The EU Proposes To Modify The EU GSP Tariff System

The Generalized System of Preferences (EU GSP) is a rule officially formulated by the European Union to ensure that exporters from selected developing countries enjoy import and duty-free status on bicycles sold to the European Union. Recently, the European Commission issued a draft regulation on the Generalized System of Preferences.

GSP+ has expanded its coverage to many countries that export bicycle parts, such as Sri Lanka and the Philippines. Sri Lanka’s earlier GSP+ benefits were terminated in 2010 due to human rights violations, but were restored in 2017. Some of the most important suppliers in the bicycle industry are eligible for GSP, including Vietnam, India and Indonesia. Other countries, such as Cambodia, is one of Europe’s largest bicycle exporters. After canceling GSP+, they must be eligible for everything except weapons.

As part of the revised GSP regulations, the EU seeks to maintain the basic attributes and goals of the existing framework, including the GSP, GSP+ and all sub-programs except weapons. Improving consistency with EU trade policy is also a major goal. Therefore, in addition to the existing 27 international conventions, the committee also proposed 5 new international treaties that partner countries should abide by. It will also replace the 1997 Kyoto Protocol with the 2015 Paris Agreement on Climate Change.

This new version of the plan will include a fast-track procedure to suspend countries that have severely violated the terms of the Generalized System of Preferences and shorten the procedure time from 18 months to 7 months. It will also make it easier for automatic safeguards and certain products that compete with EU products.

An EU official stated that “in terms of civil society participation...we did not specify this in the law”, adding that the committee was “preparing guidelines to better participate in our supervision.”

The European Parliament and EU capitals will discuss the committee’s proposal in the coming weeks, and the law is expected to be passed by the end of next year.