COMMISSION OF THE EUROPEAN COMMUNITIES 
COM (89) 494 final 
Brussels, 13 October 1989 
Proposal of the Commission to the Council for amendment 
to document C0MC89) 242 final of 17.5.1989 
<3^«f**J 
EXPLANATORY MEMORANDUM 
The purpose of the present proposals from the Commission to the 
Council Is to amend the three proposals for EEC regulations adopted by 
the Commission on 17 May 1989 (C0M(89)242 final), which are intended to 
provide a legislative basis for opening the Community's generalized 
tariff preferences for 1990, so that the benefit of these preferences 
would be extended to Poland and Hungary. 
1. The Commission's Objectives 
The deterioration of the economic situation In Poland and Hungary 
has considerably accelerated In recent years; this has led to a sharp 
fall In export earnings, a large reduction In the per capita national 
Income and rapid erosion of the competitIvlty of businesses. These 
elements gravely compromise the development of these two countries. 
In response to this situation and this challenge, the Arche 
Summit, held In Paris on 14 and 15 July, adopted an action plan for 
providing coordinated aid to Poland and Hungary. One part of this plan 
is to contribute to the modernisation of the economic fabric of these 
countries, In particular by Increasing their exports. 
In fact It is reasonable to imagine that Improved access for 
Polish and Hungarian products to the Community market could generate an 
increase of export earnings and an acceleration of industrialisation, 
which would In turn contribute to the process of economic restructuring 
already started. 
As a means for achieving these objectives, the Commission 
considers that the benefit of the Community's generalized tariff 
preferences should be extended to Poland and Hungary, precisely during 
the phase, estimated to last five years, when their economies are first 
being restructured, without however affecting the annual character of 
the GSP scheme on this account. 
2. Details of Application 
Consequently the Commission proposes that the benefit of the 
industrial, textile and agricultural schemes of generalized tariff 
preferences should be extended to Poland and Hungary. 
2.1 Industrial Products 
The Commission proposes that the benefit of GSP should be 
extended to Poland and Hungary for all Industrial products covered 
by the Community's scheme, and that the conditions of application 
to be used should be the same as those for the other beneficiary 
countries. 
Thus, fixed duty-free amounts should apply to certain 
sensitive products originating also In Poland and Hungary, without 
however prejudicing what the 1991 scheme will contain in this 
respect. 
Qy 
2.2 Text I le Products 
Likewise, the Commission proposes that the benefit of GSP 
should be extended to Poland and Hungary for textile products 
covered by the MFA and other textile products-, furthermore that 
the same management mechanisms should be used as for the other 
beneficiary countries. 
Thus, for products covered by the MFA, the Commission 
proposes that tariff quotas should apply to products originating 
in Poland and Hungary, covered by Community quantitative limits in 
the bilateral agreements between the Community and Its two 
partners or by regional quantitative limits In three particularly 
sensitive cases In those same agreements. The Commission proposes 
that other textile products covered by quantitative limits in 
those agreements should be subject to fixed duty-free amounts. 
With respect to the size of these quotas and amounts, the 
Commission proposes that a preferential amount equal to 0.5% of 
Community Imports in 1985 should be opened for Poland and Hungary 
for each category of MFA products concerned. The preferential 
amounts which It proposes to grant to these two countries for 
other textile products are the same as those proposed for 1990 for 
the other beneficiary countries. 
2.3 Agricultural Products 
The Commission also proposes that the benefit of GSP should 
be extended to Poland and Hungary for the agricultural products 
covered by the Community's current scheme. 
However, with respect to fishery products the Commission 
proposes that, pending the conclusion of a fishery agreement, 
Poland should be granted GSP treatment Identical to that of 
Greenland. 
3. ECSC Products 
As regards the ECSC products, they are presently covered by 
arrangements concluded with Poland and Hungary on an annual basis. The 
discussion for their renewal will start soon. 
Better access to the Community market will be sought, on the one 
hand, on the occasion of this renewal and, on the other hand, In the 
framework of the liberalisation which will result from the internal 
market unification. Taking Into account these perspectives, the 
Commission does not deem It necessary to propose the extension of the 
GSP benefit to these countries. 
