TEXT PROPOSED BY THE COMMISSION AMENDMENTS

Amendment 1

Proposal for a regulation — amending act Recital 1a (new)

(1a) Since its creation, the Generalised System of Preferences (GSP) has been one of the key EU trade and development policy instruments to assist developing countries reduce poverty by generating revenue through international trade and to contribute to their sustainable development by promoting industrial development and the diversification of their economies.

Amendment 2

Proposal for a regulation — amending act Recital 2a (new)

(2a) The chief objective of EU development policy and, therefore, of the GSP scheme is to contribute — through a greater diversification of the economies of developing countries and their increased participation in global trade — to the achievement of the Millennium Development Goals (MDGs), eradication of poverty, promotion of sustainable development and good governance in developing countries.

Amendment 3

Proposal for a regulation — amending act Recital 6a (new)

(6a) In order to increase the utilisation rate and the effectiveness of the GSP and to allow developing countries to reap the benefits of international trade and preferential arrangements, the European Union should strive to provide these countries, and in particular the least developed countries (LDCs), with adequate technical assistance.

Amendment 4

Proposal for a regulation — amending act Recital 8a (new)

(8a) Support should be given, in the form of technical assistance, for the implementation of the conventions referred to in the special incentive arrangement for sustainable development and good governance.

Amendment 5

Proposal for a regulation — amending act Recital 10a (new)

(10a) Developing countries which meet the criteria for eligibility for the special incentive arrangement to encourage sustainable development and good governance after 31 October 2008 should be entitled to benefit from the additional tariff preferences as soon as they meet those criteria. The Commission should rule on new requests on an annual basis.

Amendment 38

Proposal for a regulation — amending act Recital 15

(15) Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should enjoy a tariff reduction, in order to ensure a satisfactory utilisation rate while at the same time taking account of the situation of the respective Community industries. (15) Tariff duties on non-sensitive products should continue to be suspended, while duties on sensitive products should be set in such a way as to ensure a satisfactory utilisation rate while at the same time taking account of the situation of the respective Community industries.

Amendment 6

Proposal for a regulation — amending act Recital 15a (new)

(15a) In order to prevent the erosion of preferences, the Commission should consider transferring products currently classified as ‘sensitive’ to the ‘non-sensitive’ category in the next regulation.

Amendment 7

Proposal for a regulation — amending act Recital 19

(19) For the sake of coherence in the Community's commercial policy, a beneficiary country should not benefit from both the scheme and a free-trade agreement, if that agreement covers at least all of the preferences provided for by the present scheme to that country. (19) For the sake of coherence in the Community's commercial policy, a beneficiary country should not benefit from both the scheme and a free-trade agreement, if that agreement covers, effectively implements and, where appropriate, consolidates at least all of the preferences provided for by the present scheme to that country.

Amendment 8

Proposal for a regulation — amending act Recital 21a (new)

(21a) The rules of origin should be reviewed to take account of inter-regional and global cumulation and the possibility of a country benefiting from preferential treatment under the GSP, the GSP+ and the ‘Everything But Arms’ (EBA) initiative, even if it is not the final destination of the export, provided that substantial value is added to the products in the country in question. In the course of this review, the ‘double transformation’ requirement for certain products should also be eliminated.

Amendment 9

Proposal for a regulation Recital 21b (new)

(21b) The Commission should, as a matter of priority, strive within the World Trade Organization (WTO) to achieve an agreement harmonising the rules of origin, pursuant to which developing countries and the LDCs receive preferential treatment.

Amendment 37

Proposal for a regulation — amending act Recital 21c (new)

(21c) Under Article 37(6) of the ACP-EU Partnership Agreement, the Commission undertook to look into all possible alternatives to enable countries which were not LDCs and had not signed an Economic Partnership Agreement to benefit from a new trade framework offering commercial preferences at least equivalent to those under the Cotonou Agreement.

Amendment 10

Proposal for a regulation — amending act Article 3 — paragraph 1a (new)

1a. On the basis of the latest comparable and adjusted data available at the time of adoption of this Regulation, the Commission shall establish which beneficiary countries meet the criteria set out in paragraph 1.

Amendment 11

Proposal for a regulation — amending act Article 3 — paragraph 1b (new)

1b. Each year the Commission shall publish a notice in the Official Journal of the European Union listing the beneficiary countries which meet the criteria set out in paragraph 1.

