EU parliament takes Argentina out of tariff preference system

The European Parliament backed plans to take “high and upper-middle income” countries out of the bloc’s tariff preference system, the House informed today. Argentina and Brazil remained out of the benefit which the parliament says is aimed towards doing more “for poorer countries.”

According to a Parliament statement, MPs also secured parliamentary oversight of decisions on which countries get preferences, stiffened safeguards for the EU textiles sector and extended product coverage to include minerals of particular value for some developing countries.

The EU's trade preference scheme for developing countries takes effect on January next year.

The updated generalised system of preferences (GSP), the Parliament informed, removes tariff preferences, such as today's reduced or zero duties, for EU imports from countries where per capita income has exceeded $US 4,000 for four years, “reflecting the fact that many GSP beneficiaries (including Russia, Brazil and Saudi Arabia) now compete on an equal footing with the EU in world markets.”

The changes were approved with 503 votes in favour, 107 against and 37 abstentions. "The Parliament has focused on making the system more transparent, more predictable and more generous for the countries that remain in it", said MP Christofer Fjellner before his vote.

The new rules will reduce the number of countries that enjoy preferential access to EU markets from 176 to around 75. It will also reduce the total value of imports that qualify for EU preferences from 60 billion euros in 2009 to about 37.7 billion euros in 2014.