Draft 
Proposal for amendments to document COM(89)242 final of 17.5.1989 
Proposal for a COUNCIL REGULATION (EEC) applying generalized tariff 
preferences for 1990 in respect of certain Industrial products 
originating in developing countries. 
1.1 "Whereas" clauses 
Insert after the current 17th (p.9), the following text : 
"Whereas both Poland and Hungary have seen their economic 
situation decline to the point where their development has 
been severely compromised; in order to increase the export 
earnings of these two countries with a view to stimulating 
their economic development, to promote their industrialization 
and to accelerate their rate of growth it is agreed that, 
exceptionally, they should benefit from the system of 
generalized preferences which are currently accorded to 
countries which are experiencing difficulties in their 
development; whereas this benefit should only be accorded to 
them for the duration of their economic restructuring, 
estimated at five years, without prejudice to the annual 
character of the Community's system of preferences;" 
1.2 Articles 
No change. 
1.3 Annex I - List of products subject to fixed duty-free amounts 
and eel Iings (p. 15) : 
Insert for the following order numbers the information In 
columns 3, 4, 5 and 6. 
Insérer, en regard des runéros d'ordre ci-dessous, le-., désiyro tiens de marchandise*, (:«;>•_, er. monton:^ m-ni iomés 
dans Les coLomes (3), (4) (5) et (6) ci-après 
ANNEXE I 
LISTE DES PRODUITS FAISANT L'OBJET DE MONTANTS FIXES A DROIT NUL ET DE PLAFONDS 
Numero 
d'ordre 
(1) 
10.0400 
10.0590 
10.0610 
10.0660 
10.0670 
10.0680 
10.0720 
10.0740 
*~ 
10.0770 
10.0860 
10.1090 
j. -
10)-112O 
10.1300 Code NC 
(2) 
3102 10 10 
4203* 29 10 
4411 
6401 
6402 
6403 
6404 
6405 90 10 
6911 
6912 00 50 
7005 
7013 
ex7304 
ex8539 
8701 20 
8702 10 11 
10 19 
exSTGS 
8704 22 91 
22 99 
9503 Designation des marchandises 
(3) 
uree 
gants de protection 
panneaux de fibres 
chaussures a dessus en 
caoutchouc 
chaussures a dessus en 
cuir naturel 
chaussures a semelles 
en caoutchouc 
vaisselle en porcelaine 
vaisselle en faience 
\/erre flotte 
objets en verre 
tubes et tuyaux en fer, 
fonte, acier 
lampes electriques 
tracteurs routiers 
autocars 
automobiles-^3000 cm3 
camions 
jouets Montants fixes a droit nul 
Pays cu 
terri toi res 
bene1 fici aires 
(4) 
Pologne 
Hongrie 
Pologne 
Pologne 
Hongrie 
Pologne 
Hongrie 
Pologne 
Hongrie 
Pologne 
Hongrie 
Pologne 
Hongrie 
Hongrie 
Hongrie 
Pologne 
Hongrie 
Pologne 
Hongrie 
Hong r i e 
Pologne 
Hongrie 
Pologne 
Hongrie 
Pologne 
Pologne 
Hongrie 
Pologne Montant 
(ecus) 
(5) 
380 000 
3 000 000 
3 000 000 
4 000 000 
1 100 000 
1 100 000 
2 738 000 
2.738 000 
1 000 000 
1 000 00Q 
550 000 
550 000 
550 000 
800.000 
3 000.000 
3 000 000 
7.500 000 
7 500 000 
1 700 000 
3 300 000 
3 300 000 
329 000 
329 000 
40 000 000 
40.000.000 
8.000 000 
10.000 000 
10 000.000 Plafonds 
(ecus) 
(6) 
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5 
1.4 Annex 111.A - List of developing countries and territories 
enjoying generalized tariff preferences 
A - Indépendant countries (p. 50) 
Insert (In numerical order) the following : 060 Poland 
064 Hungary 
2. Proposal for COUNCIL REGULATION (EEC) applying generalized tariff 
preferences for 1990 to textile products originating In developing 
countries. 
