Extension of Scheme of Generalised Tariff Preferences (GSP)

Proposal for a Regulation of the European Parliament and of the Council amending 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

UPDATE

The European Parliament has agreed to a European Commission proposal to extend the current generalised scheme of tariff preferences (GSP) until 31 De- cember 2027. An extension is needed as today’s GSP scheme expires at the end of 2023, and the EU has not yet agreed how the rules should be revised. The extension provides more time for the EU to conclude internal negotiations.

WHAT IS CHANGING?

The current GSP rules set out in Regulation 978/2012 provide tariff preferences (lower customs duties) on certain products to certain less developed countries. The scheme for countries designated as GSP and GSP+ is due to expire at the end of 2023. New rules are under discussion. This Regulation changes the expiry date of Regulation 978/2012 from 31 December 2023 to 31 December 2027.

WHY?

The EU institutions – the European Commission, the Council of the EU, and the European Parliament – have been negotiating a revision of the GSP for 2024 onwards [see Review of generalised scheme of tariff preferences (GSP)]. How- ever, negotiations have been complicated and will probably not be completed before the end of 2023. The Commission has proposed that the existing rules should remain in place to ensure that less developed countries continue to benefit from preferential tariffs while the negotiations continue. On 5 October, the European Parliament voted in favour of the Commission’s proposal. The Council of the EU is also expected to support the Commission proposal.

TIMELINE

The extension of the expiry date to 31 December 2027 is expected to be agreed before the end of 2023.

BACKGROUND

For further information on the revision of GSP rules, see Review of generalised scheme of tariff preferences (GSP)