22/10/2004
European Commission Adopts New Tariff Scheme To Aid Developing Countries

The European Commission adopted a proposal this setting out the details of the EU's new agreement on tariff preferences to developing countries. The new arrangements simplify the current system, expand the range of products covered, focus the benefits on those developing countries most in need and encourage sustainable development.

The scheme is a key instrument to help developing countries reduce poverty by stimulating their exports to the EU. Products imported from the EU's 178 GSP beneficiary countries have either duty-free access to the EU's markets or a tariff reduction. Agreements last ten years. The present cycle began in 1995 and will expire on 31 December 2005.

In 1968, the United Nations Conference on Trade and Development (UNCTAD) recommended the creation of a "generalised system of tariff preferences" (GSP) under which industrialised countries would grant trade preferences to all developing countries. The EU was the first to implement a GSP scheme in 1971.

The text will now be sent to EU member states, the European Parliament and the Economic and Social Committee so that it can be adopted in time for entry into force on 1 July 2005.