ACP-EU-TRADE - The costs to the ACP of exporting to the EU under the GSP

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ACP-EU-TRADE - The costs to the ACP of exporting to the EU under the GSP

The costs to the ACP of exporting to the EU under the GSP

Prepared for the Dutch Ministry of Foreign Affairs by the Overseas Development Institute (ODI). Final report, March 2007

This report provides a technical analysis of the costs that would be incurred by African,
Caribbean and Pacific (ACP) states if their exports to the EU were subject to the tariffs
applicable under the Generalised System of Preferences (GSP) rather than those that apply at
the present time. The report does not imply that this will happen, that it should happen, or that
the GSP is the only alternative to the status quo for those countries that do not join Economic
Partnership Agreements (EPAs). 1
On the contrary, the report concludes that application of the Standard GSP regime does not
fulfil the commitment made by the EU in Article 37 (6) of the Cotonou Agreement. It would
result in the EU taxing ACP exports, generating revenue that compares unfavourably with
aspects of Union-level aid, and is likely to result in the complete cessation of some ACP
exports to the EU with significant adverse economic effects.

Document (EN): ODI_EN_010307_ODI_Costs-to-ACP-of-exporting-under-EU-GSP.pdf

Author(s): ODI (Overseas Development Institute)

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