The Federation of the European Sporting Goods Industry (FESI) has released a statement that welcomes the proposed adjustment and extension for the new ten years of the Generalised Scheme of Preferences Regulation (GSP) by the European Commission, while recommendation a clarification of the definition of “sensitive” products.
The GSP grants unilateral tariff preferences to certain developing countries based on criteria such as human rights, employment standards, sustainable development and good governance. The new 10-year scheme is set to replace the current one, which expires at the end of 2023.
Calling for “a fair, transparent and legally predictable framework” for its member companies, FESI says the new regulation will contribute to the sustainable development of the beneficiary countries, encouraging companies to invest in them.
The proposed new GSP includes the Paris Agreement on Climate Change. It also provides for additional flexibility in the rules of origin for the beneficiaries’ countries, which would avoid removing the advantages granted by a Free Trade Agreement like the one recently signed by the European Union with Vietnam.
On the other hand, FESI regrets that the classification of products deemed to be “sensitive” has not been clarified in the Commission’s proposals. Apparel and footwear are still regarded as sensitive products, putting a “discriminatory cap” on the reduction in their duties, according to FESI. As an alternative, FESI says it would support the “Sunset clause” proposed in a study of the impact assessment for the GSP review.
A total of 15 countries, including India and Vietnam, currently benefit from a standard GSP for their exports to the European Union. Another eight, including Pakistan, enjoy a reinforced GSP+ status because of their extra efforts in the areas of sustainability and governance. About 30 other countries, including Bangladesh and Cambodia, have EBA (Everything But Arms) status: they are given duty-free and quota-free access for all products except for arms and ammunition. More about the European GSP here.
