The Federation of the European Sporting Goods Industry (FESI) has expressed concern over the breakdown of negotiations on the Generalized System of Preferences (GSP). FESI strongly believes that the GSP regulation is the most important element of the EU’s trade and sustainable development policy. It has been shown to help developing countries enter a virtuous circle of prosperity by becoming more competitive, reducing poverty, developing their domestic industries, increasing employment and improving good governance. Free, fair and open trade creates positive conditions for sustainable economic growth and poverty reduction in developing countries.
“Failure to ratify the new regulation and to extend the current scheme will have serious repercussions, undermining the EU trade policy credibility, disrupting longstanding trade relationship with developing countries and introducing significant uncertainty for thousands of EU companies and millions of workers worldwide who heavily rely on the GSP Regulation,” commented Jérôme Pero, Secretary General of FESI.
With the current GSP Regulation set to expire on December 31, 2023, the eyes of 65 countries worldwide, representing a population of more than 2 billion people, are eagerly turning to the EU’s co-legislators, hoping for a timely agreement as the clock continues to tick. With the situation reaching a critical juncture, FESI urges the co-legislators to resume negotiations and do everything in their power to break the current deadlock; and the European Commission to work on a proposal to extend the current arrangement for at least 24 months - giving both parties sufficient time to negotiate effectively without the pressure of an imminent deadline.
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