Amendment 12

Proposal for a regulation — amending act Article 3 — paragraph 2

2. When a beneficiary country benefits from a preferential commercial agreement with the Community which covers at least all of the preferences provided for by the scheme to that country, it shall be removed from the list of beneficiary countries. 2. When a beneficiary country benefits from a preferential commercial agreement with the Community , the application of the commercial agreement shall take precedence over the application of the scheme provided that the agreement effectively implements and, where appropriate, consolidates at least all of the preferences provided for by the scheme to that country. A commercial agreement with the Community shall not preclude eligibility for the special incentive arrangement set out in Articles 7 to 10.

Amendment 13

Proposal for a regulation — amending act Article 3 — paragraph 3

3. The Commission shall notify a beneficiary country of its removal from the list of beneficiary countries. 3. Where a beneficiary country is removed from the list of beneficiary countries , the Commission shall notify the country in question and the European Parliament.

Amendment 14

Proposal for a regulation — amending act Article 3 — paragraph 3a (new)

3a. In order to improve the impact of the scheme, the Commission shall provide developing countries, and especially LDCs, with adequate technical assistance for building the institutional and regulatory capacity required to reap the benefits of international trade and the GSP.

Amendment 15

Proposal for a regulation Article 5 — paragraph 2

2. For the purposes of the arrangements referred to in Article 1(2), the rules of origin concerning the definition of the concept of originating products, the procedures and the methods of administrative cooperation related thereto, shall be those laid down in Regulation (EEC) No 2454/93. 2. For the purposes of the arrangements referred to in Article 1(2), the rules of origin concerning the definition of the concept of originating products, the procedures and the methods of administrative cooperation related thereto, shall be those laid down in Regulation (EEC) No 2454/93. The form, substance and procedures of the system of rules of origin shall be subject to regular revision in order to evaluate its effect on GSP utilisation rates and to better serve the purpose of promoting economic development.

Amendment 16

Proposal for a regulation — amending act Article 5 — paragraph 3a (new)

3a. The Commission shall give priority within the WTO to harmonising rules of origin which introduce preferential treatment for developing countries and LDCs.

Amendment 17

Proposal for a regulation — amending act Article 7 — paragraph 3a (new)

3a. Technical assistance shall also be provided to help eligible developing countries comply with the ratification and effective implementation requirements of the new special incentive arrangement for sustainable development and good governance.

Amendment 18

Proposal for a regulation — amending act Article 8 — paragraph 3

3. The Commission shall keep under review the status of ratification and effective implementation of the conventions listed in Annex III. Before the end of the period of application of this Regulation and in time for discussion on the next Regulation, the Commission shall present, to the Council, a report on the status of ratification of such conventions, including recommendations by monitoring bodies. 3. The Commission shall keep under review the status of ratification and effective implementation of the conventions listed in Annex III. Before the end of the period of application of this Regulation and in time for discussion on the next Regulation, the Commission shall present, to the European Parliament and to the Council, a report on the status of ratification and implementation of such conventions, by each country benefiting from the special incentive arrangement. Where appropriate, the Commission shall include recommendations by monitoring bodies on whether additional steps for the effective implementation of a convention should be taken by a specific country. In its report the Commission shall also evaluate the effectiveness of the special incentive arrangement in fulfilling its aim and recommend, where appropriate, the revision of Annex III.

Amendment 19

Proposal for a regulation — amending act Article 9 — paragraph 1 — point a

(a) a country or territory listed in Annex I must have made a request to that effect by 31 October 2008, and (a) a country or territory listed in Annex I must have made a request to that effect by 31 October 2008 , or, in the case of countries or territories fulfilling the conditions of Article 8(1) and (2), after that date, on an annual basis , and

Amendment 20

Proposal for a regulation — amending act Article 10 — paragraph 1

1. The Commission shall examine the request accompanied by the information referred to in Article 9(2). When examining the request the Commission shall take account of the findings of the relevant international organisations and agencies. It may ask the requesting country any questions which it considers relevant, and may verify the information received with the requesting country or with any other relevant sources. 1. The Commission shall examine the request accompanied by the information referred to in Article 9(2). When examining the request the Commission shall take account of the findings of the relevant international organisations and agencies. It may ask the requesting country any questions which it considers relevant, and shall verify the information received with the requesting country or with any other relevant sources including the European Parliament and representatives of civil society, including the social partners.

