Proposal for a Council Decision on the granting of the special incentive arrangement for sustainable development and good governance beyond 1 January 2007 to the Republic of El Salvador
Date: 2006-11-29
Institutions: European Commission
Subjects: EU relations, El Salvador, aid policy, development aid, generalised preferences, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.11.2006 
COM(2006) 731 final 

2006/0237 (ACC) 

REPORT FROM THE COMMISSION TO THE COUNCIL 

Report from the Commission to the Council on the compliance of El Salvador with the 
commitments undertaken under Article 9(2) of Council Regulation No 980/2005 
applying a scheme of generalised tariff preferences  

Proposal for a 

COUNCIL DECISION 

on the granting of the special incentive arrangement for sustainable development and 
good governance beyond 1 January 2007 to the Republic of El Salvador 

(presented by the Commission) 

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REPORT FROM THE COMMISSION TO THE COUNCIL 

Report from the Commission to the Council on the compliance of El Salvador with the 
commitments undertaken under Article 9(2) of Council Regulation No 980/2005 
applying a scheme of generalised tariff preferences  

1. 

This  report  is  made  pursuant  to  the  last  subparagraph  of  Article  9(2)  of  Council 
Regulation  No  980/2005  of  27  June  2005  applying  a  scheme  of  generalised  tariff 
preferences1 (hereinafter: "the GSP Regulation").  

Background 

2. 

Pursuant to Articles 10 and 30 of the GSP Regulation, the Republic of El Salvador 
(hereinafter: "El Salvador") has been provisionally admitted as a beneficiary country 
of  the  special  incentive  arrangement  for  sustainable  development  and  good 
governance,  specified  in  section  2  of  the  GSP  Regulation  (hereinafter  "the  special 
incentive"), as of 1 July 2005.  

In  accordance  with  Article  10(3)  of  the  GSP  Regulation,  on  24  October  2005  El 
Salvador made a request to the Commission to be granted the special incentive until 
31  December  2008.  The  request  submitted  by  El  Salvador  included  evidence  of 
ratification  of  24  conventions  listed  in  Annex  III  of  the  GSP  Regulation,  the 
legislation and measures to effectively implement the provisions of the conventions 
ratified  by  El  Salvador  and  the  commitment  of  the  country  to  accept  and  fully 
comply  with  the  monitoring  and  review  mechanism  envisaged  in  the  relevant 
conventions  and  related  instruments2.  When  submitting  its  request,  however,  El 
Salvador,  in  accordance  with  Article  9(2)  of  the  GSP  Regulation,  referred  to  the 
incompatibility  with  its  Constitution  of  provisions  included  in  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).  Nonetheless,  as  required  by  Article  9(2)  of  the  GSP 
Regulation, El Salvador committed to sign and ratify those two conventions before 
the end of the year 2006.  

Following  a  thorough  examination  of  the  request  and  evidence  submitted  and  the 
commitment  made  by  El  Salvador,  the  Commission  by  Decision  of  21  December 
20053  included  El  Salvador  in  the  definitive  list  of  countries  benefiting  from  the 
special incentive from 1 January 2006 to 31 December 2008. 

Current status 

3. 

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Pursuant to the last subparagraph of Article 9(2) of the GSP Regulation, the Council 
is to decide whether to continue to grant the special incentive to El Salvador beyond 
1 January 2007 on the basis of a report by the Commission on the compliance of El 

OJ L 169, 30.6.2005, p. 1.  
El Salvador also gave an undertaking in compliance with Article 9(1)(d) of the GSP Regulation. 
OJ L 337 of 22.12.2005, p. 50.  

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4. 

5. 

Salvador  with  its  commitments  to  sign  and  ratify  the  two  above  mentioned  ILO 
conventions before the end of 2006.  

The Commission has learnt that the El Salvador Parliament ratified ILO conventions 
No  87  and  No  98  with  a  unanimous  vote  on  24  August  2006.  The  El  Salvador 
government  then  proceeded  to  formally  deposit  the  ratified  conventions  at  the 
premises  of  the  ILO  in  Geneva  on  6  September  2006.  The  conditions  of  Article 
9(2)(b) of the GSP Regulation have therefore been fulfilled.  

Moreover, as provided in Article 9(1)(d) of the GSP Regulation, on 24 October 2006 
El  Salvador  gave  an  undertaking  to  maintain  the  ratification  of  the  two  ILO 
conventions and their future implementing legislation and measures. El Salvador also 
accepted regular monitoring and review of the implementation record in accordance 
with provisions of the two ratified conventions. 