2.1 "Whereas" clauses 
2.1.1 Insert after the current 15th "whereas" (p. 56) the 
following text : 
"Whereas both Poland and Hungary have seen their economic 
situation decline to the point where their development has 
been severely compromised; in order to increase the export 
earnings of these two countries with a view to stimulating 
their economic development, to promote their industrialization 
and to accelerate their rate of growth It Is agreed that, 
exceptionally, they should benefit from the system of 
generalized preferences which are currently accorded to 
countries which are experiencing difficulties in their 
development; whereas this benefit should only be accorded to 
them for the duration of their economic restructuring, 
estimated at five years, without prejudice to the annual 
character of the Community's system of preferences;" 
2.1.2 Replace the current 20th "whereas" (p. 56) with the 
fol lowing text : 
"Whereas, according to this new method of calculation, 
the quantity opened corresponds In general, for each 
category of products in question, to 0.2% of total 
Community Imports for each of the most competitive 
countries, 0.5% for Poland and for Hungary and 1% for 
each of the other beneficiary countries". 
2.2 Articles 
No change. 
2.3 Annex I - List of textile products subject to Community tariff 
quotas and ceilings within the generalized tariff preferences 
in favour of certain developing countries and territories 
(p. 63) : 
Insert own textile tables 
InsepÇ for the order numbers and categories below, the countries and amounts mentioned in columns (5), (6), (7) anâ (8) • 
ANNEX I 
LIST OF TEXTILE PRODUCTS SUBJECT TO COmJNITY TARIFF QUOTAS AND CEILINGS WITHIN THE GENERALIZED TARIFF 
PREFERENCES IN FAVOUR OF CERTAIN DEVELOPING COUNTRIES AND TERRITORIES 
(p. 63 till 85 of doc. C0MC89) 242 fin.) 
Order 
N* 
CD 
40.0010 
40.0020 
40.0030 
40.0040 
40.0050 
40.0060 
40.0070 
40.0080 
40.0090 
40.0100 
40.0120 
40,0130 
40.0140 
40.0150 
40.0160 Category 
(unit) 
C2) 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
12 
13 
1* 
15 
16 CN code 
a) Description 
(4) 
• 
* Beneficiary 
countries or 
(5) 
HUNGARY 
POLAND 
HUNGARY 
POLAND,: 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND First 
tranche 
(6) 
753,2 
912,8 
912,8 
210 
210 
627,9 
627,9 
502,6 
502,6 
583,1 
583,1 
324,1 
324,1 
639,1 
639,1 
43,4 
43,4 
— 
1.063,3 
1.063,3 
672,7 
15,4 
75,6 
75,6 
32,9 
32,9 Reserve 
(7) 
322,8 
391,2 
391,2 
90 
90 
269,1 
269,1 
215,4 
215,4 
249,9 
249,9 
138,9 
138,9 
273,9 
273,9 
18,6 
18,6 
— 
455,7 
455,7 
288,3 
6,6 
32,4 
32,4 
14,1 
14,1 Tariff 
ceilings 
(8) 
1.076 
'-
-
| 
-
-
-
-
-
732 
732 
— 
961 
22 
-
-
? 