Amendment 21

Proposal for a regulation — amending act Article 10 — paragraph 3

3. The Commission shall notify a requesting country of a decision taken in accordance with paragraph 2. Where a country is granted the special incentive arrangement, it shall be informed of the date on which that decision enters into force. The Commission shall, by 15 December 2008, publish a notice in the Official Journal of the European Union, listing the countries benefiting from the special incentive arrangement for sustainable development and good governance. 3. The Commission shall notify a requesting country of a decision taken in accordance with paragraph 2. Where a country is granted the special incentive arrangement, it shall be informed of the date on which that decision enters into force. The Commission shall, by 15 December 2008, publish a notice in the Official Journal of the European Union to be updated on an annual basis , listing the countries benefiting from the special incentive arrangement for sustainable development and good governance.

Amendment 22

Proposal for a regulation — amending act Article 10 — paragraph 4

4. Where a requesting country is not granted the special incentive arrangement, the Commission shall give the reasons, if that country so requests . 4. Where a requesting country is not granted the special incentive arrangement, the Commission shall give the reasons and inform the requesting country , and the European Parliament, thereof.

Amendment 23

Proposal for a regulation Article 17 — paragraph –1 (new)

–1. The Commission shall regularly check that the commitments of beneficiary countries are being honoured and that none of the reasons set out in Article 15(1) and (2) and Article 16 (1) and (2) for the temporary withdrawal of preferential arrangements applies. It shall publish an annual report on temporary withdrawals and send it to the European Parliament, the Council, and the Member States.

Amendment 24

Proposal for a regulation — amending act Article 17 — paragraph 1

1. Where the Commission or a Member State receives information that may justify temporary withdrawal and where the Commission or a Member State considers that there are sufficient grounds for an investigation, it shall inform the Committee and request consultations. The consultations shall take place within one month. 1. Where the European Parliament the Commission or a Member State receives information that may justify temporary withdrawal and where the European Parliament, the Commission or a Member State considers that there are sufficient grounds for an investigation, it shall inform the Committee and the European Parliament and request consultations. The consultations shall take place within one month.

Amendment 25

Proposal for a regulation — amending act Article 17 — paragraph 2

2. Following the consultations, the Commission may decide, within one month's time and in accordance with the procedure referred to in Article 27(5), to initiate an investigation. 2. Following the consultations, the Commission may decide, within one month's time and in accordance with the procedure referred to in Article 27(5), to initiate an investigation. In the light of the reasons set out in Article 15(1)(a), the Commission shall automatically open an inquiry in any case where the ILO Committee on the Application of Standards devotes a ‘special paragraph’ to a beneficiary country which does not comply with fundamental labour standards.

Amendment 26

Proposal for a regulation Article 18 — paragraph 3

3. The Commission shall seek all information it considers necessary, including the available assessments, comments, decisions, recommendations and conclusions of the relevant supervisory bodies of the UN, the ILO and other competent international organisations. These shall serve as the point of departure for the investigation into whether temporary withdrawal is justified for the reason referred to in Article 15(1)(a). The Commission may verify the information received with economic operators and the beneficiary country concerned. 3. The Commission shall seek all information it considers necessary, including the available assessments, comments, decisions, recommendations and conclusions of the other European institutions and of the relevant supervisory bodies of the UN, the ILO and other competent international organisations. These shall serve as the point of departure for the investigation into whether temporary withdrawal is justified for the reason referred to in Article 15(1)(a). The Commission may verify the information received with economic operators , representatives of civil society (including the social partners) and the beneficiary country concerned.

Amendment 27

Proposal for a regulation Article 19 — paragraph 1

1. The Commission shall submit a report on its findings to the Committee. 1. The Commission shall submit a report on its findings to the Committee and to the European Parliament.

Amendment 28

Proposal for a regulation Article 19 — paragraph 4

4. Where the Commission considers temporary withdrawal to be necessary, it shall submit an appropriate proposal to the Council which shall decide within two month's time by a qualified majority. In the case referred to in paragraph 3, the Commission shall submit its proposal at the end of the period referred to in that paragraph. 4. Where the Commission considers temporary withdrawal to be necessary, it shall submit — after having informed the European Parliament — an appropriate proposal to the Council which shall decide within two month's time by a qualified majority. In the case referred to in paragraph 3, the Commission shall submit its proposal at the end of the period referred to in that paragraph.

Amendment 29

Proposal for a regulation — amending act Article 20 — paragraph 7

7. Where exceptional circumstances requiring immediate action make an investigation impossible, the Commission may, after informing the Committee, take any preventive measure which is strictly necessary. 7. Where exceptional circumstances requiring immediate action make an investigation impossible, the Commission may, after informing the Committee and the European Parliament , take any preventive measure which is strictly necessary.

