EU helped to formulate a National Export Strategy

.

In the

Kyrgyz Republic

, EU technical assistance supported awareness of EU standards, procedures, and business models, increasing the rate of utilization of preferences. In

Armenia

, support to regional Civil Society Organizations helped produce evidence-based alternative reports to UN reporting. In

Cape Verde

, the EU supported the first Domestic Workers’ Association. In

Bolivia

, the EU supported the set-up of a centre providing online pro bono legal counselling on political violence cases. In

Pakistan,

EU supported a project focused on enhancing the socio-economic rights of women working in agriculture in Punjab;

‘

SMART

Myanmar’

promotes sustainable consumption and production of garments. Through the Trade for Decent Work project, the EU works with the ILO to improve the application of ILO fundamental Conventions in

Bangladesh

.

10.conclusion

10.

conclusion

EU's unilateral trade preferences help countries trade out of poverty, by creating a values-based economy: over 10% of EU imports comes from GSP beneficiary countries (including non-preferential imports). By making it easier to export to the EU, GSP attracts investment, supporting integration in global value chains. This creates jobs and income.

EU's unilateral trade preferences help countries trade out of poverty, by creating a values-based economy

: over 10% of EU imports comes from GSP beneficiary countries (including non-preferential imports). By making it easier to export to the EU, GSP attracts investment, supporting integration in global value chains. This creates jobs and income.

GSP brings incentives to invest in beneficiary countries. While the proportion of preferential imports in overall EU imports is limited – 3.8% in 2018 - it encouraged companies and governments to link business with sustainable development. Promoting good governance and human rights provides a more predictable business environment. In the garment industry, EU buyers are introducing new business models with high(er) environmental and labour standards. Those international values make companies more competitive.

GSP brings incentives to invest in beneficiary countries

. While the proportion of preferential imports in overall EU imports is limited – 3.8% in 2018 - it encouraged companies and governments to link business with sustainable development. Promoting good governance and human rights provides a more predictable business environment. In the garment industry, EU buyers are introducing new business models with high(er) environmental and labour standards. Those international values make companies more competitive.

GSP needs to stay relevant for development. Preferences are eroding due to trade deals. Ensuring coherence with other policies has become even more important, so that beneficiaries can capitalise on GSP. This includes support to diversifying economies; attracting new investors; trade facilitation and awareness.

GSP needs to stay relevant for development

. Preferences are eroding due to trade deals. Ensuring coherence with other policies has become even more important, so that beneficiaries can capitalise on GSP. This includes support to diversifying economies; attracting new investors; trade facilitation and awareness.

GSP needs strong partnerships: the EU will continue to work closely with beneficiaries and stakeholders. These partners, including the European Parliament and EU Member States, are essential for bringing the 2030 Sustainable Development Agenda forward. EU industry is at the forefront of high standards in terms of labour, production processes and the environment and can support countries' sustainable development through their business plans.

GSP needs strong partnerships

: the EU will continue to work closely with beneficiaries and stakeholders. These partners, including the European Parliament and EU Member States, are essential for bringing the 2030 Sustainable Development Agenda forward. EU industry is at the forefront of high standards in terms of labour, production processes and the environment and can support countries' sustainable development through their business plans.

Through access to the EU market, we assist developing countries in their efforts on economic growth, poverty reduction, good governance and sustainable development.

Through access to the EU market, we assist developing countries in their efforts on economic growth, poverty reduction, good governance and sustainable development.

Annex I. Beneficiaries

Annex I. Beneficiaries

Table 1. General GSP arrangement

Table 1. General GSP arrangement

Table 2. GSP+ arrangement

*Depending on the World Bank classification to Upper Middle Income Status.

*

Depending on the World Bank classification to Upper Middle Income Status.

Table 3. EBA arrangement

Table 3. EBA arrangement

ANNEX II. statistical information

Table 1. Value of preferential imports for all GSP countries (thousand €)*

Table 2. Value of preferential imports by General GSP country (thousand €)*

Table 2. Value of preferential imports by General GSP country (thousand €)*

- 'Total imports cover all imports, including products which automatically benefit from most-favoured nation ('MFN') zero tariffs. 'EBA eligible imports' only references the products under the EBA arrangement, which do not otherwise benefit from MFN zero duty.

- 'Total imports cover all imports, including products which automatically benefit from most-favoured nation ('MFN') zero tariffs. 'EBA eligible imports' only references the products under the EBA arrangement, which do not otherwise benefit from MFN zero duty.

Table 3. Value of preferential imports by EBA country (thousand €)*

Table 3. Value of preferential imports by EBA country (thousand €)*

Table 4. Value of preferential imports by GSP+ country (thousand €)*

Table 4. Value of preferential imports by GSP+ country (thousand €)*

(I)


   Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008, OJ L 303, 31.10.2012.

Report from the Commission to the European Parliament and the Council on the application of Regulation (EU) No 978/2012 {SWD(2018) 430 final}, COM(2018) 665 final, Brussels, 4.10.2018

http://trade.ec.europa.eu/civilsoc/meetdetails.cfm?meet=11541

See Market Access for Products and Services of Export Interest to Least Developed Countries. Note by the WTO Secretariat, WT/COMTD/LDC/W/66, 2 October 2018.

Commission Implementing Regulation (EU) 2019/249 of 12 February 2019, OJ L 42, 13.2.2019.

Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015, OJ L 289, 5.11.2015.

Commission Delegated Regulation (EU) 2018/148 of 27 September 2017, OJ L 26, 31.1.2018.

Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015, OJ L 289, 5.11.2015.

Commission Delegated Regulation (EU) 2017/217 of 5 December 2016 OJ L 34, 9.2.2017.

Commission Delegated Regulation (EU) 2015/1979 of 28 August 2015 OJ L 289, 5.11.2015.

Commission Delegated Regulation (EU) 2018/148 of 27 September 2017, OJ L 26, 31.1.2018.

Commission Implementing Regulation (EU) 2019/67 of 16 January 2019, OJ L 15, 17.1.2019.

Commission Implementing Decision of 11 February 2019 on the initiation of the procedure for temporary withdrawal of the tariff preferences provided to the Kingdom of Cambodia under Article 19 of Regulation (EU) No 978/2012, OJ C 55, 12.2.2019.

European Parliament resolution of 14 March 2019 on the implementation of the GSP Regulation (EU) No 978/2012 (2018/2107(INI).

Article 35 of the GSP Regulation specifies the basis for the statistical data of this report. The figures were compiled by DG TRADE on the basis of data available in September 2019 from the COMEXT database (provided for in the Extrastat legislation (Regulation (EC) No 471/2009)), and Eurostat. The analysis considers only the Union's imports under the customs procedure for release for free circulation (“normal trade”), and may thus be lower than total imports. They also exclude Special CN Codes which are not part of GSP and statistical confidential trade. Statistical confidential trade is excluded (. to prevent unwantedly deriving an EU-importer from the COMEXT trade statistics and the possible implications for the analysis at the level of an individual GSP beneficiary or a product (goods’ code).

COM(2018) 665 final, Brussels, 4.10.2018.

(XVII)


  Preferential imports are the eligible imports for which GSP preferences were effectively used.