Parliament approves the EU’s renewed trade instrument for development

The updated rules, approved by 459 votes to 127, with 70 abstentions, allow vulnerable developing countries to export goods to the EU at low or zero tariffs. Several international human rights and environmental conventions have been added to the list of international treaties that participating countries must ratify in order to benefit from trade preferences. These include the Paris Agreement, the Convention on the Rights of Persons with Disabilities and the Convention on the Rights of the Child.

Conditionality regarding the readmission of migrants

MEPs succeeded in including a series of stricter criteria that must be met before countries in the Generalised System of Preferences (GSP) lose their preferential tariffs due to a lack of continued cooperation on the readmission of irregular migrants. These criteria include a longer assessment procedure and a mandatory commitment of at least 12 months with the countries concerned. Furthermore, least developed countries will have a two-year delay in the application of readmission conditionality.

Rice

To better protect the EU’s sensitive rice sector, Parliament’s negotiators ensured that automatic safeguards are triggered once a 45% increase in rice imports is reached over a 10-year average.

Quote

Bernd Lange (S&D, DE), Chair of theCommittee on International Tradeand rapporteur, stated:

Today we are delivering on the EU’s flagship development programme, which benefits more than 2 billion people in over 60 countries. By providing virtually tariff- and quota-free access to the EU market for a further 10 years, the EU is redoubling its efforts to be a reliable, predictable and long-term partner for the developing world.

Two issues prolonged the negotiations. On readmissions, the Council made significant progress in addressing Parliament’s concerns, creating a balanced system with clear safeguards and a differentiated approach for the least developed countries. In practice, it will be very difficult to trigger this conditionality. Regarding safeguard measures for rice, we now have a system that will be triggered automatically in the event of excessive rice imports.

Ultimately, this system remains what it should be: a driver of sustainable growth, poverty reduction and fair globalisation. Trade is not an end in itself; it is a tool, and we have now refined it. This is particularly relevant at a time when China is determined to expand its trade ties and the United States is raising trade barriers for the developing world.

Next steps

Once formally adopted by the Council of the EU, the legislation will be signed and published in the Official Journal of the EU. It will then enter into force and apply for a period of 10 years.

Background

TheGeneralised System of Preferences (GSP)has been the EU’s preferential trade arrangement with developing countries since 1971. It offers these countries reduced tariffs when exporting to the EU, with the aim of eradicating poverty, promoting sustainable development and facilitating their integration into the global economy. The GSP covers more than 60 countries and 2 billion people worldwide.In October 2023, the Parliament voted to extend the current scheme following the suspension of negotiations with the Council on the new scheme.