Amendment 30

Proposal for a regulation — amending act Article 21

Where imports of products included in Annex I to the Treaty cause, or threaten to cause, serious disturbance to Community markets, in particular to one or more of the outermost regions, or these markets’ regulatory mechanisms, the Commission, on its own initiative or at the request of a Member State, may suspend the preferential arrangements in respect of the products concerned after consulting the management committee for the relevant common market organisation. Where imports of products included in Annex I to the Treaty cause, or threaten to cause, serious disturbance to Community markets, in particular to one or more of the outermost regions, or these markets’ regulatory mechanisms, the Commission, on its own initiative or at the request of a Member State or of the European Parliament , may suspend the preferential arrangements in respect of the products concerned after consulting the management committee for the relevant common market organisation.

Amendment 31

Proposal for a regulation — amending act Article 22 — paragraph 1

1. The Commission shall inform the beneficiary country concerned as soon as possible of any decision taken in accordance with Article 20 or 21 before it becomes effective. The Commission shall also notify the Council and the Member States thereof. 1. The Commission shall inform the beneficiary country concerned as soon as possible of any decision taken in accordance with Article 20 or 21 before it becomes effective. The Commission shall also notify the European Parliament, the Council and the Member States thereof.

Amendment 32

Proposal for a regulation — amending act Article 22 — paragraph 2

2. Any Member State may refer a decision taken in accordance with Article 20 or 21 to the Council within one month's time. The Council, acting by qualified majority, may adopt a different decision within one month. 2. Any Member State , or the European Parliament , may refer a decision taken in accordance with Article 20 or 21 to the Council within one month's time. The Council, acting by qualified majority, may adopt a different decision within one month. Where appropriate, the Council shall inform the requesting country and the European Parliament of its decision.

Amendment 33

Proposal for a regulation — amending act Article 25 — point e

(e) for the establishment, by 15 December 2008 at the latest, of the list of beneficiary countries in accordance with Article 10. (e) for the establishment, by 15 December 2008, at the latest, of the list of beneficiary countries to be updated on an annual basis in accordance with Article 10.

Amendment 34

Proposal for a regulation — amending act Article 26a (new)

Article 26a 1. The Commission shall keep the European Parliament regularly informed with regard to: (a) trade statistics between the European Union and GSP beneficiary countries; (b) the status of ratification and implementation of the conventions included in Annex III by each country benefiting from the special incentive arrangement. Where appropriate, the Commission will include recommendations on whether additional steps for the effective implementation of a convention should be taken by a specific country; (c) relevant information on progress towards the achievement of the MDGs, especially in LDCs. 2. The Commission shall prepare an impact assessment study of the effects of the GSP covering the period from 1 January 2006 to 31 December 2009. The study shall be transmitted to the Committee, the European Parliament and the European Economic and Social Committee by 1 March 2010. 3. The Commission, after consulting the Committee, will set the contents of the impact-assessment study referred to in paragraph 2, which shall include the views of the beneficiary countries and in any event shall contain at least the following elements: — an in-depth statistical analysis of GSP utilisation rates per country and a section including a comparison with previous years; — an evaluation of the social and trade-related effects of graduation on graduated countries; — a preliminary assessment of the effects of future graduation on the countries likely to be graduated under the next regulation; — an analysis of the potential effects of extending the system of preferences by increasing the preferential margin accorded to sensitive products and/or transferring ‘sensitive’ products to the ‘non-sensitive’ category; — an evaluation of the contribution of this Regulation to the achievement of the MDGs, in particular in relation to LDCs. 4. The Commission shall submit a special report to the European Parliament at the time of the conclusion of the Doha Development Agenda, examining the impact of the negotiations on the scheme established in this Regulation and considering the measures to be adopted to ensure the effectiveness of the GSP.

Amendment 39

Proposal for a regulation — amending act Article 27 — Paragraph 3

3. The Committee shall examine the effects of the scheme, on the basis of a report from the Commission covering the period since 1 January 2009 . This report shall cover all of the preferential arrangements referred to in Article 1(2), and shall be presented in time for the discussion on the next Regulation. 3. The Committee shall examine the effects of the scheme, on the basis of a report from the Commission covering the period since 1 January 2006 . This report shall contain an impact assessment study covering at least the following points: — a comparative study of GSP utilisation rates under this Regulation and the previous ones, in order to identify the positive and negative trends, — an evaluation of the effects of graduation in the poverty indicators of the countries affected, — a comparative study of the preferential treatment offered by the GSP and by the Economic Partnership Agreements. The report shall cover all of the preferential arrangements referred to in Article 1(2), and shall be presented in time for the discussion on the next Regulation.

Amendment 36

Proposal for a regulation — amending act Article 29 — paragraph 2a (new)