Proposal for a Council Regulation temporarily withdrawing access to the generalised tariff preferences from the Republic of Belarus
Date: 2006-08-04
Institutions: European Commission
Subjects: Belarus, International Labour Organisation, generalised preferences, international labour law, labour law, trade union, trade union freedom

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.8.2006 
COM(2006) 438 final 

2006/0149 (ACC) 

Proposal for a 

COUNCIL REGULATION 

temporarily withdrawing access to the generalised tariff preferences from the Republic 
of Belarus 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  Community’s  generalised  system  of  preferences  (“GSP”)  makes  provision  for 
the partial or total removal of the preferential arrangements for products originating 
in  a  beneficiary  country  under  certain  circumstances,  including  for  serious  and 
systematic  violations  of  the  principles  laid  down  in  the  “core  human  and  labour 
rights” conventions of the United Nations and the International Labour Organization 
(ILO). 

The Republic of Belarus is included in the list of GSP beneficiary countries. 

At the end of 2003, at the instigation of international trade unions, the Commission 
published  its  decision  to  initiate  an  investigation  into  alleged  violations  of  the 
freedom of association and the right to collective bargaining in Belarus. 

to 

international  standards,  and  made  use  of 

The  Commission  investigated  the  institutional  framework,  the  key  institutions,  the 
structure  of  social  partnership  and  the  relevant  Belorussian  legislation,  compared 
them 
the  conclusions  and 
recommendations  of  the  ILO’s  Committee  on  Freedom  of  Association  and  its 
Committee of Experts, as well as of UN reports. The recommendations of these two 
ILO Committees are the main reference on interpretation of international labour law 
and  rules  of  correlation  between  national  and  international  standards.  Testimonies 
provided by the primary national stakeholders, and their partner organisations at the 
international  level  were  supplemented  by  interviews  with  representatives  of 
government  and  employers’  organisations,  as  well  as  all  relevant  international 
agencies, NGOs and European Commission staff. 

The  investigation  found  that  Belarus  is  impeding  the  right  to  establish  trade  union 
organisations  freely,  the  right  to  organise,  the  right  to  choose  among  trade  union 
organisations, and the right of such organisations to legal recognition and to external 
funding.  Belarus  is  promoting  anti-union  discrimination  and  the  dissolution  or 
suspension of trade unions. 

In  parallel  to  the  Commission’s  investigation,  the  ILO  set  up  a  ‘Commission  of 
Inquiry’ which, in its report of July 2004, formulated twelve recommendations with 
which  the  Belarus  Government  needed  to  comply  before  June 2005,  in  order  to 
remedy  the  unsatisfactory  application  of  the  ILO’s  Convention  No 87  concerning 
Freedom  of  Association  and  Protection  of  the  Right  to  Organise,  and  Convention 
No 98 concerning the Application of the Principles of the Right to Organise and to 
Bargain Collectively. 

In accordance with the procedure laid down in the GSP regulation, the Commission 
decided  to  open  a  six-month  period  for  monitoring  and  evaluating  the  situation  in 
Belarus  and,  in  so  doing,  granted  Belarus  further  time  in  which  to  make  the 
commitment  to  take  the  necessary  measures  to  conform  with  the  Fundamental 
Principles  and  Rights  at  Work,  as  expressed  in  the  twelve  recommendations  in  the 
report of July 2004 by the ILO Commission of Inquiry. 

Belarus  has  not  made  the  requisite  commitment  within  this  six-month  period.  The 
preferential  arrangement  for  products  originating  in  Belarus  should  therefore  be 
withdrawn temporarily. 

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9. 

In accordance with the procedure set out in Article 20(4) and (5) of Regulation (EC) 
No 980/2005, the Council should decide within one month by a qualified majority on 
the proposal from the Commission. If the Council decides in favour of the temporary 
withdrawal,  the  Regulation  should  enter  into  force  six  months  after  the  decision  is 
taken, unless the situation changes before then. 

10. 

The  situation  should  be  kept  under  review,  to  enable  the  re-establishment  of  the 
preferential arrangement for products originating in Belarus. 

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2006/0149 (ACC) 

Proposal for a 

COUNCIL REGULATION 

temporarily withdrawing access to the generalised tariff preferences from the Republic 
of Belarus 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
133 thereof, 

Having regard to the proposal from the Commission, 

Having regard to Council Regulation (EC) No 980/2005 of 27 June 2005 applying a scheme 
of generalised tariff preferences (1), and in particular Article 20(4) thereof, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Pursuant  to  Regulation  (EC)  No 980/2005,  the  Republic  of  Belarus  (hereinafter 
referred  to  as  ‘Belarus’)  is  a  beneficiary  country  of  the  Community’s  scheme  of 
generalised tariff preferences. 

On 29 January 2003, the International Confederation of Free Trade Unions (ICFTU), 
the  European  Trade  Union  Confederation  (ETUC)  and  the  World  Confederation  of 
Labour  (WCL)  made  a  joint  request,  to  the  Commission,  for  an  investigation  to  be 
made under Article 27 of Regulation (EC) No 2501/2001 into alleged violations of the 
freedom of association and of the right to collective bargaining in Belarus. 

The  Commission  examined  the  request,  in  consultation  with  the  Generalised 
Preferences Committee, and decided, by Decision of 29 December 2003 (2), to initiate 
an  investigation.  Information  from  interested  parties  was  sought,  by  means  of  a 
published notice (3). 

