Burma - Main contents

Please note

This page contains a limited version of this dossier in the EU Monitor.

dossier	COM(2012)524 - Repeal of Council Regulation (EC) No 552/97 temporarily withdrawing access to generalized tariff preferences from ...
source	COM(2012)524
date	17-09-2012

The Generalised Scheme of Tariff Preferences (GSP scheme) is part of the European Union's common commercial policy, in accordance with the general provisions governing the European Union's external action.

Council Regulation (EC) No 732/2008[1] of 22 July 2008 applying the current GSP scheme ("the current GSP Regulation") provides that the preferential arrangements provided for in this Regulation may be withdrawn temporarily, in respect of all or of certain products originating in a beneficiary country, for the serious and systematic violation of principles laid down in fifteen out of the twenty-seven international conventions listed in its Annex, on the basis of the conclusions of the relevant monitoring bodies. The relevant conventions also cover core labour rights such as forced labour.

Myanmar/Burma's access to the GSP tariff preferences was temporarily withdrawn by Council Regulation (EC) No 552/97[2] due to routine and widespread practice of forced labour, confirmed by the International Labour Organisation (ILO), in a special procedure of its Commission of Inquiry.

Since 2011, Myanmar/Burma has been undertaking a historic programme of openness and reform as acknowledged by the Council of the EU in its Conclusions of 23 April 2012[3]. The Council expressed support for 'reinstating the Generalised System of Preferences (GSP) for Myanmar/Burma as soon as possible once the required conditions are fulfilled, following the assessment of the International Labour Organisation'.

On 13 June 2012, the International Labour Conference (ILC) lifted restrictions, which excluded the Government of Myanmar/Burma from receiving ILO technical cooperation and assistance and suspended for one year the ILO request to its members to review their relationships with Myanmar/Burma to ensure forced labour is not being used in those relationships.

Accordingly, the violations cannot be any longer considered as 'serious and systematic' and thus the tariff preferences should be reinstated according to the current GSP Regulation.

In the absence of explicit reinstatement provisions in the current GSP Regulation, and in light of the provisions of the Treaty of Lisbon, the ordinary legislative procedure is applied for the adoption of the reinstatement of preferences for Myanmar. This is a one-off procedure aimed at responding to a clear and present political need as expeditiously as possible. The new GSP Regulation which will apply only as of 1 January 2014 redresses the absence of reinstatement provisions.

The proposed Regulation does not incur costs to the EU budget and its application entails a very limited loss of customs revenue. The actual loss of customs revenue resulting from reintegration of Myanmar/Burma is estimated at less than €5 million, as explained in the statement attached, and due to a structural lack of production and trading capacity in the country.