The New EU GSP scheme
The European Commission has put forward a new comprehensive GSP package. This includes:
a) a proposal for the continuation of the existing system ("rollover") until the end of 2013, to avoid the lapse of the scheme and allow eligible countries to submit applications for GSP+;
b) the proposal for a revised scheme ("review"), to come into force on 1st January 2014 at the latest.
Information regarding the proposal on the new GSP scheme
General information of the current GSP scheme
The GSP is an autonomous trade arrangement through which the EU provides non-reciprocal preferential access to the EU market to 176 developing countries and territories, in the form of reduced tariffs for their goods when entering the EU market. It is implemented by a Council Regulation applicable for a period of three years at a time. GSP covers three separate preference regimes:
(i) the standard GSP, which provides preferences to 176 Developing Countries and Territories on over 6300 tariff lines;
(ii) the special incentive arrangement for Sustainable Development and Good Governance, known as GSP+, which offers additional tariff reductions to support vulnerable developing countries in their ratification and implementation of relevant international conventions in these fields; and
(iii) the Everything But Arms (EBA) arrangement, which provides Duty-Free, Quota-Free access for the 50 Least-Developed Countries (LDCs).
The EU General Affairs and External Relations Council adopted a regulation on 22 July 2008 applying a new GSP scheme for the period from 1 January 2009 to 31 December 2011.
Graduation and De-graduation
Whenever an individual country's performance on the EU market over a three-year period exceeds or falls below a set threshold, preferential tariffs are either suspended or re-established. These calculations are made on the basis of Product Sections established in the Harmonised System for classification of goods for trade. This graduation mechanism is only relevant for GSP and GSP+ preferences: LDC access under EBA is not at all affected. Graduation is triggered when a country becomes competitive in one or more product groups and is therefore considered no longer to be in need of the preferential tariff rates.
GSP & Thailand
Under the current GSP scheme, Thailand only graduated in Section 14, Natural or cultured pearls, precious or semi-precious stones and jewellery.
In 2009, Thailand is the second largest beneficiary of the EU GSP, after India. The country GSP preferential imports was around €4.2 billion.
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