Considering  the  above  and  in  accordance  with  Article  9(2)  of  the  GSP  Regulation, 
the  Commission  therefore  proposes  to  the  Council  to  decide  positively  on  the 
continued granting of the special incentive to El Salvador. 

It is the intention of the Commission to monitor the effective implementation of the 
two ILO conventions in El Salvador, and to apply - where necessary - the measures 
provided for in Article 16 of the GSP Regulation allowing a temporary withdrawal of 
benefits granted under the special incentive arrangement. As part of said monitoring, 
the Commission will invite El Salvador to closely cooperate with the ILO to ensure a 
proper and concrete implementation of the conventions. 

6. 

A draft Council Decision is annexed to this report. 

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1. 

2. 

3. 

4. 

EXPLANATORY MEMORANDUM 

On 21 December 2005, after examination of the request submitted by the Republic of 
El Salvador on 24 October 2005, the Commission decided4 to include El Salvador in 
the definitive list of countries benefiting from the Special Incentive Arrangement for 
Sustainable Development and Good Governance, (hereinafter "special incentive") on 
the  basis  of  Articles  9,  10  and  11  of  Council  Regulation  (EC)  No  980/2005  of  27 
June  applying  a  scheme  of  generalised  tariff  preferences5  (hereinafter  "the  GSP 
Regulation"). 

El Salvador was the only country to invoke - as set out in Article 9(2)(b) of the GSP 
Regulation  -  incompatibility  with  its  Constitution  of  provisions  included  in  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). Both conventions are listed in part A of Annex 
the  ratification  and  effective 
III 
implementation  of  several  core  human  and  labour  rights  ILO/UN  conventions  in 
order for a country to benefit from the additional tariff preferences. 

the  GSP  Regulation,  which  requires 

to 

Having  regard  to  all  relevant  provisions  of  the  GSP  Regulation,  notably  Article 
9(2)(b) thereof, under which the special incentive may be granted to a country which 
has  not  ratified  and  effectively  implemented  a  maximum  of  two  of  the  sixteen 
conventions listed in Part A of Annex III provided that in case of an incompatibility 
with its Constitution, the country concerned has formally committed itself to sign and 
ratify  any  missing  Convention  no  later  than  31  December  2006,  the  Commission 
comes  to  the  conclusion  that  the  Republic  of  El  Salvador  has  complied  with  the 
commitments set out in the GSP Regulation. 

Therefore the Commission invites the Council to decide positively on the continued 
granting of the special incentive to El Salvador beyond 1 January 2007, as set out in 
Article 9(2) of the GSP Regulation, by adopting the enclosed draft decision. 

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OJ L 337, 22.12.2005, p. 50. 
OJ L169, 30.6.2005, p. 1. 

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2006/0237 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the granting of the special incentive arrangement for sustainable development and 
good governance beyond 1 January 2007 to the Republic of El Salvador 

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having  regard  to  Council  Regulation  (EC)  No  980/2005  applying  a  scheme  of  generalized 
tariff preferences6, and in particular Article 9(2) thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

By Commission Decision 2005/924/EC7 El Salvador has been included for the period 
1  January  2006  to  31  December  2008  in  the  list  of  developing  countries  benefiting 
from  the  special  incentive  arrangement  for  sustainable  development  and  good 
governance provided for in Regulation (EC) No 980/2005. 

Pursuant to the last subparagraph of Article 9(2) of Regulation (EC) No 980/2005 the 
continued  granting  beyond  1  January  2007  of  the  special  incentive  to  countries  that 
invoked specific constitutional constraints to the ratification of a maximum of two of 
the sixteen conventions listed in Part A of Annex III to Regulation (EC) No 980/2005 
is subject to a Council decision 

In  accordance  with  Article  9(2)  of  Regulation  (EC)  No  980/2005  the  Commission 
submitted a report to the Council concluding that El Salvador has complied with the 
commitments set out in Article 9 of that  Regulation and proposing a  continuation of 
the special incentive arrangement beyond 1 January 2007. 

HAS ADOPTED THIS DECISION:  

Sole Article 

The Republic of El Salvador shall continue to benefit from the special incentive arrangement 
for  sustainable  development  and  good  governance  provided  for  in  Regulation  (EC)  No 
980/205 from 1 January 2007 to 31 December 2008. 

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OJ L 169, 30.6.2005, p. 1.  
OJ L 337, 22.12.2005, p. 50. 

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This Decision is addressed to the Member States. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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