The European Parliament has approved a new GSP scheme for developing countries
The European Commission welcomed the adoption by the European Parliament of a new regulation on the General Scheme of Preferences (GSP). Voting is considered the final step before the system takes effect on January 1, 2027. Under the new GSP, reduced or zero customs duties will be applied to imports from 65 developing countries over the next 10 years. The resolution aims to reduce poverty and support sustainable development, especially in the least developed countries. In the current context of growing global uncertainty, the importance of the system has increased even more. As one of the key instruments of the EU's trade policy, the updated GSP will continue the "Everything but Weapons" (EBA) initiative. Under this scheme, all goods (except weapons and ammunition) from the least developed countries of the world will continue to enjoy full duty-free access. This measure, introduced almost 25 years ago, will remain in effect indefinitely for the most vulnerable countries. The new regulation also strengthens accountability by linking trade benefits more closely to criteria such as human rights, labor standards, climate and environment, and good governance. Monitoring mechanisms are being strengthened, transparency is being increased, and the link between trade preferences and international obligations is being strengthened. Within this framework, the number of international conventions that beneficiary countries must comply with has been expanded, and a rapid withdrawal mechanism has been introduced that allows preferences to be suspended in cases of serious and systematic violations of these conventions. On the other hand, the new GSP also provides for measures to protect EU producers. Accordingly, if imports of certain goods significantly exceed the 10-year average, the EU may suspend preferential tariffs until the end of the year. In addition, tariff quotas (TRQS) may be introduced next year to help maintain market balance.
Author: SteelRadar Editorial Team
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