The Belorussian authorities were formally notified of the opening of the investigation. 
They  denied  any  violations  of  ILO  Conventions  No 87  (concerning  Freedom  of 
Association  and  Protection  of  the  Right  to  Organise)  and  No 98  (concerning  the 
Application of the Principles of the Right to Organise and to Bargain Collectively). 

The  information  collected  by  the  Commission  during  the  course  of  the  investigation 
conducted  in  consultation  with  the  Generalised  Preferences  Committee  however 
corroborates  the  existence  of  serious  and  systematic  violations  of  the  freedom  of 

(1) 
(2) 
(3) 

OJ L 169, 30.6.2005, p. 1. 
OJ L 5, 9.1.2004, p. 90. 
OJ C 40, 14.2.2004, p. 4. 

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association and of the right to collective bargaining under ILO Conventions No 87 and 
No 98. Consequently, the Commission considered that a temporary withdrawal of the 
preferential arrangement was justified.  On 17 August 2005, the Commission decided 
to monitor and evaluate the labour rights’ situation in Belarus (4). The announcement 
of the start of the six-month period for such monitoring and evaluation (5) included a 
statement  of  the  Commission’s  intention  to  submit  a  proposal  to  the  Council  for  the 
temporary  withdrawal  of  the  trade  preferences,  unless,  before  the  end  of  the  period, 
Belarus had made a commitment to take the measures necessary to conform with the 
principles  referred  to  in  the  1998 ILO  Declaration  on  Fundamental  Principles  and 
Rights at Work, as expressed in the twelve recommendations in the ILO Commission 
of Inquiry report of July 2004. The Belorussian authorities were notified officially of 
the decision and of the announcement. 

(6) 

(7) 

(8) 

At the end of the six-month period of monitoring and evaluation, Belarus has not made 
the requisite commitment. 

In the light of the foregoing and exclusively on this basis, the preferential arrangement 
for products originating in Belarus should be withdrawn temporarily, until it is decided 
that the reasons justifying the temporary withdrawal no longer prevail. 

This  Regulation  should  enter  into  force  six  months  after  its  adoption,  unless  it  is 
decided before then that the reasons justifying it no longer prevail, 

HAS ADOPTED THIS REGULATION: 

The  preferential  arrangement  for products  originating  in  Belarus  provided  for  in  Regulation 
(EC) No 980/2005 are withdrawn temporarily. 

Article 1 

Article 2 

The  Council,  acting  by  qualified  majority,  on  a  proposal  from  the  Commission,  shall  re-
establish the preferential arrangement for products originating in Belarus, if the violations of 
the freedom of association and of the right to collective bargaining in Belarus no longer exist. 

This Regulation shall enter into force six months after the date of its adoption. 

Article 3 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

(4) 
(5) 

OJ L 213, 18.8.2005, p. 16. 
OJ C 240, 30.9.2005, p. 41. 

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Done at Brussels, […] 

[…]

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

FINANCIAL STATEMENT 

[…] 

DATE: […] 
APPROPRIATIONS: 
[…] 

BUDGET HEADING: 
120 - € 12 905.4 million 
TITLE: 
Proposal for a Council Regulation temporarily withdrawing access to the generalised tariff preferences 
from the Republic of Belarus 
LEGAL BASIS: 
[…] 
AIMS: 
Application of Article 26(1)(b) of Regulation (EC) No 2501/2001 [corresponding to Article 16(1)(a) of 
Regulation (EC) No 980/2005] - the GSP regulation - withdrawing the preferential arrangements from 
Belarus for serious and systematic violations of the freedom of association 
FINANCIAL IMPLICATIONS 

12 MONTH 
PERIOD 

CURRENT 
FINANCIAL 
YEAR 
[n] 
(EUR million) 
[…] 

FOLLOWING 
FINANCIAL 
YEAR 
[n+1] 
(EUR million) 
[…] 

EXPENDITURE 
- 

CHARGED TO THE EC BUDGET 
(REFUNDS/INTERVENTIONS) 
NATIONAL AUTHORITIES 
OTHER 

- 
- 

(EUR million) 
[…] 

1. 

2. 

3. 

4. 

5. 

5.0 

5.1  REVENUE 

[…] 

[…] 

[…] 

- 

- 

OWN RESOURCES OF THE EC 
(LEVIES/CUSTOMS DUTIES) 
NATIONAL 

5.0.1  ESTIMATED EXPENDITURE 
5.1.1  ESTIMATED REVENUE 
5.2  METHOD OF CALCULATION: 

[…] 

[n+2] 
[…] 
[…] 

[n+3] 
[…] 
[…] 

[n+4] 
[…] 
[…] 

[n+5] 
[…] 
[…] 

6.0  CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE 

RELEVANT CHAPTER OF THE CURRENT BUDGET? 

6.1  CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF 

THE CURRENT BUDGET? 

6.2  WILL A SUPPLEMENTARY BUDGET BE NECESSARY? 
6.3  WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? 
OBSERVATIONS: 
From Belarus under the GSP: 

YES NO 

YES NO 
YES NO 
YES NO 

year 

2002 
2003 
2004 
2005 

imports (EUR) 

190 million 
224 million 
285 million 
388 million 

Loss of own-resources for 2005 estimated at less than EUR 12 million (on the basis of the cif values for imports 
of the seventy most significant products) 

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