Despite lofty rhetoric about development, the EU has cut preferential trading rules with emerging economies for commercial reasons

The EU’s Generalised System of Preferences (GSP) is intended to allow the EU to offer favourable trading rules such as lower tariffs to developing countries. Gabriel Siles-Brugge writes on a recent reform which places greater restrictions on the types of exports which are eligible for this system. He argues that while the reform has been justified by the EU as a development policy on the grounds that it refocuses help toward the least developed nations, rather than emerging economies such as China and India; the real motivation is that it aids the EU’s commercial interests. In particular, by specifically targeting the exports of emerging economies, the reform improves the leverage of the EU in negotiations with these countries over future free trade agreements.

• Primary Source

European Commission: DG Trade: Policy: Countries and regions: Development: Generalised Scheme of Preferences (GSP) http://ec.europa.eu/trade/policy/countries-and-regions/development/generalised-scheme-of-preferences/index_en.htm

European Commission: DG Taxation and Customs Union: Customs: Calculation of Customs Duties: Rules of Origin: Generalised System of Preferences http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/preferential/article_781_en.htm

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