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DRAFT REPORT (COM(2021) 579 – C9978/2012 – 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

INTA-PR-703100

Committee on International Trade · Rapporteur: Heidi Hautala

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The draft report proposes amendments to the Commission's regulation on a generalised scheme of tariff preferences (GSP), covering standard GSP, GSP+ and EBA arrangements. It strengthens conditionality by requiring standard GSP and EBA beneficiaries to ratify international conventions and adopt National Action Plans on business and human rights, with support from EU development finance. It introduces an enhanced engagement process before withdrawal, an advisory body of stakeholders, and additional tariff reductions for sustainable products. It also adds new conventions to Annex VI and shortens timelines for withdrawal procedures.

Committee position. The rapporteur proposes to amend the Commission proposal to strengthen conditionality, enhance monitoring and transparency, and introduce additional incentives for sustainable products.

Key points

  1. Standard GSP beneficiaries must ratify conventions in Annex VI and adopt a National Action Plan on business and human rights within five years of preferences applying.
  2. EU development finance programming must prioritise ratification of conventions and adoption of National Action Plans for standard GSP and EBA beneficiaries.
  3. Products certified as sustainable by recognised voluntary sustainability standards get additional tariff reductions: ad valorem duties reduced by 4.5 percentage points, textiles by 30%, specific duties by 40%.
  4. The Commission must establish a list of recognised sustainability certification schemes via an implementing act.
  5. GSP+ applicants must submit a time-bound plan of action, agreed with the Commission, and made public.
  6. An advisory body of stakeholders assists the Commission in reviewing, monitoring and assessing GSP+ commitments.
  7. The Commission must carry out at least one high-level monitoring mission per three-year monitoring cycle to GSP+ countries.
  8. At the start of each monitoring cycle, the Commission sends a public list of issues to GSP+ countries.
  9. Temporary withdrawal procedures are preceded by an enhanced engagement with time-bound roadmaps; if prolonged beyond one year, the country is added to a public list.
  10. Withdrawal decisions apply one month after adoption instead of six months, and in urgent cases 15 days after publication.
  11. Annex VI is extended to include the Rome Statute, the First Optional Protocol to the ICCPR, the 2014 Protocol to the Forced Labour Convention, and ILO Conventions 155 and 187.

Who is affected

  • Beneficiary countries of the standard GSP, GSP+ and EBA arrangements face new ratification and monitoring requirements.
  • EU development finance programming must support beneficiary countries in meeting new conditions.
  • Civil society and stakeholders gain a formal advisory role in monitoring.
  • Importers of sustainable products from GSP countries benefit from lower tariffs.

Figures and deadlines

  • Five years for standard GSP beneficiaries to ratify conventions and adopt a National Action Plan.
  • Tariff reduction of 4.5 percentage points for sustainable sensitive products, 30% for textiles, 40% for specific duties.
  • Three-year monitoring cycle for GSP+ countries.
  • One month after adoption for withdrawal decisions to apply, 15 days in urgent cases.
  • One year for enhanced engagement, extendable by another year.

Legal basis: Article 207 of the Treaty on the Functioning of the European Union