The Socialists and Democrats welcome the political agreement reached last night between the European Parliament negotiators and the Danish Presidency on behalf of EU member states on the new Generalised Scheme of Preferences (GSP). GSP is the EU’s key trade policy instrument to support developing countries by unilaterally removing or reducing import duties on goods originating from their economies.

After four years of negotiations, the updated GSP regime will become more effective for over 60 developing countries, helping to drive economic growth, promote sustainable development, strengthen good governance, and support poverty alleviation. The revised framework expands sustainability requirements, notably through the inclusion of the Paris Agreement, and reinforces incentives for partner countries to respect human rights and labour rights.

For the S&D Group, a central priority throughout the negotiations was to prevent GSP from being misused as a migration management instrument. The European Commission’s initial proposal risked introducing cooperation on the readmission of migrants as a criterion for withdrawing trade preferences. Thanks to the persistent efforts of the S&D negotiators, the final agreement ensures that any consideration of readmission is strictly a measure of last resort, subject to clear safeguards and a robust procedure. Moreover, the European Parliament will gain a stronger oversight role and access to essential information.

The outcome preserves GSP as what it must remain: a development tool supporting sustainable economic growth.

The provisional agreement reached last night must still be formally approved by both the European Parliament and the Council.

Bernd Lange, INTA Chair and EP rapporteur on this file, said:

“The renewed GSP system clearly bears an S&D mark: we added several international human rights and environmental conventions to the list of international treaties participating countries need to ratify. Thanks to our persistence over many rounds of negotiations, we managed to negotiate a series of stricter criteria that need to be fulfilled before GSP countries see their preferential tariffs withdrawn for continued non-cooperation in the readmission of irregular migrants. With today's agreement, we are sending two billion people in over 60 countries a clear message: in these times of increasing geopolitical tensions, of rising nationalism and protectionism, the EU is committed to being a trustworthy, reliable and durable partner.”

Raphaël Glucksmann, S&D shadow rapporteur, added:

“After more than four years of hard work, we finally have a new GSP regulation. The new system will be a greater catalyst for change in beneficiary countries, fostering greater efforts towards sustainability. The reform brings more transparency, more accountability and a stronger role for civil society.”

Notes to editors:

The EU’s Generalised Scheme of Preferences (GSP) grants low- or zero-tariff access to the EU market for developing countries to boost exports and support poverty alleviation. The EU’s GSP has existed since 1971 and was last reformed in 2014. The current scheme has been rolled over pending agreement on this updated regulation.