System of generalised tariff preferences (GSP): extension of the validity of the current scheme to 31 December 2013

PURPOSE: to extend Council Regulation (EC) No 732/2008 applying a system of generalised scheme of preferences (GSP) until 31 December 2013.

LEGISLATIVE ACT: Regulation (EU) No 512/2011 of the European Parliament and of the Council amending Council Regulation (EC) No 732/2008 applying a scheme of generalised tariff preferences for the period from 1 January 2009 to 31 December 2011.

BACKGROUND: since 1971, the Union has granted trade preferences to developing countries in the framework of its Generalised Scheme of Preferences (‘GSP’). The GSP has been implemented through successive Regulations applying a scheme of generalised tariff preferences (‘the scheme’) with periods of application usually of three years at a time. The current scheme was established by Council Regulation (EC) No 732/2008 and applies until 31 December 2011.

Future improvements to the scheme should be based on a Commission proposal for a new regulation (‘the next Regulation’) which should take into account relevant considerations relating to the effectiveness of Regulation (EC) No 732/2008 in achieving the objectives of the scheme. The remaining period of application of Regulation (EC) No 732/2008 is insufficient to allow for the Commission to draw up a proposal and the subsequent adoption of the next Regulation in accordance with the ordinary legislative procedure. It is however desirable to ensure continuity in the operation of the scheme beyond 31 December 2011 until such time as the next Regulation is adopted and applies.

CONTENT: this Regulation amends those aspects Of Regulation (EC) No 732/2008 that are necessary for the extension of it period of application until 31 December 2013.

The Regulation also contains provisions that have been amended whereby developing countries that fulfil the criteria for being eligible for the special incentive arrangement for sustainable development and good governance (GSP+) should be able to benefit from the additional tariff preferences under that arrangement if, upon their request by 31 October 2011 or 30 April 2013, the Commission decides to grant them the special incentive arrangement by 15 December 2011 or 15 June 2013 respectively. Developing countries which have already been granted benefits under the special incentive arrangement as a result of Commission Decisions of 9 December 2008 and 9 June 2010 on the beneficiary countries should keep this statute through the period of the extension of the current scheme. Commission Decision 2008/938/EC of 9 December 2008 concerns a list of the beneficiary countries which qualify for GSP+ had limited the validity of this preferential regime from 1 January 2009 to 31 December 2011.

ENTRY INTO FORCE : 20.06.2011.