Order 
N* 
CD 
40.0170 
40.0180 
40.0190 
40.0200 
40.0210 
40.0220 
i 
40.0230 
40.0240 
40.0260 
40.0270 
40.0280 
40.0290 
40.0310 
40.0320 
40.0330 Category 
(unit) 
(2) 
17 
18 
19 
20 
21 
22 
23 
24 
26 
27 
28 
29 
31 
32 
33 ON code 
(3) Description 
(4) Beneficiary 
countries or 
territories 
(5) 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY-
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND-
HUNGARY: 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND Tariff cuotas 
First 
tranche 
(6) 
26,6 
25,9 
582,4 
77,7 
77,7 
-
-
-
165,9 
165,9 
131,6 
-
-
-
-
-
-Reserve 
C7) 
11,4 
11,1 
249,6 
33,3 
33,3 
-
-
-
71,1 
71,1 
56,4 
-
-
-
-
-
-Tariff 
ceilings 
(8) 
38 
37 
832 
-
267 
267 
309 
309 
146 
146 
-
188 
124 
124 
52 
52 
59 
59 
321 
321 
43 
43 
115 
115 
c7 
Order 
N* 
(1) 
40.0340 
40.0350 
40.0360 
40.0370 
40.0381 
40.0385 
40.0390 
40.0400 
40.0410 
40.0420 
40.0430 
40.0470 
40.0480 
40.0490 
40.0500 
: Category 
(Unit) 
(2) 
34 
35 
36 CN code 
(3) 
37 
38 A 
38 B 
39 
40 
41 
42 
43 
47 
48 
49 
50 
• Description 
(4) Beneficiary 
countries or 
territories 
(5) 
•HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND. 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HJNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND Tariff a 
First 
tranche 
(6) 
-
— 
-
— 
-
19,6 
-
128,8 
-
7 
-
33,6 
*" 
-
-
-
-
-
— 
-
— 
-
-uotas 
Reserve 
(7) 
• 
"~ 
-
i 
] - ; 
i 
8,4 j 
; 
55,2 
-
T( 
_ 
' ""v * ' 
"• 
-
-
-
— 
-
— 
-
"* 
-
-Tariff 
ceilings 
(8) 
4 
4 
125 
125 
28 
-
184 
-
•* **\ 
-
-
48 
17 
17 
357 
3-; 
37 
8 
& 
: 
Cr 
& 
' 
4 
- 4 
Order 
N* 
CD 
40.0530 
40.0540 
40.0550 
50.0560 
40.0580 
40.0590 
40.0600 
iO.0610 
40.620 
40.0630 
40.0650 
40.0660 
40.0670 -
40.0680 
40.0690 Category 
(Unit) 
(2) 
53 
54 
55 
56 
58 
59 
60 
61 
62 
63 
65 
66 
67 
68 
69 CM code 
(3) Description 
(4) Beneficiary 
countries or 
territories 
(5) 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND* 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND Tariff quotas 
First 
tranche 
(6) 
"™ 
-
— 
-
• 
-
-
— 
-
— 
-
-
-
. — 
-
— 
28^7 
-
-
_ Reserve 
(7) 
^m 
• 
_ 
-
-
" 
•— 
-
— 
-
~* 
-
— 
-
— 
12,3 
-
-Tariff 
Ceilings 
i 
(8) 
1 
1 
3 
3 
29 
29 
25 
25 
134 
134 
148 
148 
1 
1 
23 
23 
29 
29 
16 
16 
79 
79 
11 
11 
-
41 
43 
43 
48 
48 
: A-o 
Order 
N* 
(1) 
40.0700 
40.0720 
40.0730 
40.0740 
40.0750 
40.0760 
40.0770 
40.0780 
40.0830 
40.0840 
40.0850 
40.0860 
40.0870 
40.0880 
40.0900 Category 
(Lhit) 
(2) 
70 
72 
73 
74 
75 
76 
77 
7a 
83 
84 
85 
86 
87 
88 
90 CN code 
(3) 
' 
-
'; Description 
(4) 
-
' " 
- 'V - - •*• •• 
."" •'' _- , . ' - • - -Beneficiary 
countries or 
territories 
(5) 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
. HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
: POLAND 
HUNGARY 
; POLAND 
: HUNGARY 
POLAND 
HUNGARY 
POLAND 
. •- . Tariff quotas 
First 
tranche 
(6) 
-
-
60,2 
60,2 
-
— 
-
56 
-
52,5 
20,3 
20,3 
•• 
-
_ 
-
-
— 
25,2 
-"". Reserve 
C7) 
-
-
25,8 
25,8 
-
• 
-
24 
-
22,5 
8,7 
8,7 
-
-
_ 
— 
— 
-
10,8 
. .... _. • 
- ' 
; Tariff 
ceilings 
C8) 
3205 
3 205 
90 
90 
-
32 
32 
4 
4 
80 
22 
22 
75 
-
7 
7 
1 
1 
66 
66 
17 
17 
4 
4 
36 
-— 
• 
-_ .__ 
."" 
