Annexes to COM(2021)579 - Regulation Towards the future Generalised Scheme of Preferences legal framework granting trade advantages to developing countries

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier COM(2021)579 - Regulation Towards the future Generalised Scheme of Preferences legal framework granting trade advantages to developing ...
document COM(2021)579 EN
date September 22, 2021
annex 1).

The new regulation would largely perpetuare existing preferences, but would tighten the conditions for the graduation of individual product sections. Consequently, the trajectory of revenue losses under the new regulation would be somewhat lower than under the current regulations. 32 Additionally, the possibility of countries losing coverage of the scheme due to reaching upper-middle-income statues or signing an FTA with the EU would contribute to lowering the revenue losses.

The total loss of revenue would be 3,970 Mio EURO (gross amount). Deducting 25% that are retained in the Member States to compensate for collection costs the loss of revenue for the EU budget would be 2,978 Mio EURO distributed among the different regimes in the following way:

Mio EUROPref. ImportsLoss of revenue25% reduction "Member States collection costs"
EBA25,1712,7642,073
GSP +8,406776582
GSP13,005430323
Total46,5833,9702,978

Annex 1: Effect on EU revenue by GSP beneficiary

EBA CountriesTotal Imports x EURO 1,000Eligible Imports x EURO 1,000Preferential Imports x EURO 1,000MFN averageEBA rate averageEU loss of revenue x EURO 1,000
Afghanistan49,65519,50114,8022.9%-434
Angola3,520,99037,27031,0047.7%-2,378
Bangladesh15,927,62915,874,49815,366,17611.7%-1,805,019
Benin19,1832,8542,0597.0%-145
Bhutan10,0229,8179,4355.7%-542
Burkina Faso242,09020,94420,0006.1%-1,225
Burundi31,5052621425.3%-7
Cambodia4,574,2514,428,2344,173,90911.9%-497,288
Central African Republic12,14966----
Chad135,5151,950----
Comoros23,4169,4088,6916.6%-573
Congo (Democratic Rep)822,1828,4531,79411.1%-200
Djibouti3,1848748111.5%-9
Equatorial Guinea886,11616,8437,4070.7%-52
Eritrea1,9621,7371,68111.9%-200
Ethiopia520,210255,691246,8548.8%-21,684
Gambia13,24710,89710,1458.0%-808
Guinea732,4354,5341,7385.9%-103
Guinea Bissau64,2995154118.4%-35
Haiti33,89010,6728,74711.0%-962
Kiribati66651211.0%-1
Laos285,962240,844212,04010.0%-21,274
Lesotho299,4454,7105979.1%-54
Liberia327,0563,1132,0014.5%-90
Madagascar906,173698,6208,1516.9%-566
Malawi259,579246,715238,1990.1%-199
Mali30,9425,8733,7005.1%-189
Mauritania675,106336,957332,8258.8%-29,243
Mozambique1,619,4611,144,7601,099,7753.0%-33,386
Myanmar2,731,9982,593,0152,470,85911.0%-273,017
Nepal67,71959,53555,3297.9%-4,377
Niger6,1853,9272,5831.0%-26
Rwanda52,00210,96810,0465.9%-593
Sao Tome and Principe7,6598777403.4%-25
Senegal471,995337,004330,18610.0%-32,859
Sierra Leone265,6732,9271,4553.3%-48
Solomon Islands61,55961,41961,27222.2%-13,612
Somalia23,119301---
South Sudan1,8621,447---
Sudan272,3487,9756,9981.6%-113
Tanzania419,033232,563225,1344.0%-9,052
Timor-Leste4,1871,256012.3%-0
Togo211,71117,56316,3596.4%-1,045
Tuvalu22488---
Uganda416,610131,769129,2427.6%-9,798
Vanuatu74277224.0%-1
Yemen95,4819,7268,72313.2%-1,148
Zambia352,62254,29849,8522.8%-1,371
EBA total37,490,44926,923,41625,171,17611.0%2,763,751

