| HOME |
The Generalised System of Preferences |
1- What is Generalised System of Preferences and who is eligible ?
The EU Generalised System of Preferences (GSP) is a non-reciprocal unilateral trade arrangement granted to 176 developing countries and territories under a three-year EU Council Regulation that currently covers the period from 1 January 2009 to 31 December 2011 [EU Council Regulation (EC) No 732/2008].
The scheme comprises three different regimes:
1-
The general arrangement, dubbed Standard GSP, is granted to countries and territories "that are not classified by the World Bank as high-income countries and which are not sufficiently diversified in their exports". This regime does not grant complete duty free and quota free access to EU markets, but still represents a significant improvement from the 'standard' MFN tariff rate. The general EU GSP covers more than 6200 products that have been classified into two categories. The so-called "non-sentive" products enters into the EU markets duty-free. This concerns about 3200 tariff lines. The products considered "sensitive" benefit from a tariff reduction by considerable amounts compared to normal MFN rates.
ACP countries currently exporting under the Standard GSP regime are:
Congo |
Cook Islands |
Fed. Micronesia |
Gabon |
Marshall Islands |
Nauru |
Niue |
Nigeria |
Palau |
Tonga |
--> To find out which goods still face import tarrifs to enter the EU, and the level of that tarrif, click here and consult our Trade Statistics and Tariffs Details Section.
2-
The commonly-called "GSP Plus" regime is a special incentive arrangement for sustainable development and good governanceg granted only to those "vulnerable" countries that have "ratified and effectively implemented" a number of specific human rights, core labour law and good governance conventions.
The "GSP-Plus" regime covers more than 6300 products which essentially enters the EU market duty-free.
Although the GSP Plus Scheme is in principle open to all ACP countries -- including the ACP non-LDCs -- (see the list of countries considered "vulnerable" in the sense of Article 8 of the GSP Regulation 2009-2011) none of them are currently eligible to it, given its strict conditionalities linked to the signature, ratification and implementation of the above mentioned conventions. Nigeria and Gabon have applied for GSP Plus preferences but their requests were not granted since they have not ratified some of the Conventions under the Scheme.
--> Click here to consult the list of conventions that need to have been implemented to qualify for "GSP Plus".
3. The Everything But Arms regime provides DFQF for all exports from LDCs
--> Please click here to consult the list of countries eligible for EBA arrangement.
--> For more information on this specific trading arrangement, Please consult our specific section on EBA by using our left-hand side menu or by clicking here.
--> Click here for a comparative overview of the three schemes available to ACP non-EPA signatories, including LDCs.
2- What Rules of Origins under the Generalised System of Preferences ?
In November 2010, the Commission adopted a Regulation (Reg. No 1063/2010 of 18 November 2010) amending the Rules of Origins provisions of the GSP both their substance and procedures,
To know the working/processing rules that apply to specific exports, please consult the website of the EU Export Helpdesk and make use of its Input form.
Please also consult for more information, the UNCTAD website on GSP rules of origin.
RESOURCES AND RELEVANT PUBLICATIONS |
Background information:
* An Introduction to the EU Scheme of Generalised Tariff Preferences, DG Trade, European Commission, July 2008 (includes information on EBA subregime). |
Official documents
* Council Regulation (EC) No 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences for the period from 1 January 2009 to 31 December 2011 and amending Regulations (EC) No 552/97, (EC) No 1933/2006 and Commission Regulations (EC) No 1100/2006 and (EC) No 964/2007
* Commission Regulation (EU) No 1063/2010 concerning the GSP rules of origins (+impact assessment)
* Proposal for a Regulation (EU) of the European Parliament and of the Council amending Council Regulation (EC) No 732/2008 applying a scheme of generalised tariff preferences for the period from 1 January 2009 to 31 December 2011 |
Studies
*Mid-term Evaluation of the EU’s Generalised System of Preferences, CARIS report commissioned and financed by the Commission of the European Communities
* Regional perspectives on changing EU-ACP sugar sector relations: The impact of duty-free, quota-free access on ACP exporters, CTA Special Report, May 2010
* The Costs and Benefits of Duty-Free, Quota-Free Market Access for Poor Countries: Who and What Matters, Center for Global Development, Working Paper, March 2010
*Checking the system: a review of trade preferences, Trade Negotiations Insights, Volume 7, Issue 6, July-August 2008
* The European Union Generalised system of preferences: an assessment of the evidential base, Simon J. Evenett, University of St. Gallen and CEPR, June 2008
* The GSP: a solution to the problem of Cotonou and EPAs?, Trade Negotiations Insights, Volume 7, issue 6, July-August 2005
*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
*Trade policy differentiation between developing countries under GSP schemes, Paper No. 685; Norwegian Institute of International Affairs (NUPI)
* GSP reform: a long-term strategy (with special reference to the ACP), IDS Report prepared for the Department for International Development
* Preliminary Analysis of Certain Issues for an ACP Position in Post Cotonou Negotiations, in Particular WTO-Compability and the New EU GSP Scheme, Study prepared for the Economic Affairs Division of the Commonwealth Secretariat, September 2002
* The Perversity of Preferences: GSP and Developing Country Trade Policies, 1976-2000, World Bank Policy Research Working Paper No 2955
|
Websites:
*
European Commission Directorate General for Trade web page on the GSP. |
|