NoC14/46 OfficialJournaloftheEuropeanCommunities 20.1.92
OpinionontheproposalforaCouncilRegulation (EEC)amendingCouncilRegulation
(EEC)No3835/90inrespectofthesystemofgeneralizedtariffpreferencesappliedtocertain
productsoriginatinginCostaRica,ElSalvador,Guatemala,Honduras,Nicaraguaand
Panama
(92/C14/16)
On19August1991theCouncildecidedtotconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanCommunity,ontheabovementioned
proposal.
TheSectionforExternalRelations,TradeandDevelopmentPolicy,whichwasresponsible
forpreparingtheCommittee'sworkonthissubject,adopteditsOpinionon22October
1991.TheRappoteurwasMrLiverani.
Atits290thplenarysession(meetingof30October1991)theEconomicandSocialCommittee
unanimouslyadoptedthefollowingOpinion.
1.TheEconomicandSocialCommitteewelcomes
andfullyendorsestheproposaltograntextraordinary
temporaryassistancetothesignatoriestotheGeneral
TreatyonCentralAmericanEconomicIntegration
(CostaRica,ElSalvador,Guatemala,Hondurasand
Nicaragua)aswellastoPanama.Thetariffpreferences
grantedtothesecountriesunderthegeneralizedsystem
ofpreferences (GSP)wouldbesimilartothosealready
grantedtoBolivia,Columbia,EcuadorandPeru.
2.TheCommitteebelievesinfactthatitisurgently
necessarytoalsohelpthecountriesofCentralAmerica
diversify,andsecurequalitativeandquantitative
improvements in,theirtrade.Giventhatthesecountries
arecurrentlygoingthroughthedelicateprocessof
consolidatingpeaceanddemocracy,everyopportunity
shouldbetakentohelpthemachieveeconomicand
socialstability.
3.Theproposaltoextendtheapplicationofcustoms
preferencestoCentralAmericancountriesmakesan
undoubtedcontributiontotheimprovementofthe
economicsituationinthatarea.However,ifwelook
atthescaleoftheassistancetobeprovidedandthe
appropriateness oftheinstrumentstobeused,then
itbecomesclearthatfurthermeasuresareneededto
improvethedifficultsituationinwhichthesecountries
findthemselves .Suchmeasuresshouldbepartofa
consistentdevelopmentco-operationpolicy.TheCom­
mitteewouldaccordinglyrefertoanumberofcritical
commentsonthissubjectmadeinitsOpiniononthe
extensiontoBolivia,ColumbiaandPeruofthegen­
eralizedtariffpreferencesappliedtocertainproducts
originatinginthelessdevelopedcountries(LDC)(1).
4.Despitefundamentalreservationsregardingthe
effectivenessoftheproposedmeasures,theCommittee
considersthatthegeneralizedtariffpreferencestreat­
mentalreadyappliedtoAndeancountriescanjustifi­ablybeextendedtoimportantagriculturalproducts
fromthesixCentralAmericancountriesforthesakeof
equalcompetition .SinceAndeanandCentralAmerican
countriesexportasimilarrangeofproducts,preferen­
tialcustomstreatmentfortheAndeancountrieshasled
indirectly(ifnotintentionally )todiscriminationagainst
theCentralAmericancountries.Thisisunacceptable
giventhatthelatterfindthemselvesinanequallydiffi­
culteconomicandsocialsituation.
5.TheCommitteewouldneverthelesspointoutthat
althoughtheregionalextensionofpreferencesisnecess­
arytoreestablishequalcompetition,suchactionfurther
weakenstheeffectivenessoftheinstrumentsselected.
TheCommitteeisalsounhappythattheCommunity
frequentlyresortstoGSPinseekingtotsolvewidely
differingsetsofproblems.
6.Theproblemsofdrugs(growing,production,pro­
cessingandtrafficking)maynotyethavereachedthe
sameproportionsinthecountriesofCentralAmerica
asinsomeAndeancountries,butthesituationhas
deterioratedsomuchoflatethaturgentactionis
needed.
7.ItisclearthattheuseofGSPcanonlymakeavery
minorcontributiontosolvingtheproblemofgrowing
drugs.Thisisbecauseaslongastherearemarketswith
themeansofpayingfordrugs,producerswilltake
productionrisksbecauseoftheprofitmarginsandwill
belargelyimmunetoincentivestogrowalternative
crops.Ifananti-drugpolicyistobesystematic,itmust
thereforeconcentrateprimarilyontheconsumption ,
tradeanddistributionofdrugs.
8.TheCommitteewouldtakethisopportunityto
refertoitsOpinionontheGeneralizedSystemofPrefer­
ences:Guidelinesforthe1990(2),whichstatesthat'the
moretheGSPisconcentrated ,themoreitwillhaveto
HOJNoC332,31.12.1990,p.21. (2)OJNoC69,18.3.1991,p.9.

20.1.92 OfficialJournaloftheEuropeanCommunities NoC14/47
ofinternationalco-operationinwhichpoliticaland
economiccommitments arecloselyinterwoven .The
Committeeispreparedtopursuesuchdialoguewith
economicandsocialgroupsinordertodevelopaspects
ofdecentralizedcooperationwiththedeveloping
countriesofCentralAmerica.beaccompaniedbyotherpoliciestoprovideactive
supportforthedevelopingcountries'.
9.TheCommitteethereforeunreservedlysupports
regularpoliticaldialoguewiththecountriesofCentral
Americaandregardsitasanexperimentinanewform
DoneatBrussels,30October1991.
TheChairman
oftheEconomicandSocialCommittee
FrancoisSTAEDELIN
Opinionon:
—theproposalforaCouncilRegulation (EEC)extendinginto1992theapplicationof
CouncilRegulations (EEC)No3831/90,3832/90,3833/90and3835/90of20December
1990applyinggeneralizedtariffpreferencesfor1991inrespectofcertainproducts
originatingindevelopingcountries,and
—theproposalforaCouncilRegulation (EEC)extendinginto1992theapplicationof
CouncilRegulation (EEC)No3834/90of20December1990reducingfor1991thelevies
oncertainagriculturalproductsoriginatingindevelopingcountries(*)
(92/C14/17)
On30August1991theCouncildecidedtoconsulttheEconomicandSocialCommittee,
underArticle198oftheTreatyestablishingtheEuropeanEconomicCommunity,onthe
abovementioned proposals.
TheSectionforExternalRelations,TradeandDevelopmentPolicy,whichwasresponsible
forpreparingtheCommittee'sworkonthesubject,adopteditsOpinionon22October1991.
TheRapporteurwasMrLiverani.
Atits290thplenarysession(meetingof30October1991),theEconomicandSocialCommittee
adoptedthefollowingOpinionunanimously .
thusenablingtherevisedschemefortheninetiestobe
finalized.1.TheEconomicandSocialCommitteeapproves
theprovisionalextensionofthe1991schemebeyond
1January1992inthefirmhopethatthenegotiationson
theGeneralAgreementonTariffsandTrade(GATT)/
UruguayRoundcanbebroughttoaspeedyconclusion,2.TheCommitteecallsontheCommissiontosub­
mit,assoonaspossibleaftertheGATTnegotiations
areconcluded,acomprehensive proposalforarevised
schemeofthegeneralizedsystemofpreferences (GSP)
inthelightoftheoutcomeoftheUruguayRound. (i)OJNoC228,3.9.1991,p.3-6.