GSP+ CountriesTotal Imports x EURO 1,000Eligible Imports x EURO 1,000Preferential Imports x EURO 1,000MFN averageGSP+ rate averageEU loss of revenue x EURO 1,000
Armenia334,119200,580196,6574.6%-9,028
Bolivia547,50983,01778,2031.7%-1,319
Cape Verde84,53768,04061,24020.1%-12,288
Kyrgyz Republic104,7347,4444,5415.5%-249
Mongolia74,70517,35114,06011.0%-1,542
Pakistan5,917,0435,268,9425,116,96710.1%-514,803
Philippines7,075,0782,437,0121,766,6827.6%-133,553
Sri Lanka2,266,8021,922,8011,167,8438.9%-103,391
GSP+ total16,404,52810,005,1878,406,1939.2%776,174

Standard GSP CountriesTotal Imports x EURO 1,000Eligible Imports x EURO 1,000Preferential Imports x EURO 1,000MFN averageGSP rate averageEU loss of revenue x EURO 1,000
Congo737,1472,6232367.4%4.1%8
Cook Islands6,3851,083--
India38,052,1278,626,4527,929,0339.6%6.5%247,014
Indonesia13,531,0566,140,2994,835,0948.2%4.6%174,707
Kenya971,904334,1981,6404.9%1.9%50
Micronesia3924411.5%7.0%0
Nauru20210--
Nigeria17,072,490161,796129,0497.3%2.8%5,726
Niue26935--
Samoa879457--
Syria44,37823,6354,1438.3%4.4%162
Tadjikistan42,09114,08212,51711.5%9.1%299
Tonga2371771279.7%3.2%8
Uzbekistan172,288106,67893,5956.7%4.3%2,220
Standard GSP total70,631,49415,411,55013,005,4389.1%5.8%430,195


Annex 2: Effects of lowered thresholds for product graduation 33

GSP CountriesGraduated sectionsTotal Imports x EURO 1,000Eligible Imports x EURO 1,000Preferential Imports x EURO 1,000MFN averageGSP rate averageEU loss of revenue x EURO 1,000
CongoS-0571,8543,8503,8490.7%0.7%27
IndiaS-03273,555262,840254,6635.3%3.5%8,923
IndiaS-07a985,329960,287848,8556.5%5.2%44,061
IndiaS-07b760,733725,509692,4503.7%3.6%25,000
IndiaS-08a136,918112,623108,0554.8%3.4%3,719
IndiaS-08b1,082,7531,082,7301,015,0733.9%3.3%33,782
IndiaS-13641,617433,108380,1324.6%3.0%11,527
IndiaS-165,105,0313,480,9802,633,8462.9%2.9%75,580
IndiaS-17a19,40319,21911,9071.8%1.8%213
IndonesiaS-05431,5693433231.2%1.2%4
IndonesiaS-06b1,270,9981,095,7281,003,9574.9%4.9%49,309
IndonesiaS-09a367,84689,45387,4386.0%3.3%2,883
IndonesiaS-09b37,71837,61635,4733.7%3.7%1,301
NigeriaS-0516,185,680167
Sum27,371,0048,304,4537,076,0204.1%3.6%256,328


