COMMISSION PROPOSES NEW EU GSP SCHEME
On 22 September, the European Commission adopted the legislative proposal for the new EU's Generalised Scheme of Preferences (GSP) for the period 2024-2034. The Commission is proposing to improve some of the key features of the scheme to better respond to the evolving needs and challenges of GSP countries as well as reinforce the scheme's social, labour environmental and climate dimension.
The new proposal contains several important new elements including ensuring a smooth transition for all countries set to graduate from Least Developed Country (LDC) status in the next decade; and maximising the opportunities for low-income countries to benefit from the GSP by lowering product graduation thresholds (that is, the temporary suspension of tariff preferences for highly competitive products) so that the large industrialised producers leave more space in sectors where they are very competitive. The proposal introduces the possibility to withdraw GSP benefits for serious and systematic violations of the principles of the conventions on climate change and environmental protection. It also contains improvements to the monitoring of compliance with GSP+ requirements, and increased transparency and involvement of civil society in its application.
The European Parliament and the Council will now discuss the proposal. The current GSP Regulation expires on 31 December 2023. Once adopted, the new GSP Regulation will apply from 1 January 2024.
Source and more information: European Commission