The EU Generalised Scheme of Preferences expires in:
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The GSP is a fantastic development tool. It has proven to help developing countries to become more competitive, reduce poverty, build their domestic industries, increase employment and improve good governance. The clock is ticking, as the current scheme will lapse at the end of the year and little time will be left for the sporting goods industry to adapt its supply chains to the potential changes brought by the new scheme before it enters into force. 12 months of lead time is required to ensure predictability and a smooth transition.
About GSP
The EU’s GSP removes import duties from products coming into the EU market from vulnerable developing countries. It comprises three arrangements:
Standard GSP
Standard GSP for low and lower-middle income countries
GSP+
GSP+: a special incentive arrangement for sustainable development and good governance
Everything But Armed (EBA)
EBA (Everything But Arms): the special arrangement for least developed countries (LDCs), providing them with duty-free, quota-free access to the EU market for all products except arms and ammunition
Social benefits of GSP
GSP reduces poverty
%
Indonesia managed to cut its poverty rate in half in the past 20 years
Over 47 million Pakistanis have escaped poverty between 2001 and 2018
In India, +90M people were lifted out of extreme poverty (2011 > 2016)
GSP encourages countries to ratify international conventions
GSP+ countries |
27/27 conventions ratified |
Sri Lanka, Cambodia, Philippines, Pakistan |
GSP countries |
26/27 conventions ratified |
Indonesia |
25/27 conventions ratified |
India, Vietnam * |
Economic
GSP strengthens EU Trade relations with developing countries
India
1st trading partner
Pakistan
2nd trading partner
Sri Lanka
3rd trading partner
GSP countries are important for the Sporting Goods Industry
Country |
Apparel export to the EU |
Pakistan |
76.1% (#1) |
Cambodia |
69.1% (#1) |
Sri Lanka |
49.4% (#1) |
Source : DG Trade, GSP Hub and World Bank
* Vietnam has left the GSP Scheme on 1st January 2023
Country |
Footwear export to the EU |
Cambodia |
13.4% (#2) |
Vietnam * |
9.7% (#2) |
Indonesia |
7.9% (#5) |
Testimonials
“The GSP is the crown jewel of EU trade policy and has successfully contributed to eradicating poverty in developing countries.”
“It is urgent that the Parliament and the Council adopt the EU proposal to extend the GSP, in order to ensure continuity and prosperity both for the beneficiary countries and businesses”
From the @WSJ: "the failure to renew the GSP is an avoidable flaw in U.S. trade policy toward China that risks denting investment in countries that show promise as alternatives for manufacturing outside China’s vast factory floor." #renewGSP
https://www.wsj.com/articles/manufacturers-move-back-to-china-as-renewal-of-u-s-trade-deal-is-delayed-88ed456b
No companies *want* to return to China, but GSP expiration leaves them no choice. Congress must #renewGSP asap.
https://www.wsj.com/articles/manufacturers-move-back-to-china-as-renewal-of-u-s-trade-deal-is-delayed-88ed456b
It was great to participate with other industries to urge Congress to #renewGSP
Advocates meet with 90+ House and Senate offices about the need to #renewGSP https://renewgsptoday.com/2023/03/15/advocates-meet-with-90-house-and-senate-offices-about-the-need-to-renew-gsp/