(1) The expression “developing countries” is used following WTO terminology, see for instance the chapeau of the Marrakesh Agreement Establishing the WTO (“Recognizing further that there is need for positive efforts designed to ensure that developing countries, and especially the least developed among them, secure a share in the growth in international trade commensurate with the needs of their economic development”) and the GATT Enabling Clause (“Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries”).
(2) Treaty on European Union - TITLE V: GENERAL PROVISIONS ON THE UNION'S EXTERNAL ACTION AND SPECIFIC PROVISIONS ON THE COMMON FOREIGN AND SECURITY POLICY Chapter 1: General provisions on the Union's external action - Article 21 http://data.europa.eu/eli/treaty/teu_2008/art_21/oj  
(3) COM(2021) 66 final, 18 February 2021 https://ec.europa.eu/transparency/regdoc/rep/1/2021/EN/COM-2021-66-F1-EN-MAIN-PART-1.PDF
(4) Article 208 of the Treaty on the Functioning of the EU concerning PCD reads: “The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries”.
(5) Commission Staff Working Document Midterm Evaluation of the Generalised Scheme of Preferences ( SWD(2018) 430 final ), http://trade.ec.europa.eu/doclib/docs/2017/september/tradoc_156085.pdf
(6) For instance, since 2011, EBA-beneficiary Bangladesh has almost doubled its exports to the EU from EUR 9 billion to approximately EUR 18 billion in 2018. Exports from GSP countries, in particular the LDCs expanded significantly over the last few years. The scheme’s safeguards were used. Through promotion of socio-economic development while respecting the core values the GSP contributed positively to promoting and protecting human and labour rights. The MTE noted, however, that impact of GSP on environment protection was less clear.
(7) https://op.europa.eu/en/publication-detail/-/publication/706f539c-f0db-11eb-a71c-01aa75ed71a1/language-en/format-PDF/source-221478841 and https://op.europa.eu/en/publication-detail/-/publication/be174994-f337-11eb-aeb9-01aa75ed71a1/language-en
(8) https://op.europa.eu/en/publication-detail/-/publication/f7031da3-f0dc-11eb-a71c-01aa75ed71a1/language-en
(9) Calculated as percentage share of a given product group imported from a beneficiary country to the EU in the total EU imports of that product group from all GSP beneficiaries.
(10) The possibility of partial withdrawal of preferences was introduced as a result of 2012 GSP reform.
(11) The CGE analysis shows that EU GDP would fall by up to 0.01% whereas the GSP countries losses would be larger in relative terms i.e. between 0.04% and 0.07%. This relatively moderate average does not change the fact that some individual countries would be more adversely affected in particular Pakistan and Bangladesh, losing up to 0.3% and 0.36% of GDP, respectively.
(12) Data for 2020 is available, but was not chosen as a basis for the calculations as it is considered an unusual and non-representative year.
(13) For details cf. financial statement
(14) Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1).
(15) Council Regulation (EC) No 732/2008 of 22 July 2008 applying a scheme of generalised tariff preferences from 1 January 2009 and amending Regulations (EC) No 552/97, (EC) No 1933/2006 and Commission Regulations (EC) No 1100/2006 and (EC) No 964/2007 (OJ L 211, 6.8.2008, p. 1).
(16) COM(2021) 66 final, 18 February 2021
(17) Article 208 of the Treaty on the Functioning of the EU concerning PCD reads: “The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries”.
(18) United Nations (2015). Resolution adopted by the General Assembly on 25 September 2015, Transforming our World: the Agenda 2030 for Sustainable Development (A/RES/70/1), available at: https://sustainabledevelopment.un.org/post2015/transformingourworld
(19) Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code (OJ L 343, 29.12.2015, p. 1).
(20) Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558–893).
(21) OJ L 123, 12.5.2016, p. 1.
(22) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for the control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).
(23) Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 7.9.1987, p. 1).
(24) Regulation (EU) No 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union (OJ L 176, 30.6.2016, p. 21).
(25) Regulation (EU) No 2016/1037 of the European Parliament and of the Council of 8 June 2016 on protection against subsidised imports from countries not members of the European Union (OJ L 176, 30.6.2016, p. 55).
(26) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (OJ L 269, 10.10.2013, p. 1).
(27) Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics (OJ L 327, 17.12.2019, p. 1).
(28) The amounts per year need to be an estimation based on the formula or method defined under section 5. For the starting year, the yearly amount is normally paid without a reduction or prorata.
(29) In the case of traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.
(30) To be used only if necessary.
(31) Data for 2020 is available, but was not chosen as a basis for the calculations as it is considered an unusual and non-representative year.
(32) For details cf. Annex 2
(33) In addition to those mentioned in Commission Implementing Regulation (EU) 2019/249