Opinion of the European Economic and Social Committee on the "Proposal for a Council Regulation amending Regulation (EC) No 2501/2001 applying a scheme of generalised tariff preferences for the period from 1 January 2002 to 31 December 2004 and extending it to 31 December 2005" (COM(2003) 634 final — 2003/0259 (ACC))
Date: 2003-12-10
Institutions: European Economic and Social Committee
Subjects: ESC opinion, common commercial policy, generalised preferences

C 80/156

EN

Official Journal of the European Union

30.3.2004

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council
Regulation amending Regulation (EC) No 2501/2001 applying a scheme of generalised tariff
preferences for the period from 1 January 2002 to 31 December 2004 and extending it to
31 December 2005’

(COM(2003) 634 final — 2003/0259 (ACC))

(2004/C 80/35)

On 13 November 2003, the Council decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Economic and Social Committee decided to appoint Mr Pezzini as its rapporteur-general to prepare
its opinion.

At its 404th plenary session on 10 and 11 December 2003 (session of 10 December 2003) the European
Economic and Social Committee adopted the following opinion by 78 votes in favour with two
abstentions.

1.

Introduction

1.1.
Over the last few decades, the EU has consistently
adjusted and updated its policy on trade preferences for
developing countries in the light of changing circumstances.
The latest major revision of the General System of Preferences
(GSP) came into force on 1 January 1995 to cover the ten-year
period starting on that date. It is, therefore, due to expire on
31 December 2004 and this necessitates a further revision.

The Commission originally envisaged publishing a
1.2.
document in September 2003 to set out its proposals for
the new regime to come into effect on 1 January 2005.
Subsequently, it decided to delay the introduction of the new
system for a period of one year and to put forward a proposal
for an interim arrangement in the intervening period, which
would continue the existing guidelines with some relatively
minor modifications, primarily of a technical nature. The ten-
year period for the new regime is now expected to commence
on 1 January 2006.

the results of

1.2.1.
The decision to delay the introduction of fundamen-
tal changes to the system has been attributed inter alia to a
wish to await
the Doha round of WTO
negotiations and a desire not to prejudice the outcome of these
talks. An additional factor was the complaint brought against
the EU at the WTO by India. It is considered that, while this
complaint relates directly only to the ‘drug’ regime, it would, if
upheld, impact all of the special incentive arrangements.

2. The Commission proposals

2.1.
The Commission proposals for the interim period
introduce two changes to the existing regime, while main-
taining compatibility with the 1994 guidelines. The main
proposed change is to the annual adjustment of the offer by
graduation. Graduation has existed since 1996 but has not
previously been applied on an annual basis. The Commission
feels that, in order to avoid any adverse impact on countries
with a low volume of GSP-related trade, it is desirable to
concentrate the graduation mechanism on the major benefici-

ary nations and exclude the smallest countries. It therefore
proposes that graduation should not apply to any beneficiary
countries whose exports to the EC account for less than 1 %
of total Community imports of products covered by the
Community preference scheme in at least one of the reference
years. Similarly, tariff preferences removed pursuant to column
D of Annex 1 to Regulation (EEC) No 2658/87 will be restored.

2.1.1.
It is also proposed to abandon the annual publication
of an opinion on the impending annual graduation in the
Official Journal, on the grounds that it generates uncertainty
and confusion.

The second change relates to the special

incentive
2.2.
arrangements for the protection of labour rights. The Com-
mission considers that these need to be strengthened in order
to give more encouragement to the gradual adoption of the
standards set out in the International Labour Organisation
(ILO) declaration. Accordingly, it proposes that Article 14(2)
should be reworded as follows:

The special incentive arrangements for the protection of

‘2.
labour rights may be granted to a country:

a)

the national legislation of which incorporates the substan-
ce of the standards laid down in ILO Conventions Nos 29
and 105 on forced labour, 87 and 98 on the freedom of
association and the right to collective bargaining, 100
and 111 on non-discrimination in respect of employment
and occupation and 138 and 182 on child labour, and
which effectively applies that legislation; or

b) which is engaged in significant ongoing efforts to incor-
porate and apply the substance of these standards.’

2.3.
The evaluation of the arrangements for drugs, initially
planned for 2004, has been postponed until the new last year
of the current procedure (2005).

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Official Journal of the European Union

C 80/157

3. Comments

3.1.
The ESC accepts the rationale of the Commission’s
decision to postpone the introduction of a new definitive GSP
system and to extend the existing regime until 31 December
2005 at least.

3.2.
The ESC approves the exclusion from the graduation
process of countries whose exports to the Community account
for less than 1 % of total Community imports of products
covered by the Community preference scheme, as this consti-
tutes a return to the basic principles of graduation set out in
the 1994 guidelines. The ESC is pleased to note that this new
mechanism does not prejudge the question of whether further
amendments will be necessary within the new GSP regime
which is now due to come into force in 2006.

3.2.1.
The ESC also accepts that there is no point in
continuing to publish an opinion on the impending annual
graduation in the Official Journal if it serves no useful purpose.

Brussels, 10 December 2003.

The ESC welcomes the Commission’s intention to
3.3.
strengthen the special incentive arrangements for the protec-
tion of labour rights and gives its approval to this change.

The ESC notes that

the special
3.4.
arrangements for drugs is to be postponed until the new last
year of the present regime and accepts the logic of this
proposal.

the evaluation of

3.5.
The EESC hopes that the GSP’s incentive arrangements
for the protection of the environment, consumers, the climate
and animals will be applied more effectively and further
developed in future.

3.6.
The ESC is currently engaged in drawing up an
exploratory opinion on the subject of the GSP, at the request
of Mr Pascal Lamy, Member of the Commission, and will
address the issues arising from the introduction of a new
definitive system in that opinion.

The President

of the European Economic and Social Committee

Roger BRIESCH