The new GSP will apply reduced or zero customs duties on imports from 65 developing countries over the next 10 years. The regulation aims to reduce poverty and support sustainable development, particularly in least developed countries. In the current environment of increasing global uncertainty, the importance of the system has further increased.
As one of the core instruments of EU trade policy, the updated GSP will continue the “Everything But Arms” (EBA) initiative. Under this scheme, all products (except arms and ammunition) from the world’s least developed countries will continue to benefit from full duty-free access. This measure, introduced nearly 25 years ago, will continue indefinitely for the most vulnerable economies.
The new regulation also strengthens accountability by linking trade benefits more closely to criteria such as human rights, labour standards, climate and environment, and good governance. Monitoring mechanisms are reinforced, transparency is increased, and the link between trade preferences and international obligations is strengthened.
In this framework, the number of international conventions that beneficiary countries must comply with has been expanded, while a fast withdrawal mechanism is introduced to allow the suspension of preferences in cases of serious and systematic violations of these conventions.
On the other hand, the new GSP also includes measures to protect EU producers. Accordingly, if imports of certain products significantly exceed the 10-year average, the EU may suspend preferential tariffs for the remainder of the year. In addition, tariff rate quotas (TRQs) may be introduced for the following year to help maintain market balance.
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