H 
Order 
N* 
(1) 
40.0910 
40.0930 
40.0940 
40.0950 
40.0960 
40.0970 
40.0980 
40.0990 
40.1000 
40.1010 
40.1090 
40.1100 
40.1110 
40.1120 
40.1130 
40.1140 Category 
(Unit) 
(2) 
91 
93 
94 
95 
96 
97 
98 
99 
100 
101 
109 
110 
111 
. 112 
113 
114 ON code 
a) Description 
(4) Beneficiary 
countries or 
•territories 
(5) 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND 
HUNGARY 
POLAND. 
HUNGARY. 
POLAND Tariff quotas 
First 
tranche 
(6) 
23,1 
-
— 
-
-
-
-
-
-
45,5 
-
-
15,4 
1,4 
— 
-
-Reserve 
(7) 
9,9 
-
~ 
-
-
-
— 
-
-
19,5 
-
-
6,6 
0,6 
-
-
-Tariff 
ceilings 
(8) 
33 
13 
13 
43 
43 
30 
30 
185 
185 
10 
10 
6 
6 
35 
35 
65 
4 
4 
6 
6 
22 
2 
15 
13 
13 
30 
30 
4i 
2-* Annex I I - List of textile products subject to Community fixed 
dut-free amounts or ceilings within the generalized tariff 
preferences In favour of certain developing countries and 
territories (p. 86) : 
Insert textile tables 
/*-• 
Insert, for the order nutters and categories below, the countries and amounts mentioned in colums (5), (6) «1 (7) 
ANNEX II 
LIST Or TEXTILE PRODUCTS SUBJECTS TO COWUNTTY FIXED DUTY-FREE AMOUNTS OR CEILINGS WITHIN THE GENERALIZED 
TARIFF PREFERENCES IN FAVOUR OF CERTAIN DEVELOPING COUNTRIES AND TERRITORIES 
(p. 86 till 91 of Doc. COMC89) 242 fin.) 
Order 
CI) 
42.1130 
42.1170 
42.1180 
42.1210 Category 
C2) 
115 
117 
118 
121 CN Code 
C3> 
-Description 
C4) Beneficiary 
countries or 
territories 
C5> 
POLAND 
HUNGARY 
POLAND 
POLAND 
POLAND Fixed duty-free 
amounts 
<6) 
99 
31 
31 
14 
25 I Tariff ««ilinp 
not atlwaud 
attunf 
Sum 
(7) 
mt 
-
-
-
M 
2.5 Annex IV - List of countries and territories referred to In 
Annex I, colulmn 5 (p. 92) : 
Insert (In alphabetical order) : Hungary 
Poland 
2.6 Annex V - List of developing countries and territories 
enjoying generalised tariff preferences. 
A. Independent countries (p. 93) : 
Insert (In numerical order) the following : 060 Poland 
064 Hungary 
3. Proposal for a COUNCIL REGULATION (EEC) applying generalized tariff 
preferences for 1990 In respect of certain agricultural products 
originating In developing countries. 
3.1 -Whereas" clauses 
Insert, after the current 10th "whereas" (p. 98), the 
fol lowing text : 
"Whereas both Poland and Hungary have seen their economic 
situation decline to the point where their development has 
been severely compromised; in order to Increase the export 
earnings of these two countries with a view to stimulating 
their economic development, to promote their Industrialization 
and to accelerate their rate of growth it Is agreed that, 
exceptionally, they should benefit from the system of 
generalized preferences which are currently accorded to 
countries which are experiencing difficulties in their 
development; whereas this benefit should only be accorded to 
them for the duration of their economic restructuring, 
estimated at five years, without prejudice to the annual 
character of the Community's system of preferences*," 
3.2 Articles 
No change. 
