The EU's Generalised System of Preferences (GSP)
30-08-2010
The EU's Generalised System of Preferences (GSP) aims to promote development in third countries by fostering their exports. However, its record on export diversification and trade creation has been limited. GSP+ grants additional preferences to countries which commit to respect human and labour rights, protect the environment and promote good governance.
Nevertheless, the scheme has failed to improve labour standards and has only succeeded to improve human rights under certain conditions. The emergence ...
The EU's Generalised System of Preferences (GSP) aims to promote development in third countries by fostering their exports. However, its record on export diversification and trade creation has been limited. GSP+ grants additional preferences to countries which commit to respect human and labour rights, protect the environment and promote good governance.
Nevertheless, the scheme has failed to improve labour standards and has only succeeded to improve human rights under certain conditions. The emergence of new trading partners, such as China and India, that provide unconditional loans or aid, might compel the EU to reconsider its use of GSP.
Following the entry into force of the Lisbon Treaty, the European Parliament will co-legislate on the adoption of the next GSP scheme. The EP has supported the inclusion of social and environmental clauses in trade agreements and the use of trade to promote development and social cohesion.