Extension of scheme of generalised tariff preferences (GSP)
- Trade policy
Summary
The EU has extended the current generalised scheme of tariff preferences (GSP) until 31 December 2027. An extension is needed because the GSP scheme was set to expire 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.
EU extends current GSP rules as negotiations continue on new rules
Regulation (EU) 2023/2663 of the European Parliament and of the Council of 22 November 2023 amending Regulation (EU) No 978/2012 applying a scheme of generalised tariff preferences
Update
The EU has extended the current generalised scheme of tariff preferences (GSP) until 31 December 2027. An extension is needed because the GSP scheme was set to expire 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 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+ was 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)]. However, negotiations have been complicated and will not be completed before the end of 2023. To ensure that the countries falling under the GSP scheme continue to benefit from preferential tariffs while the negotiations continue, the EU has extended the existing scheme.
Timeline
This Regulation extending the expiry date of the GSP scheme to 31 December 2027 entered into force on 28 November 2023.
Background
For further information on the revision of GSP rules, see Review of generalised scheme of tariff preferences (GSP)
Resources
Regulation (EU) 2023/2663 of 22 November 2023 amending Regulation (EU) No 978/2012 applying a scheme of generalised tariff preferences
Sources
Regulation (EU) No 978/2012 applying a scheme of generalised tariff preferences
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EU extends current GSP rules as negotiations continue on new rules
Regulation (EU) 2023/2663 of 22 November 2023 amending the Regulation applying a scheme of generalised tariff preferences
What is changing and why?
The EU currently charges lower import duties for some products imported from GSP countries (certain less-developed countries that qualify for the generalised scheme of tariff preferences). The EU is preparing to revise the rules for GSP countries, but the discussions will not be finished before December 2023, when the current rules end. This Regulation keeps the current rules in place and allows GSP countries to continue to benefit from lower import duties until the end of 2027. This will allow EU discussions on new rules to continue.
Timeline
The Regulation changing the end date to 31 December 2027 entered into force on 28 November 2023.
Disclaimer: Under no circumstances shall COLEAD be liable for any loss, damage, liability or expense incurred or suffered that is claimed to have resulted from the use of information available on this website or any link to external sites. The use of the website is at the user’s sole risk and responsibility. This information platform was created and maintained with the financial support of the European Union. Its contents do not, however, reflect the views of the European Union.