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REPORT (COM(2021)0579 – C9-0364/2021– 2021/0297(COD))

On the proposal for a regulation of the European Parliament and of the Council on applying a generalised scheme of tariff preferences and repealing Regulation (EU) No 978/2012 of the European Parliament and of the Council

A-9-2022-0147

Committee on International Trade · Rapporteur: Heidi Hautala

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Parliament's amended version of the proposed regulation on the EU's Generalised Scheme of Preferences (GSP) for 2024-2033. It strengthens conditionality, monitoring, and safeguards, and adds new conventions to Annex VI.

Committee position. The Committee on International Trade proposes amendments to the Commission's proposal, strengthening conditionality, monitoring, and safeguards, and extending the list of conventions.

Key points

  1. Standard GSP beneficiaries must ratify the conventions in Annex VI within five years of preferences applying, or preferences are suspended.
  2. GSP+ applicants must submit a public, time-bound plan of action with benchmarks for tariff suspension, agreed with the Commission.
  3. The Commission must monitor GSP+ implementation through three-year cycles, including high-level missions, lists of issues, and public reports.
  4. Temporary withdrawal of preferences is a last resort, preceded by enhanced engagement with roadmaps; rapid response for grave violations.
  5. Withdrawal decisions must state grounds, set benchmarks for reinstatement, and consider socio-economic impact, especially on vulnerable groups.
  6. Safeguard investigations are shortened to 9 months, and the Commission must publish guidelines and standard forms for Union producers.
  7. Automatic safeguard removal of preferences applies to rice and sugar under certain conditions, with a 6% threshold for exclusion.
  8. The Commission must report by 1 January 2027 and every three years, and review the regulation by 1 January 2029.
  9. Annex VI is extended to include the Rome Statute, the First and Second Optional Protocols to the ICCPR, and the ILO Indigenous and Tribal Peoples Convention.
  10. The Commission must hold regular dialogue with civil society and stakeholders, and the European Parliament may invite the Commission to discuss implementation.
  11. EU development funding should prioritize support for ratification and implementation of conventions, and for utilizing preferences.

Who is affected

  • Developing countries benefiting from Standard GSP, GSP+, and EBA arrangements, with new conditions and monitoring.
  • GSP+ beneficiary countries must implement plans of action and cooperate with monitoring missions.
  • Union producers can request safeguard investigations with simplified procedures.
  • Civil society and stakeholders are consulted in monitoring and withdrawal processes.

Figures and deadlines

  • Five years for standard GSP beneficiaries to ratify Annex VI conventions.
  • Three-year monitoring cycles for GSP+.
  • 9 months for safeguard investigations.
  • 1 January 2027 for first report, 1 January 2029 for review.
  • 6% threshold for exclusion from automatic safeguard removal.
  • 17.5% and 37% thresholds for product graduation.
  • 10% threshold for rice and sugar safeguard.

Legal basis: Article 207(1) and Article 294(2) of the Treaty on the Functioning of the European Union