3.3 Annex I I - List of products falling within Chapters 1 to 24 
originating In developing countries and territories to which 
the generalized tariff preferences will apply. 
Footnote (c) : after Greenland, add : or Poland. 
3-4 Annex Ml- List of developing countries and territories 
enjoying generalized tariff preferences. 
A. Independent countries (p. 125) 
Insert (In numerical order) the following : 060 Poland 
064 Hungary 
•fZ 
Financial Statement 
It should be noted that the financial effect of generalized tariff 
preferences accorded to developing countries Is difficult to quantify 
exactly, as much as a result of the flexible nature of the concessions 
as to : 
- the complexity of the concessions and the differentiation 
between countries, notably because of the existence of quotas 
and differing tariff ceilings which are applicable either to 
certain products or beneficiary countries-, 
- the production structure in some developing countries does not 
always satisfy the rules of origin criteria; 
- only partial utilisation of the advantages offered due either 
to a lack of information or only limited economic benefit if 
the normal duty Is already low. 
As a result of these elements there Is a net disproportion between 
the global offer opened on 1 January and those imports which actually 
enter by 31 December of the same year at a preferential rate. 
On the basis of a global offer worth 25 billion ECU In 1990, of a 
weighted average Common Customs Tariff duty rate of between 5.5 and 6% 
and of an average utilisation rate of some 70%, It is estimated that, 
under the terms of the proposal, subject of the doc. COM(89)242 final, 
there will be a loss of between 960 million and 1 billion ECU in 
customs duties not levied due to the application of the Community's GSP 
scheme In 1990. In comparison, on the one hand the special commerce of 
countries, which are already beneficiaries of the GSP with the 
Community vabout 47 billion ECU a year) and on the other hand the 
yearly commerce between the Community and Poland (about 3 billion ECU) 
and Hungary (about 2 billion ECU) and In presuming the same rate of 
utilization, one might estimate the supplementary cost of the extension 
of the GSP to these two countries to 106 million ECU. 
COMPETITIVENESS AND EMPLOYMENT IMPACT STATEMENT 
I- What is the main reason for introducing the measure? 
Support of the restructuration of the economies of Poland and Hungary. 
II. Features of the businesses in question. In particular : 
(a) Are there many SMEs? 
Yes. All SMEs susceptible to import or to buy merchandises under 
GSP or producing competitive products thereof. 
(b) Are they concentrated in regions which are : 
i- eligible for regional aid in the Member States? 
or 
ii. eligible under the ERDF? 
Not possible to identify. These regulations apply in the whole 
Community and not specifically in certain areas. 
III. What direct obligations does this measure impose on businesses? 
No direct obligations. It does not involve any additional cost. On 
the contrary/ it should reduce costs of the trading activities since 
more flexibility is proposed in the management field. 
IV. What indirect obligations are local authorities likely to impose 
on businesses? 
No. Only the national customs administrations are involved in the 
implementation of the EC GSP schemes. 
V. Are there any special measures in respect of SMEs? 
Please specify. No. However, either trading firms or companies using 
imported components/items in their own production could be stimulated 
by the proposal. 
VI. What is the likely effect on : 
(a) the competitiveness of businesses? 
Difficult to identify since a wideranging of sectors and activities 
are covered. Giving preferences may increase external competition 
slightly but can certainly encourage creation of both new import 
firms and joint ventures with foreign partners. 
(b) employment? 
For the same reasons, impossible to identify. 
VII. Have both sides of industry been consulted? 
Please indicate their opinions. 
As the GSP scheme is a long-established EC policy - since 1 July 1971 -
normal sectoral consultations by DGs III and VI in preparation of these 
proposals have taken place with the relevant industrial organizations. 
In addition, the Commission uses to consult the Economic and Social 
Committee, after its proposals being adopted, without having any formal 
obligation to do so. 
A> 

ISSN 0254-1475 
COM(89) 494 final 
DOCUMENTS 
EN 02 19 
Catalogue number : CB-CO-89-467-EN-C 
ISBN 92-77-53788-4 
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